1. The marketer of choice for Victorian Grain Producers “THE SUPPLY CHAIN” Wheat from Hopetoun to the Asian Market

2. The marketer of choice for Victorian Grain Producers Research & Development Production Supply Chain End User

3. The marketer of choice for Victorian Grain Producers Quality & Receival Standards Evolution of product differentiation in Australian wheat 1939: “Fair Average Quality” 1974: APH – AH – ASW – AGP – FEED 2011: Up to 11 market base grades & segregations for wheat

4. The marketer of choice for Victorian Grain Producers Quality & Receival standards PRIME HARD WHEAT Australian Prime Hard Wheat growing area

5. The marketer of choice for Victorian Grain Producers Quality & Receival standards PRIME HARD WHEAT Minimum protein 13.0% Flour suitable for Japanese Ramen Style Noodles European style pan and hearth breads Instant Noodles

6. The marketer of choice for Victorian Grain Producers Quality & Receival standards HARD WHEAT Australian Hard Wheat growing area

7. The marketer of choice for Victorian Grain Producers Quality & Receival standards HARD WHEAT Minimum protein 11.5% Flour suitable for Middle Eastern Style Flat Breads European style pan and hearth breads Chinese Style Wontons Dumpling Skins

8. The marketer of choice for Victorian Grain Producers Quality & Receival standards PRIME WHITE WHEAT Australian Prime White Wheat growing area

9. The marketer of choice for Victorian Grain Producers Quality & Receival standards PRIME WHITE WHEAT Minimum protein 10.5% Flour suitable for Middle Eastern and Indian Style Flat Breads Asian Noodles (particularly yellow alkaline noodles) Chinese Steam Bread

10. The marketer of choice for Victorian Grain Producers Quality & Receival standards STANDARD WHITE WHEAT Australian Standard White Wheat growing area

11. The marketer of choice for Victorian Grain Producers Quality & Receival standards STANDARD WHITE WHEAT Minimum protein N/A Flour suitable for Middle Eastern, Iranian and Indian Style Flat Breads Instant Noodles in South East Asia

12. The marketer of choice for Victorian Grain Producers Quality & Receival standards What happens to Australian wheat? Typical Hopetoun area quality profile

13. The marketer of choice for Victorian Grain Producers Quality & Receival standards Receival standards are focused on customers needs – Milling quality – Grain hardness – Dough strength – Colour – Processing ability

14. The marketer of choice for Victorian Grain Producers Quality & Receival standards

15. The marketer of choice for Victorian Grain Producers Quality & Receival standards Wheat Classification 200+ individual varieties Classified into one of the quality standards Same variety can have different classification for each state Trevor Walters 2010 Yitpi Wheat

16. The marketer of choice for Victorian Grain Producers Quality & Receival standards What is a wheat classification? – The categorisation of a wheat variety into a commercial type or style – Similar varieties grouped together – Results in a market class or grade – Varieties defined by genetically inherited characteristics Kernel size, grain hardness, flour colour, dough strength, and starch quality are GENETICALLY determined and inherent to individual varieties

17. The marketer of choice for Victorian Grain Producers Quality & Receival standards What is a wheat classification? – Test weight, screenings, protein content, moisture content, enzyme activity all influenced by the ENVIRONMENT Eg. seed-coat colour, grain hardness, physical dough properties – Delivers consistent processing performance expected by end- users

18. The marketer of choice for Victorian Grain Producers Quality & Receival standards Overall Picture

19. The marketer of choice for Victorian Grain Producers IN TURN Delivery into the system – What happens at the silo? Quality Testing Grading (label) Segregation of quality

20. The marketer of choice for Victorian Grain Producers Testing Stand where grain quality is tested Quality Segregations

21. The marketer of choice for Victorian Grain Producers TESTING SamplingProtein & Moisture testing

22. The marketer of choice for Victorian Grain Producers Testing ScreeningsSieves

23. The marketer of choice for Victorian Grain Producers Testing ImpuritiesAssessment

24. The marketer of choice for Victorian Grain Producers Testing Stand where grain quality is tested Quality Segregations Weigh Bridge Tip off point Receival Ticket

25. The marketer of choice for Victorian Grain Producers Receival Ticket Has all relevant receival information – Weight – Receival Specifications PRGR – SCRN – MOI – TWT – Varietal Classification Grade AH Variety – Binned Grade APW Assist grower track & market their grain

26. The marketer of choice for Victorian Grain Producers Receival Ticket Quality Information Weight Calculation Gross:Total Weight Tare: Empty Weight Nett:Delivered Weight Varietal/Binning Information

27. The marketer of choice for Victorian Grain Producers How does the Hopetoun grower sell their grain? Sells prior to harvest by contract to buyer – Price based on assumed future &/or estimated – Normally flexible on quality delivered – Delivers directly onto a unique contract number Sells at harvest – Cash price at the silo (displayed at testing stand) – Delivers, warehouses then contracts to buyer Sells after harvest – Delivers & warehouses the grain – Grower “speculates” the market & sells at their discretion

28. The marketer of choice for Victorian Grain Producers What happens after it is sold? Grain Merchant accumulates the grain – Quality purchased by buyer or “merchant” to suit the companies sales strategy &/or trading needs/demands Position Statement – Quality & volume that is being accumulated is recorded in “real time” so the Grain Trader can see what he/she owns Grain Trader “Trades” the grain – Trader monitors market/s & demand – If quality & volume is known the trader can meet the demands of the end user & sell them the specific quality for their needs

29. The marketer of choice for Victorian Grain Producers OUT TURN Export Trade – FOB – Logistics department organise grain movement – Bulk Vessel Grain out turned from silo by road &/or rail Delivered to port facility – Quality testing at delivery point

30. The marketer of choice for Victorian Grain Producers Out Turn Geelong Terminal Melbourne “ABA” Terminal

31. The marketer of choice for Victorian Grain Producers Out Turn

32. The marketer of choice for Victorian Grain Producers OUT TURN Export Trade – DCT – Logistics department organise grain movement – Container packing facility Grain out turned from silo by road Delivered to packing facility – Quality testing at delivery point

33. The marketer of choice for Victorian Grain Producers Out Turn

34. The marketer of choice for Victorian Grain Producers Supply Chain = Value Adding