Grain Producers Australia welcomes Federal Labor’s commitment to develop a future national food security strategy: ‘Feeding Australia’ – if re-elected.
Minister for Agriculture, Fisheries and Forestry, Julie Collins, announced the move at the Australian Bureau of Agriculture and Resource Economics and Sciences Conference, today in Canberra. HERE
The Federal Government’s $3.5 million commitment to develop the ‘Feeding Australia’ strategy includes establishing a National Food Council, of industry and community experts, to advise on the plan’s development and implementation. It also includes a move to investigate the potential for a domestic biofuels feedstock industry: ‘to support Australia’s transition to net zero’.
GPA also welcomes the Coalition’s commitment HERE to deliver a similar food security planning process, whilst acknowledging this strategy’s connection to policy recommendations made in the ‘Feeding the Nation and beyond’ report, tabled in November 2023, from a parliamentary inquiry.
GPA Chair, Barry Large, said the strategic policy planning commitments represented multiple challenges and opportunities for all Australian grain producers – but it was vitally important, given escalating geo-political volatility, impacting local grain production costs, and value of grain exports.
“Pragmatic outcomes, which recognise and incentivise what grain producers already do very well on-farm, and other initiatives to ensure we can continue growing more high-quality grains, are vital to the strategy’s future success and implementation – and for our trading partners,” he said.
Key farm inputs (fertiliser, fuel, pesticides and machinery) are critical to grain production, but are largely imported into Australia, while about 60 per cent of the nation’s annual grain crop is exported.
Mr Large said managing escalating production costs was vital to sustaining the grain’s industry continued growth and output, while also boosting the national grains supply chain’s capacity and efficiency.
He said growth in Australian grain production also delivered other shared community benefits – not only domestic and global food security – especially increased economic activity and taxation income.
GPA’s submission to the House of Representatives Standing Committee on Agriculture’s inquiry into Food Security in Australia HERE in 2022, which tabled the ‘Feeding the Nation and beyond’ report, also highlighted these key policy challenges, as did Grain Trade Australia’s. (excerpt below)
These key strategic policy priorities were also reinforced in GPA’s submission to the inquiry into Food and Beverage Manufacturing in Australia, by the House Standing Committee on Industry, Science and Resources. The inquiry’s report, Food for Thought: The opportunities and challenges for Australia’s food and beverage manufacturing industry, HERE highlighted GPA’s submission (page 43).
‘The size and value of the Australian grains industry has increased significantly over the past 35 years, from approximately $2 billion to $4 billion in 1990, to a record return of $31 billion in 2022–23, from a 70.8 million tonne crop. Grain Producers Australia submitted that grains are a low-value commodity which generates an ‘economic multiplier effect across the economy’.’
GPA Chief Executive, Colin Bettles, said this year’s Election Policy Priorities would continue building on key initiatives GPA advocated for in the 2022 election campaign, and in the current parliament, which collectively aim to boost grain producer productivity, and the shared benefits delivered.
Mr Bettles said the soon to be released 2025 Priorities would also reflect GPA’s recent survey results, combined with other consultation processes, and submissions in this term of parliament.
He said the survey’s headline priorities were; reduced farm input costs, and increased supply and reliability; improved access to agricultural pesticides (APVMA Reforms); improved supply chain efficiencies/capacity, and lower freight costs; improved market access/transparency; reliable digital connectivity; and reduced costs and burden of compliance with government red and green tape.
Mr Bettles said the Labor Government’s plans to examine the potential for domestic biofuels feedstock industry, in the announced food security strategy, presented good opportunities for grain producers and industry, with other benefits such as employment growth and increased fuel security.
He said GPA coordinated a process with other industry stakeholders, in April 2024, writing to the Agriculture Minister, and other relevant ministers, including Federal Treasurer, demonstrating support for expanding Australia’s domestic agriculture-based renewable fuel production.
This letter highlighted the fact that the majority of canola that’s currently grown in Australia is then exported to Europe, destined for biofuels production to meet targets for reducing transport carbon emissions in other countries – but by contrast Australia’s domestic liquid fuels production is low.
Mr Bettles said growing Australia’s renewable fuels sector would require the right mix of policy incentives, starting with grain producers as feedstock providers – and supply chain stakeholders, to encourage their investment in infrastructure capacity, such as crushing facilities, to meet demand. Tax incentives on the use of biofuels, to reduce greenhouse gasses, can also increase consumer demand and incentivise the long-term investments needed, to increase local production capacity and supply.
“GPA welcomes these announcements and also acknowledges recognition and support for developing a strategic food security plan, by other grains industry stakeholders HERE,” he said.
“We look forward to contributing to future collaborations, on this important strategic policy development process, working with whoever is in government, after the next election.
“Genuine engagement and collaboration with all stakeholders, to strengthen the national grains supply chain and improve shared outcomes, also remains a strategic priority for GPA and our members; especially putting forward strong and unified views, for all Australian grain producers.”
ENDS
Additional Comment
In February 2022, GPA welcomed the release of a new report showing Australian grain producers are already producing high quality, low emissions intensity grains; especially compared to other competing countries in global markets, including Canada, the EU, USA, Russia and Ukraine. HERE
The Grains Research and Development Corporation commissioned the CSIRO to conduct the report, ‘Australian Grains Baseline and Mitigation Assessment’, in seeking to establish a greenhouse gas emissions baseline for the Australian grains sector and explore mitigation opportunities, to maintain or increase profitability.
This report showed Australian producers are already producing grains more efficiently than other competing countries, including high environmental standards. But rather than exporting these commodities (canola) to other countries, such as the EU, to meet their government mandated targets for liquid fuels production and the environment, local production should be prioritised.
Such a strategy should be viewed as a national interest priority, along with increased domestic manufacturing of farm key inputs for grain producers, as key feedstock providers. GPA’s support for a domestic renewable fuel industry also includes policy incentives that can ensure greater security of production and local supply, to benefit regional communities.
ABARES also announced today that the total 2024-25 winter crop production estimate had been revised to 59.8 million tonnes, making it the third largest crop on record. HERE
GPA's 2025 Election Policy Priorities will also reinforce this strengthening economic output, given the industry has contributed $81.15 billion in total gross value towards the national economy, over the past three years, at an annual average of about $27 billion.
This represents about double the value reported before the previous election ($13.8 billion in 2020-21). And this $27 billion also represents more than 30 per cent of the annual average of the total value of farm production nationally, for this same period ($261 billion).
These impressive numbers provide compelling proof that the Australian grains industry is at the forefront of the Australian farm sector's aspirational target to be a $100b industry.
Mr Large said this demonstrated the true value of future investment in policies and initiatives that back the continued success of Australian grain producers, which in turn delivers multiple shared benefits and positive results for the national economy, whilst strengthening rural communities.
“Backing policies that back Australian grain producers and our communities can be, and should be, recognised as a real vote-winning opportunity, with genuine benefits for the nation, at this year's federal election,” he said. HERE
Excerpt from report from report, ‘Australian Food Story: Feeding the Nation and Beyond’
From inquiry by the House of Representatives Standing Committee on Agriculture into Food Security. On grains, the report said:
Globally, we have the highest wheat production per capita. In 2021–22, Australia produced a record crop of approximately 67.4 million tonnes. The industry’s value for that period was estimated at $27.5 billion. The winter crop production included a record return of 36.3 million tonnes for wheat, with barley at 13.7 million tonnes and canola at 6.4 million tonnes. In the previous season, Australian grain production provided $13.8 billion in gross value of production to our economy.
Australia’s grain exports generally far surpass domestic consumption. In 2021–22, domestic demand for grain totalled 17 million tonnes; whereas Australia’s grain exports were around 45.4 million tonnes. By 2030, however, annual grain exports are predicted to reduce from 60 per cent to 53 per cent of total production, while the domestic market for cereal grains will take up an additional 6 per cent of annual production. Australia mainly exports grain within the Asia-Pacific region. Australia does import some grain products—food and ingredients that Australia either does not produce or does not produce in sufficient quantities to meet demand. For example, Australia imports around 900,000 tonnes of soymeal as a protein source for animal stock feed, mainly for pig and poultry production. In times of severe drought the supply chain is able to reverse to allow for the import of grains.
In terms of domestic consumption of grains, about 35 per cent of national wheat production goes towards domestic flour production. A significant portion of the crop is use for animal food, both cattle and poultry, making a significant contribution to domestic meat production.
Excerpt from GPA’s Inquiry Submission
Access to key inputs such as fuel, fertiliser and labour, and their impact on production
costs;
Recent global events such as the COVID-19 pandemic and outbreak of war in Ukraine clearly
demonstrate major vulnerabilities in global food supply chains which have real, significant and
lasting domestic impacts in Australia. Whilst local grain prices have escalated due to the
Russian invasion of Ukraine earlier this year, this conflict has also been attributed to causing
record prices for essential production inputs – fertiliser, pesticides and fuel. A near-record
winter grain crop of 61.9 million tonnes is forecast this year, but it’s also now the most
expensive crop ever planted by our growers due to these factors beyond our control.
These recent world events highlight the sovereign risks to Australian food production from an
over-reliance on imported inputs. As highlighted in GPA’s 2022 Federal Election Policy
Priorities document, there is a clear need and public interest in increasing the local production
and supply of Australian-made inputs such as fertiliser. In the case of green fertilisers, this can
also achieve other mutually beneficial outcomes such as reducing emissions. Crop protection
products suited to Australian farmers’ production systems also clearly fit into this category. As
has been highlighted in other inquiry submissions – and strongly supported by GPA –
government and private sector collaboration and co-investment is crucial to strengthening
Australia’s sovereign manufacturing capability and ultimately the country’s food security.
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