Food-feed split vision for lupins

A dual breeding strategy to create lupins fit for both human consumption and stock feed is needed to double WA lupin production to at least 800,0000 tonnes in the next seven years, a forum has been told. A 5 per cent increase in WA’s total lupin planting area could give the State a 500,000 tonne increase in production to shore up markets. If and how WA could develop more robust and profitable dual lupin markets — for human food and stock feed — was the hot topic at an industry day in Northam last month. The Australian Grains Technologies and Grain Industry Association of WA joined forces to hold their first ever Lupin Industry Field Day on August 28. The event was told a combination of yield and price could see WA’s lupin production reach 800,000 tonnes by 2027 and 1.2 million tonnes by 2035. Grain Industry Association of WA has forecast a 420,000-tonne lupin harvest this year, down on the 10-year average of 461,800 tonnes. The forum was told lupin production in WA had declined in the past 20 years, due to a combination of low profit and yields, but demand for lupins was growing. The majority of WA’s lupins are used by stockfeed manufacturers for cow, sheep, pigs and poultry feed, with a small but increasing demand for aquaculture. While less than 4 per cent of global production is currently consumed as human food, it is estimated about 500,000 tonnes of food containing lupin ingredients is consumed each year in the European Union — mainly through the inclusion of lupin flour in wheat-based bakery products. The Lupin Industry Field Day kicked off with a tour of one of AGT’s many lupin trial sites, at Jennacubbine, and culminated with a forum at Northam Recreation Centre. An audience of about 70 heard that lupins as food was a developing market — and could be the main driver long term — but it faced a challenge of “unbranded protein”. The see-sawing lupin price and tonnage was labelled the biggest challenge for the lupin industry, while growers faced yield and price challenges. The forum was told most of the current opportunities were for lupins as stock food. WA’s domestic demand of about 200,000 tonnes in WA a year for feed rations is growing 15 per cent a year, but more of those lupins are being used in a feed mix. Lupins for sheep feed as a whole grain had declined more than 500,000 tonnes a year to about 100,000 tonnes a year in the past 30 years. WA’s lupin export demand varied between 200,000 and 400,000 tonnes in the past 10 years, with the biggest export years when the lupin price was low compared with soya meal. WA export potential to South East Asia was at least 300,000 tonnes of hulled lupins for chicken rations. The forum was told WA export potential to the east of Australia faced quarantine restrictions based around athracnose. The easiest way to lift yield for feed with desirable traits was modified breeding — which might not be desirable for food. Desirable traits included the ability to control ryegrass and radish and blue lupins as well as early vigour, and heat-stress tolerance. Realigning breeding objectives, backing off on some traits to prioritise yield and herbicide tolerance were also discussed. Premium Grain Handlers director John Orr said some of WA’s niche export markets had been hit by COVID-19, including markets for racehorses and restaurant veal. “Last year, there was probably 110,000 tonnes of vary inelastic demand within those speciality markets,” he said. “This year there will be about 30 per cent less demand because those specialty markets have been knocked around.” Mr Orr said he would guess less than 10 per cent, or less than 50,000 tonnes, of WA’s lupin crop was destined for the human food market. When asked how many tonnes of lupins were destined for the human food market in WA, Mr Orr said he would hazard a guess at 6000 tonnes but the figure was unknown. Price-wise, Mr Orr said WA lupins needed to hover about $340 per tonne to remain competitive. Lupins were traditionally 75 per cent cheaper than soybeans. “If we want to push big tonnages into the export market, that is the price point we need,” Mr Orr said. Australian Grains Export Innovation Centre animal nutritionist Steve Little said lupins for feed were “highly digestible”. “Not only that, it has a high energy value and is a very good source of protein,” Mr Little said. “It’s a bit simplistic to think that lupins are just a protein source, because they have a lot of energy. “Higher than the cereal grains in terms of protein, but a bit less than soybean meal. “That complicates the idea that lupins value is the 75 per cent more than soybean, because we may be using lupins may be differently.” Mr Little said lupins were easy to handle and store due to their low moisture level and had a robust seed coat which was “impervious to insects”. He said the benefit of lupins as stock feed were well known, and many dairy studies comparing cows fed lupins or grains producing more milk. Mr Little also said some studies had shown that lupins increased sheep ovulation rates. WA Lupin Production (Source: GIWA) 10 year average is 461,800 tonnes 2020-21 (forecast): 360,000 tonnes 2019-20: 350,000 tonnes 2018-19: 570,000 tonnes 2017-18: 450,000 tonnes 2016-17: 714,000 tonnes 2015-16: 452,000 tonnes 2014-15: 345,000 tonnes 2013-14: 458,000 tonnes 2012-13: 294,000 tonnes 2011-12: 705,000 tonnes 2010-2011: 280,000 tonnes