GRAINS Research and Development Corporation (GRDC) has announced plans to integrate the functions of Australian Export Grains Innovation Centre (AEGIC) into Grains Australia Limited.

The move marks the end of the line for AEGIC, which was officially established in 2012 by the Western Australian Government and GRDC to increase value in the Australian grains industry.

Alongside this announcement, GRDC has also committed $12 million annually over the next decade to streamline critical trade and market functions originally undertaken by AEGIC.

This is an increase of $4.2M on the current annual spend by GRDC on “industry good” functions.

Grower representative organisation Grain Producers Australia has welcomed the announcement which pledges long-term funding to promote Australia’s grain-trading system and market access.

Logical move

GRDC managing director Nigel Hart said the integration into one body under the Grains Australia banner was a logical, efficient move that would create a stronger national grains industry.

“It makes sense to bring these agencies together, effectively combining the work being done to explore and understand emerging and current market needs, with critical industry-good activities such as classification, market access and market information,” Mr Hart said.

GRDC managing director Nigel Hart.

“Ultimately this will streamline activities and ensure operations are aligned, delivering a set of industry-good services through all parts of the grain supply chain for the benefit of Australian grain growers and building our relationships with trade and market networks internationally.”

Grains Australia and AEGIC have been separate entities since establishment.

Grains Australia replaced GRDC as a member of AEGIC in 2023.

Backed by feedback, analyst

Mr Hart said the decision to integrate Grains Australia and AEGIC had been informed by independent analysis and feedback from growers and industry, which identified opportunities for increased efficiencies and ultimately more value for the grains industry.

“GRDC invests on behalf of Australian grain growers, and this integration will ensure growers are positioned to seize new and existing market opportunities and have increased market options which all helps manage price risk, especially in a time where we have a level of global uncertainty.

“Understanding what customers and markets want now and into the future enables us to focus research and development effort and inform decisions about plant breeding, classification and grain production, so Australian growers are supplying the grain that domestic and international markets want.”

Since its establishment in 2020 as an initiative of GRDC, Grains Australia has played a pivotal role building relationships and advancing agreements with strategic international organisations to maintain and improve markets for Australian grain growers.

Grains Australia chief executive officer Richard Simonaitis said the organisation was now well-established domestically and internationally as the key provider and co-ordinator of industry-good services on behalf of the Australian grains industry.

It also has a national network of staff and is governed by an independent, skills-based board.

“GRDC has shown great vision and leadership in the establishment of Grains Australia,” Mr Simonaitis said.

“This further enhances its commitment to the industry-good functions critical to the long-term profitability and competitiveness of the Australian grains industry.

“This is a significant investment commitment, the likes of which have never been seen before in these functions supporting our markets, customers and the long-term future of the industry.

“Ultimately this integration is about ensuring Australia is best placed to understand the needs of customers and markets, so through classification we can inform and enable breeding programs which in turn deliver varieties for our grain growers that will meet future requirements and ensure we can differentiate Australian grain from our competitors on the global stage.”

Transition planning underway

Mr Simonaitis said Grains Australia was currently progressing the transition plan for critical AEGIC functions valued and supported by stakeholders.

Current funding for AEGIC expires in June 2026 and the WA Government has indicated it will exit at that time.

“Grains Australia is working closely with AEGIC to manage an effective and considerate transition plan, most importantly, for the AEGIC team which has done a commendable job for growers.

“We want to reassure customers that support for markets will remain an important function and in fact be stronger and more targeted and aligned by this move.

“It is also critical to maintain the important functions that AEGIC deliver through this transition process, while also honouring AEGIC’s existing project commitments.”

GPA supports consolidation

GPA RD&E spokesperson and southern director Andrew Weidemann said GPA has strongly supported the strategy to consolidate industry-good functions to ultimately boost efficiencies and returns to growers, and the delivery of shared benefits across the Australian grains industry and economic productivity.

GPA RD&E Spokesperson and Southern Director, Andrew Weidemann AM

“These core benefits and outcomes are precisely why GPA has long backed the strategic discussions and decision-making which led to Grains Australia’s initial establishment, and ongoing implementation of more efficient and streamlined structures on market access and growth,” Mr Weidemann said.

“Removing duplication of these industry good functions will help strengthen the overall value and bottom line returns to growers. Such outcomes reflect GPA’s core strategic purpose and mission for growers.

“We acknowledge GRDC’s announcement today of this latest move forward, to streamline critical trade and market functions, through the integration of Grains Australia Limited and AEGIC into a single entity.

“This is a significant step forward in an ongoing journey of industry-good consolidation which GPA has been consistently engaged in advancing, recognising these shared strategic benefits and real returns to growers.”

GPA chair Barry Large said the integration of AEGIC under the Grains Australia banner was a positive outcome which delivered genuine benefits for boosting the national grains industry’s future productivity; especially given the size and significance of Australian grains exports, to the national economy.

“We welcome the opportunity to remain engaged with Grains Australia and GRDC to further strengthen these ‘industry good’ outcomes, and boost shared benefits to Australian growers and the economy,” Mr Large said.

“We also recognise the role AEGIC has played during its duration and recognise the supported provided, by the WA Government over time.”

‘Makes good sense’: GrainGrowers

GrainGrowers chair Rhys Turton said the industry-led model and integration of the two bodies would help drive effective collaboration and coordination and deliver industry outcomes.

Mr Turton said GrainGrowers would continue to work cooperatively to ensure the core functions undertaken by the updated structure deliver the best possible results in the most efficient manner possible.

“Bringing the bodies together simply makes good sense, and I am pleased that the GRDC has announced a $12M annual commitment over the next decade to help build the strong foundation that is required for the industry’s good structure to succeed.”

“I would also like to recognise and thank the board and staff of AEGIC for the immense amount of work they have delivered and will continue to do.

“Also, the WA Government should be recognised for their support of AEGIC over the years.”

Mr Turton said Grains Australia was already achieving results and it was exciting to consider what the future holds.

“In a world where more than ever we need to understand the needs of our customers and differentiate what Australian grain can offer, having an organisation that can work on behalf of growers and drive industry services is crucial to our long-term development and success.”

Source: GRDC, Grain Producers Australia, GrainGrowers