September 7, 2006

Australian feed grain users considering imports as local prices climb

A number of feed grain users in Australia are considering importing stocks for the first time since 2002, The Australian Quarantine and Inspection Service (AQIS) said last week.

AQIS, which approves import permits, says it has had enquiries, but no formal application has been made.

Grain is imported when Australia's supply is low and domestic prices are more expensive than international prices.

Elders Grains general manager Phillip Pyle said even though prices have not risen enough to justify importing, they did rise rapidly in the past month.

Citing barley for example, Pyle said prices, which are around A$150-A$170 a tonne (US$115-US$130) are now A$223 a tonne, meaning a rise of at least 30 percent.