the marketer of choice for victorian grain producers “the supply chain” wheat from hopetoun to...

The marketer of choice for Victorian Grain Producers

“THE SUPPLY CHAIN”

Wheat from Hopetoun to the Asian Market


Research & Development

Production

Supply Chain

End User


Quality & Receival Standards

Evolution of product differentiation in Australian wheat

1939: “Fair Average Quality”

1974: APH – AH – ASW – AGP – FEED

2011: Up to 11 market base grades & segregations for wheat

FAQ

Expanding

Extensive


Quality & Receival standards• PRIME HARD WHEAT

• Australian Prime Hard Wheat growing area


Quality & Receival standards• PRIME HARD WHEAT

• Minimum protein 13.0%

• Flour suitable for

• Japanese Ramen Style Noodles

• European style pan and hearth breads

• Instant Noodles


Quality & Receival standards• HARD WHEAT

• Australian Hard Wheat growing area


Quality & Receival standards• HARD WHEAT

• Minimum protein 11.5%• Flour suitable for

• Middle Eastern Style Flat Breads

• European style pan and hearth breads

• Chinese Style Wontons

• Dumpling Skins


Quality & Receival standards• PRIME WHITE WHEAT

• Australian Prime White Wheat growing area


Quality & Receival standards• PRIME WHITE WHEAT

• Minimum protein 10.5%


• Middle Eastern and Indian Style Flat Breads

• Asian Noodles (particularly yellow alkaline noodles)

• Chinese Steam Bread


Quality & Receival standards• STANDARD WHITE WHEAT

• Australian Standard White Wheat growing area


Quality & Receival standards• STANDARD WHITE WHEAT

• Minimum protein N/A


• Middle Eastern, Iranian and Indian Style Flat Breads

• Instant Noodles in South East Asia


Quality & Receival standardsWhat happens to Australian wheat?

Typical Hopetoun area quality profile


Quality & Receival standards

• Receival standards are focused on customers needs

– Milling quality

– Grain hardness

– Dough strength

– Colour

– Processing ability



Wheat Classification

• 200+ individual varieties

• Classified into one of the

quality standards

• Same variety can have

different classification for

each state

Trevor Walters 2010 Yitpi Wheat



• What is a wheat classification?– The categorisation of a wheat variety into a

commercial type or style – Similar varieties grouped together– Results in a market class or grade– Varieties defined by genetically inherited

characteristics • Kernel size, grain hardness, flour colour, dough

strength, and starch quality are GENETICALLY determined and inherent to individual varieties



• What is a wheat classification?– Test weight, screenings, protein

content, moisture content, enzyme activity all influenced by the ENVIRONMENT

• Eg. seed-coat colour, grain hardness, physical dough properties

– Delivers consistent processing performance expected by end-users



• Overall Picture


IN TURN

• Delivery into the system– What happens at the silo?

• Quality Testing

• Grading (label)

• Segregation of quality


Testing Stand where grain

quality is tested

Quality Segregations


TESTING

Sampling Protein & Moisture testing


Testing

Screenings Sieves


Testing

Impurities Assessment


Testing Stand where grain

quality is tested

Quality Segregations

Weigh Bridge

Tip off point

Receival Ticket


Receival Ticket

• Has all relevant receival information– Weight– Receival Specifications

• PRGR – SCRN – MOI – TWT

– Varietal Classification Grade• AH Variety

– Binned Grade• APW

• Assist grower track & market their grain


Receival Ticket

Quality Information

Weight CalculationGross: Total WeightTare: Empty WeightNett: Delivered Weight

Varietal/Binning Information


How does the Hopetoun grower sell their grain?

• Sells prior to harvest by contract to buyer– Price based on assumed future &/or estimated– Normally flexible on quality delivered– Delivers directly onto a unique contract number

• Sells at harvest – Cash price at the silo (displayed at testing stand)– Delivers, warehouses then contracts to buyer

• Sells after harvest– Delivers & warehouses the grain– Grower “speculates” the market & sells at their discretion


What happens after it is sold?• Grain Merchant accumulates the grain

– Quality purchased by buyer or “merchant” to suit the companies sales strategy &/or trading needs/demands

• Position Statement– Quality & volume that is being accumulated is recorded in

“real time” so the Grain Trader can see what he/she owns

• Grain Trader “Trades” the grain– Trader monitors market/s & demand– If quality & volume is known the trader can meet the

demands of the end user & sell them the specific quality for their needs


OUT TURN• Export Trade – FOB

– Logistics department organise grain movement

– Bulk Vessel• Grain out turned from silo

by road &/or rail• Delivered to port facility

– Quality testing at delivery point


Out TurnGeelong Terminal Melbourne “ABA” Terminal


Out Turn


OUT TURN• Export Trade – DCT

– Logistics department organise grain movement

– Container packing facility• Grain out turned from silo

by road• Delivered to packing

facility– Quality testing at delivery

point


Out Turn


Supply Chain = Value Adding

the marketer of choice for victorian grain producers “the supply chain” wheat from hopetoun to...

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