End users not looking to grain imports in spite of drought biting

It has led to some within the grains industry musing about the prospect of Australia being an importer of wheat for the first time since 2003.

However, in spite of the lack of old-crop grain and the ever-growing concern surrounding the prospects of the 2018-19 winter crop it is unlikely that domestic grain consumers will push to import grain.

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While price-wise it may be possible to make the sums add up to bring feed wheat in, Australia’s strict quarantine laws mean sourcing grain from other states is by far the preferred option for those looking for stockfeed.

Only once in recent memory, in early 2003 following the record-breaking 2002 drought, has wheat been imported into Australia, with a shipment coming to Brisbane from the United Kingdom.

Peter McBride, director of corporate affairs at Cargill Australia, which has a strong footprint in the livestock industry through its Teys Australia joint venture, said the lengthy process to gain a grain import permit meant it was unlikely businesses would look to bring grain into the country.

“Australia’s quarantine restrictions are highly restrictive and the process that has to be followed can be challenging to navigate,” Mr McBride said.

He said the potential exporting country/region needed to be approved by the Department of Agriculture.

Even if that was successful there is then a strict restriction placed on the movement of the grain and how it is processed so as to minimise the risk of items of quarantine concern entering the country.

This means, in theory, it would be easier to bring grain into a metropolitan area for the purpose of milling than it would be to take imported grain upcountry for use in feeding livestock, which is where the majority of the demand is at present.

Duncan Whittle, general manager of strategy and development at igrain.com.au, said Australian Quarantine and Inspection Service (AQIS) requirements meant he also felt grain imports would be unlikely.

“We don’t tend to import much grain, although we have seen feed sources such as soybean and palm kernel meal imported before, but that is for specialised use,” Mr Whittle said.

“Overall, given the supplies in South and Western Australia, there would be no need to import grain at least this year.

“Further ahead, should the current season track the way it is going on the east coast, 2019 may shape as the real problem given there will be virtually no carry-over.

“A poor harvest this year would really place pressure on supplies.”

“We’re really going to want to see a late winter / spring recovery on the scale of what happened last year in Western Australia when they got out of jail with a near perfect finish.”

Malcolm Bartholomaeus, Bartholomaeus Consulting, said importing grain was unlikely as those who needed the grain most would struggle to get permits.

“The grain can’t go upcountry and needs to be milled close to where it is unloaded which would be fine for flour millers but not so useful for the livestock industry.”