Summit On Australia's Grain Supply Squeeze

by 5m Editor
30 October 2007, at 9:07am

AUSTRALIA - A feedgrain summit in Canberra today between the major livestock feedgrain user groups, Federal Government officials and other industry stakeholders has highlighted the unprecedented factors that are driving grain prices to record highs and causing food inflation.

Beef, pork, egg and dairy farmers are experiencing severe trading losses as a result of record grain prices.

This is leading to job losses with associated multiplier affects for the Australian economy.

The global grain market is in a new era. Global grain demand has escalated and forced prices to record levels, with rapid growth in the amount of grains being diverted from traditional human and animal consumption needs to produce bio-fuels. This comes on top of international stocks at a 30-year low and unfavourable growing seasons in countries including Australia.

Markets are now highly vulnerable to production shocks such as drought, in any of the major producing countries. With Australia so prone to drought and with the uncertainty of climate change, feedgrain users are calling on governments to abandon plans to mandate ethanol because of the major distortion it causes feed grain prices and food expenditure. This affects consumers of everyday staples such as beef, pork, eggs and milk.

Source: NorthQueenslandRegister

5m Editor