Australian Noodle Wheat (ANW) could be the answer Asian flour millers are searching for as they struggle to source soft wheat for biscuits and cakes following severe drought in the US.
Growers in the Pacific Northwest region of the US suffered devastating heat and drought in 2021 and production of US Soft White (SW) wheat was badly affected. This has resulted in extremely limited soft wheat options for Asian flour millers and driven SW prices through the roof. At the end of 2021, some soft wheat buyers were paying more than A$100 per tonne above the previous season.
A bumper crop of low-protein ANW in the 2021 season, coupled with the unusual undersupply of soft wheat from the US, presents a rare opportunity for Australian growers, which is backed up by research from the Australian Export Grains Innovation Centre (AEGIC).
Investigations already carried out by AEGIC with flour mills in South-East Asia demonstrated that low-protein ANW has acceptable performance for biscuits.
Near the end of 2021, AEGIC took this information to customers via an industry meeting with 80 grain customers across six key Asian markets to stimulate demand for low-protein ANW.
AEGIC’s study was completed as part of a wider project to rekindle soft wheat exports from Australia. Low-protein ANW provides an excellent short-term solution for Asian mills, with production expected to be significant following above-average rainfall in 2021. However, in the long term, Australia will need to produce true soft wheat types to compete in this market.
Demand for soft wheat in South-East Asia is increasing, with the total market size expected to be 3.6 million tonnes by 2030. Australia has significantly shorter delivery times and lower freight costs for South-East Asia, providing additional value for Australian soft wheat supply.
The current unusual circumstances presented an excellent opportunity for ANW growers. There could be premiums across the ANW range thanks to the demand pressure create by the US shortfall.
Prices for soft wheat could be high in 2022. The drought conditions in the US have continued and are affecting sowing of the next crop. Australian growers will have more information on this before they sow next season and AEGIC will provide updates on market circumstances.
More information: Dr Siem Siah,
AEGIC is an initiative of the Western Australian State Government and GRDC. AEGIC acknowledges the investment of the WA Department of Primary Industries and Regional Development in this project.