Growing in value, sustainable and internationally competitive
The Australian Oilseeds Industry
Australian Grains Industry Conference Singapore
March 2014
Growing in value, sustainable and internationally competitive
Quiz
§ Top Global Oilseed Producer?
Growing in value, sustainable and internationally competitive
Top 10 Oilseed Producing Nations + 1
1. USA 2. Brazil 3. Argentina 4. China 5. India 6. Ukraine 7. Russia 8. Indonesia 9. Paraguay 10. France 11. Australia
0 10000 20000 30000 40000 50000 60000 70000 80000 90000
100000
Oilseed Production 2012/13 (mmt)
Source: Oilworld, May 2013
Growing in value, sustainable and internationally competitive
Quiz
§ Top Global Oilseed Exporter?
Growing in value, sustainable and internationally competitive
Top 10 Oilseed Exporting Nations
1. Brazil 2. USA 3. Canada 4. Argentina 5. Paraguay 6. Australia 7. Ukraine 8. Uruguay 9. China 10. India
0 5000
10000 15000 20000 25000 30000 35000 40000 45000
Oilseed Exports 2012/13 (mmt)
Source: Oilworld, May 2013
Growing in value, sustainable and internationally competitive
Quiz
§ Top Global Cottonseed Exporter?
Growing in value, sustainable and internationally competitive
Top 5 Cottonseed Exporting Nations
1. Australia 2. USA 3. Greece 4. Ivory Coast 5. Zambia
0
100
200
300
400
500
600
700
800
Australia USA Greece Ivory Coast
Zambia
Cottonseed Exports 2012/13 (mmt)
Source: Oilworld, May 2013
Growing in value, sustainable and internationally competitive
Quiz
§ Top Three Global Canola Exporters? – 1 – 2 – 3
Growing in value, sustainable and internationally competitive
Top 3 Canola Exporting Nations
1. Canada 2. Australia 3. Ukraine
0
1000
2000
3000
4000
5000
6000
7000
8000
Canada Australia Ukraine
Cottonseed Exports 2012/13 (mmt)
Source: Oilworld, May 2013
Growing in value, sustainable and internationally competitive
The Australian Oilseeds Federation
Growing in value, sustainable and internationally competitive
§ Peak industry body representing all sectors
§ Provides strategic direction for the industry
§ Facilitates communication and linkages
§ Whole of industry approach and invests where there is an overall benefit
§ Represents the industry through an independent and credible voice
Australian Oilseeds Federation
Growing in value, sustainable and internationally competitive
Australian Oilseeds Federation § Established over 40 years ago § Represents the whole oilseed industry § Focus is on industry development and supporting
growth § Key functions include:
– Trading standards – Market access – Promoting use of oils and fats – Representing industry with key stakeholders – Investing in industry projects
§ Facilitates and manages the industry strategy
Australian Oilseeds Federation
Growing in value, sustainable and internationally competitive
§ World competitive and viable producer, processor and marketer of quality oilseeds and products
§ Satisfy demands of domestic and export customers
§ World leader in innovation based on investment in research, development and extension
§ Efficient industry at all levels of the supply chain
Vision behind the industry’s strategy
Growing in value, sustainable and internationally competitive
The Australian Oilseeds Industry
Growing in value, sustainable and internationally competitive
§ Production around ≈4 million tonnes (4.9 mln in 2013) – Canola ≈3 million tonnes (3.8mln in 2013) – Cottonseed ≈1 million tonnes (1.0mln in 2013)
§ Current economic value US$2.5 billion (≈ 4% of food and beverage sector)
§ Moderate value added component
Australian Oilseeds Industry
Growing in value, sustainable and internationally competitive
Agronomic diversity protects supply base
Cottonseed, sunflower and soybean are summer crops grown in northern NSW and Queensland
Canola, safflower and linseed are winter crops grown from mid northern NSW across southern eastern Australia. Western Australia grows only canola in any quantity
90% of cotton crop GM. First GM canola grown in 2008/09- currently around 10% of total.
Australia’s production regions
Growing in value, sustainable and internationally competitive
Oilseed production – by type
% Tonnes- 2013/14
Canola
Cottonseed
Soybean
Sunflower
Other
77%
20%
Growing in value, sustainable and internationally competitive
§ Canola the backbone – Underpins the domestic industry – Significant export crop – Break crop – World competitive
§ Australia is a small producer in world context, but a significant player in canola
Australian Oilseeds Industry
Growing in value, sustainable and internationally competitive
Where the crop goes?
0% 20% 40% 60% 80% 100%
Canola
Cottonseed
Soybeans
Sunflower
Domestic food Domestic Feed Export
• Currently food applications represent 84%+ of domestic usage
• Small usage in industrial applications e.g. chemical application, paints, etc
2012/13
Growing in value, sustainable and internationally competitive
0
1000
2000
3000
4000
5000
6000
7000
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14eCanola Total
Industry’s economic value USD $2.5 billion
Australian oilseed production ‘0
00 T
onne
s
Growing in value, sustainable and internationally competitive
0
1000
2000
3000
4000
5000
6000
7000
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14eCanola Total
Industry’s economic value US $2.5 billion
Australian oilseed production ‘0
00 T
onne
s
Average: 1500t p.a.
Average: 3400t p.a.
Growing in value, sustainable and internationally competitive
Growing in value, sustainable and internationally competitive
Australian Canola
0500
10001500200025003000350040004500
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14Canola
Domestic Demand
Surplus Surplus
000 M T
Growing in value, sustainable and internationally competitive
Australian Canola
§ Healthy § Versatile § Agronomic fit § Economic fit § Sustainable § Asian Trade Focus
– USD$900mln in cal 2013) – 55% of canola trade YTD 13/14
Growing in value, sustainable and internationally competitive
