Asia boosts feed grain demand
Co-operative Bulk Handling Group is eyeing Asia’s mounting feed grain demand, signalling WA is well-positioned to capitalise on expanding international markets.
Speaking at last Friday’s Agribusiness Australia event in Subiaco, CBH marketing and trading general manager Jason Craig identified Asia’s appetite for meat as a key driver behind the State’s grain market.
Mr Craig said rising Asian meat consumption had spurred demand for feed grains on the back of the continent’s increasing population and wealth.
“We are seeing them consume more meat,” he said.
“Traditionally we have grown grain to go into industries, like the flour milling industry, but now the growth is in the feed markets.”
Mr Craig says WA grain growers are adapting to changing demands and farm scale is expanding.
CBH analysis found farmers were co-ordinating grain enterprises across 4500ha, per farmer, last year, rising 41 per cent from 3200ha in 2009.
Mr Craig said the State was sitting pretty to capture the Asian market’s wheat growth, but warned the Black Sea was also shoring up its wheat opportunities.
Mr Craig flagged wheat cost competitiveness as influential to WA’s ability to grasp a major stake in wheat exports to South East Asia, especially Indonesia.
CBH data shows it costs $267 per tonne to deliver wheat from Australia to South East Asia countries, with $179 of that delivery cost accumulating in the paddock.
In Russia, it’s about $233 per tonne, and $226 from Ukraine.
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