CBH to open Hindmarsh segregations

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.

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."