Western Australia’s $3 billion grain industry might never be this strong again, according to alarming predictions about dwindling productivity.

Returning this week from Brazil, Council of Grain Grower Organisations (COGGO) Chairman and Bindi Bindi, Western Australia grower, Bruce Piper (photo), confirmed recent reports that South America’s developing agricultural sector was one of many that could overtake Australia.

Responding to a report by agricultural think-tank, Australian Farm Institute (AFI), suggesting agricultural R&D investment in China and Brazil was outstripping Australia, he predicted lean times for productivity unless growers took more initiative and privately funded R&D.

“AFI noted that agricultural corporations are investing most of their R&D money in big developing economies such as China and Brazil, rather than Australia,” Mr Piper said.

“With that avenue gone, we are relying too heavily on public research, but the report notes this investment has stayed steady for 15 years due to the changing face of R&D.

“The plateau in public investment is not just an Australian phenomenon, but a global trend caused, in part, by the complex issues surrounding intellectual property.

“For example, New Zealand research institutes have recognised diminishing public funds and are angling for more corporate funds through structural change,” Mr Piper said.

The AFI said more money was invested in agricultural R&D among the world’s developing nations than among developed economies.

According to Mr Piper, an outstanding history of agricultural R&D meant Australian productivity was in good shape for now, but the impact of investment downturn would be felt in 5 -10 years.

“With R&D outcomes generally following the initial investment by about eight years, damage is slow to manifest. Growers can’t afford to be complacent or wait for external solutions.”

“Public investment, via the Grains Research and Development Corporation, has underpinned a crucial three per cent per annum increase in grain productivity, but state and federal monies rightly target broader, rather than regional, research needs.

“Commercial companies won’t invest heavily in Australia until big soy and maize markets in developing economies are exhausted, meaning we can’t wait on a multinational sugar daddy.

“About half WA’s grain growers already contribute a voluntary levy to R&D through COGGO, but that means a couple of thousand aren’t pro-actively choosing to invest.

“COGGO is a company, which means besides our own input, we can also form commercial research partnerships with Government to leverage extra public monies,” Mr Piper said.

He added that public monies accessed though commercial partnerships could be developed into valuable intellectual property that would deliver a dividend to grower shareholders through royalties on new varieties.

More importantly, however, COGGO invested local money into local challenges to build new industries, fortify existing industries and resurrect old ones with unfulfilled potential.

COGGO commercialised an ascochyta blight resistant kabuli chickpea in 2005 that is expected to see the $700 per tonne Western Australia crop spread across 30,000 hectares.

Meanwhile, COGGO-affiliated companies have developed one of the WA south coast’s most prolific wheat varieties, GBA Sapphire, and during the past two years, released four new canola varieties, with more in the pipeline.

Growers wanting to know more about COGGO and its private investment program should contact COGGO CEO, Geoff Smith, Tel 08 9363 3400.