{"id":43872,"date":"2021-05-21T00:00:00","date_gmt":"2021-05-20T12:00:00","guid":{"rendered":"https:\/\/www.farmersweekly.co.nz\/milling-wheat-takes-a-hit\/"},"modified":"2021-05-21T00:00:00","modified_gmt":"2021-05-20T12:00:00","slug":"milling-wheat-takes-a-hit","status":"publish","type":"post","link":"https:\/\/www.farmersweekly.co.nz\/news\/milling-wheat-takes-a-hit\/","title":{"rendered":"Milling wheat takes a hit"},"content":{"rendered":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>

Over the past four harvests wheat production has bumped up significantly to 110,000 tonnes, putting the project on track to meet industry goals.<\/p>\n

Farmer and industry support for the project has been positive.<\/p>\n

But significant adjustments to controversial trading dynamics for the coming season are derailing the plan.<\/p>\n

Farmers lack confidence and industry is nervous following the details of the change that has come too late for farmers.\u00a0<\/p>\n

In March, Christchurch mill AB Mauri, formerly the Weston Mill, notified its new procurement policy that significantly changes the trading dynamics for the South Island milling wheat industry.<\/p>\n

AB Mauri is a leading supplier of bakery ingredient solutions across Australia and NZ.<\/p>\n

Detail has been slow to emerge creating uncertainty with many farmers lacking the confidence to plant milling wheat this season.<\/p>\n

In desperation to get answers, Federated Farmers convened a meeting in Ashburton to hear from Wilmar \u2013 a large-scale Australian-based integrated commodity merchandising and supply management company \u2013 the sole trader now tasked with procuring the majority volume of AB Mauri\u2019s South Island milling wheat requirements.<\/p>\n

Wilmar will also procure for Goodman Fielder milling requirements at the Farmers Mill in Timaru.\u00a0<\/p>\n

It was standing room only, with the meeting attracting 140 farmers and industry stakeholders looking for a please explain.<\/p>\n

Industry feared the new procurement policy would potentially lead to a fall in local milling wheat production.<\/p>\n

Those fears are realised with the latest arable industry marketing initiative (AIMI) grower survey revealing autumn and winter drillings of milling wheat back 1800ha on the last season.<\/p>\n

\u201cWe were really concerned that milling wheat was not going in the ground because of misunderstandings and uncertainty, \u2018\u2019 arable industry chair Colin Hurst said.<\/p>\n

\u201cSadly, we are not going away from this meeting with much more confidence.<\/p>\n

There will be no contracts offered publicly, Wilmar will deal directly with growers.<\/p>\n

\u201cWe take a pragmatic approach, we know the tonnage we need, we will work with the mills, farmers and agents, if they are involved, to get what we want and then close off,\u201d Wilmar South Island merchant Brad Davies said.<\/p>\n

\u201cOur aim is to collect tonnes direct with growers and reduce the amount of carryover.<\/p>\n

\u201cOur volumes for NZ mills are no less, if not more than has been in the past.\u201d<\/p>\n

What if there\u2019s not sufficient local grain?<\/p>\n

\u201cWe will support 100% NZ grain where we possibly can, but I can\u2019t stop putting bread on the shelves \u2013 then we go to Plan B, C, D,\u201d he said.<\/p>\n

Davies acknowledged the timing is not great for the new season\u2019s planting.<\/p>\n

\u201cPeople have to make a decision and yes, this may impact the milling industry this season,\u201d he said.<\/p>\n

Davies would not be drawn on pricing, or volumes.<\/p>\n

United Wheatgrowers chair Brian Leadley says it is too late now for milling wheat this season.<\/p>\n

\u201cWe have missed the boat potentially on the area we could have had in,\u201d Leadley said.<\/p>\n

\u201cI am reluctant to say it, but the lack of trust and confidence in the system does put the supply local grain project under real threat.<\/p>\n

\u201cThis strategy around the procurement and marketing has caused confusion and seriously impacted on planting time and land-use opportunity with extra grass rather than wheat being planted.<\/p>\n

\u201cIt\u2019s been a big effort in recent years to collaborate and get where we have, we just needed everyone to keep working together.\u201d<\/p>\n

If seed companies are discontinued in the contracting of milling wheat between farmer and mill, the entire NZ milling wheat breeding effort is at great risk and the financial implications may cause these breeding programmes to be shut down entirely.<\/p>\n

This would be a huge loss, as it would inevitably lead to much less milling wheat being grown in NZ and much more milling wheat being imported into NZ.<\/p>\n

\u201cIt will be a big chunk of our armour gone, and sad for farmers if we can\u2019t continue breeding new varieties,\u201d he said.<\/p>\n

\u201cIn the changing environment we need breeding even more to keep the arable sector viable,\u201d PGG Wrighston grain R&D manager Nick Brooks said.<\/p>\n

More: Farmers wanting to know more can contact Wilmar merchant Brad Davies on 027 7765 550.<\/p>\n","protected":false},"excerpt":{"rendered":"An industry drive to increase the use of New Zealand-grown milling wheat is under threat as farmers grapple with a new grain procurement regime.\nIn a project started in 2017, the arable industry has been working towards increasing the use of NZ-grown milling grain.\n","protected":false},"author":14,"featured_media":43873,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[3],"tags":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t