Comprehensive report seeks to prioritise grains NTMS for government
Market access is critical for the Australian grains industry. However distortionary non-tariff measures (NTMs) are increasing worldwide and have become the priority trade policy issue for the grains industry. This Grains NTM Project has sought to identify and prioritise grain NTMs for industry and government for the purpose of improving market access and delivering improved farm-gate returns for Australian grain growers. The Grains NTM Project brought together representatives from across industry, led by Grain Trade Australia, GrainGrowers and Grains Industry Market Access Forum (GIMAF), along with GRDC and the Federal Government.
INDIA CONTINUES TO HAMMER THE PULSE MARKET
The Indian government has introduced yet another restriction on pulse imports, this time a quota restriction on yellow peas imports. This latest move comes on the back of restrictions on mungbeans (quotas), chickpeas, lentils and wheat (increased import taxes or tariffs) which have been progressively applied and/or tightened since August 2017.
India is a critically important market for Australia’s grain and pulse industries and India’s restriction on grain and pulse imports has resulted in lower prices paid to Australian farmers.
• The total value of Australian pulse and wheat exports to India in 2016 was more than US$850 million (A$1.14 billion)
• During the past five years India has purchased more than 50 per cent of Australia’s pea and chickpea crops, nearly 40 per cent of Australia’s mungbeans and 20 per cent of Australian lentils. In 2016/17, India ascended to Australia’s second largest wheat market.
• Australia’s pulse exports to India are dominated by chickpeas, followed by lentils, peas and mung beans.
GrainGrowers continues to work with government and industry to achieve a re-opening of the Indian market for Australian grain and pulse growers.
revised Growing Australian Grains guide released
Grains Research and Development Corporation (GRDC) has released a revised Growing Australian Grains guide which now includes chain of responsibility law changes.
It is designed to help growers understand their legal obligations, responsibilities and risks associated with their farming businesses.
Understanding the European biofuel market for Australian canola
Europe is Australia’s most valuable export market for canola, valued at about A$1 billion and responsible for up to 85 per cent of annual Australian canola exports.
The grain and oilseed industry is easily Australia’s most significant agricultural export earner in the European Union. Maintaining and enhancing export opportunities for Australia’s grain, oilseed and pulse producers in Europe is a key priority of GrainGrowers.
The Grains Research and Development Corporation (GRDC) has just released a new fact sheet on the European Canola Market with information on new requirements and how growers can access this market.
Opportunities for the Australian grains industry in asia continue to grow
29 March 2018
GrainGrowers Trade and Economics Manager, Luke Mathews, this week returned from a visit to Thailand and China to represent the Australian grains industry at the Australian Grains Industry Conference (AGIC) in Bangkok and Shanghai.
During his visit he met with Thai and Chinese government representatives in the departments of agriculture, commerce, foreign affairs and quarantine inspection, and Australian Embassy staff in Thailand and China.
Mr Mathews said the outlook for Australian grains in Asia is very bright. “Over three quarters of Australian grain exports are directed to Asia with China the single largest market. We see ongoing demand growth for Australian grain in the region,” he said.
“Australian grain is highly valued in the region for its intrinsic functionality, reliability, cleanliness and dryness.
“Australian grain services a number of specific end markets in China and Thailand, spanning wheat for noodles and bread, barley for malt, barley and wheat for stockfeed and sorghum for the Chinese Baijiu market.”
Mr Mathews said the current US-China ‘trade war’ could spell good news for Australian grains as China sought to diversify is grain purchases away from the US market.
Mr Mathews was travelling with representatives of the GTA, AEGIC, AOF and other private exporters, brokers and marketers.
your obligations under Chain of Responsibility (CoR): A presentation by the National Heavy Vehicle Regulator (NHVR)
Click here to view the presentation.
Opportunities for the Australian grains industry in Asia continue to grow.
MARKET OUTLOOK: PULSES AND INDIA
- Latest insights from recent industry visits to India, with implications for Australian prices and planting in 2018.
- India is a critically important market for the Australian and global pulse industry. Over the past five years India has purchased more than 50% of Australia’s pea and chickpea crops, nearly 40% of Australia’s mungbeans and 20% of Australian lentils.
- Recent actions by the Indian government, including imposing tariffs on chickpeas, lentils and quotas on mungbeans, have resulted in a collapse in trade and decline in Australian pulse prices.
- India produced a record pulse crop in 2016/17 of 23 million tonnes. Production in the current season (2017/18) expected to be another record, up 5-15% year-on-year, with harvest currently underway. As a result India is forecast to be largely self-sufficient for pulses in the current season.
- The implication of self-sufficiency is that India is likely to be a negligible buyer of pulses from international markets in 2018. Import restrictions are likely to stay in place. This presents risks for farm-gate pulse prices in Australia over 2018. What happens in 2019 will be dependent upon India’s monsoon season (June-September).
- Growers should be aware that the Indian pulse market can change very rapidly, with local seasonal factors playing a major role. These changes could potentially be either positive or negative for Australian trade and prices.
- Representatives from the Australian grain and pulse industry recently attended a range of meetings with Indian Government and industry leaders in India, along with representatives from other pulse producing countries. The link to the GIMAF’s report is available here:
are you planting pulses in 2018?
- Growers are strongly encouraged to talk to their local buyers and marketing consultants about the outlook for pulse prices when making planting decisions for 2018.
what does the tpp-11 mean for australian grains?
GrainGrowers congratulates the Australian government for successfully negotiating TPP-11 (otherwise known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership) in late January.
GrainGrowers Trade and Economics Manager, Luke Mathews said the TPP-11 includes five of Australia’s important grain export markets in Japan, Vietnam, Malaysia, New Zealand and Singapore, and accounts for 15-20 per cent of Australian grain trade.
Benefits apply to a broad range of agriculture products, including (but not limited to) grains, beef, dairy, sheep meat, cotton, and wool. Australian grain already has preferential access into a number of TPP-11 countries because of existing trade agreements (i.e. ASEAN-Australia-New Zealand Free Trade Agreement, Japan-Australia Economic Partnership Agreement), however TPP-11 will build on this, in particular, bringing about improved market access for wheat and barley into the important Japanese market.
Peru-Australia Free Trade Agreement SIGNED
The Peru-Australia Free Trade Agreement was signed on 12 February. Luke Mathews says that although Peru will remain a small opportunity for the Australian grain industry, GrainGrowers commends the Australian Government on continuing to pursue a liberalised trade agenda.
Australia, and in particular the Australian grain sector, is reliant on international trade. Maintaining a strong trade liberalisation agenda, one which focusses on addressing both tariff, quota and non-tariff barriers to trade (such as Sanitary and Phytosanitary Measures and inconsistent trade rules) is imperative for the ongoing success of the Australian grains sector.
Mr Mathews strongly encourages the Australia government to vigorously pursue meaningful trade agreements with Indonesia, EU and countries in the Regional Comprehensive Economic Partnership.
“The Australian Government has delivered on reducing trade barriers - but still much more needs to be done in our key markets,” Mr Mathews said.
GEARING UP FOR AN eu TRADE AGREEMENT
Above: Luke Mathews, GrainGrowers' Trade and Economics Manager and Scott Kompo-Harms, NFF General Manager , Trade & Economics, visit Rothamsted Research, home to the 100 year continuous wheat trial.
GrainGrowers Trade and Economics Manager, Luke Mathews, this month travelled to Europe and the United Kingdom as part of a delegation facilitated by the National Farmers’ Federation and the federal Department of Agriculture and Water Resources. The aim was to maintain and improve market access for Australian agricultural products in Europe and the UK ahead of the upcoming negotiations on the European Union Free Trade Agreement.
Europe is Australia’s most valuable export market for canola, valued at approximately A$1 billion, and responsible for up to 85 per cent of annual Australian canola exports. The grain and oilseed industry is easily Australia’s most significant agricultural export earner in the EU. Maintaining and enhancing export opportunities for Australia’s grain, oilseed and pulse producers in Europe and the UK is a key priority of GrainGrowers.
Mr Mathews visited Berlin, Brussels, Rotterdam and London, meeting with a diverse range of stakeholders including Australian ambassadors and high commissioners, EU and UK government officials, farmers, researchers and supply chain representatives. Key discussion points included Brexit; the future of the Common Agriculture Policy (CAP); the impact of environmental regulation and 'social licence' on global agricultural production and trade; and sensitivities for agriculture in the upcoming trade negotiations.
GrainGrowers will continue to work with the Australian government to ensure that Australian farmers receive a beneficial and meaningful trade agreement with the EU.
ABARES released their Crop Report on Tuesday 5 December. Key highlights include:
- ABARES forecast 2017/18 winter crop production at 35.1 million tonnes, down 41% year-on year.
- Wheat production is forecast at 20.3 million tonnes, down from 35.0 million last year.
- Sorghum production is forecast to rebound nearly 100% year-on-year to 2.0 million tonnes.
Click here to read GrainGrowers analysis of the latest grain production forecasts.
A GrainGrowers review of 2017 MPCI products for use in cropping operations.
Multi-Peril Crop Insurance (MPCI) protects against crop yield and farm revenue losses by enabling farmers to insure a percentage of crop production or revenue.
Click here to read the 2017 Managing risk using Multi-Peril Crop Insurance Report.
Grain Contaminants: Receival Standards, Grower Rights & Responsibilities
by Luke Mathews, Trade & Economics Manager
In light of recent statements by some bulk handlers, GrainGrowers is publishing this member update “Grain Contaminants: Receival Standards, Grower Rights & Responsibilities”. This update is designed to help growers, contractors and freight providers understand their current rights, obligations and liabilities when delivering grain to buyers and warehousing providers. These requirements are set out in the current receival standards and terms and conditions of individual businesses.
Australian grain growers have built a reputation on producing and delivering the highest quality grain to domestic and export markets. Understanding current receival standards is important in order to maintain access to premium markets and also to ensure that growers are not unwittingly penalised.
crushing the numbers - australia's vegetable oil industry
by Luke Mathews, Trade & Economics Manager
The Australian vegetable oil industry touches most Australians every day, either via the soaps we wash with, the margarines we spread, or the oils in which we cook our Chicko Rolls. Vegetable oils can also power the trucks that transport wheat from farm to flour mill.
The industry is a dynamic sector which involves a multitude of oil types, origins, customers and end-uses.
Read more about this extensive industry and how well Australian canola oil is competing with other oils.
ABARES SWINGS AXE THROUGH AUSTRALIAN CROP FORECAST
By Luke Mathews, Trade & Economics Manager
ABARES released the September Australian Crop Report this week. As expected, ABARES has swung the axe through the June estimate, cutting forecast 2017/18 total winter crop production to 36.3 million tonnes, down 39% year-on-year and down nearly 10% from the estimate made back in June. Wheat production is forecast to decrease by 38% to 21.6 million tonnes. Poor rainfall and recent cold temperatures have taken their toll.
Despite the latest downgrades, the risks to ABARES’ production forecasts are still skewed to the downside. Seasonal conditions need to turn around quickly or yield prospects will continue to erode rapidly. If that happens, analysts will be quickly calling an Australian wheat crop in the “teens”. And we haven’t seen that in more than a decade.
Click here to read GrainGrowers' full commentary on the ABARES' September report.
Indian grain market opportunities for australia
India is one of the world’s most dominant grain producers and consumers. And India will likely also become a significant import market for global grains and oilseeds in the future, complementing the current pulse trade. The Australian grain industry is potentially a strong beneficiary of India’s growing import demand for grains.
Click here to read the Indian Grain Market Opportunities for Australia Report.
The State of the Australian Grains Industry report was first published by GrainGrowers in 2011. The purpose of the Report was to review the industry post the deregulation of wheat export marketing and to outline the priority actions required to advance the interests of growers in an internationally competitive market. The report also successfully established a basis for evaluating the industry and opportunities in future reports. Five years on, the 2016 edition builds on the original report by refl ecting on progress towards capturing the opportunities outlined in 2011 and identifying the challenges faced by Australia’s contemporary grains industry. Although developed by GrainGrowers, it is intended that the report be used industry wide, as a useful ready-reckoner to Australia's great grains industry.
Click here to view State of the Australia Grains Industry: 2016 report
MANAGING RISK IN GRAIN CONTRACTS - a gROWER'S GUIDE
Almost $45 million has been lost to the Australian grain production sector over the last two years, due to a range of trader insolvencies. Grain producers, through their trade contracts as well as their wider marketing strategy, can reduce counter party risk by implementing strategies.
GrainGrowers has released a 'Managing Risk in Grain Contracts - A Grower's Guide'
The guide is a practical tool to assist GrainGrowers’ members to manage counter party risks in their dealings with traders or buyers and has been developed in consultation with legal experts on the PPSR (Personal Property Securities Register).
Click here to read the 'Managing Risk in Grain Contracts - A Grower's Guide'
STATE OF THE INDUSTRY REPORT 2011
GrainGrowers compiled the State of the Industry report in 2011 to provide a detailed analysis of the state of the Australian grains industry three years after deregulation.
The report outlines the prospects for the grains industry at the time and the priority actions required to advance the interests of producers in an internationally competitive environment.
The report covered issues pertaining to storage, handling and transport, wheat receival standards and variety classification, productivity, competition, risk management and marketing are all addressed in the report.
Download the State of the Industry Report
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