Australia’s spat with China over trade regulations and agricultural disputes has resulted in Canada benefitting. Canadian barley has replaced Australian barley as China’s numero uno barley exporter. Canadian barley will be used by Chinese breweries to make beer.
According to Bloomberg, Canada exported close to 240,000 metric tonnes of Barley in May, out of which 170,000 was sold to China. Interestingly, the agriculture of Barley takes place in the latter half of the year, but Canada has managed to export it off already.
Canadian Barley Exports Are Surging
Canadian barley is much desired in China due to their love for beer. According to records, China is the largest consumer of beer, and their beer staple is barley. They prefer Canadian barley because it has a high protein count. This is needed as Chinese brewers mix the barley with rice, which makes a higher protein necessary to balance out the enzymes.
Most exporters of Canadian barley are waiting for the winter months when the business will truly boom. Some of them are hopeful that good luck would continue, as the sampling of Canadian barley has finally captured the interest of the Chinese market. Most of the Canadian barley is of the malted kind- used for beers. The rest is simply for animal consumption. But there might be a problem, if export value increases, local prices will increase too.
Barley vs Canola
While business for Barley seems to soar, Canola seems to be hitting the ground. In 2019, Chinese authorities blocked the entry of Canadian Canola as retribution for the latter holding a Huawei executive in detention. Interestingly, the Chinese economy can handle a block on canola, but not barley, because it seems far more important to the economy. Errol Anderson mentions that while canola is potentially a political object, barley isn’t.
Given the pitiable condition of canola, Barley Council of Canada is not taking any positives in the sale of Barley as permanent. They know that the battle between China and Australia is more political than scientific. Yet, they also don’t want to look away from this impressive business opportunity, so they are happy with their condition now.
Barley Council Of Canada director, Erin Armstrong, mentioned that they would prefer Canadian barley to be grown due to its quality. And not because of political schemes.