Canada: Barley exports face significant setback in H1 of crop year 2022-23
Canada, one of the world's leading barley exporters, has faced a significant setback in the first half of the 2022-23 crop year. As the Canadian Grain Commission (CGC) reports, by week 26, the export volume had plunged to a mere 918,700 metric tons, marking the lowest level in six years. This figure represents a precipitous decline of 45.8% from the previous year and is 40% below the five-year average of 1.53 million metric tons for the same period.
Highlighting the extent of the slump, the CGC reported a drastic drop in week 26 exports to a meager 900 metric tons, the lowest weekly volume witnessed in two decades. The severity of this decline underscores the challenges that Canada's barley sector is currently grappling with.
The downturn in Canadian barley exports can be traced back to increased competition from Australia. In August, China, a major importer of Canadian barley, opened its market to Australian barley imports. This development has significantly reshaped the barley trade dynamics, leading to a clear dip in Canada's export volumes.
By December, CGC data showed that a staggering 91% of Canadian barley exports were destined for China. However, even this volume had dwindled by 656,300 metric tons, or 45.4%, compared to the same period in the previous crop year. The shift in market dynamics, driven by China's decision to accept Australian barley, has had a profound impact on Canada's barley export volumes, reflecting the country's struggle to maintain its foothold in the global barley market.
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