This working group will look at Value Adding in the context of examining opportunities outside of the bulk grain export pathways. This is important when considering the future of the SA grain industry, as the more developed markets on the East Coast must also be looked at.

Over the past 15 years the east coast domestic consumption has increased dramatically, with the number of cattle in feedlots in New South Wales and Queensland at almost one million head. East Coast feed grain demand stands at around 10.5 million tonnes, which is in addition to a steady but slower increase in demand for flour milling.

Another development on the East Coast is the significant percentage of grain exports that take place in containers (about 23 per cent in NSW). This is in contrast to SA where 20 per cent of production is consumed in SA and six per cent of exports occur in containers. An increase in SA container exports will allow SA to serve markets it is not easily accessing today.

While the bulk export market is going to remain the major destination for SA grain, there remains significant opportunity in these other areas. Domestic processing in SA is mainly for animal feed with SA being the second largest producer of poultry meat and the largest producer of pig meat in the country. Demand for chicken and pork demand is estimated to increase over the coming years and SA is well-positioned to take advantage of this expected feed demand. 

There is need to attract end users to SA to create additional demand points that are not easily subject to the increased price competition from the Black Sea and South America. This will breed resilience in the industry that will have positive long-term implications for it.

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