Asian markets provide great potential for Australian grain industry

The growing Asian market for Australian wheat is set to provide grain exporters with new opportunities, according to a recent report by Rabobank.

In 'Competition, deregulation, and opportunity - seismic shifts in Australia's wheat export landscape', the agribusiness banking specialist says that Australian exporters and producers face a challenge of adapting to the demands of this new market.

"From the paddock through to bulk handlers and traders and ports, the shift in demand for Australian wheat from traditional markets such as North Africa and the Middle East to the growing Asian market is resulting in change throughout the Australian grain industry," said Mr Chong in an April 8 statement.

"The demands of the Asian consumer are resulting in new seed varieties for grain growers, changing blending and storage practices for bulk handlers and the development of fresh trade links for the industry."

The report says that Australian exporters gain a competitive advantage due to cheaper freight costs, especially in years of high global wheat production.

So how do rural producers ensure that they make the most of this advantage over the long term?

Mr Chong suggests that farmers will need to be able to respond to changing end-user demand in Asian markets. This will be particularly important as the Asian market gets bigger and consumer behaviour changes.

The way to do this, he says, is to ensure that the "right market signals" are travelling along the supply chain to Australian farmers.

"The responsiveness of growers to market signals regarding the quality, variety and types of crops demanded will be an integral part of the success of exports into the shifting global markets," Mr Chong added.

Whether dealing with international or domestic export environments, risk management is an important part of any business.

Elders Insurance is a leader in providing comprehensive farm insurance and crop insurance policies to rural producers across Australia.