THE state's grain sector will join the sheep and beef industries in setting a clear and ambitious path for its future, with the state government this week announcing it will contribute $140,000 to drive the creation of a grains industry blueprint.
As with any industry where Mother Nature has an influence, there's so much that's out of producers' control. This makes it essential that we operate as efficiently as possible, while also ensuring that we maximise the value of the end product.
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The change seen along the grains supply chain in recent years has been significant. Most of our annual harvest haul has moved off the railways and onto our roads as rail infrastructure aged and trucks became more efficient. Our silo network has been constantly changing - most recently with the permanent closure of 17 Viterra silo sites - and many farmers have moved to store increasing amounts of grain on-farm.
Besides the weather, the biggest events influencing the fortunes of our cropping industry often occur thousands of kilometres away. Take the recent uncertainty about India's tariff on lentils, or China's sudden decision to launch an anti-dumping probe into Australian barley imports as prime examples.
Watching global grain market trends can be like riding a rollercoaster. One minute they're surging skyward as a freak weather event impacts Black Sea countries, then the next they're in free fall when the United States Department of Agriculture increases its stocks estimates.
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The global nature of the grain market can present challenges, but it can also open up huge opportunities. The development of a grains industry blueprint will help ensure the SA industry is able to capitalise on the opportunities that come our way.
The local cropping sector is headed for major change ahead, particularly on the Eyre Peninsula where multiple port projects are in the pipeline. These projects hope to divert a significant proportion of the EP's grain harvest away from the Viterra network each year, taking competition to new levels.
None of us can jump ahead and see what the grains industry of the future looks like, but the blueprint is a great opportunity to set the sector on the right path. We can't eliminate the influence of tough seasons or market influences, but creating an efficient, innovative and resilient grains supply chain will give us the best chance of success.
