THE first export vessel commissioned by SALIC Australia finished loading at Port Kembla's Quattro Ports on May 23 and has set sail for the Kingdom of Saudi Arabia.
The 60,000 tonne cargo of wheat is the first of multiple bulk export cargos SALIC Australia has planned for this year.
A SALIC Australia spokeswoman said the company's ground-breaking foray into the grain export market would generate a number of benefits for the Australian grains industry over the coming months and years.
"Given its ongoing investments in Australian agricultural production and supply chain, more and more of Saudi Arabia's food requirements will be filled by Australian produce, which is ultimately good for prices and competition here in Australia," the spokeswoman said.
"The investment in export has come at a good time for Australia, particularly with the bumper 2020/21 winter crop looking for alternate export homes."
SALIC Australia holds 100 per cent ownership of Merredin Farms in Western Australia, a 211,000 hectare cropping and livestock farm that produces more than 120,000t of grain annually.
SALIC Australia is keen to emphasise that Merredin Farms would not be the sole Australian grain provider to be filling Saudi Arabia's food requirements.
The spokeswoman said that based on Saudi Arabia's requirements, SALIC Australia would be sourcing grain from all States around Australia over the coming seasons, and exporting from multiple ports.
"SALIC Australia is both a grain producer and grain exporter, so we're cognisant of the challenges that come with farming in Australia and the importance of pricing competition to generate good returns," she said.
"The high-quality grain produced across Australia is greatly sought after from countries all around the world.
"The establishment of SALIC Australia as another exporter of that grain will provide multiple benefits to Australia's paddock to plate story, and will contribute to Australia's target of achieving a $100 billion agricultural sector by 2030."
SALIC Australia will be working closely with a range of Australian trading, export and broking companies to ensure smooth accumulation, logistics and export. For example, this vessel is being assisted by Basis Commodities and Arrow Commodities.
Saudi Arabia is an important trading partner with Australia.
According to Austrade, Australian exports to Saudi Arabia were worth an estimated amount of US$1.5b in 2019 and that is expected to increase going forward.