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The Victorian and Australian Grains Industry

The Victorian and Australian Grains Industry. Presentation to the Asociación de Cooperativas Argentinas November 10, 2007. Victorian Grain Production -a typical year?. Victoria produces between 4 and 5 million tonne of grain annually depending of course on seasonal conditions including

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The Victorian and Australian Grains Industry

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  1. The Victorian and Australian Grains Industry Presentation to the Asociación de Cooperativas Argentinas November 10, 2007

  2. Victorian Grain Production-a typical year? • Victoria produces between 4 and 5 milliontonne of grain annually depending of course on seasonal conditions including • Wheat: 2-2.5 million tonne, with up to 21 grades of wheat across Victoria. • Barley: 1-2 million tonne, with up to 25 segregations based on grade and variety.

  3. 2007-08 Season • Wheat – 1.7 million tonnes • Barley – 950 000 tonnes • Canola - 212 000 tonnes • 42 per cent below the five year average (2001-02 to 2005-06) • Still almost double 2006/07 production of these crops in 2006-07.

  4. Rainfall in 2007 Blue: Average rainfall White: Average rainfall Light Red: Much Below Average Dark red: Lowest on record

  5. Rainfall June 1 – July 31(The following Sept. and Oct. have been driest on record) Blue: Above average rainfall White: Average rainfall Light Red: Much Below Average Dark red: Lowest on record

  6. But it wasn’t always this dry...

  7. Wheat Production

  8. Oilseed Production

  9. Australian Winter Grains • Average winter crop 32mmt • Wheat 19mmt • Barley 7.6mmt • Canola 1.3mmt Highest Winter crop 43mmt (2003/04) Lowest Winter Crop 14.6 mmt (1994/95) • Around 300mls of growing season rainfall (April – Oct) is needed • Spring conditions are critical in determining crop size.

  10. Winter Crop - Area

  11. Seasonal Conditions

  12. Wheat Production • 19.4mmt average production • Accounts for 60% of total winter grain production • Highest 26mmt (2003), Lowest 8.9mmt (1994) • Domestic Consumption – approx 6.5mmt per year • Approx 70% of production is exported – Asia 65%, Middle East 20%

  13. Barley Production • 7.5mmt average production • Accounts for 23% total winter grains • Approx 35% Malt Barley / 65% Feed Barley • Domestic Consumption 3.3mmt per year • Approx 60% of production exported annually.

  14. Domestic Consumption - Mills

  15. Domestic Feed Demand • Approximately 8.0-8.5mmt of the winter crop production is used as feed • Wheat 3.5mmt • Barley 2.3mmt • Oats 1.0mmt • Triticale 0.5mmt

  16. Exports • With domestic demand on the East Coast, exports are predominantly from the West Coast (WA/SA)

  17. Freight / Receival Costs

  18. Vic - 5 out of last 7, D > S

  19. Vic : Good-Ordinary-Year?3-4 million tonnes

  20. Feedgrains – Who/Where/How?

  21. FEEDGRAINS DOMINATE EAST COAST

  22. Current Vic. grain demand 2008 • Flour Milling 593,000 tonnes • Malting 298,000 tonnes • Feed Grain 3,360,000 tonnes

  23. Supply Chain - Channel Flows

  24. Features of Vic Supply Chain

  25. Research and Development • Public versus private investment • GRDC (60% grower funded, 40% taxpayer) • 0.99 percent of net farm value for 24 grains • 0.693 per cent net farm value for maize • State Government, Universities and State based breeding facilities • Private companies and joint ventures • GM technology • End Point Royalties

  26. Grain Handling • Currently the costs of handling Victorian grain are between $40-$50 per tonne. • Off-farm costs represent up to one third of the gross receipts on a tonnage basis for barley and wheat production. • The main handler of grain in Victoria is GrainCorp Ltd. The customers include grain marketers who sell in both Australia and abroad and domestic grain consumers such as millers, maltsters and stock feeders.

  27. The Brave New World...

  28. What the VFF is doing for members • Brokerage • Credit reference checks • Primary producer registrations • Access to technologies

  29. Subsidy Support

  30. VFF Structure • Represents 18,000 Victorian Farmers • 4,500 grain farmers • Provide voice for grass root grain growers • 11 District Councils within grain area • Aim is to maximise returns to members and ensure their long-term viability, as well as helping to ensure the industry's ongoing competitiveness and profitability.

  31. VFF Grains Group • Advocacy for Grain Growers on: • Rail investment • Biotechnology • Contract issues • Services for members • Credit Check Service • Marketing Decisions Table

  32. Questions?

  33. Questions?

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