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.
2.1 Expand the area of high-value crops to boost average prices and profitability of farming systems, specifically: pulses, oats for food or industrial uses, linseed for industrial uses, sorghum for food, and soybeans for food and/or animal feed2.2 Maintain and/or improve the price of Australian grain through differentiation based on: functionality, food safety and traceability, sustainability of production, reduced downgrading, new and/or enhanced grain classification processes, and optimal management of biosecurity issues2.3 Improve wheat grain protein through increased availability of nitrogen and better nitrogen use efficiency2.4 Develop new, novel, high-value uses of products and by-products targeted at: human health, nutrition and allergenicity; high-value feed uses; new industrial uses; biofuels2.5 Maintain and improve price