Australia
January 12, 2023
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Program leader Barry Cox (left) and Professor Ross Kingwell from the Australian Export Grains Innovation Centre are working to gain market insights for Australian oats. - Photo: AEGIC
Australia has a reputation for producing clean, dry, bright, sun-ripened oats and there is growing demand for them, both raw and processed.
However, oats are a minor crop in Australia and to support the projected growth it is necessary to balance supply and demand. This requires a long-term industry development strategy.
In 2021, the Australian Export Grains Innovation Centre (AEGIC) undertook a comprehensive analysis, providing up-to-date oat market insights and key recommendations to help Australia maintain markets and capture future opportunities.
Markets
Oats are mostly consumed in countries where they are locally produced. In Australia, the volume of oats required for milling is continuing to grow, providing a solid foundation for growers.
According to the USA Department of Agriculture 23.3 million tonnes of oats were produced globally in 2021, only about 10 per cent of this production is exported as raw oats or oat products
Over the 10-year period (2012 -2021) Canada was the world’s dominant oat exporter, selling about 1.6 million tonnes of raw oats and oat products annually, mostly to the US. Australia is the second-largest exporter, over the same period on average exporting 355, 000 tonnes (about 25 per cent of the Australian oat crop), but it has more diverse markets and is the major supplier to China.
While China has growth potential, it is important for Australia to diversify market risk and continue to engage with other Asian oat markets.
Market signals indicate oat consumption is being driven by its health benefits in both traditional and emerging markets. This consumption is supported by international health authorities and governments recommending consumers replace refined grain staples with wholegrain cereals such as oats. Australia can capitalise on these developments.
Strategy
Oat grains have higher protein content than other grains. Oats are also rich in minerals and vitamins and are a natural laxative, being high in soluble fibre, particularly beta-glucan, and contain more antioxidants than broccoli. There is scientific evidence that oats can lower blood cholesterol, help control blood pressure, improve heart health, reduce the risk of Type-2 diabetes, help control obesity and provide anti-cancer benefits.
It is these health aspects that will form a central plank for growing markets for Australian oats in many regions, particularly Asia. Sixty per cent of diabetics in the world live in Asia, while 30 per cent of the Chinese population is affected by prediabetes or diabetes. Asia already accounts for half the world’s heart disease cases.
To grow oat markets, there is a need to develop interesting and affordable new products that take oats beyond a breakfast staple. Oat-based foods need to be culturally attuned and tailored to Asian palates.
Potential markets such as Indonesia already have a history of being receptive to ingredient change, illustrated by the US-supported introduction of wheat noodles in the 1960s. This substituted some rice consumption to address malnutrition issues but ensured the country was self-sufficient in rice production. Indonesia is now dealing with rising lifestyle diseases – in particular childhood obesity – and similar issues are being faced by other Asian countries. These countries can benefit from health interventions involving oats as an ingredient in Asian meals.
To further support the Australian oat industry, AEGIC is developing new oat products through understanding oat chemistry and end-product functionality.
AEGIC regularly engages with end users and Australian oat processors. In-market activities include technical exchanges, workshops and seminars where customers learn about Australian oats and the best way to process them.
To match the anticipated growing demand, supply of oats will need to be fostered through breeding to deliver varieties attractive to growers and end users.
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