CHINESE Government policies to pursue food security will direct land resources towards domestic production of rice and wheat at the expense of oilseeds and corn, the Australian Grains Industry Conference 2010 was told this week.
Grant Knuckey, ANZ’s Head of Institutional Banking, China said the Chinese National Development and Reform Committee had made food security a national priority.
Desertification and dwindling water supplies meant the Chinese Government was encouraging farmers to focus on the key staples of rice and wheat at the expense of oilseed and corn production.
Louis Dreyfus Operations Manager in Australia, Guy Allen, said while the focus on domestic wheat production meant less opportunities for the Australian wheat industry, Chinese demand for oilseeds and corn would have overall positive pressure on global grain prices.
Nippon Flour Mills executive Masayuki Kikawa spoke about the quality of Australian noodle wheats and the level of service Australian wheat exporters were providing to Japan’s biggest flour miller.
Nippon Flour uses 1.3 million tonnes of wheat per year.
Kikawa San said since deregulation of Australian wheat exports, Japanese millers had to seek out information about the quality of Australian wheat, rather than information about quality being brought to them.
Kikawa San said Nippon flour wanted to create a closer relationship with Australian breeders and researchers and to increase cooperation on wheat quality.
The Australian Grains Industry Conference concluded in Melbourne on Wednesday with more than 700 delegates in attendance.
The Conference was hosted by Grain Trade Australia (GTA), the Australian Oilseeds Federation (AOF) and Pulse Australia.