Viterra has presented on the resilience of Australian grain markets at the recent Australian Bureau of Agricultural and Resource Economics and Science (ABARES) 2021 Outlook conference.
Viterra Chief Operations Officer James Murray spoke at the two day conference on the resilience of Australian grain markets and its ability to adapt which has been demonstrated in recent years through drought, market changes and a global health pandemic. Event attendees included decision makers from the public and private sector for issues affecting Australia’s agriculture, fisheries and forestry industries.
Food supply chains were highlighted as an essential service early on during the COVID-19 pandemic with strong domestic demand for food and feed commodities. James spoke about Viterra’s response to the pandemic which saw the business liaise with government and put in place a number of measures and changes to manage the health and wellbeing of its employees, growers, carriers, visitors and broader community. This response enabled the business to continue operating through the pandemic, safely receiving South Australian growers’ grain and outturning it to domestic and export markets.
During consecutive years of drought conditions, the Viterra supply chain adapted from a predominantly export focused market to outturning grain for the domestic market instead. Viterra worked closely with its customers and began outturning grain to the east coast by rail, road and coastal vessels.
Following healthy levels of rainfall across the country this season, most areas across Australia have returned from drought conditions and James spoke about the business flipping its supply chain back to an export focused market. The business has managed a large export task out of its port terminals and re-established its relationships with export customers, with around 11 exporters sending grain to multiple end use destinations; providing growers with access to a number of international markets.
James also covered the ability for Australian grain to continue to be competitive in international markets. Australian growers consistently produce good quality grain which is supported by the food safety and quality management processes throughout the supply chain. Buyers can be confident that they are sourcing grain through supply chains that have high standards. The Viterra network maintains the highest international standards in food safety and quality management and the highest of any grain supply chain in Australia. The business continues to invest in this area including into its chemical residue testing at its state-of-the-art laboratory.
James spoke about growers playing a key a role in the competitiveness for Australian grain, with their on farm practices, engagement with industry and focus on quality all contributing to market access. James concluded that the industry’s resilience going forward relies on an ongoing process of adapting to change and embracing new ways to collaborate with each other to ensure Australian grain continues to provide value to markets which is delivered back to growers.