August 13, 2004

Major Rise In Australian Feed Grain Demand

A major jump in feed grain demand is expected in Australia in the next five years.

ABARE is predicting cattle feedlotters will need 30 per cent more, and chicken meat producers, 15 per cent.

The problem is that most of the demand is in the eastern states. But half of the feed grain is grown in the west.

Consultant Lloyd George from Farm Horizons says that raises questions about logistics.

"Western Australia and South Australia are basically producing about 50 per cent of the grain, while New South Wales, Queensland and Victoria are also producing. That's the other half of the grain production.

"But if we look at it in terms of demand, less than 20 per cent of the demand's in Western Australia and South Australia; and the other 80 per cent is along the east coast - NSW, QLD and Victoria - so there's a significant supply-demand imbalance there."