Great Southern barley grower says China’s political powerplay will take a heavy toll

There is one thing in particular about China’s barley tariffs that Mark Adams cannot wrap his head around. “What I fail to understand is that the Chinese are not big barley producers, so why they are complaining about buying cheap barley?” the Great Southern barley farmer said. “I don’t quite understand. Their industry that they are protecting, being their own barley growing areas, are a very small part of their grain production. “I believe the whole thing is quite political, and it has been from the start.” Barley makes up about half of Mr Adams’ seeding program on his farm in Woogenellup, north-east of Mt Barker. He has already sown 80 per cent of his barley and he will continue sowing the other 20 per cent. While news of China’s massive tariff on Australian barley was a big blow, he said it would not stop him selling his crop. “It is going to have quite a significant impact on our bottom line and our net profit,” he said. “I don’t doubt that the barley is going to be sold, but it is going to be sold at a much lower price.” Mr Adams said the debate about Australia dumping barley into China had been around for about 18 months. “We weren’t,” he said. “We were selling into China at a price which was a world price. At the time we had quite a bad east coast drought, so WA was selling barley in the east coast at a premium compared to what we were selling it to China.” He said it “deflates you quite a bit” to wake up and hear China has followed through on its threat. While he and other barley farmers would have avoided some of the pain by pre-selling some grain, he said the tariffs would still take a big toll. But he said he believed the conflict was based on politics. “The Australian and Chinese relationship needs to be respected very carefully,” Mr Adams said. “We in Australia rely on China not only for our barley, but for our gas and our iron ore and pretty much 80 per cent of all exports from WA. “Not that I’m saying we should roll over and let them walk all over us, but we should have a very good understanding and respect for each other. “If we continue to criticise and question China’s government policies, then I think they will continue to punish those countries that do that.”