Prominent animal nutritionists assess the feed value ($’s / tonne) of wheat grown in south west Victoria in 2012.

KEY MESSAGES

• Grain protein level, depending on the availability and price of alternative protein substitutes, is often a key value driver for animal nutritionists.

• Nutritionists valued grain protein at approximately $5/protein unit based on August 2013 raw material prices.

• There is potential merit in grain accumulators creating feed grain segregations for high and low protein grain.

The FGP recently completed a ‘Feed Grain Receival Segregation’ Project. The objectives of the project were to:

1. Capture the grain quality measurements (Grain Trade Australia and AusScan) of wheat samples delivered into a major grain receival site.

2. Complete a desktop analysis to segregate the grain received of these wheat samples using revised feed grain quality standards.

3. Value the wheat delivered into this site based on the revised feed grain quality standards.

4. Compare the grower and end user value of the desk top grain segregations. The project involved the analysis of 549 wheat samples collected from individual grain grower’s deliveries made to the Emerald Grain Receival Site at Werneth in Victoria during the 2012/13 harvest. The standard Grain Trade Australia (GTA) receival tests - grade, variety, tonnes delivered, test weight, protein, moisture and screenings were completed at receival and the AusScan analysis were completed approximately one month later. Due to all the wheat received at the Werneth site being high in test weight and low screenings, the major GTA parameters driving the segregations were the variety classification and the protein content. As part of the project ten prominent industry animal nutritionists were asked to place a value on 5 grades of wheat identified in Table 1 based on the ASW1 segregation being valued at $260 / tonne. The nutritionists were asked to assume all other raw materials were available at current supply prices. Nutritionists indicated that the major difference in value came from protein content. The average value ($/tonne) estimated by all of the nutritionists for the various grades is provided below in Table 2.

08 Fall  

Number 6

Table 1. Quantity and average segregation quality based on the wheat sample GTA receival tests.

Grade Average Delivered Tonnes

Test Weight Kg/hl

Protein %

Moisture %

Screenings %

H2 715 78.2 12.0 10.2 3.1 APW1 3547 79.3 11.0 11.2 2.3 ASW1 6340 78.7 9.3 10.9 2.3 SFW1 5199 76.5 8.5 10.6 2.7 FED1 169 74.1 9.2 11.9 2.2

(GTA Wheat Grade Segregations: H2 and AFW1 have minimum protein levels of 11.5 and 10.5% respectively while ASW1 has no protein specification. H2, APW1 and ASW1 have a minimum test weight of 76 and a maximum 5% screenings. SFW1 has minimum test weight of 70 and a maximum 10% screenings, while FED1 has minimum test weight of 62 and maximum screenings of 15%).

Table 2. Comparison of the average value of grains (for animal feed) as nominated by 10 animal nutritionists V’s actual grower price for the identified 5.

GTA Quality Grades

Nutritionists ‘Feed” Grain Value

Werneth Actual Grower Price 2012/13 Harvest*

H2 $272.2   $282 APW1 $267.0   $277 ASW1 $260.0   $260 SFW1 $256.4   $247.50 FED1 $257.4   $229.50

Based on the average values nominated by the animal nutritionists the end users would not be willing to pay for the milling grade premiums growers achieve for H2 and APW1 segregations. However based on predominately the protein content of the segregations end users would have potentially been willing to pay growers $8.90 /tonne and $27.90/tonne more for the SFW1 and FED1 segregations respectively. It is important to understand that for end users to be able to extract / utilise the value in feeding this higher protein grain they need to be able to source this grain in sufficient volumes to enable them to alter their specific rations / feeding formulations. Assuming all other grain quality factors are the same growers who are growing specific feed varieties (not milling varieties) need to aware of the potential value of segregating and supplying high protein feed grain. For a copy of full FGP Harvest Grain Receival Segregation Project Report please go to http://www.grdc.com.au/Research-and-Development/Major-Initiatives/Australian-Feedgrain-Partnership or contact the FGP Coordinator Denis McGrath phone 0408 688478 or email denis@seedvise.com.au.