Each day one of the grower participants on the trip will do a trip report covering three main questions we have posed to them during the day. The growers on the trip are keen to share their learnings with other WA farmers - so you can get a feel for what they are experiencing first hand. First up is a report from Brad Collins from Morawa........
Top points from today's visit I would like to share with other WA growers:
- SE Asia, especially Indonesia is experiencing rapid population growth and as the middle class grows the diet is trending towards consuming wheat based products vs a rice based diet.
- It is a good time to be promoting Australian wheat to this region with the growth in the number of flour mills and the freight advantage we have for this market. In 2000 there were 4 flour mills in SE Asia and now there are 15 with more under construction at the moment.
- Indian wheat production is currently a threat to selling Australian wheat into this market because they are selling at a $20-30 discount to Australian wheat. Their wheat is of poorer quality and requires the mills to clean it thoroughly but this does not outweigh the low price. As Indian continues to develop their agriculture industry and logistics they will become a greater threat to us.
Interesting industry facts I learnt today:
- The fastest growing consumption in SE Asia is for wheat products is bread. The US and Canada supply most of the wheat for bread making as they have the correct quality and Autralian Hard wheat is only used to balance the blend. Our wheat varieties and grades are better suited to Noodle production.
-Since the deregulation of the Australian wheat market the has been a gap in provision of crop and technical quality reports to the SE Asia market. There are big opportunities here.
- in 2010 Indonesians consumed 14.5 billion packets of instant noodles and this figures grows by roughly 10% per year.
- Indonesia is currently the third largest importer of Australian wheat and is pegged to become the largest importer of Australia wheat in the next 5 yrs.
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