Damon Mcknight
Australia is known for its high-quality barley production, with Western Australia being the largest barley-producing state. Barley is Western Australia's second most important crop after wheat, contributing 25% of the state's grain production. The majority of Australia's barley exports come from Western Australia and South Australia, with the Middle East and Saudi Arabia being the largest importers. Australian barley is in high demand for malting and brewing, as well as for animal feed due to its low mycotoxin contamination and high fibre content.
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What You'll Learn
Western Australia is the largest barley-producing state
Western Australia's barley production is divided into two categories: malting barley and feed barley. About 30% of the state's barley is delivered as malting-grade, used in the beer industry, while the remaining 70% is delivered as feed grade for animal feed, including beef cattle, dairy cattle, sheep, pigs, and poultry. The state is home to two malting plants: Boormalt (Joe White) in Forrestfield and United Malt (Barrett Burston) in Welshpool. Boormalt is the largest barley malting facility in the southern hemisphere, with a combined production of about 250,000 tonnes of barley malted each year between the two plants.
Western Australia's barley is known for its quality characteristics, including a high germination rate, uniform malting characteristics, and an excellent level of malt extract. The state's feed barley is also well-regarded for its low mycotoxin contamination, good nutrition and energy content, and high fibre compared to other feed grains. The Department of Primary Industries and Regional Development plays a crucial role in the barley value chain, from pre-breeding research to market intelligence, ensuring that Western Australia remains a leader in barley production and export.
The Western Australian barley industry is committed to innovation and meeting customer requirements. Organisations like the Australian Export Grains Innovation Centre (AEGIC) and Grain Trade Australia work closely with the industry to conduct research, develop new barley varieties, and maintain high standards. Western Australia's barley growers operate in a clean environment, utilising state-of-the-art farming techniques to produce high-quality barley that meets global demands. The state's barley production is an important contributor to the state's economy and Australia's agricultural sector.
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Malting barley is used for brewing and distilling
Australia is a world leader in the production and export of high-quality barley, which is grown in a contaminant-free climate. It is the second-largest grain crop in the country, after wheat, and is produced across the country, from southern Queensland to Western Australia. Western Australia is the largest barley-producing state, accounting for 25% of the country's total grain production. The export value of Western Australian barley is worth over $1 billion per year in grain and malt, with 30-40% of the country's total production being malting barley.
Malting is a process that involves a multitude of biochemical changes during the germination and growth of the barley grain. The grains are soaked in water until they germinate and begin to sprout a new plant. They are then dried in hot air to stop the germination process. This process, known as malting, creates the enzymes and sugars required for brewing.
Malt is a crucial ingredient in beer production and is widely used in brewing and distilling. It is also used in baking, confectionery, breakfast cereals, malt beverages, dairy products, condiments, and as a caramel substitute. Australia has an excellent reputation globally for malt production, and it is in high demand for animal feed. Major markets for Australian barley include China, the Middle East, Japan, and there are emerging markets in the Americas.
The Australian barley industry is supported by organisations such as Grains Australia and the Australian Export Grains Innovation Centre (AEGIC), which provide technical support, education, and market insights to customers and breeders. The industry is also aided by the Department of Primary Industries and Regional Development, which is involved in all aspects of the barley value chain, from pre-breeding research to market intelligence work.
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Feed barley is used for animal feed
In Australia, barley is the second most important crop after wheat, with Western Australia being the largest barley-producing state. The crop accounts for 25% of WA's grain production and is worth over $1 billion per year in grain and malt exports. While a significant portion of Australian barley is used for malt production, primarily for beer brewing and distilling, the crop is also in high demand for animal feed.
However, it is important to note that there are different types of barley, and the specific type fed to animals can impact nutrient content. For example, whole barley can be fed to beef cattle, but its fibrous seed coat prevents the thorough digestion of starches and proteins. Therefore, some processing methods, such as dry rolling, are often employed to break down the hull and improve digestibility.
Additionally, when feeding barley to animals, it is crucial to maintain optimal rumen acidity to avoid potential issues such as rumen upset (acidosis) or impaired rumen microbes, host health, and production. Proper starch and protein balance should also be maintained to ensure adequate nitrogen levels for rumen microbes. Overall, feed barley plays a significant role in animal nutrition and is well-suited for various livestock, including beef cattle, dairy cattle, sheep, pigs, and poultry.
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China imposed trade levies on Australian barley
Barley is Western Australia's second most important crop after wheat, accounting for 25% of the state's grain production. Western Australia is the largest barley-producing state, followed by Victoria, New South Wales, and South Australia. Australia produces around 12 million metric tonnes of barley across 4.8 million hectares. 30-40% of this is delivered as malting barley, with the remainder used for animal feed or human consumption.
In November 2018, China initiated an anti-dumping and countervailing investigation into Australian barley exported between October 1, 2017, and September 20, 2018. After an 18-month investigation, the Chinese Ministry of Commerce ruled that both dumping and subsidization had occurred. Dumping occurs when a company exports a product at a price lower than what it normally charges in its domestic market. On May 19, 2020, China imposed an 80.5% tariff on Australian barley, comprised of a 73.6% anti-dumping duty and a 6.9% countervailing duty. The tariff was to be imposed for five years, starting from May 19, 2020.
The Australian government and industry strongly rejected the Chinese commerce ministry's findings, with the trade minister, Simon Birmingham, calling the ruling "completely ridiculous." The new tariffs were expected to disrupt, if not completely halt, shipments of barley to China, driving prices to prohibitive levels. The Australian grain industry estimated that the dispute could cost it at least $500 million per year, with potential broader impacts on regional economies.
The imposition of the tariff on Australian barley compelled Chinese buyers to shift to alternative sources for malting barley, leading to lower returns for their products compared to using Australian barley. The gross value of Chinese agricultural production was expected to fall by about $3.6 billion, around three times the average value of China's barley imports from Australia between 2014-15 and 2018-19. The magnitude of the tariff effectively made Australian barley uncompetitive in the Chinese market, forcing a diversion to alternative, lower-value markets.
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Australia exports barley to the Middle East and Japan
Barley is Western Australia's second most important crop after wheat, accounting for 25% of the state's grain production. The export value is worth over $1 billion per year in grain and malt. While China used to be the major importer of WA barley, the Middle East became its largest market in 2021, with Saudi Arabia as the top export destination. The remaining 70% is delivered as feed grade, which is mainly sent to the Middle East.
In recent years, Australia has also been redirecting barley exports to other markets, including the Middle East, Southeast Asia, and Latin America. This has been driven by industry investments and Australian government initiatives such as funding through the Agricultural Trade and Market Access Cooperation (ATMAC) Program. As a result, Australia's barley exports have seen significant growth in Latin American markets, particularly in Mexico, with a 416% increase in export value to Latin America from 2020 to 2023.
Japan is another significant market for Australian barley exports. In 2022, Japan imported $372 million worth of barley from Australia, making it the second-largest market for Australian barley after Saudi Arabia. The import market for barley in Japan has been growing, with Australia being the primary source of these imports.
The majority of the barley produced in Western Australia is exported, with two malting plants in the state: Boormalt (Joe White) in Forrestfield and United Malt (Barrett Burston) in Welshpool. The Boormalt facility is the largest barley malting facility in the southern hemisphere, malting about 250,000 tonnes of barley annually.
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Frequently asked questions
Barley is grown widely in Australia, from southern Queensland to Western Australia.
Western Australia is the largest barley-producing state, followed by Victoria, New South Wales, and South Australia.
Western Australia's barley exports are worth over $1 billion per year. The majority of the barley is exported, with the largest markets in 2021-2022 being Saudi Arabia, Japan, Kuwait, Jordan, and Vietnam.
Major markets for Australian barley include China, the Middle East, and Japan. There are also potential markets emerging in the Americas.
Dry conditions and drought have impacted barley production in recent years, with a decline in production observed between 2019 and 2020. However, production is expected to increase in 2020-2021.
