Status of Australian Grain Exports to China 澳大利亚粮食 Status of Australian Grain Exports to China ... 2015 China Barley Imports by origin. ... • Currently!13!exporters.!

Status of Australian Grain Exports to China 澳大利亚粮食出口中国现状

Nathan Backhouse 郝宁生 Regional Director, Western Australia Trade Office China 西澳大利亚州政府驻华商务代表处首席代表香港 2015-03-11

www.westernaustralia.cn

Australian major grain production

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

Australian major grain produc2on (000 tonnes)

Sorghum

Canola

Barley

Wheat


120,307 kt

8,028 kt

Wheat Produc2on -‐ China versus WA

5 year average

China WA

1,647 kt

2,611 kt

Barley Produc2on -‐ China versus WA

5 year average

China WA

13,935 kt

1,340 kt

Canola Produc2on -‐ China versus WA 5 year average

China WA


Major Grain Production: Western Australia vs China

Australian major grain exports

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Australian major grain exports (000 tonnes)

canola

sorghum

barley

wheat


0

200

400

600

800

1000

1200

2008/09 2009/10 2010/11 2011/12 2012/13

$AUD Millions Broadacre Crop Exports to China

WA

Australia

Includes: barley (incl. processed), canola (incl. meal/oil), cereal grains/flour/hay/meal/straw, lupins, oats (incl. processed), pulses, stockfeed, wheat, wheaten meal.


SORGHUM


Australian sorghum production

•  Grain sorghum producTon is forecast to rise by two-‐thirds to 1.8 million tonnes in 2014-‐15.

•  The area planted to grain sorghum is forecast to be around 604 000 hectares.

•  Above average rainfall in December 2014 and January 2015 boosted sorghum harvest in QLD and NSW.

source: ABARES


Australia Sorghum Production & Export Trends

0

500

1000

1500

2000

2500

3000

3500

4000

ProducTon kt Exports kt


Major importers for sorghum


Export Trends

0.0

50.0

100.0

150.0

200.0

250.0

Mar-‐12 Apr-‐12 May-‐12 Jun-‐12 Jul-‐12 Aug-‐12 Sep-‐12 Oct-‐12 Nov-‐12 Dec-‐12 Jan-‐13 Feb-‐13 Mar-‐13 Apr-‐13 May-‐13 Jun-‐13 Jul-‐13 Aug-‐13 Sep-‐13Series1 4.5 1.5 3.0 6.3 35.5 33.1 3.0 0.0 0.0 0.0 1.1 1.5 24.8 60.0 70.8 93.1 146.2 221.8 90.7

Zero to hero – Australian sorghum exports to China


Why increasing demand in China?

•  Baijiu consumpTon increased conTnuously

•  China’s increased appeTte for feed grain


WHEAT


Australian wheat production


Australian wheat production

•  Australia produces about 26.5 million metric tonnes of wheat per year

•  This accounts for about 3.5% of annual average global wheat producTon.

•  Australia exports > 65% of the wheat we produce.


Australian wheat exports

•  Australia is the third largest wheat exporter in the world.

•  Australia exports 18-‐20 mmt tonnes.

•  Represents 10-‐15% global wheat trade.



Australian wheat Export-by state

0 1 2 3 4 5 6 7 8 9 10

Qld

Vic

SA

NSW

WA

Million tonne

Domestic consumption Bulk Exports Non-bulk exports

WA VIC

NSW

QLD

SA


Australian wheat export trends

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2009 2010 2011 2012 2013

Australian Wheat Export by Country

China

Taiwan

2014


• Australian wheat is not just a single uniform commodity but segmented based on producTon region, quality and funcTonality for different end-‐uses.

• Australian wheat is preferred for noodles, steamed buns, flat breads and valued for versaTlity and blending opportuniTes.

• Increasing interest for markeTng parcels of specific quality wheat.

Main messages


-‐Government manages domesTc wheat producTon and imports -‐China grows medium gluten wheat – imports high and low gluten -‐Imports focused on using wheat for blending -‐Limited number of imports under direct permit -‐Increasing interest in using Australian wheat

China & Wheat


BARLEY


Barley •  Australian barley production = 8.2 million

tonnes p.a. Represents 5% of global production.

•  Australia is comparatively export focussed with @ 60% of total barley crop exported.

•  Worlds largest exporter of barley. Represents > 40% of malting barley trade. Represents ~ 20% of world feed barley trade.


Key markets for Australian barley


China Beer Production 1991-2011 (million hl)

Source: E-malt, accessed 5 April 2013

China Market

China increasing imports from Australia of: •  Hindmarsh barley variety •  FAQ (Fair Average Quality) barley also being purchased by Chinese market

•  Taiwan market imports processed malt


Source: Tsingtao Brewery presentaTon Mar 2015

China Barley Imports by origin

OATS


China – A growing opportunity

Source: Trademap

Globally, consumption of oats is rising due to recognition of health properties of the crop: lowers cholesterol levels, reducing risk factor for heart disease. Now incorporated in range of foods:

Oatmeal Breakfast foods Health bars Bakery goods Baby foods Beverages

Highly valued for premium horse racing industry

End uses for Australian oats


Australian oats •  During 2014 Australian farmers produced 1.15 million

tonnes of oats.

•  Australia has gained a reputation as a world leader in growing high quality milling oats for the export market.

•  Internationally, demand for Australian oats is increasing due to: •  Health and nutrition benefits •  Low moisture (storage) •  Ease of processing •  Grain brightness

•  Like, all Australian crops, they are also valued for the clean, green environment in which they are grown.


1.  Since mid 2000s, China has experienced 15% pa growth in consumption of oat based foods.

2.  Growth driven by increased sophistication in health market and consumer awareness of health benefits of oat based foods.

3.  In 2012, China predicted industry to double within 5 years.

4.  Declining production of Oats in China’s north.

5.  Increased sophistication in milling and processing.

6.  Interest in new products eg oat milk, oat rice, oat noodles, cosmetics

Growth in China’s consumption


Oaten Hay-Western Australia

•  Oaten hay complements alfalfa hay in the dairy cagle diet

•  Grading system based on nutriTonal value

•  Currently 13 exporters.


CANOLA

•  Australian production of canola has increased dramatically over the past 5 years to an average of 2-2.5 million tonnes, after reaching its highest level during 2011/12 of 3.2 million tonnes.


Global end uses for Australian canola A healthy food-grade oil is extracted from canola. Low in saturated fats and with high levels of monounsaturated fatty acids and the ideal balance of essential omega fatty acids. Canola oil is great tasting and versatile, being used in a range of products including margarines and shortening, cooking oils and salad dressings. Canola is increasingly in demand for use in the biodiesel industry. Its excellent performance in cold conditions is advantageous over alternative vegetable oils. www.westernaustralia.cn

Key markets for Australian canola


Lupin


Source: Department of Agriculture and Food Western Australia

•  Lupins starting to be recognized as a new food for their assistance in improving health - high protein, dietary fibre, low GI.

•  Department planning to privatise its lupin

breeding program, and will work with industry participants.

•  “Lupin Foods Australia were presented

with the Best New Environmentally Sustainable Initiative award and were Runner-up for Best New Health Food or Beverage in the 2014 Gulfood Awards.”

Using Technology in Western Australia


Examples of using technology to improve production Farmers benefit from electronic innovations:

• Our improved weather station network provides real-time, on-line weather data to farmers. • GPS technologies assists with cropping, fertiliser and spraying decisions.

• Mobile phone applications have been developed to engage growers, agronomists and the community in grain pest identification and reporting.

Wheat Investment Opportunity 西澳州小麦投资机会

•  established in 1979 •  largest grain producer enterprise in

WA •  incorporaTng 41,000 hectares of

owned property in addiTon to 65,000 (ha) of leased land

•  Group’s annual cropping program typically totals between 50,000 and 85,000 ha producing between 30,000 to 110,000 tonnes of wheat annually

•  LocaTon: Merredin, 400km East of Perth.


The Group

Wheat Investment Opportunity

The landholdings and leases are located in 2 main areas:

•  The eastern wheatbelt

(majority of the land); Grain exported via CBH faciliTes at Kwinana port near Perth.

•  Esperance, on the south coast, approximately 725km South East of Perth. Grain exports via CBH faciliTes at Esperance.


Loca2on Detail

Wheat Investment Opportunity-‐Climate, Soils and Yields

•  Mediterranean climate-‐ average 25°C between 33.8 °C high in January and 5.5 °C low in August

•  Soil-‐predominantly red loams and calcareous clays with smaller areas of yellow earths

•  Average rainfall is 326 mm per year •  Average wheat yields for the Westonia region 1993-‐2012:


Wheat Investment Opportunity -‐ Cost Analysis


Wheat Investment Opportunity

Investment OpTons: •  An Equity Investment. •  A Purchase and Lease back. •  Refinancing of the exisTng financier. •  Investment OpTons


Want to know more? 想了解更多吗？

For more informa2on, please contact Western Australia Trade & Investment Office China:

更多信息请与西澳州政府驻华商务代表处联系：

Shanghai 上海 Nathan Backhouse 郝宁生

Regional Director 首席代表 Tel: +86 21 52925899 Email: [email protected]

Shanghai 上海 Charlie Li 李瑾琨 Business Development Manager 商务发展经理 Tel: +86 21 52925899 Email: [email protected]


Special thanks to:

Australian Export Grains Innovation Centre(AEGIC)

&

Department of Agriculture and Food Western Australia(DAFWA)

for providing valuable information in this presentation

Status of Australian Grain Exports to China 澳大利亚粮食 Status of Australian Grain Exports to China ... 2015 China Barley Imports by origin. ... • Currently!13!exporters.!

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