From left field

with David Matthews

we are not too dependent on one customer?

This is not a pitch for a return to the days of statutory marketing, but under that system, when all exports were managed by the Australian Barley Board, the industry could make decisions based on long-term objectives.

Market development was seen as a smart investment.

While we have been in China’s sin bin, groups such as the Australian Grains Export Innovation Centre have done a great job of promoting our barley into other markets. But in this deregulated environment, who will trade into those markets if the price is $30 a tonne lower than China? Are traders, and growers, going to prioritise market development over today’s best bid? Probably not.

So what have we learned from this?

Hopefully, we have all learned freedom to trade is in everyone’s interests.

Yes, governments will at times intervene to satisfy domestic political agendas, but in the main, let the business to business activity continue away from the glare of political posturing.

We have learned high dependency on one market is a risky strategy. But in a world where our organisational structures encourage short term thinking, how do we manage this risk?

Governments think only in election cycles and the next poll.

ASX-listed companies focus on the next six-month reporting period and the analyst updates.

And trading companies look to the next profit and loss statement and corresponding impact on the bonus pool.

It seems inevitable then, with barley, it will be all eyes to China again.

As farmers, we do think long term with key issues such as soil health, weed management and pest management.

But when it comes to marketing our barley I suspect we will be like everyone else – we will chase the cash. And if we do that with eyes wide open, that’s okay.

Just remember we should not complain next time we are on someone’s blacklist.