CHINESE customers are due to receive 250 tonnes of WA-grown field peas this week, after the first commercial containerised shipment of grain was exported out of Esperance.
After a two-year effort to get the containerised grain venture off the ground, Esperance Quality Grains (EQG) sent 10 containers of locally produced field peas through the Mediterranean Shipping Company on Wednesday, May 23.
Owned by former CBH Group chairman Neil Wandel and his wife Mary, EQG is a seed cleaning business that has been operating out of Esperance since 2002.
After ticking all accreditation boxes and completing required training processes with staff, Mr Wandel said it was a welcome sight to see the first shipment of containerised WA grain finally shipped after a lengthy development process.
He said there was significant potential for increased volumes of grain to be traded in containers out of the Esperance Port, with a 250t shipment of faba beans already planned for export to Saudi Arabia next week.
“There’s a ship that pulls into Esperance every month to pick up bulk containers of minerals so we virtually have access to put grain out in the third week of every month,” Mr Wandel said. “We’ve got some faba beans going to the Middle East in the next boat and then we’ve got some more peas going back to the same people in China in a month’s time.
“Ideally if we could get up to 40 boxes a month – 1000t a month – we will hopefully be able to negotiate a better shipping rate and that’s the key.
“But at least we’ve got everything up and running now, we’ve got the procedures in place and we’ve got the people trained up to do it.“It’s quite encouraging to get a start out of this.”
Mr Wandel said growers in the Esperance region had shown considerable support for the project, which had been financially assisted by a Royalties for Regions Agribusiness Innovation Fund grant, with collaboration from the Pulse Association of the South East (PASE).
South East Premium Wheat Growers Association’s PASE project officer Alan Bassham said the first shipment was a monumental milestone for the region’s pulse industry.
“I think we’re the only regional grain port that has a container facility and we were able to use that so it’s enormously significant given that we can now ship containers out,” Mr Bassham said.
“The container has just opened up all markets to us and all quantities, so if somebody wants to grow a particular crop – say a summer crop – it means that we can export it out.
“When you’ve got barley and wheat and the big products, it’s always going to be cheaper to ship in bulk, but for smaller and higher priced cargo it’s a much better option.
“With Neil’s facility, we can clean it, pack it and export it, so it’s hugely significant and extremely exciting.”
According to the Grains Industry Association of WA, an estimated 20,000 hectares of pulses will be grown in the Esperance port zone this season, making it the largest pulse producing region in the grainbelt.
Mr Wandel said in recent years, growers in the area had gained a greater understanding of the importance of legumes in their rotations.
“I know the price is suppressed this year but regardless, a lot of people are still running with a legume every fifth or sixth year in their rotation,” Mr Wandel said.
“Now the lentils seem to be performing pretty well, there’s been a big swing in lentil planting here.”Mr Bassham said the opportunity to ship small quantities of pulses out of Esperance would further encourage growers to increase their lentil plantings.
“I think it will lead to a boost in plantings over time, as long as we get our marketing right,” Mr Bassham said.
“I also think it’s going to be good for other traders to come in and buy the grain, which gives us more competition and more volume out.”
Despite hurdles presented with increased tariffs on pulses into India, Mr Wandel was optimistic there was enough market demand elsewhere to see regular shipments out of the port.
He said he was confident the market would turn around and further encourage pulse production in WA.
“The pulse market has been depressed but we’re seeing an increase in demand out of China and there’s strong demand at the moment for faba beans,” Mr Wandel said.
“Probably the pea price is at a record low and we believe it will recover.”
With storage, handling, cleaning and drying facilities at EQG, Mr Wandel said the added capacity to containerise and export grain would mean the business would be running longer than just three months of the year during harvest.
He said this would allow for more local employment, provide more export options for WA growers and help boost the profile of WA pulses year round.
“What we’ve been finding is that people are discounting Esperance peas, or WA peas, because they think the quality is not as good as the Eastern States,” Mr Wandel said.
“The quality is the same, it’s just the way they’re presented so we’re cleaning everything before we pack so everything we’re sending out is a clean product.
“The aim is to try and lift the name for the quality of pulses that are coming out of the region.”
