Standing Ovation in support for Ukraine grain industry at AGIC 2022

The Australian grain industry showed its support for the Ukraine grain industry and Ukrainian people with standing ovations during special keynote address by Mr. Mykola Gorbachov, President, Ukraine Grain Association on the impact on the Ukraine grain supply chain from the conflict in Ukraine at the Australian Grains Industry Conference (AGIC). In a stirring address Mr Gorbachov, who travelled to Melbourne especially for AGIC 2022, said the impact is profound and will have consequences for the world grain supply for several years to come.

AGIC 2022

After two years of COVID-19 fueled frustration the Australian grain industry has been able to physically reconnect at an information-packed and entertaining two days at the Australian Grains Industry Conference (AGIC) on the 27th and 28th of July 2022. In Melbourne, Australia.

Andrew Goyder, Chair of Grain Trade Australia (GTA) opened the conference and warmly welcomed delegates on behalf of GTA, which co-hosts the popular conference alongside Pulse Australia and the Australian Oilseeds’ Federation. He said “Reconnecting has been a theme for GTA in 2022 and we have moved to achieve this objective through our very successful AGIC ASIA, the well-attended GTA 30th Anniversary dinner in Sydney at the end of March this year and the highly regarded and popular Grain Storage and Protection Conference a month ago.”

“It is important to come together as an industry and its people as the impact of the past few years has created a toll on the grain industry and its communities,” says Mr Goyder.

“The conference theme of Growing with Grain may seem strange following two massive production years in Australia ” said Andrew Goyder, “ however, it is apt given we are looking at a worldwide food security issue driven mainly by the conflict in Ukraine and the limited export supply to the traditional customers of Black Sea grain.

This sentiment was echoed throughout the content of the conference. Insights proved COVID-19 has created a change in the way we work, live and how businesses operate with movement into sectors that are more COVID resilient. The future appears bright in the grain industry due to its resilience and hard work during the pandemic.

The Speakers

Like previous years, AGIC produced an impressive line-up of local and international experts, including:

• Senator the Hon. Murray Watt, Minister for Agriculture, Fisheries and Forestry & Minister for emergency Management
• Catherine Birch, Senior Economist, ANZ Research
• Mykola Gorbachov, President, Ukraine Grain Association, Ukraine
• Dr Jared Greenville, Executive Director, ABARES
• Ben Macnamara, CEO, CBH Group
• Phil Hughes, CEO, Viterra Australia & New Zealand
• Julia Banks, Author, Business Leader, former Federal MP, Lawyer
• Michael Whitehead, Head of Agri-Insights, ANZ
• Stefan Vogel, General Manager Rabo Research Australia & New Zealand, Rabobank

The insights

Just some of the insights on offer included:

• In his opening address Minister Watt’s said the new federal government has a strong focus on the agricultural industry, and in particular the grain sector, and appreciated the need to address strategic supply chain opportunities to continue to develop and grow what is a world-leading grains sector in this country. He emphasized the importance of international cooperation and the continued need to focus on ensuring trade between countries can continue unimpeded and based on market principles.
• Global tensions and the impact on the security of supply for commodities including grain were discussed across a number of sessions. We heard from Mykola Gorbachov, President, Ukraine Grain Association, in an emotive presentation of the impact on the Ukraine grain supply chain due to the conflict in Ukraine. The impact is profound and will have consequences for the world grain supply for several years to come. Delegates showed their support for the Ukraine Grain industry and Ukraine people, with two standing ovations for Mr Gorbachov.
• Presentations on grain market conditions, forecasts and the global outlook for commodities were enthusiastically absorbed by delegates interested to understand their impacts on values in Australia. Economic indicators were a focus with the ‘Big I’ inflation and interest rates and their likely trends in the coming year.
• Market analysts reported the short-term market remains positive for Australian grain, regardless of the continuing supply chain shocks and the high input costs pressuring the market in the medium term. Similarly, the long term forecast for agriculture is extremely buoyant and positive.
• We heard the industry needs to adapt for future megatrends and seek to understand and align to our markets as they evolve over time. Delegates were told technology and innovation are tools that will support the industry and assist with its stewardship. This includes plant breeding technologies that are on the cusp of growth and will provide opportunities for the industry when supported with market stewardship and the correct framework.
• Digital opportunities were discussed and there was a recognition there is a challenge in the management of data and the rules on who can access and own data. The was discussion and support for an industry approach to data and data management to ensure opportunities are captured.
• In the CEO session, featuring Ben Macnamara from CBH Group, Phil Hughes from Viterra and Tony Geitz from LDC, we heard of the challenges of the grain industry including supply chain bottlenecks and the difficulty of finding labour in the agriculture sector since the COVID pandemic. It was noted the industry has resilience and is facing and winning the challenge of the concurrent large crops.
• Price transparency was discussed from a producer and a grain trader perspective including what is an appropriate pricing mechanism for wheat and should the market be based more on Black Sea values. A key message is the market is efficient and will drive and incentive investment but may work more efficiently if greater transparency of data is available.

Full AGIC Australia 2022 Program details can be found here. Delegates continue to have access to the recordings, sessions and information for 30 days.