Oat variety rationalisation and accumulation working group Report to GIWA Oat Council Realignment of the OAT2 grade

as a second milling-only grade for WA export and domestic processing oats.

What is the opportunity The Western Australian (WA) milling oat industry is export focused with both direct exports of milling grain and value-added processed product. There is recognised potential for growth in the demand for oat based food products in Asia and elsewhere. The future opportunities for the WA oat industry are significantly aligned with the potential to meet the developing export milling market opportunities in Asia and the creation of a better value definition of milling oats. Currently, there is an insufficient supply of food grade milling oats and an oversupply of Wandering feed oats to realise these opportunities. To assist our industry to develop export markets and capture potential differential values, we must consider how to better accumulate grain of the milling oat grade for export and domestic processing requirements. Recommendations of the working group The opportunity to meet the growth potential in the market demand for food oats and create greater value for oat producers in WA can be achieved by expanding access to milling quality oats by realigning the OAT2 grade as a second milling-only grade with market requirements. This re-alignment can be implemented over a number of production seasons to allow for timely on-farm adoption of current and new high yielding milling varieties including Bannister, which has recently received milling classification, and WOAT2332, an oat line soon to commence commercial milling evaluation. The first phase of the strategy is to cease the receival of the minor feed and hay varieties into the bulk handling system. The second phase is to re-align OAT2 as a milling oat segregation by phasing out the receival of Wandering feed oats in the OAT2 segregation. The full strategy is summarised in Table 1. The proportion of varieties or classifications received into OAT1 and OAT2 segregations for 2009-2013 are provided in figures 1 and 2. Benefit of strategy The OAT2 segregation currently consists of out of specification milling varieties, Wandering and minor feed and hay varieties. This mix is difficult to market as it is unsuitable for either milling or the specialised feed Wandering market (which is also in oversupply). The lack of markets for this feed quality means the current OAT2 segregation has a low potential to attract value for WA oat growers. To more effectively utilise the limited segregation to capture demand for food oats from less discerning milling markets and to support on-farm adoption of current and new higher yielding milling varieties, this strategy is an opportune way to return greater value to WA grower and to enhance the industrys prosperity.

March 2013

100% Kojonup 80% 60% 40% 20% 0% 2009 2010 2011 2012 2013 Carrolup Mitika Pallinup Mortlock Hotham Coomallo

100% 80% Milling 60% 40% 20% 0% 2009 2010 2011 2012 2013 Wandering Dalyup Other

Fig

1. Variety proportion of (2009-2013)

OAT1

segregation

Fig 2. Variety proportion of OAT2 segregation (2009-2013)

Table 1. Proposed varietal and receival standards for WA oat grades 2013/14 - 2015/16.
Harvest season 2013/14 2014/15 Grade ID Purpose Varietal composition Change to varieties Change to receival standard 2015/16 Grade ID Purpose

WA OAT GRADES
OAT1 (no change) OAT1 Premium food grade for milling & processing All milling varieties Nil Nil as OAT1 PMOAT Premium food grade for milling and processing All milling varieties OAT2 (no change) OAT2 Transitional to food grade for milling and processing All milling varieties Wandering Remove all minor nonmilling (feed, hay) oats Nil as OAT2 MOAT Food grade for milling and processing All milling varieties Wandering under reviewed Wandering under reviewed Nil as OAT2 OWAN1 (no change) OWAN1 Premium export feed grade for racehorse industry Wandering Nil Nil as OWAN1 OWAN1 Premium export feed grade for racehorse industry. Wandering

Varietal composition Change to varieties Change to receival standard

Nil Nil as OAT1

Nil Nil

Motion: The GIWA Oat Council endorses the recommendation of the Oat Variety Rationalisation Working Group that all non-milling varieties, other than the variety Wandering, be not received into Oat 2 effective of harvest 2014/2015 with a view to developing that grade for the milling market.

March 2013