In the latest Arable Industry Marketing Initiative (AIMI) survey of cereal croppers unsold grain stocks across six different cereal crops have dropped 23% on the same time last year with 65% of the reduction happening in the last four months.
Federated Farmers arable section vice-chairman Brian Leadley said the cut in unsold stocks and a continued resurgence in hectares sown is more evidence of confidence throughout the arable industry.
“The arable industry is considerably more positive than in years gone by with stronger prices, good demand for our products and some favourable planting and climatic conditions all pointing towards a satisfying harvest.”
In terms of spring sowing 84% of the crop area intended for planting was in the ground by mid-October.
The variable spring weather did delay planting of some spring crops in Southland, South Canterbury and parts of the North Island.
“This replicates the situation in autumn with some of those crops drowned and needing to be replanted.”
The total area sown in cereals is estimated to be up 2% or 1800ha on last season.
An increase in milling wheat planted is particularly encouraging given Champion Flour Milling’s national contract to supply Countdown supermarkets with locally grown grain, Leadley said.
“This latest AIMI survey shows the resurgence in sowing described in the October 2017 report has been maintained.
“As a comparison, over the past two years the total area sown plus intended to be sown in wheat, barley or oats as at October 2018 was estimated to be 19% up on the area harvested in 2017, mainly due to increases in sowing of feed barley and feed wheat.”
Leadley said Countdown’s 180 NZ supermarkets’ commitment to premixes for its in-house loaves, rolls, buns and scones made only from locally-grown product has been a huge confidence boost to the industry.
“It highlights the quality of the grain we’re producing, getting the message out there that our product is grown under a quality assurance programme, with traceability standards that are audited. “And we’re price competitive.”
The industry is also pushing forward on a number of other fronts including opportunities in the dairy industry for feed grain and cereal silage.
“Prices for imported palm kernel are high and there are environmental considerations there.
“There’s also a bit of work going on around nitrates.
“We’re just doing the research to get solid evidence that nitrate outputs from grain or grain-based supplementary feeds can be lower than from pure grass-fed stock.”
Leadley said there’s a good case, particularly for drought-prone farms or when there’s a supplementary feed shortage, for dairy farmers to look at NZ grain and cereal silage.
“There is interest but it’s only slowly building.
“We’re up against the fact that livestock farmers view grass grown in their paddocks as the cheapest feed and easiest to manage.
“We accept that managing a grain component versus grass and-or palm kernel to get the returns is a new level of management.
“It’s a gradual thing but if we can even win a percentage of that industry over it’s a big thing for our arable farmers.”
