April 10, 2013

Deregulation boosts Australian wheat sales to Asia

The deregulation of Australia's wheat industry has led to more opportunities for Australian growers in the Asian markets.

Graydon Chong, Rabobank's senior grains and oilseeds analyst, said Australia has moved away from the traditional markets of North Africa and the Middle East, with 70% of Australian wheat now going to Asia.

He said with more marketers selling Australian wheat, it is opening up access to new contracts in Asia.

"We have seen a lot more grain marketers come to the Australian market with their different international connections.We are also witnessing  marketers with strong Asian ties as well," Chonsg says.

Chong also said an increase in global competition means that Australia has been forced to be more competitive with its export markets.