THE decline in available Noodle wheat tonnage this year has prompted a Japanese delegation to visit WA to assess potential supply for their Udon noodle market.
Responding to an invitation from Agriculture and Food Minister Terry Redman, the contingent from the Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF) met with Agriculture and Food Department and grains industry representatives last week as part of a whole-of-industry approach to managing the impact of the dry season.
Department Grain Industries' executive director Peter Metcalfe said Japan was a highly valued customer for WA noodle wheat buying between 800,000 and 900,000 tonnes of the noodle wheat blend each year.
He said the relationship had been built on a long-standing and reliable wheat trade underpinned by close technical quality collaboration to meet market requirements.
Noodle wheat production this year has been adversely affected by low rainfall, particularly in the Kwinana port zone, with total wheat production from the 2010 harvest reduced to half the long term average.
Department Grain Industries' director of genetic and product innovation Rob Loughman said in the past, Noodle wheat exports to Japan depended on shipment from the Kwinana port zone, which was a reflection of the historical preference for the quality of wheat coming from the region.
"The Japanese industry is now recognising the high quality of Noodle wheat blends shipped from other port zones such as Geraldton and Albany," Dr Loughman said. "And this could encourage future Noodle wheat production in northern and southern production areas."
The amount of Australian Noodle Wheat (ANW) available has declined in recent years as a result of market price signals and challenges in meeting grade specifications.
"Reduced planting in the last two years together with low seasonal production in 2010 means that this specialty wheat blend is now in short supply," Dr Loughman said.
"We are greatly encouraged that closer familiarisation with industry issues and ongoing discussions between industry representatives will assist in maintaining the special supply relationship WA has with Japan's wheat supply chain."
In recent weeks, ANW1 wheat prices have skyrocketed, reaching $536 a tonne last week, compared with APW grade which was bringing $376/t.
But industry traders and Noodle growers still face the reality that prices of more than $500/t and premiums over APW of $145/t are excessive.
Rumours the market would collapse because traders blended ASW wheat with Noodle wheat for export orders, was said to be unlikely to have any impact, given that an ASW and ANW blend was standard practice for Noodle exports.
It has been speculated that Noodle wheat prices in WA are likely to fall simply because prices are too high in their own right, are too high above APW and if APW improves it will add to further downside potential on the price.
Tambellup farmer, Ray Squibb, grew 500ha of Cadoux and Binnu this year and said the Japanese delegation's visit didn't come as a surprise.
"We had some Japanese buyers come down to our farm about six or seven years ago and they were really keen to buy Great Southern Noodle wheat," Mr Squibb said.
"But over the last couple of years we've received some really negative feedback from WA marketers saying that Noodle varieties grown anywhere south of Perth are of really poor quality.
"Farmers responded really quickly by not growing it anymore.
"It sent some really mixed signals and it was badly handled again last year.
"If for no other reason, the tonnage of Noodle wheat in this area won't go up much next year simply because of the mixed messages growers are receiving."
