market: understanding factors in the supply chain John Pluske Animal Research Institute

Transcription

1 Cereal grains for the pig feed market: understanding factors in the supply chain John Pluske Animal Research Institute

2 The Pork CRC feed grains research A major objective of the Pork kcrc is to secure more reliable and consistent energy supplies for pig diets that will cause: Reduced variation in the annual cost of pig feed, Reduced total cost of pig feed, A wider range of feed ingredients available to more producers, and A closer match of diet specifications to pig requirements Innovative grain production targeted towards, Delivering commercial quantities of cereals of high yield and high energy content and acceptable nutritional characteristics for pigs, With cost effective agronomy, and appropriate p marketing arrangements for grain and pig producers

3 The Pork CRC feed grains research Pork CRC has commercially released some varieties of cereals (e.g., Berkshire triticale) and pulses (e.g., Maki peas) Greater understanding is required, from all levels of the supply chain, to assess the potential for dedicated feed wheat, feed barley and (or) triticale production systems specific for the majorpig producing areas

4 Key deliverables of this project Understanding attitudes within the supply chain for cereal grains used in the pg pig industry Key drivers di that influence grain producers to grow (dedicated) feed grains K di th t i fl i t t/ d db Key drivers that influence interest / demand by feed manufacturers, nutritionists/consultants and pork producers for feed cereal grains

5 Some issues with introducing a new grain variety Grain growers Profit Productionandprice risks Know how Incentive to change. Rest of the supply chain Demand Risk associated with the demand (e.g., using contracts) Appropriate communication channels and information

6 Interviews Semi structured interviews with 26 people Representative of prominent stakeholders in the cereal grains/pork supply chain WA, SA, Victoria, NSW

7 Activities involving the respondents 26 interviews completed

8 Indicative attitudes of interviewees 76% of respondents feed grains regarded as being Fit for Purpose (FFP) if can use cheap grain, will do so 85% of respondents sourcing feed grains was not very difficult, But may not be FFP or reliable It would seem that, t in general, pig producers are particular about what they consider to be FFP, ffi i i d il i E.g., very efficient pig producers may not necessarily require high quality grains

9 Indicative attitudes of interviewees 73% of respondents thought that grain growers should be paid a premium for high energy grain, once there is a fast measurement technique and/or mills have the facility to segregate 81% of respondents thought pig producers would pay a premium for high energy grain if testing was efficient and the benefits in terms of pig performance/profitability were evident

10 Profit and markets important When selecting a variety to grow, profit and/or the market were the most important drivers for grain growers Whether a variety was dual purpose was also a consideration Triticale: 44% mentioned the market and/or profit as being important 56% thought agronomic reasons were also important

11 Characteristics of a new variety to suit grain growers? High yield is imperative Agronomic procedures need to be familiar Generally, grain producers want the option of more than one potential market A new grain variety may have to be designated as dual purpose p (grazing+grain OR food+feed) Must have a distinctive name that t appeals across the grain and feed production sectors 81% of respondents thought grain growers would NOT take out 81% of respondents thought grain growers would NOT take out formal contracts to grow grain

12 Characteristics of a new variety to suit pig producers? We are not likely to see more fully integrated production systems in the future 77% of respondents felt that grain would be produced by grain producers directly connected with intensive animal industries Yield is the most important characteristic ofa newvariety In the longer term, high digestible energy content may be a consideration 73% of respondents thought pig producers would NOT take out 73% of respondents thought pig producers would NOT take out formal contracts for procuring grain

13 S Summary off fi findings di tto d date t Consideration of dual varieties Yield and profit important Communication within the entire chain is a critical factor for any success

14 Summary of findings to date Target individuals (e.g., agronomists) to promote any new variety The Vegemite effect will probably be less effective for the pig industry Target specific areas (low, medium rainfall)