The Australian Bureau of Agricultural and Resource Economics (ABARE) suggests graingrowers in Queensland and northern New South Wales could put more emphasis on feed barley production, given the difficulty of achieving malting quality in the region.

So say ABARE economists Ahmed Hafi and Peter Connell in their recently released report Feed Grains: Supply and Demand in Australia, prepared for the Grains Research and Development  Corporation (GRDC).

Mr Hafi and Mr Connell  modelled regional feed grain demand and allocation across Australia for the five years 2003-04 to 2007-08, concluding that total use of all main feed ingredients across Australia would increase from 8.9 million tonnes in 2003-04 to 10.5 million tonnes in 2007-08.

Along the way they modelled the potential impact of an expansion of feed barley production in eastern Australia, which they found could reduce the need to ship grain to the east from Western and South Australia and help Australia¹s intensive livestock industries remain internationally competitive.

According to Mr Hafi, production of feed barley ­ in eastern Australia particularly ­ has not kept up with growth in demand.

"At present there is little difference in yields between malting and feed barley varieties," he said.

"Malting quality barley does command a price premium over feed quality> Growers are not assured of capturing this premium when they sow their crop but they are obviously prepared to take the risk.

"More attention has to be given to soil fertility and end of season finishing conditions can be critical if a malting quality barley crop is to be harvested.

"Protein levels in malting barley must not be too low or too high, screenings are unwelcome because consistent grain size is important in the malting process, and so is colour, because discoloured grain can be an indicator of fungal activity that may cause problems in the malting process.

"Also, given that varieties of barley intended for malting cannot be blended, the delivery and marketing of malting barley can be more difficult in terms of points of delivery if the minimum quality standards are not met.

"With the uncertainties involved in producing malting barley of desired quality, it may be worthwhile considering a shift in emphasis from malting to feed barley production, particularly if yields of feed barley varieties can be improved."

The ABARE economists said increased availability of feed barley in eastern Australia would also help alleviate some of the possible physiological problems associated with feeding wheat to cattle.

Copies of Feed Grains: Future Supply and Demand in Australia are available from the ABARE web site www.abareconomics.com or on 02 6272 2303