The link between bulk commodity grain prices and international supply and demand provides relatively little opportunity for GRDC RD&E investment to impact on bulk commodity grain prices. Grain prices are also affected by external factors completely isolated from GRDC influence, such as exchange rates, tariffs and non-tariff trade barriers. Therefore, measuring the direct impact of RD&E investment on grain prices is difficult. However, a range of RD&E activities are known to either support current commodity prices or promote further differentiation and, therefore, the opportunity to extract higher grain prices.
The GRDC will determine the impact of RD&E investments on grain prices through:
- identification of potential new products and investments where a supportive business case can be established
- support for and enhancement of current products through identification of opportunities for differentiation and maintenance of current market access programs.