GRAIN industry stalwart and board member of the Australian Export Grains Innovation Centre (AEGIC) Ron Storey has said domestic grain users bringing in grain imports when there is limited Australian supply has to be seen in the context of the health of the Australian industry in the long run.
Mr Storey came under fire from certain quarters for his role consulting to the Manildra Group as part of his Storey Marketing Services business, separate to his AEGIC role, as it prepared its applications to import high protein wheat for its Nowra gluten and starch manufacturing plant.
"I'm a farmer too, and I don't like the idea of imports, but we have to look at the overall picture," Mr Storey said.
He said he wholeheartedly agreed with farmer calls to strictly monitor biosecurity risks.
"Biosecurity is a non-negotiable, but if biosecurity safeguards are met, I actually think the longer term interests of growers and domestic processors are aligned."
The Manildra Group has been successful in gaining wheat import permits and will bring the first imported wheat into the country for over a decade.
Some growers said that working with Manildra is at odds with AEGIC's mission statement, to increase value within the Australian grains industry.
However, Mr Storey said, while it was not good that drought has driven production to the point where wheat imports are required, having a vibrant domestic market is beneficial to growers.
"You take a look at Manildra, they are one of the biggest domestic processors of wheat in the country and they create massive demand for wheat, generally throughout the east coast but this year even further afield," Mr Storey said.
"What happens if they can't get hold of the type of wheat they require to keep them going until more Australian wheat comes online, hopefully following this harvest, do we want to see a big user of Australian wheat reduce demand, just because it couldn't source enough supply from local producers in one year.
"I understand people don't want to see imports and I understand there are some people who have stored grain as they saw the market going up into this year and that they might not like seeing extra wheat available, but in the long run, the best thing we can do is ensure there is a vibrant domestic market there."
Mr Storey said there were similarities regarding livestock industries, who are complaining about the cost of feed grain, even though, unlike the Manildra case, which requires a specific, high protein grade of wheat that is unavailable in large volumes, there is feed grain about.
"I think of the poultry industry, they are the largest user of feed grain in Australia and the industry is steadily growing at 4-5 per cent per year.
"They've spent a lot of time and effort keeping poultry imports out, but should they put their hands in the air and say it is too hard to source and to pay for grain, then that opens the gates for imports, and it is certainly a lot cheaper to raise a chicken in Asia than it is here.
"All of a sudden we could have an industry that is of massive benefit for the Australian grains sector going into reverse."
Gregor Heard
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
