March 9, 2015

The Grain Industry Association of Western Australia’s (GIWA) new WA Grains Industry Strategy 2025+ has declared the 2009 Strategic Grain Network Review (SGNR) to be outdated and in need of reformulation.

GIWA chairman, Sean Powell believes that the ambitious target of doubling WA’s grain output is not out of reach given the increasing global demand for food and WA’s proximity to Asian markets, stating “it is not inconceivable that by 2025 we may be looking at an annual WA grain crop approaching 20mt, valued at around $10 billion”.

But to achieve such a goal, specific issues that are hindering grain producers from profitability must be addressed. Red tape, and unnecessary costs, such as high freight charges negatively affecting grain growers will hinder the industry as a whole from reaching production goals. Infrastructure is an additional concern for both the industry and for foreign buyers who inquire about the reliability of transporting their shipments out of Western Australia.

Recent tax reforms will be helpful in reducing costs through exemptions created for operators in non-rural classified areas, but more needs to be done.

Over the past nine months the industry has developed eight strategy initiatives through consultation with the entire grain value chain, which include a least-cost pathway analysis for grain transport and the reduction of red tape, that are intended to guide growers toward higher profitability and increased production by 2025.

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