China: Barley imports total 2.2 mln tonnes in January-March, virtually all from Australia
China imported 700,000 tonnes of barley in March, virtually all from Australia, and 2.2 mln tonnes in Jan/March, of which 2.0 mln tonnes from Australia and 0.2 mln tonnes from Canada, trifle container arrivals from Denmark and France, H. M. Gauger GmbH said in their May report.
As per private estimates, Australian crop 2016 shipments to China already total more than 3.0 mln tonnes and may reach 5.3 mln tonnes in the present crop year (Nov/Oct). Such quantities include at least 1.5 to 2.0 mln tonnes of feed barley. Feed barley imports were boosted by a penalty tax on DDG from the U.S., but also by a more lenient handling of grain imports by the Chinese customs authorities. The market in South China needs feeder imports, which are of better quality and cheaper than local maize from the north. The government reduced the VAT from 13 to 11% on agricultural products to stimulate consumption.
Beer production in China has dropped from a high of 505 mln hl to 450 mln hl in 2016 and is expected to drop further this year. Imported and craft beer have become popular. The large Chinese brewers follow the higher quality trend. Estimates are that the input of malt in beer has increased from 6.5 to 7.5 kg/hl. Domestic malting barley supplies are shrinking, malt export is improving, which adds up to a malting barley import demand of 3.5 to 3.8 mln tonnes. Import projections are 3 mln tonnes from Australia, 0.5 mln from Canada and an unpredictable, but probably small part from France. At present new crop French 6rw barley is not competitive vs. Australian FAQ barley.
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