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AgLife: Wheat demand on rise

Australian Export Grains Innovation Centre analysis has found Vietnamese demand for premium Australian wheat could spike by as much as 44 percent in the next decade.

Vietnam is Australia’s second-largest wheat market after Indonesia, worth $460-million each year on average.

A report titled ‘Wheat and barley markets in Vietnam: their strategic importance to Australia’ analysed Vietnam’s grain market and economy to understand trends and suggest future actions for the Australian grain industry.

Lead author Dr Peter White said Australia has historically been Vietnam’s largest wheat supplier, providing about 1.5-million metric tons, mmt, each year on average.



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But Dr White warned the Black Sea wheat had been encroaching in the feed sector in recent years.

“About 0.9mmt of Australian wheat was used in Vietnam’s higher priced food market and we expect increased demand to expand this market segment to 1.3mmt by 2030 – a 44 percent increase,” he said.

“Similar to other south east Asian countries, Australian wheat has an excellent reputation for noodles in Vietnam. Australian wheat is also Vietnam’s first choice for bread.

“To maintain and grow this market, the Australian grains industry has to make sure our wheat continues to meet the quality expectations of Vietnamese end-users as the economy grows and incomes increase.”

Dr White said malt and feed barley were also potential areas of growth for Australian exports.

“Vietnam is one of the top 10 beer markets in the world, and Australia is already their largest supplier of malt and malt barley,” he said.

“In the two years since the Intermalt malting plant – partly owned by Australian grain growers cooperative CBH – opened in Vietnam, barley imports into Vietnam increased from about 50,000mt to more than 150,000mt in 2018. Australia supplied about 80 percent of this barley. This malting plant has the ability to double its capacity by 2030.”

Dr White said feed barley was another untapped market for Australia.

The entire June 26, 2019 edition of The Weekly Advertiser is available online. READ IT HERE!

The entire June 29, 2019 edition of AgLife is available online. READ IT HERE!