May 10, 2010

Austgrains introduces new wheat variety

Austgrains is launching the EGA Kidman, a Queensland Department of Primary Industries-bred variety, with qualities that will make it a valuable fit for farmers in that region.

Currently, EGA Kidman has a premium of US$15 per tonne on other Australian Prime Hard varieties, as Austgrains looks to market 50,000 tonnes of the variety in its first full year of commercial production.

While presently, there is only specialised demand for the line, Austgrains general manager Peter Vaughan believes it can be more than a niche variety, and that production could eventually be ramped up to half a million tonnes.

The variety can be used in the burgeoning Asian sponge and dough market, which has to date been exclusively serviced by Canada and the US.

Mr Vaughan, said there were hectare contracts available to produce and market 50,000 tonnes of EGA Kidman in the northern cropping zone this year.

He said the mid-season cultivar could be a good replacement for the popular Baxter, Gregory and Sunvale lines, with protein targets of 13-15%.

Mr Vaughan said he expected the northern zone to become a hub of high-value grain production, and that EGA Kidman could be one of the cornerstone varieties of the area.

"Based on National Variety Trial (NVT) results, the premiums, and closeness of Asia, EGA Kidman has significant potential to add value to the APH-producing regions of the new-look Australian wheat industry, post deregulation," Mr Vaughan said.

"The Asian sponge and dough market is estimated at US$1 billion per annum and is right at our back door," he added.

He said Austgrains was confident there would be good market opportunities for the variety and that the company had invested in developing the domestic and export.