South Perth, Western Australia
March 11, 2005
The Western Oat Alliance (WOA) has warned Western Australian
growers to consider the impact on oat prices before increasing
oat plantings this year.
WOA Chairman Ray Marshall said while the oat grain market at
this early stage of the year had some upside, any tonnage in
excess of 150,000 tonnes would put immediate downward pressure
on price.
Mr Marshall said growers looking to increase oat grain
production should investigate pricing options to determine
whether the market place had capacity to deliver a fair and
reasonable price.
“Forward pricing is always a risk although oats generally suffer
less from frost and pests etc (excluding drought) than other
cereals,” he said.
“Oat grain production has been erratic over the last two or
three seasons. In 2003/04, 245,000 tonnes were delivered to
Cooperative Bulk Handling compared with a much reduced 65,000
tonnes delivered last season.
“This makes it very difficult to deliver assured pricing for the
grower and supply of product to the buyer.”
The Western Oat Alliance is the peak industry body for oats in
Western Australia – representing growers, marketers, millers,
feed merchants, hay exporters and research and development.
The Department of
Agriculture, Western Australia
is a member of the Western Oats Alliance. |