The potential impacts on Riverina exports from the trade standoff between China and Australia are becoming clearer as the grain harvest continues and commodity prices start to shift.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Over the past few months the Chinese government has placed tariffs or biosecurity import bans on Australian barley, beef, wine and timber, all of which are produced in the Riverina.
NSW Farmers Wagga branch chairman Alan Brown said some types of Riverina agricultural products were not exported directly to China, but were still competing in an international market that had been disrupted by the trade issues.
"The impacts will be there whether it's direct like with wine sales or more indirect, like with barley," Mr Brown said.
China's trade decisions were handed down amid disputes over maritime boundaries, Hong Kong's independence, investigations into China's handling of the first coronavirus outbreak and Australia's efforts to combat foreign influence.
Mr Brown said agriculture was "complex" but "there's no way you can take out a market as big as China from a particular industry and not have an effect".
"I'm concerned for the future if this goes on. [China] haven't hit wool yet but it's an obvious target. I suspect they haven't hit wool because we are a major supplier and they have their mills set up for wool...and they can't just ask other counties for wool as they haven't got any," he said.
NSW Labor Senator Tim Ayres has pointed to reports that valued the Riverina's barley industry at $110 million and beef at $334 million, which were now "put at risk by China's economic coercion".
"The Morrison government needs to have a real plan for the workers and their families who rely on the Riverina's export industries," he said.
"That includes market diversification and shifting agricultural exports up the value chain to deliver good jobs in country towns."
Riverina MP and Deputy Prime Minister Michael McCormack has said Australia needs to diversify its export markets "because that is critical to our future interests in making sure that we've got markets in which to send our coal, iron ore, food and fibre".
Mr McCormack said the government would work through the issue in a "pragmatic and patient way" and had taken the barley tariff issue to the World Trade Organisation.
Mr Brown said "diversifying is an option but often that's easier said than done" and China and Australia should try to "decouple trade and political blues".
"If they want to have a political argument, send some ambassadors home or close some consulates, but don't hammer trade," he said.