Grain strategy released

WA Agriculture and Food Minister Ken Baston launched the grain industry's action plan for doubling its value by 2025 at the Agribusiness Crop Updates earlier this week.

A draft of the strategy, coordinated by the Grains Industry Association of WA, was unveiled in October 2014, offering interested parties the opportunity to comment on recommendations.

The strategy contains eight industry-wide recommendations, ranging from addressing the skills shortages across the industry, to improving the grain handling infrastructure.

In each instance a relevant organisation has been charged with leading the strategy recommendation.

The first recommendation focuses around optimising the grain handling and transport infrastructure, given the current road and rail network is considered a major impediment to improving efficiency of the WA grains industry.

Among the most contentious recommendations is to support a repeal of the GM Crops Free Area Act 2003, which forms part of the recommendation to reduce the red tape within the industry.

According to GIWA, this recommendation was met with opposition from GM opponents during the consultation phase.

There is a raft of specific recommendations for the main grain commodities grown in WA - wheat, barley, oats, oilseeds and pulses.

GIWA chairman Sean Powell said it was not inconceivable that by 2025 the WA grain crop could be approaching 20 million tonnes, valued at about $10 billion.

"Furthermore the industry is poised to see increased returns from investments in the WA grains value chain and in value-adding ventures on and offshore, capitalising on the growing middle class in Asia, as well as our traditional markets in north-east Asia and the Middle East," he said.

"This is the first time such a comprehensive strategy has been developed for the WA grains industry, which accounts for around 50 per cent of the farm gate value of agriculture in the State, and around 40 per cent of the value of grain exports from Australia."

Mr Powell said it was now up to industry, particularly the businesses which GIWA and other grain industry organisations represent, to implement these strategic actions.

"Many of these actions require industry to step up and take the lead, recognising that in some areas there is still a role for the support of government departments and agencies," he said.

"Some parts of the industry are already investing in these actions, and I look forward to working with the entire industry over the next decade to 2025."

Mr Baston said the strategy embodied a bold vision as to how it would expand the industry to ensure sustainability and prosperity.

"By 2025, the world's population is forecast to increase by one billion and this will require a 30 per cent increase in global grain production," he said.

"Most of this demand is expected to come from Asia with a rising middle class, providing the WA grains industry with a unique opportunity to become a preferred supplier to this rapidly growing market."

Actions called for under the eight major strategy initiatives:
 a comprehensive least-cost pathway analysis of the process for getting grain from farm to export port (updating the 2009 Strategic Grain Network Review report), including a full analysis of road funding requirements and a true economic comparison of rail and road costs
an examination of the need for grain handling infrastructure in the Kwinana Industrial Area, including intermodal transport hubbing, and container packing and grain processing using the Fremantle Inner harbour, and eventually a Fremantle Outer harbour
continuing the impetus to streamline export clearance and chemical registration processes
support for market choice for farmers and consumers to choose whether to use genetically modified products, and the repeal of current State legislation in favour of uniform national legislation relating to food safety and the environmental impact of all production technologies
pre-competitive promotion of Australia’s reputation for supplying high value grain markets, supported by classification, quality standards and biosecurity measures to ensure market access
continued emphasis on identifying value adding processing opportunities on shore and off shore, including looking at the feasibility of a consolidated grain processing hub in WA
Doppler radar facilities and improved mobile communication services throughout the grain belt to enable the full utilisation of technology available to maximise grain growing productivity
addressing the skills shortages, training and capacity building needs of those working in the WA grains industry
Other recommendations included actions to build farm business resilience and support for the priority setting processes under the Grains Research and Development Corporation.