Industry: Grain Production
Gross value of production |
$8.6 million |
Number of growers |
251 |
Number employed |
60 |
Current annual production |
45,475 tonnes |
Hectares |
18,272 |
1. Description of Product:
Grains including: Wheat, Triticale, Barley, Oilseeds, Canola and Linseed, Peas and Lupins.
2. Location of the Industry:
Grain production is located in the North East generally west of Hume Freeway from Euroa (outside region) including Benalla, the region west of Warby Ranges and in the Rutherglen, Wahgunyah area and extending across to Yarrawonga (outside region). The north east region as defined by this survey would not be regarded as a major grain producing area.
Estimates of grain production are not readily available from Grain Elevators Board as they were in past. Much of the grain produced in the region is used:
- On farm.
- Sold to Feedlots
- Sold to Bunge Corowa
- Sold to Uncle Toby's Wahgunyah.
- Some grain is stored and marketed by VicGrain
3. Employment and Labour Requirements:
a. Number of Producers:
In the North East Region, most grain producers are involved in mixed farming operations, usually livestock production. ABS indicates 251 grain producers in 1995.
b. Number Regularly Employed:
This industry has experienced significant machinery/technological change and has low labour requirements. The number of people employed in the industry is unknown although for broadacre farming an estimate of 2 people per 3500 hectares is given. However, given mixed farming operations in this region it is roughly estimated 60 people employed for this industry.
4. Annual Production:
Production of grains is much higher than is generally estimated from usual industry sources because 30-50% of total production is traded outside traditional marketing authorities. In fact the decline of this industry predicted 10 years ago has not occurred and production is increasing because of the importance of these non traditional marketing opportunities.
The dairy industry now use large quantities of grain, and there is a flow of grain from the region to all parts of the dairy industry. Graziers are using more grain the development of processors, Uncle Toby's at Wahgunyah and Corowa Feeds both adjacent to the grain producing areas in North East Victoria have provided, and continue to stimulate production
5. Production Trends Over the Next Five Years:
a. Projected:
Grower expectation is for very significant increase in production. As price increases, traditionally more farmers grow grain until price begins to decline. Because of sustained high grain prices there is an expectation of more growers entering in the industry over next 5 years. The increase in production will be achieved through better yields and improved technology.
b. Potential:
The expectation for significant increase in production is based on:
(i) World price for grains is showing sustained improvement. This is partly because USA has stopped export enhancement program.
(ii) Value adding markets (all strong and fairly stable markets) are driving research into grains suitable for higher rainfall area (ie >550mm/year) eg. triticale, red wheat, oilseed industry. Given the location of major grain producers within and immediately adjacent to North East and the interest of these processors in securing grain from regions close by there is a buoyant outlook for the industry in the region.
Extracted from the Bright Report
