THE combination of growing demand, drought-impacted supplies and the global credit crunch will continue the volatility in grain prices over the next 18 months, delegates to the Australian Grains Industry Conference (AGIC) heard.
And with the deregulation of the Canadian wheat market on August 1, the Australian grains industry faces new competition into Asian export destinations.
Deputy chief executive officer of ANZ Graham Hodges and Alex Duncan of US-based firm McDonald Pelz Global Commodities both forecast short-term uncertainty in the global grains market at the AGIC, despite a strong outlook in the long-term thanks to a growing population of middle class consumers in developing countries.
The current drought in the United States on the back of crop failures in Argentina and Brazil has driven global grain prices to record levels, providing an opportunity for Australian industry to capitalise on its good season.
Federal Agriculture Minister Senator Joe Ludwig delivered the conference opening address, outlining the government’s plans for research and development, market access, and the delivery of a National Food Plan.
Delegates to AGIC included 60 international visitors from countries including the US, Canada, Vietnam, India, Singapore, Egypt, the United Arab Emirates, France and Indonesia.
Conference organiser Rosemary Richards said the AGIC program aimed to generate debate among key industry figures and facilitate new trade and investment opportunities for the industry.
