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Future demand for feed grain in Western Australia
South Perth, Western Australia
April 15, 2005


New research and market opportunities are needed to find an alternative use for the current oversupply of feed grain according to a new report from the Department of Agriculture,
Western Australia.

The report, Feed Grain – Current and Future Demand in Western Australia, examines the supply and potential demand for key feed grains and explores possible options to take advantage of future market and new industry opportunities.

Department market analyst Anne Wilkins said WA’s domestic livestock industry was oversupplied with feed grain.

Ms Wilkins said even with forecast increases in livestock numbers over the next five years there would still be 10 times more feed grain produced than the forecast demand.

The Department’s analysis showed that feed grain production must be economically competitive for grain growers and this could be achieved through pricing (premiums) or significant yield advantages. 

“Growers in Western Australia could produce an extra one to two million tonnes of feed grain at short notice when price and risk considerations are favourable for feed grain production,” Ms Wilkins said. 

“However, it is unlikely that the local livestock industry would expand as quickly.  Therefore it is demand rather than supply that dictates future feed grain production expansion.”

Ms Wilkins said technology needed to be developed to rapidly assess the nutritional value of grain for different livestock classes and enterprises if price premiums for feed quality were going to be paid to provide incentives for growers. 

“The current breeding programs are focused on improved yield, food quality and disease resistance.  Predominantly, feed grain is down graded human consumption grain,” she said.

“Biotechnology companies are also moving into plant breeding, with one company planning to release a feed wheat this year.

“The success of these new varieties is dependent on their adaptation into niche production areas where existing milling varieties are not well adapted.  This could include tolerance to salt, waterlogging, boron, drought, frost or aluminum.”

Ms Wilkins the Department’s report collated information and data on 20 different grain types.  Each grain is analysed by a world, Australian and State perspective, market development, demand, agronomic performance and grower returns.

Ms Wilkins believes the report is an excellent resource for any researcher or student who needs quick and easy access to a wide range of information and data which is compiled in one document.

The report is available on CD-Rom for $33 from the Department of Agriculture’s South Perth office.

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