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Malaysia to raise bio-content in biodiesel from December 1

biofuelKUALA LUMPUR — Malaysia will increase the minimum bio-content local producers must add to its biodiesel fuel for certain sectors to 10% from 7% starting on Dec. 1.
Primary Industries Minister Teresa Kok said in a radio interview with national news agency Bernama on Wednesday that the government had given the approval to implement the so-called B10 biodiesel mandate.
“The cabinet has approved the use of B10 and it will be implemented from Dec. 1. We also have the agreement from the Federation of Malaysian Manufacturers that the industrial sector will use B7,” she said in the interview which was posted to Bernama Radio’s Facebook page.
Fuel stations in Malaysia currently use B7 biofuel.
Kok said with these measures, the use of palm oil locally was expected to double, without elaborating.
The B10 biodiesel program will be implemented in the transport sector and other subsidized sectors in stages and will be mandatory from February 2019, Bloomberg News said on Thursday citing a letter from the Primary Industries Ministry to petroleum companies.
CIMB Research analyst Ivy Ng said the move would be positive for the palm oil market on expectations of increased consumption for biodiesel purpose in Malaysia. — Reuters

Dolce & Gabbana says sorry as China debacle threatens its future

DOLCE & GABBANA’s Chinese marketing scandal is fashion’s biggest faux pas since former Christian Dior designer John Galliano’s anti-Semitic rant in 2011, and it’s potentially far more costly.
While Dior got out of that mess by swiftly dismissing Galliano, D&G’s owners initially offered few explanations even as a boycott movement spread through luxury’s biggest growth market. Even after an apology from the Milan-based brand Friday, damage control will be trickier as the firm is still owned and operated by the designers with their names on the door.
“Consumers don’t just buy a product. They buy an idea, an image that has values embedded in it,” luxury consultant Mario Ortelli said. With China’s shoppers making up around two-thirds of the industry’s growth, “everyone needs Chinese trust.”
Almost all major Chinese e-commerce sites including Alibaba Group Holding Ltd.’s Tmall and JD.com Inc. have suspended the sale of D&G products in China since the brand posted an ad showing a Chinese model struggling to eat Italian food with chopsticks, which consumers deemed condescending. The boycott spread to foreign sites, with Richemont’s Yoox Net-A-Porter removing the brand’s items from its Chinese and Hong Kong portals.
The scandal intensified after degrading remarks about Chinese people were sent from co-owner Stefano Gabbana’s Instagram account. On Friday, the founders said sorry in Mandarin in a video clip, apologizing to Chinese people worldwide.
“We will not forget this lesson and this will never happen again,” Mr. Gabbana said in the video. “And we must try harder to understand and respect Chinese culture. Finally, we ask from the bottom of our hearts for your forgiveness.”
The fallout also spread offline to bricks-and-mortar retailers on Friday, with Lane Crawford removing D&G items from its department stores in China and Hong Kong.
The marketing videos were taken down between Thursday evening and Friday morning. In their apology clip, the designers didn’t repeat an earlier allegation that their Instagram accounts were hacked. They had earlier said that was the reason for the derogatory comments about Chinese people on Gabbana’s account.
‘MULTINATIONAL, MULTICULTURAL’
Providing evidence the account was hacked could help regain Chinese trust, said Luca Solca, analyst at Exane BNP Paribas.
The crisis shows the need for a “multinational, multicultural, diverse leadership organization, able to perceive and integrate different sensitivities,” Mr. Solca said. Dior, controlled by luxury conglomerate LVMH, wasted no time in showing Mr. Galliano the door after he hurled anti-Jewish insults at a couple in a Paris bar, and the designer later apologized.
The challenge for D&G is that it’s not a multinational giant but a closely held Italian business run by its two founders — Mr. Gabbana and Domenico Dolce. A tongue-in-cheek, cartoon-ish characterization of Italian identity — with ad campaigns showing large families touching each other and yelling in public — has been a staple of D&G’s marketing.
That pitch helped expand the company’s sales to €1.35 billion ($1.54 billion) last year, according to Business Insider. D&G is bigger and more profitable than rival Gianni Versace, which Michael Kors Holdings Ltd. is buying for $2.2 billion. But trying to export its ironic marketing tone to China may have been a step too far.
The two founders, who created the brand in 1985, have resisted the trend among family owners of luxury firms to sell to giants like LVMH and Kering SA, the owner of Gucci. As demand for acquisition opportunities among both fashion conglomerates and private equity funds has pushed luxury valuations skyward, Mr. Gabbana and Mr. Dolce have consistently said they’d never consider selling.
NEWSPAPER INTERVIEW
“Once we’re dead, we’re dead,” Mr. Gabbana said in an interview with Italian newspaper Corriere della Sera last spring. “I don’t want a Japanese designer to start designing Dolce & Gabbana.”
The brand was able to weather online criticism of that remark. But the latest storm is far more intense. Some Chinese consumers went so far as to post videos of themselves destroying their D&G wares following his remarks.
Ryan Meng, a Paris-based fashion buyer for Chinese boutiques, was one of many to joke online that D&G now stood for “dead and gone” following the incident. “It’s extremely unfortunate for all the Chinese team helping to handle the operation while working for someone like that,” he said. — Bloomberg

Proposed capital hike to boost central bank

By Melissa Luz T. Lopez
Senior Reporter
ADDITIONAL funding as well as a foreign exchange cover will allow the Bangko Sentral ng Pilipinas (BSP) to do more open market operations while protecting itself from losses, a senior official said as they await the passage of changes to the central bank charter.
BSP Deputy Governor Diwa C. Guinigundo said that while they are still waiting for Congress to come up with a unified and final version of the proposed law, the regulator is eager to hold additional P150-billion funding, together with tax exemptions and reserves for foreign exchange fluctuations.
Both the House of Representatives and Senate approved separate versions of a bill that updates provisions of Republic Act 7653, or the New Central Bank Act which date back to 1993. Efforts to enact these amendments trace back to previous Congresses, but have fallen short of passage until now.
Among the key features of the latest bills include raising the paid-up capital of the BSP to P200 billion from the current P50 billion.
The two chambers still need to sit for a bicameral conference to harmonize the two versions before submitting it for the President’s signing into law.
“You have more funds, then you can do more open market operations. In case there are certain distressed financial institutions…, you have more resources to provide support to maintain financial stability,” Mr. Guinigundo said in a recent interview when asked about the proposals.
“In short, the P150 billion additional capitalization is very critical and it can go a long way in enhancing the operations of the central bank.”
However, the BSP official acknowledged that it will take time before the additional funding is released, given that the shift to a cash-based budgeting system in 2019 will leave “little flexibility” for the national government to channel funds elsewhere. The 2019 budget is already approved by the House.
Mr. Guinigundo also noted that the stark need for funding for the state’s “Build, Build, Build” program is another consideration. He added that solons are yet to resolve whether the capital infusion will be one-off or in tranches, similar to what was done before.
The central bank is also looking forward to tax exemptions for their governmental functions, he added.
Another significant feature is allowing the BSP to keep reserves for foreign currency swings, which would cushion the monetary authority from big losses from peso-dollar trades.
The BSP conducts “tactical intervention” during the daily peso-dollar trading, in line with their mandate of price and financial stability. A weaker peso usually means big gains for the central bank, given that a big chunk of its assets and investments are expressed in dollars.
“When BSP is in loss, we cannot ask the national government for a subsidy — it doesn’t work that way. It’s not symmetrical. We absorb the cost. When we make profit, we give them dividends and at the same time, whatever happens, we pay tax,” Mr. Guinigundo said.
“With that provision, it’s very easy now to level the operations of the BSP. ‘Pag maganda yung kita, set aside reserves. If you lose the following year because of peso appreciation, you can get it there.”
The central bank is poised to see a banner year with a P45.23 billion net income as of end-September, at a time when the peso is down by around five percent year-to-date. The peso has so far averaged P52.636 versus the greenback from January-October, versus the P50.4037 average for the full year of 2017.

NCCC looking to bring int’l hotel brand to Davao

DAVAO CITY — Retail and shopping mall firm New City Commercial Corporation (NCCC) is expanding its real estate portfolio with the development of a mixed-use project in Panacan, located in the central-eastern part of the city.
Sharlene Faye A. Lim, president of NCCC subsidiary LTS Malls Inc., said one of the main features of the 6.9-hectare complex would be a branded hotel and they are currently in talks with several management groups.
Ms. Lim named the Marriott Group, AccorHotels, and IHG Group as among those they are in discussions with.
“They are known brands and we don’t have enough of that here. I think it is about time and given that opportunity, we’ll pursue that. But we are still studying on how we are going to do it,” she told BusinessWorld.
Ms. Lim said they are targeting June 2019 to finalize the discussions for the hotel component.
Other features of the complex will be a convention center that is envisioned to be the biggest in Mindanao, a shopping mall, and a business school that would possibly be under the University of Asia and the Pacific.
MA-A PROPERTY
Ms. Lim said the Panacan project schedule has been moved to a later period following the fire that destroyed the NCCC Ma-a mall in December 2017.
“We are supposed to start the development in Panacan next year, then NCCC Ma-a (fire) happened, and a lot of time and energy went there,” she said.
The NCCC Ma-a has already been demolished and the company has partnered with DMCI Homes of DMCI Holdings Inc. for the development of a medium-rise condominium complex at the site, alongside a new shopping mall.
“All efforts of our company right now goes to Ma-a,” Althea D. Lucas, LTS Mall associate vice-president, said.
Ms. Lucas said if all the necessary permits are released soon, they are aiming to start construction by next year and complete the project in two and a half years.
The Panacan project, meanwhile, will start upon halfway completion of the Ma-a complex.
NCCC is currently constructing a retail hub with a supermarket along McArthur Highway, not far from the Ma-a site, and is targeted to open within the year. — Maya M. Padillo and Carmelito Q. Francisco

Senate bill seeks to create pili research center in Sorsogon

SENATOR Francis G. Escudero has filed a bill seeking to create a Pili Research and Development Center in Sorsogon.
Senate Bill No. 2103, filed on Nov. 19, seeks to develop pili as a marketable global product with the support of government through research, technology, and marketing.
In his explanatory note, Mr. Escudero pointed out that aside from its kernel, the pili tree’s by-products have various uses which can be marketed.
“The pili tree is fast gaining fame as the ‘tree of life,’ next to the coconut tree… Its shell can be recycled to make charcoal and fashion accessories. The popular elemi essential oil uses the pili’s pulp as one of its ingredients. Even its wood may be carved as furniture or decor at home,” he said.
Under the bill, the Pili Research and Development Center will conduct research on the production and marketing of pili nuts and by-products. The center is to be attached to Sorsogon State University.
The proposed agency is also mandated to provide technical assistance and support to pili farmers and other stakeholders in the Bicol region.
It should also coordinate with the Department of Agriculture (DA), Department of Trade and Industry (DTI), Department of Science and Technology (DoST), and Department of Environment and Natural resources to consolidate policies and programs on pili research and development.
The bill also creates the Pili Subsidy Fund, which will support pili tree planting and cultivation as well as skills training and capital development of the pili industry.
It also seeks to recognize Sorsogon as the Pili capital of the country in order to garner additional government support for the promotion of the country’s pili industry and its sustainability for the benefit of the farmers.
The proposed measure also appropriates an initial P250 million budget for its implementation, which will be sourced from the annual budgetary allocations of the DA and the DENR. Half of the initial budget will serve as seed money for the proposed Pili Subsidy Fund.
Based on a study conducted by the DA Philippine Rural Development Project (DA-PRDP), Sorsogon is the major source of pili kernel for major Bicol processors. The province supplied 4,052 metric tons of pili in 2015. — Camille A. Aguinaldo

Why it took time for Ikea to get here

GET YOUR DIY hands ready, Manila: Ikea is finally coming to town.
In a launch on Nov. 20, Ikea announced the opening of what could be the world’s largest Ikea store (at 65,000 sqm.) in 2020 at the Mall of Asia complex. According to a press release, “the store will be about as big as 150 basketball courts — almost double the size of a typical IKEA big blue-box. The shop floor will be similar to other IKEA stores but the building will also house a call center and a supersized warehouse to accommodate e-commerce operations”.
RUMOR HAS IT
The rumors of an Ikea opening have been buzzing around since about 2016, but that it really would be opening in the Philippines, and the actual year of opening, were only revealed last week. Said Georg Platzer, Market Development Manager, and future IKEA Store Manager in Manila, in a speech, he has been in Manila for two and a half years doing the groundwork.
He told BusinessWorld, “This is a big operation. A 65,000 sqm. store requires a lot of different activities to be done backstage, before you can even announce it. I can tell you, we’re very satisfied with the timeline. In any new country where we go, we open the first store; it takes between six to seven years.”
“It’s really a massive project. Our entire value chain has to be prepared for that,” he said. “It’s big, and that takes time.”
DIY PHILOSOPHY
Ikea was founded in Sweden by Ingvar Kamprad in 1943. It has the unique proposition of selling furniture at low prices that one can choose to build themselves. Since then, it has spread its do-it-yourself philosophy throughout the Americas, Europe, Asia — they have more than 400 locations around the world.
Mr. Platzer says that they have arrived in the country independently, and the partnership with SM only extends to land tenantship. “SM is the company building the building. We’ll be a tenant, and lease the building from SM. That is the partnership.”
It was also announced during the launch that 500 positions within the company will be made open for applicants, which one can view in advance through www.IKEA.ph.
Collections and other items will also be made available through the Web site.
DESIGNS AND RECYCLING
Mr. Platzer said that all the company’s designs are conceptualized in Sweden, but any Filipino designer who might want to make a pitch are encouraged to get in touch with the headquarters. As for materials and product sourcing, he said, “We are the retailer. Sourcing and production is a different category under the Ikea brand. Usually, when we start retailing, we also start looking for suppliers. If we find a supplier in the Philippines, this supplier should supply the whole world — not only for the Philippine market.”
Earlier this year Ikea, which is the world’s biggest furniture retailer, announced that by 2030, it would use only renewable and recycled materials in its products.
Inter IKEA, the owner of the brand best known for its low-cost flat-pack furniture, said in June that it aimed to reduce the climate impact of each of its products by more than two thirds by the end of next decade.
Currently, 60% of the Ikea range is based on renewable materials, while nearly 10% contain recycled materials.
PHILIPPINE POPULATION
In commenting on the new store’s large size, Mr. Platzer spoke about the country’s population at more than a hundred million. “We have a need for a warehouse. We have a logistical need; that’s why we also have a bigger store than other stores. We have a need for a bigger restaurant, because we’re expecting a lot of visitors. We want to give them a convenient shopping experience.”
As for price ranges — Ikea’s DIY philosophy is one of the reasons for its relatively low cost — Mr. Platzer said, “There’s one clear mandate in Ikea. We have to be the lowest price in the market.”
Is the end goal for Ikea a world where people can build their own furniture; to go back to basics; to be more sustainable? The answer is a lot more simple than that. Mr. Platzer says to check the back of his business card, where it would say, “Create a better everyday life for many people.” “There is no end. It’s just the beginning.” — Joseph L. Garcia with a report from Reuters

Peso may drop on hawkish Fed

THE PESO may weaken against the dollar this week as developments in the European Union (EU) and United States are expected to boost safe-haven buying in favor of the dollar.
The local currency ended last week at P52.45 against the dollar, down four centavos from the previous day, as players covered their short dollar positions.
Week on week, however, it strengthened from the P52.715-per-dollar finish last Nov. 16.
Guian Angelo S. Dumalagan, market economist at Land Bank of the Philippines, said the dollar is seen to appreciate against the peso on safe-haven buying following the EU Brexit Summit as well as likely hawkish statements from US Federal Reserve Chair Jerome Powell.
In the first three days of the week, Mr. Dumalagan said the greenback might move sideways as members of the EU are set to finalize a deal on United Kingdom’s departure from the political bloc.
“However, even if the Brexit deal would be approved by the EU, it still has to hurdle the UK parliament, which is known to have numerous objections about the proposed agreement,” he said in an e-mail.
The dollar could strengthen further towards the end of the week, the market economist said, as Mr. Powell is expected to deliver a hawkish speech which will affirm views of more policy tightening ahead even as the central banker may continue to flag global slowdown in economic growth.
He also noted that the US personal consumption expenditure price index, the Fed’s preferred inflation gauge, may remain flat at 2% which is at par with the central bank’s inflation target. US third-quarter gross domestic product growth may likewise be affirmed at 3.5%, sending the same upbeat personal income and spending for October.
Meanwhile, Michael L. Ricafort, Rizal Commercial Banking Corp. economist, said there might be “some slight upward correction” in the dollar-peso should the government’s budget deficit grew wider “as spending data could have increased beyond the state’s program as reported earlier.”
The government’s October fiscal performance data will be released today.
Meanwhile, Mr. Ricafort said the peso might decline if the US-China trade war continues to expand despite talks between its leaders Donald Trump and Xi Jinping later this month.
However, he noted that lower global oil prices, still at their best level in nearly six months, may offset the slight depreciation.
For this week, Mr. Ricafort expects the peso to trade between P52.10 and P52.40 this week, while Mr. Dumalagan gave a P52.10-P52.80 range. — K.A.N. Vidal

New Bai Hotel in Cebu hitting 79% occupancy

MANDAUE CITY, CEBU — Homegrown Bai Hotel in Mandaue City, which is barely a year in operation, is already enjoying brisk business with an occupancy rate of 79%.
“Normally, a newly-opened hotel has 40-45% occupancy rate and if you are lucky it will normally take you a year to break even. It only took us two months to break even in terms of cash flow and we are also enjoying a record-breaking 79% occupancy rate,” Bai Hotel Vice-President for Operations and General Manager Alfred M. Reyes said during the hotel’s official launch last Nov. 23.
Mr. Reyes said about 61% of their guests are from overseas, with majority from South Korea, followed by Japan, United States and Taiwan.
“India is another big market for the Philippines next to China although there is a challenge when it comes to visa issuance for the Indians,” he said.
The 23-story Bai Hotel has 668 rooms with 10 classifications from deluxe to presidential suite. It houses an executive club lounge, and fitness center, among other amenities. A casino, convention center, and shopping arcade will soon be built in front of the hotel.
“We aim to be a four-star hotel and we can compete with any international hotel given our facilities and services,” Mr. Reyes said.
Bai Hotel has partnered with World Hotels.
Mr. Reyes said Cebu is still best known as a leisure destination but the hotel is positioning itself as a “bleisure” (business and leisure) destination given its location in Mandaue City, which is an upcoming business district.
“Hopefully by next year, we shall have plans of expanding… its either Visayas or Palawan,” he said.
For the long-term Mr. Reyes said they are also looking at other areas like Davao and Cagayan de Oro, two of the main cities in Mindanao. — Carmencita A. Carillo

Organic wine market growing rapidly but to remain niche, study finds

PARIS — The market for organic wine will grow rapidly in the next five years as environmentally-conscious consumers increasingly favor pesticide-free wines, but their market share will remain relatively small globally, a study showed.
In a report released on Friday, wine and spirits consultancy IWSR forecast global sales of organic still wine will top 1 billion bottles by 2022, up from 676 million last year and nearly three times the 349 million bottles sold in 2012.
Growth in the five year period from 2017 to 2022 will be driven by the United States with a more than 14 percent rise followed by South Africa and Norway at 13.5 percent.
The share of organic wines — those produced on vineyards cultivated without chemical pesticides or fertilizers — of the global wine market would remain relatively low at 3.6 percent, compared with 2.4 percent in 2017, IWSR said.
“There is a big margin for organic wine to keep rising,” Jose Luis Hermoso, research director at IWSR told Reuters.
This is good news at a time when global wine consumption is stagnating, even declining in key markets such as France and Spain, he said.
Nearly four bottles out of every five of organic wine sold last year were in Europe, with the three leaders Germany, France and the UK accounting for 50 percent of the market, IWSR said.
In France, the surge in organic wine sales is particularly strong, with the market share seen reaching 7.7 percent by 2022.
Chateau Latour, one of the most prestigious Pauillac chateaux in the Bordeaux region, property of French billionaire Francois Pinault since 1993, obtained its certification as organic wine last month.
But other producers have abandoned their organic projects, often discouraged by growing criticism of the use of alternative pesticides such as copper and sulfur, permitted under organic farming rules, or after their unprotected vineyards were damaged by fungi attacks.
Hermoso said there was uncertainty among European producers about whether to continue using sulfur and he added that mildew did significant damage to the harvest in some regions.
Conversions of vineyards to organic wine in the main producing countries has slowed down recently and IWSR estimates that in 2022 there will be 545,000 hectares dedicated to organic wine in the world, compared to 408,000 hectares in 2017 and 284,000 in 2012. — Reuters

PSE index seen sideways after last week’s gains

By Arra B. Francia
Reporter
SHARES may trade sideways in the days ahead as investors take a breather after the main index’s 250-point increase last week.
The bellwether Philippine Stock Exchange index (PSEi) jumped 0.98% to close at 7,340.18 on Friday, pushing the main index 3.63% higher on a weekly basis.
The financials and property sectors lifted the market, after rising 4.65% and 4.31%, respectively. In contrast, the mining and oil counter dropped 6.43%, dampened by losses in Semirara Mining and Power Corp. and PXP Energy Corp.
Average daily turnover improved by 11% to P8.5 billion, while foreign investors were at a net buying position.
“Going into [this] week, we may see the index trade sideways with a positive bias due to the shortened trading week and investors taking a break after the massive gains we saw this week,” Eagle Equities, Inc. Research Head Christopher John Mangun said in a weekly market report.
Mr. Mangun said the PSEi’s ability to hold the 7,200 level last week confirms a reversal from its negative trend for the previous nine months, adding that the next major resistance is at 7,500.
“Decreasing oil prices means lower inflation coupled with an appreciating currency will bring investors back into this market and push the index higher. The only concern is the heavy outflow of foreign funds this year,” Mr. Mangun explained.
“(H)owever with western market starting to correct after hitting historic highs this year, there is a possibility that we may start seeing foreign money flow back into our market which will fuel the rally.”
Online brokerage 2TradeAsia.com said catalysts include an indication from the US Federal Reserve’s chair that it would retain its status quo on interest rates. This should give central banks in the region time to fine-tune their respective monetary policies.
“An end to quantitative easing does not spell doom, but the tide has already shifted on the fiscal side. This explains why several are embarking on fiscal expansion mode, to support their respective infra growth story. Fund-raising exercises will top these initiatives, a pattern that will be active for both fiscal & corporate front,” 2TradeAsia.com said in a weekly market note.
The online brokerage also noted that the rise of the financial and property sectors has historically signaled the market’s recovery from a downtrend.
“The other contender is holding firms (+3.4%), specifically those with fortified initiatives on the infra side (i.e., energy, exploration, telco). We anticipate more tie-ups or M&As (mergers and acquisitions) being harnessed in the process, supporting top-line growth angles,” 2TradeAsia.com said.
Eagle Equities’ Mr. Mangun placed the PSEi’s support at 7,000 to 7,200, and resistance is from 7,500 to 7,800.
Local financial markets will be closed on Friday, Nov. 30 for Bonifacio Day.

COD wedding gala features fashion show by Libiran

CITY OF DREAMS (COD) Manila will be holding a wedding fair featuring sought-after wedding experts including fashion designer Francis Libiran; Feng Shui expert Joseph Chau; wedding stylists Gideon Hermosa, Michael Ruiz, and Teddy Manuel; and its own event planners, food & beverage and culinary team.
“Dream Weddings: A Wedding Gala by City of Dreams,” directed by Robby Carmona, will be held at COD’s grand ballroom on Nov. 30, 6 p.m.
In lieu of a usual fashion catwalk for the presentation for Libiran’s fashion show, Carmona has conceptualized a huge tiered cake-like stage for the bridal fashion show which will include a contemporary dance performance about love and union.
The event also highlights COD’s banquet and signature restaurants with the chefs de cuisine of Crystal Dragon, Nobu, and The Tasting Room and executive chefs offering guests a taste of their respective specialties. Each restaurant’s offerings will be featured on table set-ups by Hermosa, Manuel, and Ruiz.
Meanwhile, Mr. Chau will provide couples with tips on how to add harmony in their married life. TV and event host Janeena Chan hosts the wedding gala.
While the Dream Weddings Gala is not open to the public, engaged couples who are interested in attending can call 800-8080 or e-mail guestservices@cod-manila.com on how to procure and invitation.

China approves Kazakhstan barley, corn to imports

BEIJING — China approved imports of barley and corn from Kazakhstan, the customs administration said on Friday, in a move aimed at diversifying the country’s sources of grain shipments.
The approval came the same week that China launched an anti-dumping probe into barley imports from Australia, its top supplier of the grain, amid strained ties between Beijing and Canberra.
The move will help China meet demand from its feed, spirits and energy sectors, the General Administration of Customs said in a statement on its website.
The agreement, signed on Thursday as Chinese Premier Li Keqiang met with his Kazakhstan counterpart Bakytzhan Sagintayev in Beijing, will have a limited impact on trade, though, said Chinese grains traders.
“It has more political meaning. Logistics will be an issue, and will restrict the volume flowing to China,” said one trader.
Australia exported 6.48 million tonnes of barley to China in 2017, close to three-quarters of China’s roughly 8.86 million tonnes of imports of the grain, worth about $1.5 billion, according to Chinese customs data.
The grain is used in both livestock feed and the brewing of alcoholic beverages.
China also imposed a 25 percent tariff on a list of U.S. products in July, including corn and sorghum, two other major animal feed ingredients, in response to similar moves by Washington.
China has an import quota system for its major grains including corn, wheat and rice. It set the 2018 corn import quota at 7.2 million tonnes. — Reuters

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