EMERALD Group joint venture partner Southern Quality Produce (SQP) has got on the front foot in terms of assisting growers with downgraded grain by running a feed grain based marketing program this harvest.
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It follows record rainfall for November and early December across much of SQP’s Victorian catchment.
SQP managing director Ben Fleay said the business was currently developing marketing options for growers across eastern Australia who have been affected by the continuing rains and poor harvesting conditions.
Mr Fleay said the company would take a leaf out of mirror conditions in recent years, when dry and hot conditions damaged grain.
“Its not the first time there has been a lot of downgraded grain on the market, I remember a similar situation 10 years ago when many areas of Victoria suffered feed grain due to drought.
“During this period SQP was able to take a long term view, developing specific segregations and running targeted pools to assist growers to market their grain in those tough years,” he said.
Mr Fleay said SQP would work through the situation by providing grower-based options.
“When our grower customer is faced with such issues we focus on providing clear market feedback to our growers, getting the right segregations and delivery options, and providing the right marketing option which, in many instances, is a pool with a long term focus."
In comforting news for growers unsure whether they would find a home for their grain, Mr Fleay said he was confident SQP would ensure it finds a way to provide a market for any downgraded wheat and barley that is produced by its customers this year.
Emerald managing director Mick Cattenach said he was also busy devising feed-focused marketing products.
“We hope that by SQP offering products that accommodate grower’s crops changes, this will add some support and relief to producers and their families this harvest.”
He said the positive in the situation was that there was strong demand for lower quality Australian wheat due to decreased exports from the Black Sea region, hit earlier in the year by drought.
Mr Cattenach said Emerald, through its international joint venture partner Sumitomo, had strong links in south-eastern and eastern Asia, in particular Korea, with a recent trip to Korea seeing positive feedback on the demand for Australian feed grain.
“Our relationships with buyers in the Korean market, coupled with our strategic partnership with Sumitomo, put us in a good position to successfully market feed grain this harvest.
“With our revised product range, and local teams working closely with producers, we hope to offer some form of relief and help maximize returns for growers this harvest,” Mr Cattenach said.
