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  • Unconventional Ag

Australian Grain Farmers Urged to Focus on South East Asian Markets for Growth

The U.S. dominance of global grain exporters has fallen to emerging producers in South America, according to senior vice president of agri finance at Rabobank, Sterling Liddell, and Asia’s demand for oilseeds and grains has significantly changed global trade flows. South East Asian markets are now the key markets for growth for the Australian grain industry in the future, with particular increase in demand seen in Vietnam, Indonesia, Thailand, and the Philippines.

Changing consumer tastes and preference have led to notable shifts in where grain is consumed, the types consumed and how it is marketed. These shifts will give rise to the increase in demand for specialization of production in exporting countries. Countries that produce more soybeans and corn, such as the U.S. and Argentina, are shifting away from wheat production, enabling wheat producing countries to take up the market share.

Mr. Liddell adds that moving into the future, not only will commodity production specialize, but precision farming will also become increasingly important in reducing wastage along the entire supply chain, and in optimizing the available arable acreage to meet demand.

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