- By Lynda Kiernan-Stone, Global AgInvesting Media
Australia’s Largest Organic Stockyard Mill in Danger of Closing Due to Lack of Supply
Queensland-based Country Heritage Feeds, Australia’s largest manufacturer of organic stockyard feed, states that supplies of organic grain are becoming so scarce, that the operation may be in danger of shutting down.
Managing director, Katrina Hobbs states that the company will not be able to expand or realize any growth until its supply chain is more reliable.
"We have found over the past two years that we have regularly had to count how many days left until we have to shut the doors because of grain issues and we sweat on one load to the next load,” said Ms. Hobbs. "I find I can't buy what I need to be able to run the business and we're turning customers away."
The lack of organic grain, attributed to a lack of grain growers, is affecting the entire supply chain, with organic products such as eggs, chicken, or grain-based foods seeing increased prices.
Agforce grains president, Wayne Newton believes that other factors are also playing into the lack of organic grains. The western part of the state, where the bulk of organic wheat is produced, has seen three to four years of natural and climactic challenges including floods, frosts, and drought, resulting in reduced margins, causing prices to be not quite high enough to entice farmers to enter the space. But, he adds that this reduction in the number of farmers producing organic grain, combined with a robust, growth industry, presents a ‘massive opportunity’ for producers looking to go into organic grain production.