Australia wheat export downsize, sustainable corn?, Cargill Russia expansion, China food security

Australian prudence could jeopardize exports​

Australian farmers have downsized forward export quotas of wheat crops in anticipation of an El Nino-type weather front that could slash yields.

Although the season started well for farmers, they have allocated just 10% of wheat crops to forward sales overseas, compared to 30% last year, because they do not want to over-stretch themselves and end up defaulting on pre-orders due to adverse weather conditions.

However this could give aggressive European rivals such as Ukraine and Russia the opportunity to muscle in on one of Australia’s traditional strongholds - Indonesia – as well as other parts of Asia.

Farmers may also lose out financially as a bumper global crop could push prices down by the time Australia’s wheat marketing season begins in September.

The Australian Bureau of Meteorology says there is a 70% chance of an El Nino developing this year, which has fuelled fears of severe droughts across much of Asia.

NCGA president questions credibility of sustainability study​

The president of the US National Corn Growers Association (NCGA) has criticized the methodology and credibility of a sustainability study that implies producers are the main obstacle to sustainable corn production.

The report - produced by sustainability advocacy group Ceres – reiterated previous findings that US corn production was threatened by climate change, unsustainable water use and inefficient and damaging fertilizer. But NCGA president, Martin Barbre, has taken exception to disparaging inferences about the role played by producers.

Barbre said the report was compiled without proper consultation and that its suggestion that all or most of the blame for so-called dead zone in the Gulf of Mexico was down to producers was not reliable.

He described the report as “unbalanced” and said it emphasized “negative perceptions”.

“By stating ‘22% of irrigated corn acres still employ inefficient flood or furrow irrigation methods’, the report under-emphasizes the efforts on the other 78% of U.S. corn acres (under irrigation),”​ he said.

The NCGA executive added that the Ceres analysis does not acknowledge the work carried out by local group initiatives to identify, test and measure management practices to reduce the effects of fertilizer run-off or the techniques already employed by many farmers to improve sustainability.

A previous report conducted in 2012 was less critical and pointed out that from 1980 to 2011 producers cut the energy needed to produce a bushel of corn 43% and reduced the amount of land needed to produce a bushel by 30%. The study also showed that on average the US produces 15% more corn than the next largest world producer.

Cargill investing in Russia​

Agribusiness giant, Cargill Inc, has invested $100m to expand its wheat milling facilities in Efremov, Russia.

The cash injection is being used to double the size of the grain processing complex and increase capacity to 500,000 tonnes of wheat a year.

The expansion demonstrates the region’s increasing dominance in the wheat export market. Tula and the Black Sea ‘grain belt’​ are now thought to be the world’s third largest wheat exporter, behind the United States and Canada.

"This project is a reflection of our commitment to the Tula region and to Russia,"​ said Natalia Orlova, Cargill’s head of food business in Russia.

The Efremov facility opened in 1995 currently employs around 800 people and produces starches and sweeteners from corn, barley, wheat and other grains for use in soft drinks, beer, confectionery and flour.

Grain security a priority for China​

Food security has been flagged ‘top priority’​ in China’s first policy document of 2014 issued by the central government. The document stressed that grain imports, including corn, are the key to ensure grain security.

Cheng Guoqiang, secretary general of the academic committee at the Development and Research Centre of the State Council, said grain imports should be based on factors like quantity, the diverse nature of foreign grains and also on flexible import strategies.

He added: "The biggest change in China's new strategy to ensure grain security is that of adequate imports. It is an important measure that ensures sufficient grain supplies from the world market."​

China’s strategy involves balancing internal and external resources, increasing imports as international prices fall, while encouraging foreign expansion of agribusiness’ processing facilities.

US Grain Council, China country director, Bryan Lohmar, also suggested the Chinese government should accelerate the pace of approvals for agricultural bio-technologies to allow imports of genetically modified grains.

Despite recent hiccups in corn trade imports from the US, trade between the two nations has expanded in recent years and played a critical role in meeting domestic consumption needs and in promoting industrial development.

Wheat breeder wins prestigious prize​

Crop scientist, Sanjaya Rajaram has been named the 2014 World Food Prize winner for his contribution to the wheat industry.

The 71-year old wheat breeder from India has developed hundreds of varieties of disease-resistant wheat adapted to thrive in many climates and in difficult growing conditions.

The $250,000 prize was founded by Nobel Peace Prize laureate Norman Borlaug and honors ‘vital contributions to improving the quality, quantity or availability of food throughout the world’​.

Rajaram began his research and field work with Borlaug in 1969 and is credited with developing 480 wheat varieties used in 51 countries and on six continents.

He used his own plant breeding techniques to successfully cross varieties of winter and spring wheat resulting in plants with higher yields and dependability under a wide range of environments.

Rajaram later succeeded Borlaug as head of wheat research at the International Maize and Wheat Improvement Center.

Rajaram plans to give some of the money to private organizations in India who work with the poor and invest the rest in plant breeding research.