China has approved imports of barley and corn from Kazakhstan. The approval came when China launched an anti-dumping probe into barley import from Australia, who is China’s top supplier of grain, among tense ties between Beijing and Canberra. However, China is top barley importers and also a major buyer of corn in the world.
The decision to import will help China meet demand from its spirit and energy sectors in a move aimed at diversifying the country’s sources of grain shipments.
China’s agreement with Kazakhstan will have a limited impact on trade and logistics will restrict the volume flowing to China. According to China Customs data, Australia barley exports to China worth 6.48 million tonnes and which is close to three-quarters of China’s roughly 8.86 million tonnes of imports of the grain worth about USD 1.15 billion. The grain is used in both livestock feed and the preparing of alcoholic beverages.
China has imposed 25% tariff on a list of USA products including corn and sorghum, two major animal feed ingredients, in July 2018. China sets an import quota system for its major grains including corn, wheat and rice and the country sets the corn import quota of 2018 at 7.2 million tonnes.