Argentine barley exports to China to hit record high as China-Australia trade war continues

Published (HKT): 2021.02.24 06:45

Argentina’s barley exports to China are expected to soar to a record high of 1 million tons this year, after Beijing earlier imposed an 80.5% tariff on barley from Australia.

Most of the 1.1 million tons of barley that have been exported by Argentina this year was sold to China, export declaration documents received by the Argentine Ministry of Agriculture showed, with local barley exporters expecting that all Argentine barley exports will eventually be absorbed by China.

It was estimated that China would purchase another 400,000 tons in the next several months, they said.

The South American country is expected to export at least 900,000 tons of barley to China this year, Reuters cited sources from China as saying, while another source said that Argentina will have to deliver 500,000 tons of barley to China in February and March alone.

Meanwhile, although China has refused to buy Australian cotton, Australian industry trade group Cotton Australia said that it had found alternative buyers, with some even purchasing more cotton than China.

According to the Australian Bureau of Agriculture and Resource Economics and Science, Australian cotton production this year is expected to be four times higher than last year, with an estimated output value of up to A$1.5 billion (US$1.18 billion).

“China is not taking any Australian cotton [at the moment], there’s no increase in tariffs or anything like that, they’re just not taking our crop,” Cotton Australia chief executive Adam Kay told Australian Broadcasting Corporation.

“But our industry is just getting on with things and pushing the crop into other markets like Bangladesh, Vietnam, Indonesia and Thailand,” Kay added. “Some of those markets will take the extra crop China was taking.”

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