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SA grains industry to respond to global trends

The South Australian grains industry has huge potential for growth if it responds to global consumer trends, says a new report released today.

The Grains Market Overview, released by Primary Industries and Resources South Australia, details domestic and international trends for the range of markets for South Australian grain including food products, animal feed and industrial uses. 

PIRSA’s General Manager of Market Development, Agriculture, Food and Wine, Justin Ross, said the release of the report is timely given the significant changes to the selling and marketing of grain in the last couple of years.

“The grains industry has traditionally relied on the bulk handling co-operative system and the ‘single desk’ exporting arrangement to manage the value chain,” Mr Ross said.

“But with the deregulation of single desk and the growing emergence of small batch marketing, there are great opportunities for grain growers to control more of the marketing effort, and understand what consumers are looking for in their products.”

The report highlights that consumers of the end-product want food that is enjoyable, convenient, healthy and provides value for money. It also shows that consumers are looking for natural foods that are ethically produced. They are also interested in the provenance of their food – where it comes from and how it is produced.

“There is an opportunity for the sector to respond to these consumer signals,” Mr Ross said.

One business already looking to the future is Kangaroo Island Pure Grain produces, which produces naturally farmed pure grain, traceable to individual farms, machine-cleaned and guaranteed true to specification. It is now marketing its grain directly to one of the biggest markets in the world – Japan.

Chief executive officer Duncan MacGillivray said it takes time and experience to get to know your buyer but it is rewarded with loyalty and support especially in the Japanese market, where they only accept the best.

“We met several times with our Japanese customer both on KI and in Japan.  We met with a group of Japanese mothers and listened to what they want as consumers,” Mr MacGillivray said.

“We’ve got a very good product and we’re very careful with the cleanliness specifications and documentation - minimal chemicals, GM free and food safety.

South Australia’s grain industries are the state’s largest and most valuable food sector ($3.3 billion 2008/09).

Read the SA Grains Market Overview