1998, Volume 1, Paper 14
ISSN: 2209-6612

Australian Barley Prospects in China’s Growing Brewery Industry

John Chudleigh – Asian Agribusiness Research Centre, Orange Agricultural College, The University of Sydney, Orange NSW
Clare Smith – Asian Agribusiness Research Centre, Orange Agricultural College, The University of Sydney, Orange NSW
Tian Weiming – College of Economics and Management, China Agricultural University, Beijing, China and Asian Agribusiness Research Centre, Orange Agricultural College, The University of Sydney, Orange NSW

Abstract

Australian barley production has varied between 3 and 7 million tonnes over the 10 years to 1997 and, despite seasonal fluctuations, has been slowly increasing over that period. Most Australian barley is produced in the states of South Australia and Western Australia with significant quantities produced in New South Wales and Victoria. Approximately one third of barley produced is sold as malting barley. Of this the majority is exported with Australian exports comprising over half the world trade in malting barley of about 1.8 million tonnes.

Available records indicate that China imports about half Australia’s total exports of malting barley and is thus Australia’s major market. Increasing demand for malting barley in China due to increasing demand for beer indicates a potential market of about 1 to 1.5 million tonnes of malting barley imports. Australia has renewed its efforts in plant breeding, quality control and industry deregulation in order to improve quality and ensure its future competitiveness in world malting barley markets. Growth in production of malting barley in Australia, which could help satisfy Chinese demand, will depend mainly on these initiatives as well as the world price being attractive enough compared with its main competitor for cropping land in Australia being wheat.

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