Production

In 2015/16, Australian production of barley is forecast to be stable at 8.5 million tons. Barley is generally harvested from October to late November. Australian barley is used in the malting, brewing, distilling, Shochu and feed industries. Malt barley is for human consumption, while feed barley is for animal feed. Malt barley is used in beer and liquor production while malt extract is used in the food industry. A significant amount of barley is malted and exported for beer production, especially in China.

Trade

In 2015/16, barley exports are forecast at 5.3 million tons. Official USDA exports for Australia for 2014/15 were revised upwards from 4.5 million tons to 5.5 million tons. Australia normally supplies around 30 per cent of global trade in malt barley and 20 per cent of trade in feed barley. Australia's three largest barley importers are China, Saudi Arabia and Japan. Chinese demand for barley rose sharply in 2014 and is expected to continue to expand as a market for both feed and malting barley.

An estimated 60 percent of Australia's barley shipments to China are malting grade barley used to manufacture beer. Demand for malting grade barley from the Chinese beer market has continued to grow and per capita beer consumption in China rose from 17 liters in 2000 to 37 liters in 2013. One reason for stronger Chinese demand was its government's 2014 ban on US and Argentinian GM corn, which led livestock feed buyers in China to substitute feed barley for corn.

A number of recent trade agreements have reduced tariff barriers for Australian barley exporters. In mid-January 2015, the Japan–Australia Economic Partnership Agreement (JAEPA) came into force. Under JAEPA, exports of feed barley are now tariff free. Further, special safeguard measures will no longer apply to imports of Australian feed barley. The EPA also created an Australia-only duty-free quota for unroasted malt of 8 600 tons duty free from 15 January 2015 to 31 May 2015, with the quota limit growing to 86,000 tons by April 2024.

Australian Barley Exports by country, 2010-14 ('000 metric tons)

2010

2011

2012

2013

2014

World

3,950

5,058

5,111

5,121

6,123

China

1,392

1,268

2,102

1,766

3,170

Saudi Arabia

761

1,667

1,153

1,702

471

Japan

1,067

962

769

967

311

Kuwait

199

336

185

175

67

United Arab Emirates

305

160

350

130

105

Oman

30

23

53

55

35

Jordan

0

153

52

53

0

South Korea

34

51

58

46

59

Taiwan

46

30

52

39

22

Vietnam

16

15

81

32

23

Export market share (%)

100.0

100.0

100.0

100.0

100.0

China

35.2

25.1

41.1

34.5

51.8

Saudi Arabia

19.3

33.0

22.6

33.2

7.7

Japan

27.1

19.0

15.0

18.9

5.1

Kuwait

5.0

8.5

3.6

3.4

1.1

United Arab Emirates

7.7

3.2

6.8

2.5

1.7

Oman

0.8

0.5

1.0

1.0

0.6

Jordan

0

3.0

1.0

1.0

0

South Korea

0.9

1.0

1.1

0.9

1.0

Taiwan

1.2

0.6

1.0

0.8

0.4

Vietnam

0.4

0.3

1.6

0.6

0.4

Note: Calendar years.

Source: Global Trade Atlas

Under the China-Australia Free Trade Agreement (CHafta), the current 3 per cent tariff on Australian barley exports will be removed immediately on commencement of the agreement, likely before the end of 2015. As China is Australia's main export market, this change will further encourage bilateral trade.

Barley

2013/2014

2014/2015

2015/2016

Market Begin Year

Nov 2013

Nov 2014

Nov 2015

Australia

USDA Official

New post

USDA Official

New post

USDA Official

New post

Area Harvested

3,943

3,943

3,800

3,810

0

3,800

Beginning Stocks

539

539

692

692

0

392

Production

9,669

9,669

7,950

8,500

0

8,500

MY Imports

0

0

0

0

0

0

TY Imports

0

0

0

0

0

0

TY Imp. from U.S.

0

0

0

0

0

0

Total Supply

10,208

10,208

8,642

9,192

0

8,892

MY Exports

6,216

6,216

5,000

5,500

0

5,300

TY Exports

6,262

6,300

5,000

5,500

0

5,300

Feed and Residual

2,000

2,000

1,700

2,000

0

2,000

FSI Consumption

1,300

1,300

1,300

1,300

0

1,300

Total Consumption

3,300

3,300

3,000

3,300

0

3,300

Ending Stocks

692

692

642

392

0

292

Total Distribution

10,208

10,208

8,642

9,192

0

8,892

1000 HA, 1000 MT, MT/HA