Jack Wang presents at the 2026 GIWA Barley Forum. Photo: GIWA

CHINESE maltsters would like to see better quality in Australia’s FAQ barley, and the release of varieties with malting attributes that compare with Maximus.

The insight came from Dalian Xingze Malt deputy general manager Jack Wang, speaking this week at the Grain Industry Association of Western Australia annual Barley Forum in Perth.

In his A Chinese Perspective: The outlook for Australian malting barley in China and Asian markets presentation, Mr Wang said in this second half of 2026, the China Alcoholic Drinks Association new labelling rule will be implemented across the industry.

This requires malt content to be over 50 per cent, which will increase proportional demand for malt used in brewing regular-type beers which use adjuncts such as corn starch, rice starch, and sugar.

He is clear about what that will mean: “Demand for malt will rise.”

“The annual import of malting barley in China maintains 4.5-4.7 million tonnes; with the rising malt usage ratio in China’s beer production, imports of malting barley are expected to rise to 5-5.5Mt.”

Mr Wang said China relies on imports to supply 90pc of its malting barley requirements.

“At present, Australia supplies 67pc of China’s imported malting barley, and Canada makes up the balance.”

He said all Australian malting barley purchased by DXM in the current marketing year has come from WA.

Beer profits in high end

DXM is located in China’s north-east and is the nation’s largest privately owned malt plant.

It imports about 700,000t of barley to make malt which goes to brewers in China and beyond.

Mr Wang said China’s total malt exports are over 600,000t, with sales into Asia accounting for 400,000t to customers including Heineken, AB Inbev and Carlsberg, as well as ThaiBev and breweries in Vietnam.

He said while China’s malt exports were increasing year on year, China’s beer output has been relatively steady at around 35-36 million kilolitres annually from 2021 to 2025.

While the overall volume has changed little, Mr Wang said growth in the value of China’s brewing industry was being achieved, driven mainly by mid to high-end beer.

“In short, mid to high-end beer contributes less than 40 percent of volume, yet 70pc of gross profit,” Mr Wang said.

Chasing flavour

He outlined the need for high-end beers to prioritise distinctive flavours and said the Australian variety Maximus had “outstanding properties” which made it “widely, even exclusively” used for high-end malt.

He said Spartacus and Planet can also be used for high-end malt and premium beer.

However, Mr Wang said Neo CL, which GIWA recommended as a variety for WA growers for the first time for the current crop year following its Grains Australia malting accreditation, is yet to be trialled by DXM.

“I haven’t tested it so far,” Mr Wang said.

InterGrain barley breeder David Moody with a plot of Neo CL. Photo: InterGrain

Mr Wang said he has purchased a small shipment of Neo, and will receive the cargo next month for malting in September; if the results pass muster, the malt will go to brewers and trial batches of beer should be done by October.

“[I] may be able to purchase a larger quantity of Neo barley next year.”

“I hope that Australia can provide two to three high-quality barley varieties for China’s market.”

Mr Wang said malt blends contain at least two or three varieties, and Australian ones typically contain 60pc Maximus, 30pc Spartacus, and 10pc Planet.

He said if these proportions cannot be met, the malt will be rejected by the customer.

“I just hope that Australia can develop a new variety from 10.5 to 11pc [protein]; that will be suitable for Chinese brewing.”

FAQ quality sliding

Australian Bureau of Statistics May data shows malting barley exports to China of 79,076t being roughly 13pc of the 589,184t of feed barley shipped.

The enormity of the feed figure indicates not just barley going into the stockfeed market, but fair average quality, or FAQ, barley going into malting.

FAQ barley can be tonnage out-turned for export without varietal purity, or shipments with stack averages beneath malting specifications.

“Australian FAQ barley can only be used for the production of regular beer.”

High-end beer in China retails for around 50pc more than regular beer, which can be brewed using malt produced from either Australian or Canadian FAQ.

Mr Wang said Australian FAQ barley was the first to enter the Chinese market, and it matched malting barley on all specifications bar varietal purity.

“However, as large volumes of Australian FAQ barley keep flowing into China’s market, its overall quality has been declining continuously.”

He said at US$10-$15/t less than malting, FAQ’s discount to malting made it “highly attractive” to Chinese buyers.

“Consequently, massive volumes of FAQ barley flooded into China’s market.”

Mr Wang said China has also used Canadian, French and Argentina FAQ barley, but has reverted to use of just Australian and Canadian.

“Driven by the rapid growth of high-end and all-malt beer in China, demand for malting barley keeps rising, while demand for FAQ will decline relatively.”

Mr Wang said brewers in China require malt made from barley with a minimum 9.8pc protein, and Australia’s quality parameters have been sliding on protein and other metrics, including foreign material, 1000-kernel weight, and screenings.

“Specifications offered for Australian FAQ barley have been getting worse in the past two years.”

Mr Wang said Canadian FAQ barley can compete with Australian, but it costs more.

“I don’t think in the short term that FAQ barley from other origins can replace Australian FAQ barley.

Mr Wang said strong demand from China’s feed market last year saw it buy up “large quantities of high-quality malting barley”.

“They bid up the price”.

“I know some malting companies cannot buy enough Australian malting barley [and] they had to buy some feed barley to replace malting barley.

“I don’t think this is good for Australian barley quality’s reputation.”

Pros and cons

Under the China-Australia Free Trade Agreement, Australian barley goes into China with zero tariff, compared to other origins, including Canada, which incur a 3pc tariff.

However, other origins are still competitive.

Mr Wang said Australian barley’s low moisture at 10-10.5pc gives it a distinct advantage over Canadian at 12.5-13.5pc, making it a more efficient importing proposition.

On protein, Canada holds the higher ground, averaging generally about 12pc, compared with Australia at 10-10.5pc

“Canada is rolling out new varieties ranging from 10.5-11.5pc.”

Mr Wang said Canadian barley generally has protein over 12pc, and higher enzyme levels with superior alpha-amino nitrogen and diastatic powers than Australian barley, making it suitable to high-adjunct brewing.

He said Australian barley has moderate protein content, and lower diastatic power, with Maximus an exception.

“Maximus has a higher diastatic power level better suited for all-malt brewing.

“Beer brewed from Australian malting barley carries a natural grain aroma and delivers a fuller, richer mouth feel.”

Mr Wang said Australian and Canadian barley were both consistent in quality.

“Both fit brewing requirements of Chinese breweries.”

“Australian barley has lower beta glucan, uniform germination and stable modification.”

He said Australian barley can be malted in six days, one less than Canadian, and its low microbial and bacterial contamination due to Australia’s dry and clean growing environment made it an excellent storage proposition.

“The comprehensive cost of importing Australian is US$10/t less than Canadian.”

World barley trade

USDA figures released this month show Australia and the EU were the world’s two biggest barley exporters to all destinations in the year to September on 10.8Mt  and 8.1Mt respectively, and they are expected to share the top spot on 7.3Mt apiece in 2026-27.

It forecasts Russia will export  3.7Mt to all destinations, Argentina 3.5Mt and Canada 2.7Mt in 2026-27.

China’s appetite for imported barley is enormous. USDA figures show it totalled 12.5Mt in 2025-26, well ahead of Saudi Arabia on 4.7Mt in second place. In 2026-27, China is forecast to import 10.7Mt of feed and malting barley combined, while Saudi Arabia’s feed-only demand is seen at 4.4Mt.

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