Argentine barley exports to China smash records amid Australia spat
RIO DE JANEIRO, BRAZIL – Argentina’s barley exports to China are set to soar to a record 1 million tonnes in 2021, industry sources and sales data show, as Beijing looks beyond its traditional top supplier Australia amid a lengthy diplomatic standoff between the two countries.
The sales bonanza, revealed by industry sources in Argentina and China, underscores how the South American grains powerhouse is plugging the supply gap that opened last year after diplomatic tensions led China to slap a 80.5% tariff on Australian barley.
Export declarations, filed to Argentina’s ministry of agriculture, show that already 1.1 million tonnes of barley has been sold year-to date, which traders said was almost all going to the world’s second-largest economy.
“This year it is clear that all Argentine barley exports are going to China,” said Agustin Baque, an international barley broker based in Argentina.
“I estimate that in the following months China will buy an additional 400,000 tonnes,” Baque added. Last year Argentina exported a then record 298,000 tonnes of feed barley to China.
Much of Argentina’s barley exports are being rerouted from Saudi Arabia, which uses the grain to feed camels and had been the main buyer until it started tapping into Australia’s glut of the grain.
China is importing huge volumes of grains to feed a pig herd that it is rebuilding after an African Swine Fever epidemic led to the culling of hundreds of millions of hogs. It is also looking to plug a domestic corn shortfall with other grains.
A China-based source close to the trade said that at least 900,000 tonnes of Argentina barley were expected to be exported to China in 2021, and the actual volume might be even higher.
“Barley exports from Argentina to China have soared, and are hitting record high levels,” said a second Chinese industry source briefed on the trade, adding that 500,000 tonnes of Argentina barley were scheduled for delivery to China in February-March.
“The main reason is still to plug the (supply) gap, left by the Australian barley situation. Also domestic corn prices are high and supplies are tight,” said the source, who asked not to be named as he was not permitted to speak to the media.
Other beneficiaries of China’s demand for barley include producers France, Canada and Ukraine.
Argentine barley is sown in June. Harvesting ends in January.
More: Latin America news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error