Australia's largest organic stockfeed mill hampered by critical grain shortage
Jodie Gunders
Posted Mon 14 Sep 2015 at 1:35am Monday 14 Sep 2015 at 1:35am Mon 14 Sep 2015 at 1:35am , updated Mon 14 Sep 2015 at 3:05am Monday 14 Sep 2015 at 3:05am Mon 14 Sep 2015 at 3:05am
Organic producers in Queensland are facing a critical shortage of organic grain, as the booming industry is hamstrung by supply issues. (Wholegrain milling company: supplied)
abc.net.au/news/certified-organic-grain-shortage-pushes-up-price-of-organic-food/6772472
Australia's largest manufacturer of certified organic stockfeed says organic grain is becoming so hard to source it faces closure if supply does not pick up.
Country Heritage Feeds is based in Pittsworth Queensland, managing director, Katrina Hobbs, said the company is in a tough situation.
Managing Director of Country Heritage Feeds, Katrina Hobbs and Agforce grains president Wayne Newton discuss shortage of organic grains. (Jodie Gunders)
"We have found over the past two years that we have regularly had to count how many days left until we have to shut the doors because of grain issues and we sweat on one load to the next load," she said.
"So far we haven't had to shut the doors, but it's come mighty close, and we won't be able to expand or continue to see the growth in our business until we can see our supply chain stable and sustainable.
"I find I can't buy what I need to to be able to run the business and we're turning customers away."
The shortage of organic grain is having consequences for producers further down the supply chain.
"It's also affecting the price point," Ms Hobbs said.
"What you're finding is organic products such as eggs, or chicken, or other organic products that are reliant on grain; be it livestock or grains-based products, are very expensive and it's because of the cost of the input," she said.
Katrina Hobbs said she believed the lack of supply could be put down to a shortage of organic grain growers.
"There are just simply not enough organic farmers out there, and over the past few years I've found that there have been more farmers retiring than going into the organic industry and so that's going to be a shortfall straight away."
What we've got is a decline in the number of farmers [growing organic grain] and on top of that we've got a growth industry. So there's a massive opportunity for anyone that might be able to go into organic production.
Agforce grains president, Wayne Newton, said he believed a combination of drought and production challenges had simply made organics less attractive to grain growers.
"A significant part of organic grain, like wheat, is produced in the western parts of the state and they've had three or four years of production issues with floods and frosts and more recently, drought, [although] this year is, in general, looking a lot better," he said.
"I think the other factor that's probably significant is just the returns from organic grain; the actual dollars per tonne, versus the cost of producing it.
"With all the inherent issues with organic production, with the types of nutrition they have to supply to the plants, the type of weed control and so on that people have to use rotations.
"I think it's probably fair to say that the prices haven't quite been good enough to encourage a lot of people to really get into it."
But Ms Hobbs is convinced the rewards are there for grain growers who do want to enter the organics industry.
"What we've got is a decline in the number of farmers doing it and on top of that we've got a growth industry," she said.
"So there's a massive opportunity for anyone that might be able to go into organic production.
"There always have been good prices for organic grain.
"I've been in the industry for 17 years and we've always paid premiums and the premium has been anywhere from 35 per cent all the way up to 150 per cent."
Posted 14 Sep 2015 14 Sep 2015 Mon 14 Sep 2015 at 1:35am , updated 14 Sep 2015 14 Sep 2015 Mon 14 Sep 2015 at 3:05am
Agricultural Crops
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