Future secured: State and GRDC unveil $24m to keep AEGIC operating and in Perth for the next four years

Australian Export Grains Innovation Centre’s future has been secured for another four years with the State Government and Australia’s biggest grains research organisation pouring in $12 million each to fund its operations until 2026. WA Agriculture Minister Alannah MacTiernan and Grains Research Development Corporation chairman John Woods were on hand to announce the $24m boon on Wednesday, which involves funding of $6m per year until 2026. The State Government has also allocated an additional $1m in 2022-23 to extend current research to position soft wheat to seize market opportunities, increase consumption of whole grain wheat and cultivate opportunities for locally grown oats. AEGIC — based in Kensington next to the Department of Primary Industries and Regional Development — was founded in 2012 as an independent, non-for-profit research organisation to gather, analyse, and share market information with the grains industry. That information is used to guide breeding, classification and the supply of grain to meet key domestic and export market expectations, while AEGIC also informs and educates domestic and export markets for new and best uses for Australian grain. Mr Woods said the ongoing relationship — which has historically been funded 50-50 between GRDC and the State Government — would allow AEGIC to continue its work with domestic and international markets to benefit Australian grain growers. “AEGIC with its main office in Perth and additional research facilities in Sydney is one of those key organisations that delivers for growers across the whole country,” Mr Woods said. “Grain markets are dynamic and evolving. “What AEGIC does is work to understand signals and drivers that are helping industry develop new markets, and differentiate Australian grain right now, as well as identify new global opportunities that will shape our future. “Growers are looking for more markets, transparency and information, particularly from independent sources, something AEGIC has and will continue to deliver with GRDC investment.” Mr Woods said some of AEGIC’s most impactful work in recent years included insights into the wheat quality preferences of Asian customers to guide industry decision-making, diversifying markets for Australian malting barley, including India and Latin America, and securing access to the $1 billion European canola market. While headquartered in Perth, AEGIC also has an office in Sydney with infrastructure across both including research laboratories, pilot mills, pilot bakeries and commercial analytical laboratories. Recently, AEGIC had been working with flour millers and processors in South East Asian markets such as Indonesia, Malaysia, Thailand, Vietnam and the Philippines to help them understand the benefits of using Australian wheat for noodles and baked products. During COVID, AEGIC maintained connections with international grain customers by leading a program of virtual crop inspections and conducting ongoing technical webinars. Ms MacTiernan said the investment was timely, given the “increasingly complex” market forces and dynamic operating environment in the global grains sector. “AEGIC is working for the Australian grains industry to forge pathways to new markets, and pursue new products and ways of using our grain,” she said. “The grains market has become increasingly volatile and complex, highlighting the important work AEGIC does to ensure Australian grain export relationships are secure and industry is well placed to adapt to the trading environment.” AEGIC chairman Ron Storey said the ongoing investment was “testament to the high level of support” AEGIC had across the Australian grains supply chain. “Stakeholders understand the value of AEGIC’s work and they want to see it continue. On behalf of AEGIC and the nation’s growers, I thank GRDC and the WA Government for their ongoing commitment to AEGIC,” he said. The organisation works closely with WA plant breeder InterGrain, which is also co-owned by the State Government and GRDC — to develop varieties suited to WA conditions to meet customer expectations. Some of AEGIC’s key achievements include oat product innovation — to move oats beyond the breakfast table — developing a potential new soft wheat industry, positioning whole grain wheat as a preferred choice in Asia, stimulating demand for feed grain and maintaining the premium Japanese udon noodle market.