Australian grain growers are set to reap the benefits of a long-term commitment by the Grains Research and Development Corporation (GRDC) to unify and strengthen 'industry good' services nationally.
GRDC has announced a $12 million annual commitment over the next decade to streamline critical trade and market functions through the integration of Grains Australia Limited and the Australian Export Grains Innovation Centre (AEGIC) into a single entity working domestically and internationally across all grains. This is an increase of $4.2 million on the current annual spend by GRDC in 'industry good' functions.
The integration is designed to focus on what matters to growers. It will drive collaboration, improve co-ordination and deliver ongoing efficiencies across the key areas of classification, trade and market access, market information and insights, as well as innovation for the Australian grains sector.
GRDC Managing Director Nigel Hart said the integration into one body under the Grains Australian banner was a logical, efficient move that would create a stronger national grains industry.
"It makes sense to bring these agencies together, effectively combining the work being done to explore and understand emerging and current market needs, with critical 'industry good' activities such as classification, market access and market information," Mr Hart said.
Ultimately this will streamline activities and ensure operations are aligned, delivering a set of 'industry good' services through all parts of the grain supply chain for the benefit of Australian grain growers and building our relationships with trade and market networks internationally.
Grains Australia and AEGIC have been separate entities since establishment. AEGIC was formed as an initiative of the Western Australian State Government (Department of Primary Industries and Regional Development) and GRDC. Grains Australia replaced GRDC as a member of AEGIC in 2023.
Mr Hart said the decision to integrate Grains Australia and AEGIC had been informed by independent analysis and feedback from growers and industry, which identified opportunities for increased efficiencies and ultimately more value for the grains industry.
"GRDC invests on behalf of Australian grain growers, and this integration will ensure growers are positioned to seize new and existing market opportunities and have increased market options which all helps manage price risk, especially in a time where we have a level of global uncertainty," Mr Hart said.
Understanding what customers and markets want now and into the future enables us to focus research and development effort and inform decisions about plant breeding, classification and grain production, so Australian growers are supplying the grain that domestic and international markets want.
Since its establishment in 2020 as an initiative of GRDC, Grains Australia has played a pivotal role building relationships and advancing agreements with strategic international organisations to maintain and improve markets for Australian grain growers.
Grains Australia Chief Executive Officer Richard Simonaitis said the organisation was now well-established domestically and internationally as the key provider and co-ordinator of 'industry good' services on behalf of the Australian grains industry. It also has a national network of staff and is governed by an independent, skills-based board.
"GRDC has shown great vision and leadership in the establishment of Grains Australia. This further enhances its commitment to the 'industry good' functions critical to the long-term profitability and competitiveness of the Australian grains industry," Mr Simonaitis said.
This is a significant investment commitment, the likes of which have never been seen before in these functions supporting our markets, customers and the long-term future of the industry. Ultimately this integration is about ensuring Australia is best placed to understand the needs of customers and markets, so through classification we can inform and enable breeding programs which in turn deliver varieties for our grain growers that will meet future requirements and ensure we can differentiate Australian grain from our competitors on the global stage.
Grains Australia's key achievements during the past year include:
- playing a crucial role supporting the Department of Agriculture, Fisheries and Forestry (DAFF) in the establishment of an Australian wheat protocol with Indonesia;
- being instrumental in building stronger trade relationships with South Asia;
- signing a new memorandum of understanding (MOU) with the Academy of National Food and Strategic Reserves Administration in China; and
- investing in a strategic initiative to position Australia to deal proactively with 'non-tariff measures.
Domestically Grains Australia has also driven the development of the first national varietal classification framework for oats; and completed the consolidation of Wheat Quality Australia, Barley Australia, the Grains Industry Market Access Forum and Pulse Australia. This complements the coordination and funding of the National Working Party on Grain Protection, and the establishment of Commodity Councils across several commodities and a Grains and Market Access Council.
Grains Australia is currently progressing the transition plan for critical AEGIC functions that are valued and supported by stakeholders. Current funding for AEGIC expires in June 2026 and the WA Government has indicated it will exit at that time.
"Grains Australia is working closely with AEGIC to manage an effective and considerate transition plan, most importantly, for the AEGIC team which has done a commendable job for growers," Mr Simonaitis said.
"We want to reassure customers that support for markets will remain an important function and in fact be stronger and more targeted and aligned by this move. It is also critical to maintain the important functions that AEGIC deliver through this transition process, while also honouring AEGIC's existing project commitments."
