Connecting the WA Grain Value Chain RD&E, Growers, Industry, Customers

From Tambellup to Salatiga, Jawa Tengah…

Grain Industry Association of WA Inc.

• Established 2008 after deregulation of Australian wheat market

• NFP Industry Association, Associations Incorporation Act 2015Value chain membership:

– tertiary & RDC researchers

– plant breeders

– growers & grower groups

– public sector RD&E

– agronomists & farm advisors

– input & service providers

– logistics, bulk & container handling

– processing

– trade

An efficient and effective export oriented WA grain value chain….

• Pre-competitive industry capacity building and communications

• Western Australia export focus and national collaborator

• GIWA Councils Wheat, Barley, Oats, Oilseeds, Pulses and Careers in Grain

• Leveraging financial contributions with industry volunteerism

E.g. Grain standards fit for purpose to the Chinese barley market2015 barley standards review – market access focus1200 hours @ $80 = $96,000 for a market worth $850,000,000

An efficient and effective export oriented WA grain value chain…

• Grain standards setting (Oats, Barley WA) + GTA Member• Trade and market access issues• Trade investment, promotion & development• Varietal accreditation and rationalisation support• Storage, protection, and chemical residue communication• Phytosanitary and biosecurity communication• Industry capacity building projects e.g. GRDC Research Updates, COGGO,

GGA, Careers in Grain• Capacity building through the value chain in support of RD&E

GIWA does not carry out technical, functional or quality grain research

WA Grain Industry Strategy 2025+

A high volume commoditized business, accounting for more than 50% of the gross farm gate value of agricultural production in WA

• Optimise grain handling and transport infrastructure• Reduce regulation and red tape • Position Australia as a preferred and reliable exporter of grain• Pursue value adding opportunities• Provide essential regional technology infrastructure (mobile & doppler)• Build farm business resilience• Develop skilled industry personnel• Invest in focused farm productivity research, development and extension

Who does GIWA work with? Our Members, and…

NATIONAL WORKING PARTY FOR GRAIN

PROTECTION (NWPGP)

Perception amongst Asian middle classes - our food is clean, safe, sustainable - & worth a premium?

• The developing world’s food demand will outstrip their arable land- global agribusiness challenge is 30% more food from same amount of land by 2050 (FAO)

• The developed world wants healthy, traceable, convenient, sustainable food – with specific benefits

• Australia has to differentiate or offer a premium – we have a relatively high cost base and low import barriers

• Control our destiny through reputation, quality, brand, trait, provenance or a combination of any of these

• Which WA agrifood sectors show the most promise?

DPIRD Coriolis Pathways to Competitiveness Report 2017 / DPIRD Coriolis Premium Agrifood Market Opportunity Report 2017 https://www.agric.wa.gov.au

Craft our grain (food) offer to connect with these Asian middle classes….

• Develop stronger cultural and consumer insights through existing supply chains (soft wheats for snacks, biscuits/baked segment Indonesia; superior noodle wheat varieties for Japan & Korea)

• Explore new markets or new market segments (Myanmar!, malt barley InterMalt Vietnam; feed wheat Philippines; field peas, red lentils, chickpeas, fababeans, lupins India)

• Value add, either domestically or by investing closer to the customer in the regions (Ridley, InterFlour or traits, Nufarm Omega 3 Canola)

What tangible assets do we have to work with to satisfy Asian food (grain) demand?

• Proximity to markets!

• Grower funded RD&E corp, focused on profitability for the grower,which wants to be more nimble ++

• Portfolio of arable crops BUT a changing climate

• Biosecurity licence to operate which we cannot take for granted

• Ancient soil AND need for more systems research soils, water, biodiversity, economic & social development

• Envious system of plant breeding rights BUT long value chains through which to translate back consumer food preferences

• World class grain bulk handling & container system BUT not least cost pathway to market

What intangible assets do we have to satisfy Asian food (grain) demand?

• WA growers – experimental and early adoption mindset - genetics and farming technology BUT face productivity and digital connectivity pressure

• WA grower groups - already collaborating well through peer based learning

• BUT developing consumer insights or funding experimental & new business costs!

• Choose an experimental strategy, choose industry partners, build a kitty (cash, skills, relationships) and prepare to learn from failure

• Have the conversation with industry, move beyond short term sponsorship mindset to shared value creation mindset

What intangible assets / soft capital do we need more of to participate in these Asian food (grain) markets?

• “Eating Mindset” - not a production mindset

• “Asia Literacy”– eat, travel, study, work, live, speak, listen, share – know your markets!

• Growth oriented commercial leadership

• Growth oriented, peer to peer, private & public, WA & in-marketagrifood leadership development – Monty #2

What intangible assets / soft capital do we need more of to participate in these Asian food (grain) markets?

• Skills, gender, culture & inter-generational diversity

• Scientific rigour AND the multidisciplinary “soft arts”STEM + C i.e. coordinate, collaborate, create

• And for the grain industry nationally, there’s one more “C”…

Grain Industry Association of Western Australia Inc.

ltaylor@giwa.org.au

www.giwa.org.au

@GrainIndustryWA