The return of Australian barley imports to China has brought a happy buzz to at least one industry - brewers of craft beers who are hoping for a much-needed reduction in costs.
The last three years have not been good to China's nascent craft brewing sector. First, the pandemic kept customers away from bars and then the Chinese government in 2020 imposed heavy anti-dumping tariffs on Australian barley and wine, widely seen as retaliation for calls by Canberra for an inquiry into the origins of COVID-19.last month after an easing in trade tensions.
"Australian malt in the market return prices back on the right track," he said. "With no Australian malt available, the prices of other malts has become crazy." But in the absence of Australian malting barley, many Chinese craft brewers turned to alternatives such as French or Canadian malt. Options equivalent in quality to Australian barley didn't come cheap, particularly after Russia's invasion of Ukraine sent grain and shipping costs spiking worldwide and crops were hit by unfavourable weather.
About 300,000 tons of Australian malting barley has been contracted for sale to China since the tariffs were dropped, he added.
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