Australian farmers’ switch from barley to canola pays off amid Chinese tariffs

Better known for its wheat and barley, Australia is forecast to harvest a record canola crop of more than 5 million tonnes this season

Analysts expect farmers to increase the acreage dedicated to canola in the coming years due to strong global demand, especially if barley prices remain depressed by the Chinese tariffs

Reading Time:3 minutes

A paddock containing a crop of canola is seen in Mallala, north of Adelaide. File photo: Reuters

Published: 5:00am, 15 Oct 2021

When top barley buyer China last year slapped tariffs of more than 80 per cent on imports from Australia amid a bilateral spat, grain farmers Down Under could have been forgiven for fearing tough times ahead.

But a switch to canola, combined with ideal growing conditions and near record prices for the yellow-flowering oilseed, have proved a boom for farmers as they prepare for a second consecutive year of a bumper grain harvest.

Better known for its wheat and barley, Australia is forecast to harvest a record canola crop of more than 5 million tonnes this season, according to government data.

“When you lose your biggest market you need to find alternatives,” said Lyndon Mickel, a grains farmer in export-focused Western Australia.

Analysts and traders expect Australian farmers to increase the acreage dedicated to canola in the coming years due to strong global demand, especially if barley prices remain depressed by the Chinese tariffs.

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