CBH AUSTRALIAN CROP UPDATE MARCH 2017 Wallace Chang Regional Manager North Asia
CBH Group - Vertically Integrated Supply Chain Our Customers Flour millers, maltsters, feed manufacturers, food processors Our Growers 4,200 members 10 million tonne production Largest co-operative in Australia Processing 7 flour mills in Vietnam, Indonesia, Malaysia & Turkey 76% of wheat sourced from Australia 1.5 MMT of flour produced annually Storage & Handling 195 site 4 Panamax ports 20MMT storage capacity 22 locomotives and 574 wagons Shipping Load 10 million tonnes per year Stevedoring Charter >5 million tonnes Marketing & Trading Largest exporter in Australia WA and EA accumulations International offices in Hong Kong, Japan and Russia Exports to more than 30 countries
CBH GROUP: STRATEGIC LOCATION CBH GROUP STRATEGIC LOCATION Natural Freight Advantage, Fully Integrated Supply Chain, Dedicated Shipping Department, One Execution Team with Global View
INTERFLOUR-Milling An integrated grain supply chain to Asia
Blue Lake Milling Blue Lake Milling is a leading manufacturer of premium Australian oat and grain products. Specialized in rolled, quick, instant oats and oat flour. Packages and distributes an extensive range of niche cereal flakes, bran, flours and premixes. Customers include major retailers and top quality private labels. Provides capability to build CBH regional oats strategy Alternative income stream = generate rebates for growers
CBH Group: Global View CBH GROUP YOUR SUPPLY PARTNER 83 years handling and export experience Global and superior services Ø Marketing & Accumulation Ø Shipping Ø Technical Support Ø Contract Execution
CBH AN INTEGRATED SUPPLY CHAIN
Australian Crop Production FABA BEANS 1% FIELD PEAS 0% LENTILS 1% LUPINS 2% OATS 3% CHICKPEAS 3% CANOLA 7% CORN 10% RICE 6% SOYBEANS 1% SUNFLOWER 1% WINTER CROP 40MMT COTTON LINT 14% SUMMER CROP 4.1MMT GRAIN SORGHUM 49% BARLEY 22% WHEAT 61% COTTON SEED 19%
Australian Wheat Export by Country
Australian Wheat Export Volume and Market Share 15/16
WA Wheat export Volume and Market Share 15/16
2015/16 Australian Barley Exports & Market Share National Barley Market Share Bulk Export 2015/16 WA Barley Market Share Bulk Export 2015/16 CBH 38.07% CBH 58.13% Source: ACF
Season Update
15/16 seasonal conditions 2015 2016 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Maintenance Plant Growth Harvest MAINTENANCE: Favourable PLANTING: Favourable GROWTH: Favourable HARVEST: Favourable
Australian Wheat Production by State
Australian wheat production 30 16/17 PRODUCTION 30.7 MMT 25 20 Wheat Production (MT Millions) 15 10 5-01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 West Australia New South Wales South Australia Victoria Queensland
Australian wheat grade profile 12 16/17 PRODUCTION ASW 41% Wheat Production (MT Millions) 10 8 6 4 2 0 APH AH AUH APW ASW GP/FEED Durum ANW Other 15/16 16/17 5 YR Average
Western Australia
Western Australian hard white wheat (AH)
WA AH2 : physical tests 15/16 Season 16/17 Season Av Geraldton Kwinana Albany Esperance Protein (%-11% MB) 11.6 11.6 11.5 11.5 11.5 Moisture (%) 10.7 9.3 9.2 10.6 10.8 Test Weight (KG/HL) 79.0 81.4 81.3 80.4 81.7 Screenings (%- 2mm) 3.5 1.9 1.6 1.8 1.0 1000 Kernel Weight (g) 35.3 39.1 43.6 41.2 44.1 Wet Gluten (%) 27.7 30.6 29.4 30.0 27.2 Falling number (s) 399 452 411 438 408 Hardness ( SKCS) 71 75 75 74 77
WA AH2 : test mill 15/16 Season 16/17 Season Av Geraldton Kwinana Albany Esperance Flour Extra.( % SG) 75.3 76.9 75.5 74.7 74.2 Flour Moisture (%) 14.0 13.8 13.7 13.8 13.1 Flour Ash ( % 14% MB) 0.47 0.52 0.46 0.37 0.52 Flour Gluten Index (%) 95.3 80 86 90 89 Minolta Flour L* 92.9 92.7 92.6 92.7 92.8 Minolta Flour b* 10.1 10.5 10.6 10.5 9.6
WA AH2 : farinograph 15/16 Season 16/17 Season Av Geraldton Kwinana Albany Esperance Water Absorption( %) 61.1 65.2 65.8 64.3 66.3 Development time (min) 6.6 4.2 5.9 5.5 5.2 Stability Time ( min) 14.1 9.3 12.7 8.1 6.3 Geraldton Kwinana Albany Esperance
WA AH2 : extensograph 15/16 Season 16/17 Season Av Geraldton Kwinana Albany Esperance Extensibility (cm) 45min 22 20.1 21.5 17.9 20.9 RMax Height (BU) 45 min 372 245 315 360 270 Area (cm2) 45 min 102 72 93 91 82 Extensibility (cm) 135 min 20.1 20.0 18.8 17.7 20.1 RMax Height (BU) 135 min 433 282 360 417 296 Area (cm2) 135 min 123 82 98 102 84 Geraldton Kwinana Albany Esperance
WA AH2 : yellow alkaline noodle 15/16 Season 16/17 Season Av Geraldton Kwinana Albany Esperance L* (T = 0 min) 82.6 82.7 82.7 82.8 82.5 b *( T=0 min) 23.3 28.3 28.3 27.1 25.2 Brightness Stability 11.9 12.0 11.9 11.8 12.0 L* (T = 24 hr) 70.6 70.7 70.7 71.0 70.5 b* (T = 24 hr) 26.5 31.5 31.5 30.0 29.3
WA AH2 : baking tests 15/16 Season 16/17 Season Straight Dough Baking Av Geraldton Kwinana Albany Esperance Loaf Vol 430g loaf (cc) 756 780 770 760 750 Loaf Score 67 73 73 73 74 Sponge & Dough Loaf Vol 430g loaf (cc) 1160 1230 1205 1205 1255 Loaf Score 61 68 69 70 71
Western Australian premium white wheat (APW)
WA APW1 : physical tests 15/16 Season 16/17 Season Av Geraldton Kwinana Albany Esperance Protein (%-11% MB) 10.7 10.6 10.5 10.5 10.6 Moisture (%) 10.7 9.6 9.1 10.6 11.0 Test Weight (KG/HL) 79.2 81.8 81.3 80.9 81.8 Screenings (%- 2mm) 3.3 1.7 1.7 2.0 1.2 1000 Kernel Weight (g) 36.7 40.3 41.4 40.7 44.5 Wet Gluten (%) 24.5 25.2 26.7 25.6 24.0 Falling number (s) 389 422 392 414 429 Hardness ( SKCS) 71 75 74 75 76
WA APW1 : test mill 15/16 Season 16/17 Season Av Geraldton Kwinana Albany Esperance Flour Extra.( % SG) 75.6 76.5 74.6 76.0 74.5 Flour Moisture (%) 13.9 13.2 13.7 13.5 13.6 Flour Ash ( % 14% MB) 0.49 0.48 0.43 0.53 0.49 Flour Gluten Index (%) 95.5 89 92 93 91 Minolta Flour L* 93 92.8 92.9 92.8 93.2 Minolta Flour b* 10.2 10.6 10.5 10.7 9.6
WA APW1 : farinograph 15/16 Season 16/17 Season Av Geraldton Kwinana Albany Esperance Water Absorption( %) 61.4 64.6 65.6 63.9 66.2 Development time (min) 5.4 3.9 5.2 4.2 3.3 Stability Time ( min) 11.1 7.5 13.8 5.1 6.4 Geraldton Kwinana Albany Esperance
WA APW1 : extensograph 15/16 Season 16/17 Average Av Geraldton Kwinana Albany Esperance Extensibility (cm) 45min 18.4 18.4 18.6 16.6 18.1 RMax Height (BU) 45 min 315 205 300 320 290 Area (cm2) 45 min 83 56 80 78 77 Extensibility (cm) 135 min 16.6 18.6 17.4 16.4 16.1 RMax Height (BU) 135 min 400 240 385 385 385 Area (cm2) 135 min 98 65 91 89 89 Geraldton Kwinana Albany Esperance
WA APW1 : yellow alkaline noodle 15/16 Season 16/17 Season Av Geraldton Kwinana Albany Esperance L* (T = 0 min) 83.4 83.7 85.6 83.8 84.8 b *( T=0 min) 22.8 27.0 25.6 27.1 25.7 Brightness Stability 11.6 11.3 9.5 11.6 9.5 L* (T = 24 hr) 71.8 72.4 76.1 72.2 75.3 b* (T = 24 hr) 26 30.8 30.0 30.5 29.3
Western Australian standard white wheat (ASW)
WA ASW1 : physical tests 15/16 Season 16/17 Season Av Geraldton Kwinana Albany Esperance Protein (%-11% MB) 9.2 8.9 8.8 8.8 8.9 Moisture (%) 10.7 9.6 9.0 10.8 11.1 Test Weight (KG/HL) 79.4 82.1 82.0 81.6 82.2 Screenings (%- 2mm) 3.1 1.4 1.6 1.9 1.5 1000 Kernel Weight (g) 38.1 42.4 42.3 41.8 43.1 Wet Gluten (%) 19.2 19 19.6 17.5 17.9 Falling number (s) 370 412 409 402 384 Hardness ( SKCS) 68 74 74 74 76
WA ASW1 : test mill 15/16 Season 16/17 Season Av Geraldton Kwinana Albany Esperance Flour Extra.( % SG) 74.5 74.8 75.2 74.3 74.2 Flour Moisture (%) 13.8 13.7 14.1 13.7 13.6 Flour Ash ( % 14% MB) 0.51 0.53 0.45 0.51 0.43 Flour Gluten Index (%) 97 93 96 83 88 Minolta Flour L* 93.2 93.3 93.5 92.8 93.3 Minolta Flour b* 9.9 10.2 10.6 10.9 9.9
WA ASW1 : farinograph 15/16 Season 16/17 Season Av Geraldton Kwinana Albany Esperance Water Absorption( %) 59.5 64.1 60.1 62 65 Development time (min) 1.8 1.4 1.8 1.7 1.7 Stability Time ( min) 8.0 1.4 6.0 5.3 2.9 Geraldton Kwinana Albany Esperance
WA ASW1 : dough rheology Extensograph WA 15/16 Geraldton Kwinana Albany Esperance Extensibility (cm) 45min 13.9 14.9 14.6 14.4 14.6 RMax Height (BU) 45 min 304 220 255 295 240 Area (cm2) 45 min 64 49 62 62 52 Extensibility (cm) 135 min 12.5 14.5 14.3 14.2 13.9 RMax Height (BU) 135 min 418 245 310 345 315 Area (cm2) 135 min 78 52 75 68 63 Geraldton Kwinana Albany Esperance
WA ASW1 : yellow alkaline noodle 15/16 Season 16/17 Season Av Geraldton Kwinana Albany Esperance L* (T = 0 min) 85 84 85.2 85 84.3 b *( T=0 min) 23.3 26.3 25.8 26.3 27 Brightness Stability 9.0 9.4 9.8 9.5 9.3 L* (T = 24 hr) 74 74.6 75.1 74.7 74.5 b* (T = 24 hr) 25 28.9 27.7 27.9 28
WA ASW1 : baking test 15/16 Season 16/17 Season Straight Dough Baking Av Geraldton Kwinana Albany Esperance Loaf Vol 430g loaf (cc) 635 635 655 615 640 Loaf Score 51 59 63 63 59 Sponge & Dough Loaf Vol 430g loaf (cc) 1010 1081 1120 1005 1100 Loaf Score 51 59 64 60 61
Western Australian Noodle wheat (ANW)
WA ANW Quality Assessment : Physical Tests WA 15/16 Geraldton Kwinana Albany Protein (%-11% MB) 10.4 9.6 9.7 10.0 Moisture (%) 9.9 9.9 9.2 11.3 Test Weight (KG/HL) 79.4 81.7 81.6 80.4 Screenings (%) 3.4 1.5 1.5 1.9 1000 Kernel Weight (g) 38 43 41 40 Wet Gluten (%) 24.2 23.8 24.7 24 Falling number (s) 339 350 364 340 Hardness ( SKCS) 42 42 44 43 RVA (cp) 2245 1989 2000 2025
WA ANW Quality Assessment: Test Mill WA 15/16 Geraldton Kwinana Albany Flour Extra.( %) 60 60 60 60 Flour Moisture (%) 14 13.8 13.9 13.7 Flour Ash ( % 14% MB) 0.37 0.35 0.38 0.41 Flour Wet Gluten ( %) 21 22.0 22.4 23.3 Flour Gluten Index (%) 82 85 80 83 Minolta Flour L* 94.1 94.2 94.1 94 Minolta Flour b* 8.0 8.1 8.3 8.7
WA ANW Quality Assessment: Dough Rheology Farinograph WA 15/16 Geraldton Kwinana Albany Water Absorption( %) 53.1 55 56 56 Development time (min) 3.9 2.2 1.5 2.5 Stability Time ( min) 14.9 5.1 4.9 5.3
WA ANW Quality Assessment: Dough Rheology Extensograph WA 15/16 Geraldton Kwinana Albany Extensibility (cm) 45min 16.6 15 16 14.6 RMax Height (BU) 45 min 397 350 355 355 Area (cm2) 45 min 88 80 81 73 Amylograph WA 15/16 Geraldton Kwinana Albany Peak ( BU) 594 570 640 630
WA ANW Quality Assessment: Udon Noodle WA 15/16 Geraldton Kwinana Albany L* (T= 0 min) 86.2 87.2 87.0 87.0 b* (T= 0 min) 20.1 23.0 24.2 24.4 Brightness Stability 6.8 7.4 8.4 8.4 L* ( T= 24 hr) 79.5 79.8 78.6 78.6 b* ( T= 24 hr) 23.2 26.0 27.6 27.3 Cooked Noodle L* 78.5 80.6 79.3 78.6 Cooked Noodle b* 20.3 25.9 26.0 26.5 Yield (%) 143 146 146 134 Firmness (N) 1.8 1.8 1.8 1.7
Western Australia In6 1. Low protein 2. Low screenings 3. High extraction 4. Higher Gluten Vs 16 5. Higher WA % 6. Lower stability
Australian Barely
Australian Barley Exports by grade
Australian Barley Exports Percentage Shipped to China
China Barley Imports 2016
Western Australian Barley production 4,500 4,000 000 Metric Tonnes 3,500 3,000 2,500 2,000 1,500 1,000 500-15 Year West Australian barley production average = 2.43mmt 10 Year West Australian barley production average = 2.48mmt 5 Year West Australian barley production average = 2.88mmt Source: CBH
Australian Barley Production 12,000 000 Metric Tonnes 10,000 8,000 6,000 4,000 2,000 WA SA Vic NSW Qld - 15 Year Australian barley production average = 7.68mmt 10 Year Australian barley production average = 7.59mmt 5 Year Australian barley production average = 8.26mmt Source: CBH
WA Barley Production by Variety (%)
Comments on variety trend in Australia SA & EA Major varieties: Commander, Scope, Hindmarsh, LaTrobe. Compass to grow in popularity in SA (earliest possible accreditation for Compass is 2018). Also expecting LaTrobe to increase in popularity. WA Major varieties: Scope, LaTrobe, Hindmarsh. Expecting LaTrobe, Flinders & Spartacus to increase in popularity. With Spartacus in the pipeline WA/CBH is well placed to provide Hindmarsh and LaTrobe type of varieties that are already tested in the barley tea market.
Grain quality indication, Western Australia Variety Test weight Kg/hl Protein % Moisture % Brightness Retention >2.5mm Kwinana Bass 68.9 9.8 10.8 9.8 61.5 90.6 Baudin 67.4 10.2 10.6 9.7 60.5 85.4 Flinders 68.9 10.3 10.6 9.7 62.2 87.4 LaTrobe 68.9 9.6 10.6 9.8 61.0 85.6 Scope 68.1 9.5 10.5 9.6 61.4 84.0 Hindmarsh 68.6 9.8 10.6 9.7 61.4 85.0 Feed / FAQ 65.8 9.5 10.0 9.7 60.9 77.4 Geraldton LaTrobe 69.3 9.8 10.5 10.4 59.4 87.5 Scope 68.1 9.5-10.0 10.4 59.6 87.0 Hindmarsh 70.0 9.5 10.0 10.7 60.1 87.5 Feed / FAQ 66.4 9.5 9.8 10.4 59.6 83.3
Grain quality indication, Western Australia Variety Test weight Kg/hl Protein % Moisture % Brightness Retention >2.5mm Albany Bass 68.4 10.0 11.0 11.0 60.8 88.5 Flinders 68.9 10.0 10.5 9.7 62.2 87.4 LaTrobe 68.9 9.8 10.8 9.8 61.0 85.6 Scope 68.1 9.6 10.6 9.6 61.4 84.0 Hindmarsh 68.6 10.0 10.6 9.7 61.4 85.0 Feed / FAQ 65.8 9.2 10.0 9.7 60.9 77.4 Esperance Bass 69.4 10.0 10.5 11.2 59.0 92.5 Gairdner 68.0 10.0 10.5 10.9 61.3 89.6 LaTrobe 69.0 9.5 10.4 11.1 60.8 87.7 Scope 69.4 10.0 10.5 11.2 61.5 86.7 Hindmarsh 68.7 10.0 10.6 10.9 62.6 86.7 Feed / FAQ 67.4 9.0 10.0 11.4 59.0 84.4
A record barley harvest Scope
Western Australia Barley In6 1. Good protein 2. Good color 3. High 1000 Kernel Weight 4. High Retention stability 5. Low screenings 6. Low Moisture