Annual maize production in Australia is averaging about 450,000 m/t p.a. over the past 15 years. In 2006-7 year we produced 520,000mt as a result of low grain stocks and low cotton prices resulting in increased domestic demand and production. The current 2013 harvest is set to produce around 630,000mt and it is anticipated that 100,000mt of this production will find its way into the export market.
What is driving this export demand?
Apart from the drought in the USA, Australia has maintained its status as a Non GMO maize producer. The main global exporters of corn being USA, Brazil, Argentina and South Africa are all finding it difficult to produce Non GM corn without some degree of contamination.
Quality irrigated maize, Identity preservation grain handling systems, counter-seasonal production to the northern hemisphere and proximity to Japan and Korean markets are all positives for further developing the Australian maize export market.
The potential for Australian maize in the north Asian market is equal to the NON GMO demand of 3,300,000 m/t. Given that currency exchange rates are unfavourable at the moment, lack of domestic production, a shortage of aerated infrastructure for storing maize, these are all limiting factors to instant growth. However by sharing the vision with our Japan and Korean customers and partnering the development process with willing Australian farmers a 1 million tonne crop is very achievable by 2020.
While plant breeders and seed companies have traditionally been focused on dual purpose maize varieties e.g. high yield feed/silage varieties and super hard grit varieties for the domestic market, a change in direction may well be driven by the export market needing higher extractable starch yields or other traits attractive to the wet milling industry.
The wet milling industry will consume by far the greater volumes of the suggested growth in future years. This change will challenge the traditional concept in thinking about who represents the bulk of the market and where the market is geographically.