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December 02, 2014

02/12/2014: Grain shortage hits Australian organic industry

A poor growing season in many cropping regions has exacerbated a shortage of organic grain, jeopardising the expansion of organic chicken, egg, pork and dairy production. Australian organic grain production has been affected by the withdrawal of major growers from the industry in recent years; now dry conditions in marginal cropping areas are expected to cut this year's crop, Australia’s ABC News reports.
 

Chairman of Australian Organic Limited, Andrew Monk, says the shortage of feed grain is causing problems for organic chicken, egg, pork and dairy farmers who rely on it to feed animals.

"Some producers have said to us, look, we've probably got next year's contract sorted out, (but) we are definitely concerned beyond that at the moment," Dr Monk said.

"Some of them are saying; 'I can't now confidently grow my business any further than what I currently have without further surety', and that's not good for an industry within a broader marketplace that's growing quite significantly.”

Angus Dowling, who runs enviroganic farm, at Young in southern New South Wales, says demand for his organic chicken meat is growing, but he can't increase production without a reliable supply of organic grain.

"We've been told from our customers that they'd like to see us expand, but we can't do that until we can be sure of organic grain supply," Mr Dowling said.

"There's definitely no looking at expanding. We're concerned (about whether) this time next year we'll be able to source enough grain for the following year. (That's) our big concern," he said.

Andrew Monk, of Australian Organic Limited, says a combination of factors have led to the dire shortage of organic grain. Government water buybacks in some traditional organic growing regions have seen many larger growers leave the industry, and extended drought conditions have slashed production in dry areas.

"Lastly, I guess is the ultimate challenge of organic grains generally," Dr Monk said.

"Of all crops, growing organic cereals is possibly one of the toughest gigs there is.

"Finding the right growers who are able to and willing to produce under that sort of arrangement has been a challenge for the industry".

With demand outstripping supply, prices for organic grain are high. But growers, like John Dowling, who farms near Kerang in northern Victoria, aren't able to cash in on it. Mr Dowling has been approached by grain millers and dairy, chicken and pig farmers wanting to buy his organic grain, but this year he's got none to sell.

"It was very tough conditions for dryland grain growing. Basically, none of it made it through to harvest, unfortunately.”

Ray Unger, who has been growing organic grain for 20 years at Peak Hill in central west New South Wales, says depending on quality, organic grain can fetch twice the price of conventional grain, but organic growers are leaving the industry.

"There's been a number of growers pull out of the industry for various reasons. There is a void there at the moment, but the seasons haven't been all that easy to work with lately," Mr Unger said.

"It would take a conventional farmer three years at least to convert to organic farming. It's not simply the no use of chemicals, it's a total mindset change that you need.”

With no secure grain supply beyond next year, organic chicken farmer Angus Dowling is investigating growing his own grain for chicken feed.

"There's also talk of looking at importing some sort of pelletised corn, or cracked wheat type product from Argentina, or even from India," Mr Dowling said.

"I hope we don't have to go down that track. It seems crazy in Australia that we'd be looking at that sort of thing."  

Read the original article HERE.
 

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