GRAIN grower representative groups have welcomed the news the Grains Research and Development Corporation will invest over $17.5 million over four years in industry good body Grains Australia Limited.
Grains Australia was formed in 2020 by industry groups to administer industry good activities including classification, market access, and market information and education.
The GRDC funding creates certainty for Grains Australia and will allow it to work on bolstering the competitiveness and profitability of the nation's grain sector across the value chain in domestic and international markets.
GrainGrowers chairman Rhys Turton said the announcement was good news for the grains sector.
"Grain growers now have an organisation that can conduct industry good services and functions, and this significant investment by GRDC into GA will provide it with the resources to drive industry competitiveness and profitability," Mr Turton said.
He said having an organisation fulfilling industry good functions and providing updates on market trends was critical.
"To continue to service our customers and respond to market trends, the supply chain needs to effectively access information on changing market preferences," he said.
Grain Producers Australia deputy chair Andrew Earle also welcomed the news, saying the funding commitment provide a level of certainty for the new organisation.
However, he said Grains Australia also had to ensure it delivered genuine outcomes and demonstrated results, which increased the value of Australian grains and boosted returns for Australian grain producers.
"GPA backed the initial establishment of Grains Australia with the use of grower levies to achieve shared goals of increasing market access and efficiencies, to boost the profitability, sustainability and international competitiveness of the Australian grains industry," Mr Earle said.
"This funding is another step towards achieving these outcomes - not only for growers but also across the industry," he said.
GRDC chair John Woods said the decision to invest in Grains Australia on behalf of the nation's grain growers was a critical, considered move to support the sector's long-term competitiveness and profitability.
"During the most recent season we faced harvest challenges and crop downgrades in eastern Australian and supply chain issues in the west, so it is more apparent than ever that consolidating 'industry good' functions and services is critical for our industry," Mr Woods says.
"Marketplace dynamics are changing, and national and international markets and supply chain logistics continue to be volatile and challenging and are likely to remain that way into the future," he said.
Recently, Grains Australia appointed well-known grains industry leader Richard Simonaitis as chief executive after nearly a decade at the helm of the Australian Export Grains Innovation Centre in Perth.
He will continue the organisation's work, which so far includes the integration of Wheat Quality Australia, the Grains Industry Market Access Forum (GIMAF), Barley Australia, The National Working Party on Grain Protection (NWPGP) into the body, along with establishing a national oats council.