THE AUSTRALIAN Export Grain Innovation Centre and GrainGrowers have both welcomed the establishment of Katalis, a new grain industry hub set up between Australia and Indonesia as part of the free trade agreement between the two nation.
Officials from the two organisations are hopeful the deal, which has often been overlooked in discussions about the benefits of the FTA in favour of the headline items of greater market access in Indonesia for Australian feed grain, will help spur further grain trade between the two neighbours.
Katalis - which means "catalyst" in Bahasa Indonesia - will play a crucial role in facilitating grain opportunities as part of the broader Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA
AEGIC chief executive Richard Simonaitis said he believed the partnership could play a role in increasing grain trade and cooperation between Indonesia and Australia, which was a key focus for AEGIC.
He said his organisation had been busy providing Indonesian customers with information about Australian grain.
"Through in-market engagement and webinars, we deliver regular and consistent information to Indonesian customers about the quality of Australian grains for feed and food, including practical information about how to maximise value," Mr Simonaitis said.
He said AEGIC had also provided information on how to best manage COVID-19 hygiene requirements.
"Through the COVID period, we have supported Indonesian flour millers and food businesses with print and video resources about how to implement and manage COVID-19 hygiene practices," he said.
Brett Hosking, GrainGrowers chairman, said the project was invaluable in educating Indonesian customers on the best use of Australian grain.
And he said he saw further applications once international borders reopen.
"It has been really good to get that information out, and we can't wait to see what happens when our experts can get face-to-face in the field with the customers in Indonesia, we hope it will develop some really strong relationships," Mr Hosking said.
At present, Mr Simonaitis said his organisation was working to provide online resources for customers.
"We've recently launched a dedicated website filled with resources for current and prospective Indonesian grain customers, aiming to provide technical information which will inform their views on the value in using Australian grains."
Mr Hosking said he was upbeat about further demand for grain from Indonesia.
"We've always sold a lot of bread and noodle wheat there but I see feed grain markets, such as barley, oats and sorghum, also really developing."
Mr Simonaitis said AEGIC was looking at quantifying that potential via a major analysis of demand for feed grains in Indonesia as part of IA-CEPA.
"This work, which was commissioned by DFAT, is a collaboration with GrainGrowers and has identified new opportunities within IA-CEPA," he said.
"By 2030 an extra 8.7 mmt of feed grains and meals will be needed every year in Indonesia to help boost production in order to meet the increased demand for meat and fish, and Australia is well-placed to capture some of this market."
As part of IA-CEPA, 500,000t of Australian feed grains can enter Indonesia duty-free, with an allowance for 5pc growth each year, giving Australia a handy advantage over potential rivals into the market.
Mr Simonaitis said the situation in Indonesia was currently very tough, with the worst of the COVID-19 crisis hitting now.
"We wish all our friends in Indonesia all the best in dealing with the problem and we hope to give them all the support we can," he said.
Gregor Heard
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
