November 13, 2007

 

Australia's opening of import market creates opportunity for US grains

 

 

The Australian government's move to allow grain import is creating an opportunity for US grains, according to the US Grains Council (USGC).

 

The USGC on Nov. 9 said it is projecting increased export potential for US feed grains to Australia. 

 

The announcement by the Australian government greatly improves the prospect for feed grains and co-product exports to Australia, said Mike Callahan, USGC director of international operations.

 

The USGC began work on developing strong trade and industry contacts in the market years ago, he said, adding that developing trade relationships is essential to developing markets and enabling trade.

 

Australian Bureau of Agricultural and Resource Economics (ABARE) recently slashed its forecast for the 2007-08 winter feed grains harvest.

 

Australia's barley production, previously forecast at 5.9 million tonnes, is now 5 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.

 

Drought has been ongoing in Australia for the past few years, thus depleting stocks and necessitating imports, Callahan said.

 

Australia last imported feed grains in 2003, when shipments totaled 48,000 tonnes.

 

The approved grain imports include corn and sorghum from the United States, but there is also a good possibility distiller's dried grains with solubles (DDGS) as well, he said.

 

Callahan said the USGC has been conducting promotional activities for DDGS in Australia over the past year.