THE AUSTRALIAN OAT INDUSTRYFrom Feed Grain to Health Boom

Andrew Goyder, Grain Link WA Pty Ltd www.grainlink.com.au

GROWING OATS IN AUSTRALIA

! Australia – produces “clean & green” food-safe oats.! Grown on large farms in the Australian grain-belt.! Part of cropping programs for many farmers.! Australian farmers - leaders in environmentally

sustainable cropping programs.

Major areas growing milling oats for export are located in the area that is shaded a darker green.

VALUING WA MILLING OATS

! Highly regarded by international markets.! Hulled oats - bright & plump.! Low moisture content.! Clean & free from pests.! Excellent taste & aroma.! Easy to process & giving high milling yield.! New varieties coming through!

!"#$%&'()&*+,,-./0&1,(2 New Oat variety, Williams

OATS OATS - GRAIN OR HAY

! WA produces over 40% of the nation's export hay generating about $90 million in export earnings to the State each year.

! Hay also cut and stored for animal feed during late spring to mid Winter.

! Oat grain production ultimately will depend on the area cut for hay each year. That will depend on the pricing of both products.

! China fast becoming Australia's largest fodder importer .! Oats traditionally stored on farm for sheep feed, a dry year will

increase on farm storage.

WORLD OAT SUPPLY & USAGE

OATS AND BETTER HEALTH ARE THEY LINKED?

! Yes, Oats are responsible for better health outcomes ! Oats are high in Beta Glucan

" Chinese Diet offering more choice resulting in higher saturated fats consumption

" Beta Glucan are known for their positive effect on saturated Fats in the blood and may reduce the risk of heart disease.

" Helps to control Cholesterol " Controls glucose and insulin levels" Low GI" Oats are rich in antioxidants, vitamin E and avenanthramides

(anti Inflammatory) unique to oats.

OUTLOOK FOR AUSTRALIAN OAT PRODUCTION! More oats are being processed on shore and

exported in containers.! The market place is growing but so will production.! Oat quality through breeding new varieties

improving each year. ! Variabilities‘ will be weather, quality and demand.

AUSTRALIAN CROP PRODUCTION FORECAST !Oat Production is set to increase on the back of

historically strong markets and prices.!Export hay prices keeping in step with export grain. !Horse Racing industry still requiring clipped,

dressed and polished Oats.

OAT IMPORTS INTO CHINA !2015 Oats into China approximately 250,000mt and

trending upwards.!Oat grain and Fodder imports almost running side by

side.

SUMMARY

! Australian Oats well accepted by Chinese consumer! Australian Oat grower well positioned to participate in

growth! China – Australian agricultural and food relationship

very strong.

THANK YOU

! I would like to acknowledge the following for assisting with this presentation

Mr Andrew GoyderEmail: a.goyder@grainlink.com.auPhone: +61 08 9258 9781www.grainlink.com.au