Long term feed grain supply contracts would help reduce volatility for grain growers and pork producers and at least a portion of grain on-farm should be grown specifically for animal feed, said Chief Executive Officer of Craig Mostyn Group, David Lock.
Lock was speaking during the Grains West Expo 2009 in Perth last week.
“Projecting global feedgrain production growth trends over the last 30 years out to 2020 shows that current rates of feedgrain production growth will only result in about one third of the projected future demand being met,” he said.
CMG annually purchases about 31,000 tonnes of WA-grown grain, mainly barley and lupins, as part of feed requirements for its piggery operation, which includes two breeder units and seven grow-out units, comprising about 60,000 pigs, or 25% of WA's total number of pigs 'on the ground' at any one time.
It's abattoir, PPC Linley Valley at Wooroloo, processes half a million pigs a year, employs 280 people, has export sales of about $50 million a year and supplies about 60% of Australia's fresh pork into Singapore.
Lock said that with fresh pork exports from WA increasing in volume and value in the last 12 months and continuing export demand, WA pork producers would be looking to lift sow numbers and hence drive demand up for quality feedgrains.
“With pork producers now enjoying better returns due to improved prices for their pigs and reduced grain prices, they will look to invest, while also looking for strategic partnerships with grain growers.
“Australia's Pork CRC, part funded by pork producers, has invested substantially, in partnership with grain breeding companies, to develop purpose-bred triticale and pea varieties, for example, that will deliver positive outcomes for producers and growers.
“This is the way of the future and the Craig Mostyn Group encourages such alliances.
“We know that just as a viable pork production sector depends on continuity of supply of quality grain, PPC Linley Valley, as the processor, relies on consistent supply of quality pigs to service expanding domestic and fresh pork markets,” Lock said.