THE GRAINS group of the Victorian Farmers Fedeation (VFf) has raised concerns that without clear market signals regarding wheat quality, many growers will move towards producing low quality, high yielding wheat.
Grains Group President Russell Amery said that during the 2009 harvest, a lack of coordination between industry players resulted in conflicting information about wheat quality standards, with many growers not being rewarded for high quality wheat varieties.
“After a second harvest under the ‘liberalised’ wheat marketing system, there remain many issues which have not been adequately addressed by either the broader grains industry or the Federal Government,” Mr Amery said.
Mr Amery said there was a lack of cooperation within the grains industry to set some strong ground rules regarding wheat quality under.
"Very few companies send price signals on quality and there is no consistency in the information that is sent.
“A number of grain buyers have expressed concern that they are finding it difficult to meet customers’ requirements. This is in turn impacting on the return to growers - especially for the higher quality grain segregations. This season many growers will be considering yield over quality traits, unless they are given correct information regarding which wheat varieties they will be paid a premium for.
“Of grave concern to the VFF Grains Group is the fact that growers will bear the brunt of an industry not making the most of the opportunities on the world market to promote and sell high quality Australian wheat. Although an industry body such as Grain Trade Australia does work to set receival standards there is still a long way to go.
“The VFF Grains Group strongly supports the need for a grain classification council with long term funding. This is the best way to ensure market signals are sent back to plant breeders and seed companies required quality traits, such as higher test weights, from new varieties.
“There is no good in penalising farmers for grain quality if the varieties we have available or are being commercialised no longer meet customer requirements. This message should go directly to plant breeders and seed companies prior to the variety being released.
“Growers will have the opportunity to discuss the impact of the deregulated market at this year’s 2010 VFF Grains Group Conference. I encourage all growers to come along and join the debate."