Last week, Rivergum Communications attended the Australian Grains Industry Conference (AGIC20) – from the kitchen. Normally, this event is an opportunity for the grains community to come together and discuss global supply and demand, the value chain and innovations in production and processing. It is a wonderful opportunity to catch up, engage and collaborate with …
MoreThe Rivergum team attended the Australian Grain Industry Conference (AGIC2018) in Melbourne last week.
It was a valued opportunity to meet with friends and colleagues from across Australia and internationally, exchange notes, and discuss – amongst other things – the challenges and opportunities the industry faces in an increasingly competitive global market.
It is clear that Australian grain growers are well positioned to benefit from strong demand for grain into the surging Asian middle class. However, it is also clear that there is increased competition from traditional suppliers such as the United States and Canada, as well as developing countries such as Ukraine and Kazakhstan.
Technological advances applied to milling processes means international customers are more adaptable to using a range of wheats in their milling grist, blending to drive costs down. As a result, the premiums previously paid for Australian white wheats are no longer guaranteed.
To compete effectively and maximise returns we must differentiate our offering, and then clearly articulate and promote this value to each target customer.
We must also extract efficiencies in along the supply chain. In this increasingly commoditised environment there are improvements to be made in the complex logistics of moving grain from farm to silo, along road and rail, and onto the ship, and in addressing the costs incurred in the processes for quality assurance, pest control and contract documentation.
AGIC acknowledged that savings can be made by adopting technology – such as block chain – and through increased industry and government investments in infrastructure.
Australian grain growers compete in a volatile international trade environment with ongoing government negotiations around trade agreements, sanctions and subsidies. Our politicians and industry leaders need to focus efforts in securing free trade agreements and improving pathways to access international markets for our grain.
As we continue to deliver premium Australian grains to the world, by embracing the latest research and technology for improved productivity
By embracing the latest research and technologies, coupled with clearly differentiated market positions, we will be best positioned to protect the future prosperity of Australian grain growers as they continue to deliver premium products to our international partners.
