WA farmers warn China could continue to hit sector after CBH barley ban

China’s latest strike on Australian agriculture —- suspending CBH Group from importing its barley — has farmers increasingly concerned other WA grains could be hit next. It was revealed late on Tuesday Chinese customs had suspended CBH Group from supplying barley, after saying it found weed seeds, described as “harmful pests” in shipments of grain sent by CBH. CBH said it had not found evidence to support these claims and that all shipments under question had been re-tested and had met Australian Government phytosanitary export requirements. IBIS World senior industry analyst Matthew Reeves said it was likely CBH was targeted as it is such a prominent exporter of grains, and barley in particular, to China. “They are the largest exporter to China, so targetting CBH has the most material impact,” he said. “China has been targetting a large range of our exports — beef, wine and barley. These actions could flow to other products, especially other grain products.” WA Treasurer Ben Wyatt said he was “disappointed” by the move and called for time out in the escalating trade dispute between Australia and China. “Tariffs and anything that impinges on free trade, whether it’s agricultural products, commodities or whatever, is something that is detrimental to global trade, to Australia and indeed to China,” he said. Mr Wyatt said he fully backed CBH, adding it was unfortunate they had been caught up in broader geopolitical issues. “I share their frustration, I share their anxiety around this,” he said. “I just hope, ultimately that at a national level we can, somehow between Australia and China, get some pause perhaps in the actions and the rhetoric and try and get that dialogue back on to a more rational basis.” The State Government will not offer any assistance to the 3900 WA growers affected by the decision. “We don't respond to sort of tariff decisions if you like … but we'll always support when it comes to looking for alternative markets,” Mr Wyatt said. Pastoralists and Graziers Association grains section president Gary McGill said it was reasonable for people in Australia to believe the motivations for China’s actions were political. “CBH are saying, and everybody would agree, the claims (by China) are unsubstantiated. The problem is going to be whether the claims will be properly assessed,” he said. “The worry we all have is that there doesn’t seem to be a lot of logic and rationale about all this. You would like to think that rationale thinking would apply, but we’re very worried it’s not going to.” Mr McGill said he was concerned the Australian Government was being criticised for triggering the actions, after Prime Minister Scott Morrison called for a probe into the origins of the coronavirus. “If that has meant perverse outcomes from the Chinese for agriculture, people are reasonable in thinking that. But the Government should not be blamed or criticised for what it has done,” he said. WA Agriculture Minister Alannah MacTiernan said there was obviously considerable unhappiness from China about the posturing of the Morrison Government. “However, there is also an agreement between the United States and China to divert around $US70 billion of agricultural imports to the US,” she said. “This inevitably has an impact on those of us that currently export agricultural product to China.” CBH is Australia’s biggest grain exporter but the import suspension on its barley is unlikely to have a significant impact on trade volumes to China given barley trade with China had ceased following China’s introduction of 80.5 per cent tariffs on the product in May. Barley delivered to China post-May has been from earlier contracts being executed. China has also banned five Australian abattoirs and launched anti-dumping and subsidy investigations into the wine industry. CBH head of marketing and trading Jason Craig said CBH was extremely disappointed the suspension had been put in place, and would continue to work with the Australian Government to challenge it. Mr Craig said he was confident other WA grain types being exported to China met their required tolerances in order to receive photostationary certificates. The latest actions raised concerns of reputational damage. “CBH is seen with a high reputation in the market place. We have been going for more than 80 odd years and exporting to more than 30 countries,” Mr Craig said. “Our reputation is very important to us and to WA growers. WA growers are also seen as some of the best producers in the world of high quality product. From this perspective we are concerned about our reputation.” Federal Agriculture Minister David Littleproud said the Government was working with CBH and Chinese authorities to resolve the matter. “Australia produces the best quality grain in the world, and we take very seriously the quality and safety of our grain exports and have world-leading regulatory controls that underpin the integrity and safety of our products,” he said. “Our grain continues to enjoy strong international demand owing to its world renowned reputation and quality.” Madeleine King, Shadow Minister for Trade, called on the Federal Government to use all diplomatic channels to assist CBH in resolving the issue and overturning the ban. “However it is difficult to be confident in the Government’s ability to manage our relationship with China at a time when senior Ministers cannot even get a phone call returned from their counterparts in Beijing,” she said. “The Government’s approach to China has been haphazard and inconsistent. “It must defend our national interests while supporting Australian jobs - including helping our farmers secure markets for their exports.” Ms King said she had “every confidence” in the extensive testing systems CBH had in place during the grain handling process. “CBH has been exporting high-quality grains to China for three decades,” she said. “This is a long-term trading relationship of mutual benefit to both Australia and China.”