Australia: New malting barley pool being looked at for SA growers

A new malt barley pool is being considered to provide more competition in the market for South Australian grain growers, ABC.net reported on January, 24.

Grower owned Australian Grain Growers Cooperative is wanting to provide another option for farmers.

CEO of AGG Co-op Steve Mellington says some growers have been disappointed with the malt barley market during recent harvest.

"Typically growers might anticipate somewhere around the 30 to 40 dollar premium for their malt barley and this year we have seen those premiums erode to virtually nothing."

Paul Wurst farms malt barley and still has some of his crop in warehouse.

He says he would be interested in a malt barley pool.

"I think it is quite a good idea actually because there are not many other avenues around for malting barley."

But not everyone would be keen to see a new malting barley pool.

Ian Farley is a farmer at Jabuk and says he doesn't feel a pool would work.

"When you put your grain in a pool the farmer takes all the risk and the pool operator is not taking any risk at all."

25 January, 2012