November 12, 2007

Australia approves feed grain imports

Australia's federal government has authorised livestock producers to import grains due to ongoing drought conditions, reports the US Grain Council (USGC).

According to Mike Callahan, USGC director of international operations said the last time Australia imported bulk shipments of feed grains was 2003 when roughly 48,000 tonnes (18.9 million bushels) of corn were imported from the United States, also a result of severe drought conditions. Australian feed grains producers in the eastern region are reportedly expecting a two-tonne decrease as confirmed with the figures from the Australian Bureau of Agricultural and Resource Economics (ABARE) recently revising its forecast for the 2007/08 winter feed grains harvest down significantly from previous estimations. For example, ABARE expects barley production to amount to 5 million tonnes, previously forecast at 5.9 million tonnes. Total production of Australia's top three grains is forecast to be only 18 million tonnes - around 42 percent below the five year average. However, Callahan said this anticipated forecast is still greater than last year's production.

The drought situation is Australia is not a 2007 issue as it has been ongoing since the last few years. Consequently, most of their stored supplies have been depleted, causing imports to be a necessity according to Callahan.

The approved grain imports include corn and sorghum from the United States, but there is also a good possibility for us to be able to export some distillers' dried grains with solubles (DDGS) as well."

Callahan said the Council conducted specific promotional initiatives for DDGS, a co-product of ethanol production, over the last 12 months, including sponsoring the attendance of Australian importers to the Council's International Distillers Grains Conference held last month in Schaumburg, Illinois.