CBH to open Hindmarsh segregations

Jo FulwoodCountryman

CBH is planning to open food-grade Hindmarsh barley segregations for the coming harvest.

Despite an earlier statement that it would limit the number of these segregations for the coming harvest, the co-operative recently announced that food-grade Hindmarsh barley would now be accepted at a number of sites across the Wheatbelt.

However, CBH barley trading manager Trevor Lucas said the location of these common sites and tonnage limits would depend on a number of different factors.

"It will be based on a couple of factors, mainly how much Hindmarsh is out there, and what sort of premium it will make the industry," he said.

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Mr Lucas said that the decision to make the food-grade segregation a common segregation was based on strong grower support for the variety.

"Also, other marketers have been saying they will pay a premium for it, and the Chinese are already buying a lot of Australian Hindmarsh this season," he said.

"These segregations will be scattered throughout the Wheatbelt.

"There is no formula to it, once it becomes a common segregation, they could be put anywhere."

However, Mr Lucas warned premiums may only reach $5 a tonne more than feed grade.

"Hindmarsh is not going to be a $20 or $30-a-tonne premium variety, it's a $5 premium at best," Mr Lucas said.

"Hindmarsh has replaced a lot of other malting varieties, so from an operations perspective, we don't actually have to find more segregation space - we will just be replacing other malting varieties that growers would have otherwise grown."

Mr Lucas said CBH had been disappointed in the lack of interest in the Hindmarsh food-grade segregations opened up last year.

"That probably had a lot to do with the fact that the premium wasn't there last season, and there were only niche segregations at port sites," he said.

"This year it will be a different situation, and there will be common segregations scattered throughout the Wheatbelt."

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