Riverina farmers are concerned that the Chinese government's move to increase tariffs and suspend imports from some meat processors could jeopardise the region's drought recovery.
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Downside farmer and livestock agent Steven Condell said he had been contacted by clients who were worried about how far the trade dispute might go.
"China is a major player and coming out of the drought years and we have the potential of having a big season with good grain yields and stock prices, the last thing we want is to lose market share," he said.
"It is concerning if they using it as a bargaining tool.
"We would rather have open trade with them than not because the way is world is at the moment, we don't need any more restrictions on us."
China is threatening Australian barley growers with an 80 per cent tariff and has suspended imports from meat processors in Toowoomba, Brisbane and Casino in NSW.
NSW Farmers Wagga branch chairman Alan Brown said Riverina farmers were "very much" concerned about the potential impact of a widening trade dispute.
"We are heavily dependent on China as an export destination so any upset on that trade has a direct impact on farmers," he said.
"Even in the case of barley exports, most of that comes from WA but it will still have a sizable impact on the overall market because if it doesn't go to China it needs to find a home somewhere else, and that might impact on prices next harvest."
Riverina farmers are in the process of rebuilding their livestock herds or establishing their crops as good rains create hope for an end to drought conditions.
Mr Brown said problems with exports could disrupt efforts by Riverina farmers to get back on track.
"Farmers need a break, they need decent yields and they also needs decent prices to make sure they can pay down some debt and get ahead for a change," he said.
China's Ministry of Foreign Affairs has described the suspensions as relating to quarantine violations and denied it was retaliation for Australia calling for an inquiry into the original coronavirus outbreak in Wuhan.
"The issue of the origin and transmission of the virus needs to be assessed scientifically by medical professionals," The Ministry's spokesperson said.
"Political maneuvers under the context of the pandemic will only disrupt international anti-virus cooperation and won't gain any support."
Mr Brown said he did not accept that explanation.
"It's obviously a ploy to get back at the Australian government because of activities around this coronavirus," he said.
"They have used this as a chance to strike back at us, which is not good for farmers and certainly not a place we need to be."
Riverina MP and Deputy Prime Minister Michael McCormack said the government "determined" help the meat processors affected by China's import ban to "resume normal operations as soon as possible".
"Farmers throughout the Riverina and Central West produce the best food and fibre in the world," he said.
"Our barley producers operate in a competitive global market and price their product in an entirely commercial way.
"I have spoken at length today with Grain Growers chief executive David McKeon, affected beef processors and producers regarding this issue.
"The government has worked with the Australian grains industry and will continue to work with it in a bid to ensure a positive outcome."
Mr Brown said he hoped emergency meetings between agricultural industry representatives and the federal government could help the situation.
"What we really need is a free and fair avenue for trade," he said.
"China has a very large population and we have excess food, so if we can join the two up it's all the better."