Western Australian Malting Barley

Western Australian Malting Barley Variety Receival Recommendations for the 2015/16 Harvest Executive Summary The Western Australian malting barley supply chain is in transition from Baudin, Buloke, Gairdner and Vlamingh to a new suite of malting varieties. The exact composition of what will become the established malting varieties in Western Australia is not yet clear. As new malting varieties come on board there will be a period of uncertainty until there are clearer pricing, segregation and market signals. Accreditation as a malt variety does not guarantee segregation or market demand domestically or internationally. Unless a new malt variety out-performs established malting varieties in both agronomic and processing capacities the trade will be reluctant to be involved in or encourage its international promotion. There is a progression away from the established malting varieties to the food variety Hindmarsh and a rapid adoption of new malting varieties, namely Bass and Scope CL. The grower uptake of Bass and Scope CL is faster than their international market acceptance. The area sown to the other new malting varieties Commander and Granger is still small but growing. Whilst the barley industry is waiting for further market feedback, growers should be aware that malting premiums equivalent to the established malting varieties may not be offered for the newer entrants. Growers and industry alike are also looking over the fence at the next generation of varieties being evaluated by Barley Australia to see if they have an agronomic fit in Western Australia and a quality fit in the international market. These next generation varieties include Compass, Flinders, La Trobe and Skipper. Established malting varieties are likely to occupy less than 1 in every 4 barley hectares in 2014, a drop from 1 in every 2 hectares in 2013. A continuation of this trend in 2015 will have implications for growers in their access to segregations for those varieties at the 2015/16 harvest and for the trade in being able to accumulate marketable tonnages. As a consequence of the declining acreage there is likely to be strong competition for Baudin and Buloke in the coming season. The widespread adoption of Hindmarsh will also influence segregations available to the established malting varieties and the pricing of malting barley. Growers should be aware that receival segregations will not be offered in all port zones for all malting varieties, even if there is an agronomic fit for a malting variety in the area. Growers who have a preference for a particular malting variety that is not received in their area will need to look at transporting the grain to sites where that variety is accepted if they are aiming to receive a malting premium for that grain. In any port zone, however, if there is sufficient volume grown, segregation opportunities will be considered. The malting barley variety receival recommendations made in this document are intended to be a guide for growers to help them plan their cropping program in the 2015 cropping season. The international market place is ever evolving and the plan presented this spring will be reviewed again in autumn next year and any changes in demand presented to growers. A key demand, however, from our customers is stable supply. As we transition from established to new malt varieties supply will influence the ability of the trade to send marketable tonnages to our customers and offer growers a competitive price. During this transition phase growers should be patient as industry introduces the new malting varieties to the international market. If you do decide to adopt a new malting variety during this market development phase, your expectation should be to deliver the new malting variety as feed until there are clearer segregation, pricing and market demand signals. www.giwa.org.au

Table 1. Expected market usage at the 2015/16 harvest and comments about each malting barley variety when grown in WA. Variety (indicative market size) grain (>500,000 t) Exported as malt (300,000 t) shochu (160,000 t) Market comments Bass A 4 4 Baudin A 4 4 4 Buloke A 4 4 Commander A 4 4 Gairdner 4 4 Granger A 4 Scope CL A 4 4 Vlamingh A 4 4 Bass is still undergoing international market development for export as grain and as malt. Bass has now been fully approved by SABMiller (currently 2nd largest brewer in world). There is also positive feedback from some key grain customers in China. Overall market acceptance from malt customers is still low. Bass is not suitable for the manufacture of shochu in Japan. Target production zones in 2015 are Kwinana, Albany and Esperance Port Zones. Baudin is the market leader and is still regarded as the premium quality malting barley. Very strong international market demand for export as both grain and malt. Accepted for shochu production in Japan. Until there is a suitable replacement expect Baudin to be priced at a premium to other malting varieties. Target production zones in 2015 are Kwinana, Albany and Esperance Port Zones. Buloke is still an important variety as Scope CL is not yet approved by our international customers. Buloke has established demand from international grain and malt markets. Not suitable for shochu. Do not mix Buloke grain with Scope CL grain or vice versa at seeding or at harvest. Declining acreage may limit segregation opportunities in 2015. Target production zones in 2015 are Kwinana and Albany Port Zones. There is demand for Commander from the domestic market to export as malt as a replacement / substitute for Gairdner and Vlamingh. Segregation opportunities will increase as production increases. Market price similar to established malting varieties. Target production zone in 2015 is Kwinana Port Zone. There is still steady international market demand for Gairdner grain, although national volumes of Gairdner are declining. Gairdner is likely to be phased out in a year or two. Vigilance is required to ensure varietal purity remains at an internationally acceptable standard (ie. >95%). Target production zones in 2015 are Albany and Esperance Port Zones. Granger is in the very early stages of international market development. 2015 will be the first opportunity for international customers to assess the malting performance of this variety. Being assessed for export as grain. Not being assessed for export as malt or for shochu. Target production zones in 2015 are Albany and Esperance Port Zones. Scope CL is a new malting variety and while it has been accepted by most grain markets it has not yet been accepted by malt markets. Not suitable for shochu. The only imi-herbicide registered for use with Scope CL is Intervix. Do not use other imi-herbicides on Scope CL as residues detected in the grain may jeopardise future international market access. Do not mix Scope CL grain with Buloke grain or vice versa at seeding or at harvest. Target production zones in 2015 are Geraldton, Kwinana, Albany and Esperance Port Zones. Vlamingh is still being used by the domestic market for export as malt as volumes of alternative varieties like Commander are not yet adequate to meet demand. Limited demand for Vlamingh for export as grain. Target production zone in 2015 is Kwinana Port Zone.

Variety Specific Recommendations In addition to the established malting varieties Baudin, Buloke, Gairdner and Vlamingh, segregation opportunities at the 2015/16 harvest will be considered for the newest malting varieties Bass, Commander, Granger and Scope CL. Receival segregations will not be offered in all port zones for all malting varieties, unless there is sufficient supply to warrant segregation. Pricing will be in-line with market demand. Each malting barley variety grown in Western Australia has unique and different malting attributes. As a consequence brewers purchase varieties subject to their availability, their price, the style of beer they produce and the level of adjunct used in their brewing recipe. This document contains information outlining market usage and demand by industry sector (Tables 1 and 2) and market demand by port zone (Table 3) as well as comments on each of the malting varieties to be segregated. Traders and exporters of Western Australian barley and malt are keen to rationalise the number of varieties grown and segregated within Western Australia. This sentiment is strongly echoed by growers as well. There are strong benefits for growing and segregating fewer malting varieties, namely the ease of logistics and stronger demand from the trade who are currently unwilling to risk buying small, unsaleable parcels. We currently have eight malting varieties and one food variety being segregated in Western Australia. We could have up to four additional malting varieties being segregated in Western Australia by 2016. There is, therefore, still some re-focusing required to maximise the opportunities for growers and maximise the opportunities for the trade. Long term the industry is keen to rationalise the number of varieties segregated to two major malting varieties per port zone, with limited segregations on offer for some minor or niche malting varieties. Growers should use the following market signals to assist them when deciding on which malt / food variety or varieties to sow in 2015. Market demand, pricing signals and the location of segregations should be considered in partnership with the agronomic management required and the risk associated with delivering malt / food grade barley when determining how much area to plant to each malt / food variety. It is important that growers accurately tell CBH which malt or food variety/ies they are growing (and how much area) when returning their grower estimate forms, as they assist CBH with the planning of segregations. Growers should be aware that receival segregations will not be offered in all Port Zones for all malting varieties, even if there is an agronomic fit for a malting variety in the area. For some malting varieties only limited services will be offered in the CBH network. Growers who have a preference for a particular malting variety that is not received in their area will need to look at transporting the grain to sites where that variety is accepted if they are aiming to receive a premium for that grain. In any port zone, however, if there is sufficient volume grown, segregation opportunities will be considered. It is important to be aware that GIWA has no control or influence on the actual segregations available in any port zone. The following summarises the market comment for each of the eight malting varieties and one food variety that will be segregated in Western Australia at the 2015/16 harvest. Bass A Bass is an ACCEPTABLE variety for export as grain and BEING ASSESSED for export as malt. Bass is undergoing its third year of international market development in 2014. Grain has been sent to China and other countries for evaluation. Grain has also been converted into malt in Australia. The approval by SABMiller (second largest brewer in the world with about 10% market share) and some key brewing customers in China is positive news. Access of Bass, however, to some south east Asian beer markets may be limited as a consequence of its higher dimethyl sulphide (DMS) levels. To manage DMS levels Australian maltsters are indicating that the optimum malting schedule for Bass will differ from other established malting varieties currently in the market. Feedback, however, on the malt quality profile of Bass malt suggests that Bass could match Baudin as a premium quality variety for many (but may be not all) of the markets currently serviced by Baudin. Target production zones Kwinana, Albany and Esperance Port Zones. Baudin A Baudin is a PREFERRED variety for export as grain, as malt and as a shochu barley. Baudin is regarded as the premium malting variety for the Chinese, south-east Asian and Japanese brewing markets. It is the market leader for markets which have a high adjunct use in the brewing process. Both Malt 1 and Malt 2 grade Baudin are tradeable internationally. It is therefore the most sought after variety from customers purchasing Western Australian malting barley grain and malt. It is also a preferred variety in Japan for the manufacture of the distilled, white spirit shochu. Industry acknowledges that Baudin has a number of agronomic weaknesses, but as premium quality alternatives to Baudin are not yet established in the international market, Baudin still has a strong part to play in creating value for the barley industry in Western Australia. This means that Baudin may trade at a premium over other malting varieties in the market place. Target production zones Kwinana, Albany and Esperance Port Zones.

Buloke A Buloke is an ACCEPTABLE variety for export as grain and as malt. Buloke is still an important variety to the domestic malting industry and when exported as grain. Buloke compliments Baudin in international brewing markets, although Baudin has a better overall malt quality profile. Buloke is a malting variety suited to markets where high levels of starch adjuncts are used, with international markets now familiar with its malt quality profile. Buloke may be phased out as a segregated variety in favour of Scope CL over coming seasons as the popularity of Scope CL increases. The Western Australian barley industry will not fully transition from Buloke to Scope CL until it is approved by all international grain and malt customers. Growers need to ensure that Buloke grain does not contaminate Scope CL malt barley stacks and Scope CL barley does not contaminate Buloke malt barley stacks. Target production zones Kwinana and Albany Port Zones. Commander A Commander is an ACCEPTABLE variety for export as grain and as malt. Commander is slowly building its production base in Western Australia, particularly in the Kwinana Port Zone. Segregation opportunities will increase as production increases, although the current volume is not yet sufficient to support wide scale segregations. There is strong end user demand. Commander is being priced at a premium over feed and similar to established malting varieties. Commander is a market alternative to Gairdner and Vlamingh. As the production of Commander in Western Australia increases over coming seasons, grain exports to established markets in China and Japan will be considered. Commander is already recognised internationally when supplied from South Australia and Victoria. The export of Commander malt and grain from Western Australia will therefore complement the export of Commander malt and grain from eastern Australia. Target production zone Kwinana Port Zone. Gairdner Gairdner is an ACCEPTABLE variety for export as grain and as malt. International customers are familiar with the malt quality profile of Gairdner barley. Gairdner has a different malt quality profile to Baudin and is described as a medium fermentability malting variety. Gairdner has established international customers due to its consistent brewing performance with or without starch adjuncts. The popularity of Gairdner with growers is decreasing in both Western Australia and eastern Australia as varieties with improved agronomic performance become available. As the national supply of Gairdner decreases international markets will increasingly need to evaluate the newer medium fermentability malting varieties entering the market place. Vigilance is required to ensure varietal purity in Gairdner remains at an internationally acceptable standard (ie. >95%). Target production zones Albany and Esperance Port Zones. Granger A Granger is BEING ASSESSED as a variety for export as grain. Granger is a new malting variety to the market being targeted at the medium and high rainfall areas of Western Australia. There is an opportunity for Granger to undergo initial market development this year. International market feedback is unlikely before seeding, but some feedback is expected to be available in the middle of 2015. Even though Granger is being assessed for export as grain, there is no current demand for its export as malt from Western Australia. 2015, like 2014, should be seen as a seed bulk-up year. It is suggested that growers grow Granger with intentions to deliver it into feed barley segregations until there are clearer segregation, pricing and market demand signals. Target production zones Albany and Esperance Port Zones. Hindmarsh A Hindmarsh is not a malting variety but is segregated as a food grade variety (BFOD1). Since the last GIWA Malting Barley Variety Receival Recommendations in August 2013, the area sown to the food variety Hindmarsh has increased significantly from 15% in 2012 to 30% in 2013 and could grow to a predicted 40 50% of the barley area in 2014 and maintain that production in 2015. Hindmarsh has established itself as a marketable variety into the Chinese market as a mid-range malting barley. Hindmarsh can also be used in Japan to manufacture the distilled white spirit shochu. In recent years the Hindmarsh grain used in Japan has been sourced from eastern Australia. Western Australia is now a new source for Hindmarsh grain exports for the Japanese shochu market. Barley shochu is a distilled beverage (typically 25% alcohol by volume) produced from the fermentation of pearled barley grain and is not made from malted barley. The local maltsters in Perth would prefer that Hindmarsh did not replace plantings of Baudin, Buloke, Commander, Gairdner and Vlamingh in the Kwinana Port Zone and the northern parts of the Albany Port Zone. The local maltsters (who buy nearly one third of our malting barley crop annually) have no demand for Hindmarsh as it was not accredited as a malting variety by Barley Australia and is not accepted by their brewing customers. Hindmarsh underwent significant levels of commercial malting evaluation in Australia and during those tests its malt quality was regularly compromised by unacceptably high wort ß-glucan and wort viscosity levels. Those factors can result in difficulties in the separation of the wort from the mash during the brewing process and create problems with beer filtration. The price paid for segregated Hindmarsh will be subject to market demand, the feed barley price, the price of accredited malting varieties and the availability of accredited malting varieties. In years of tight supply, a premium over feed may be offered, but in years of abundant supply of good quality malting barley, there may be no difference in price between Hindmarsh and feed barley. Growers should expect that Hindmarsh will be priced relative to feed varieties and not relative to malting varieties. Segregation (BFOD1) opportunities likely in all four port zones.

Scope CL A Scope CL is an ACCEPTABLE variety for export as grain and BEING ASSESSED for export as malt. Scope CL is being viewed by growers as an agronomic replacement for Buloke but with the added advantage of in-crop brome and barley grass control. As a consequence there has been a rapid adoption of Scope CL and a subsequent dis-adoption of Buloke. Growers need to be aware that even though Scope CL is derived from Buloke, Scope CL is still in the early stages of its international market development. Current market demand does not match current supply. The Western Australian barley industry will not transition from Buloke to Scope CL until Scope CL is approved by our international customers. Growers should be aware of two key issues could affect the future acceptance of Scope CL in international markets. One is the off label use of imidazolinone herbicides and the second is varietal purity. In February 2014, Japan increased its surveillance protocols for all barley shipments from Australia for the next five years (source: GRDC GroundCover May-June 2014). This followed the detection in market surveillance samples of residues of imazapyr and imazapic above both the Japanese import tolerances and the Australian standards. Growers should follow the label when applying herbicides to Scope CL barley and should not apply any off label imidazolinone herbicides. The only imidazolinone herbicide registered for use with Scope CL barley is Intervix (imazapyr/imazamox). Barley Australia has advised that co-binning of malt grade Scope CL and Buloke is not allowed. This is to ensure the market can be confident in terms of end use reliability and performance. CBH have similarly advised that they will not be co-binning malt grade Scope CL and malt grade Buloke in Western Australia. It is important that growers do not ruin the integrity of Scope CL malt stacks by contaminating them with Buloke barley and vice-versa. Correct variety declaration is a legal requirement under the Plant Breeders Rights Act and mis-declaration is a breach of the Bulk Handlers Act. Genetic tests can distinguish between Scope CL and Buloke. To minimise the risk, CBH with the support of SeedNet (the licencing agent for both Buloke and Scope CL) are sampling deliveries of Buloke and Scope CL to ensure Scope CL is not contaminating Buloke malt stacks and vice-versa. Target production zones Geraldton, Kwinana, Albany and Esperance Port Zones. Vlamingh A Vlamingh is an ACCEPTABLE variety when exported as malt. Vlamingh is an established malting variety with a small demand from the domestic market to export as malt. There is limited demand for Vlamingh for export as grain. Once sufficient volumes of Commander or another equivalent grade malt barley become available there will unlikely be any domestic market demand for Vlamingh barley in Western Australia. Target production zone Kwinana Port Zone. Varieties undergoing malting and brewing accreditation The varieties currently undergoing the Barley Australia malting and brewing accreditation process can be found on the Barley Australia website: www.barleyaustralia.com.au. Of the varieties listed: Compass (tested as WI4593, breeder University of Adelaide), Flinders (tested as WABAR2537, breeder InterGrain), La Trobe (tested as IGB1101, breeder InterGrain), and Skipper (tested as WI4446, breeder University of Adelaide) are likely to be the most relevant to Western Australia. Of the two other varieties listed, Barley Australia is waiting for further advice about SY Rattler, whilst Litmus grain has been detected as having a blue aleurone. Flinders, La Trobe and Skipper have all completed Stage 1 and are undergoing Stage 2 in 2014 with a decision on their status due by April 2015. Compass is currently in Stage 1 testing in 2014 with malting accreditation scheduled for 2016. Compass will be available as a high yielding feed variety in 2015 with seed multiplication crops in Western Australia in 2014. Malt accreditation by Barley Australia of Flinders, La Trobe or Skipper in autumn 2015 is likely to result in accumulation opportunities for some growers for international market development from Western Australia in 2015. If Flinders and/or La Trobe are accredited there will be seed available for sale in Western Australia next year. There is currently no seed production of Skipper in Western Australia. If accreditation does occur, 2015 should primarily be seen as a seed bulk-up year. As with any newly accredited variety, growers should sow them with the intention of delivering them as feed barley until there are clearer segregation, pricing and market demand signals. For further information about those varieties talk to the relevant breeder to determine their agronomic characteristics, potential market fit and potential seed availability. Accreditation as a malt variety by Barley Australia does not guarantee segregation or customers domestically or internationally. Unless a new malt variety out-performs established malting varieties in both agronomic and processing capacities the trade will be reluctant to be involved in or encourage its international promotion.

Table 2. Market acceptance (preferred, acceptable, limited, being assessed or no demand) and trend (increasing, stable or decreasing) in market demand of accredited malting barley varieties grown in Western Australia. PREFERRED ACCEPTABLE Limited Being assessed No demand Variety is first choice for buyers for this market segment. Variety purchased as an alternative to a PREFERRED variety. Depending on supply it may be priced at a discount to a PREFERRED variety. Variety might be purchased if there is limited supply of PREFERRED and ACCEPTABLE varieties or if priced at a significant discount to PREFERRED and ACCEPTABLE varieties. Variety is undergoing international market development. This does not imply that there will be future market demand. No buyer for this variety for this market segment. Market type (market size) Export as grain (> 500,000 t) Export as malt (300,000 t) Shochu (160,000 t) Bass A ACCEPTABLE Being assessed No demand (increasing) Baudin A PREFERRED PREFERRED PREFERRED (stable) (stable) (stable) Buloke A ACCEPTABLE ACCEPTABLE No demand (stable) (stable) Commander A ACCEPTABLE ACCEPTABLE No demand (increasing) (increasing) Gairdner ACCEPTABLE ACCEPTABLE No demand (decreasing) (decreasing) Granger A Being assessed No demand No demand Scope CL A ACCEPTABLE Being assessed No demand (increasing) Vlamingh A Limited ACCEPTABLE No demand (decreasing) (decreasing) Note: Market size Volumes in brackets are indicative market size only and vary considerably from year to year. They are intended to show differences in market demand and how this may influence demand for different varieties and demand by port zone.

Port Zone Recommendations Table 3. Western Australian malting barley industry variety receival by Port Zone recommendations (YES, limited or NO) for 2015/16 harvest. YES Yes (new) Limited NO Target production zone with strong market demand for this variety. Target production zone but not all international markets have fully approved this variety. Limited segregations likely due to limited market demand, low production volume and/or this is a new variety being evaluated for market acceptance. Trade not looking to accumulate this variety in this port zone. Port Zone (~% of total barley area) Geraldton ~5% Kwinana ~40% Western Eastern Northern Southern Albany ~30% Esperance ~25% Bass A NO Yes (new) NO Yes (new) Yes (new) Yes (new) Baudin A NO YES NO YES YES YES Buloke A NO YES YES YES YES NO Commander A NO Limited NO NO NO NO Gairdner NO NO NO YES YES YES Granger A NO NO NO Limited Limited Limited Scope CL A Yes (new) Yes (new) Yes (new) Yes (new) Yes (new) Limited Vlamingh A NO Limited NO NO NO NO Growers should be aware that segregations are ultimately determined by the volume of a variety or grade grown in a particular area. GIWA has no control or influence on the actual segregations available in any port zone. The recommendations and advice provided in this document represent market signals. Geraldton Port Zone Grain delivered in the Geraldton Port Zone is exported as grain. Four varieties accounted for 4 out of every 5 ha sown to barley in the Geraldton Port Zone in 2013. The most popular varieties in decreasing order were Hindmarsh, Buloke, Scope CL and Yagan. Hindmarsh, Buloke, Scope CL and Yagan will still be the most popular barley varieties in 2014, but Scope CL is predicted to be twice as popular as Buloke. The variety popularity trend from 2013 to 2014 suggests that Hindmarsh and Scope CL will be the most widely sown varieties in this port zone in 2015. The low tonnage of malting barley traditionally grown in this zone makes it difficult for industry to provide storage and handling facilities for more than one malting variety. Until the area sown to barley (and those with a malting accreditation) increases, growers are encouraged to grow only one malting variety in this port zone to increase the chances of a segregation. At the moment the leading malting variety is Scope CL. In order to be able to attract a malt premium for other malting varieties (ie. Baudin and Buloke), growers are encouraged to enter into a contract to grow a malting variety for a particular grain acquirer and store it on-farm; or transport the grain south to receival sites in the Kwinana Zone that will be accepting that variety. Production in excess of 15,000 t is usually required to support the segregation of a variety. The increasing popularity of Hindmarsh is eroding segregation opportunities for malting varieties, but it is an ideal replacement for the most popular feed barley varieties in this port zone, Yagan and Fleet. A potential wildcard for the Geraldton Port Zone is the acid tolerant barley variety Litmus (tested as WABAR2625, breeder InterGrain). If InterGrain is able to develop an export market opportunity for this blue aleurone barley, its production in the Geraldton Port Zone could increase and compete with the area sown to malting varieties, Hindmarsh and current feed varieties.

Kwinana Port Zone The bulk of the grain delivered in the Kwinana Port Zone is either converted into malt in Perth and exported as malt or exported as grain for shochu production in Japan. Only a small proportion of the grain received is exported as grain to China and south-east Asia. As a consequence, end-users (maltsters and grain acquirers) encourage growers to sow only those varieties used by the trade. Preferred varieties from the domestic malting market include Baudin, Buloke, Commander and Vlamingh. Buloke was the most popular variety in this port zone in 2013 (and in 2012). In 2013 it s area was just above the area sown to Hindmarsh. The area sown to Buloke was equivalent to the combined area sown to Scope CL, Baudin and Vlamingh (in order of popularity). 2014 will see Hindmarsh become the most popular variety in this port zone followed by Scope CL. Those two varieties are predicted to occupy 3 in every 5 barley hectares. The area sown to Bass, Baudin and Buloke should be similar to each other in 2014, whilst there will be a much smaller area sown to Commander and Granger. If the change in variety popularity from 2013 to 2014 is mirrored in the 2015 plantings, then the established malting varieties, particularly those in demand from the domestic malting industry, will be hard to source at the 2015/16 harvest. Higher Rainfall Areas (> 350 mm annual rainfall) Due to the close proximity to the malting barley market in Perth, the higher rainfall areas of the Kwinana Port Zone have the greatest number of malting barley variety choices available to growers. This also poses issues for CBH in matching receival points to variety production. In 2015, production of Baudin, Buloke, Commander and Vlamingh is encouraged. Production of Bass and Scope CL is likely to be larger than their market demand, especially as those two varieties currently have a lower priority for the domestic market (for export as malt). There is currently no domestic or international demand for Granger. Granger growers should budget on delivering Granger as a feed barley in this port zone until there are clearer segregation, pricing and market demand signals. Lower Rainfall Areas (< 350 mm annual rainfall) The swing to Hindmarsh and Scope CL is expected to be larger in the lower rainfall areas than in the higher rainfall areas, as the probability of delivering malt grade barley is lower in the lower rainfall areas. In lower rainfall areas the yield advantage of Hindmarsh and the weed management advantage of Scope CL are the primary drivers for their adoption. It is important for growers to note that Hindmarsh is not used by the domestic malt market and that Scope CL is not yet established in international grain and malt markets. Opportunities however may exist for Hindmarsh in Japan in the manufacture of the distilled white spirit shochu. In 2015, the production of Baudin is encouraged if there is an early season break (ie. late April and early May). Production of Baudin is a better market option than the production of Buloke as the eastern wheatbelt is prime shochu country (low risk of moisture at harvest) and Baudin is a preferred variety for the shochu market as well as being a preferred variety for the export grain and malt markets. Albany Port Zone Grain delivered in the Albany Port Zone is primarily exported as grain. Some grain is also sent to Perth and converted into malt, before being exported as malt. Hindmarsh was the most popular variety in this port zone in 2013, followed by Buloke (which was the most popular in 2012). The combined area of Buloke and Hindmarsh was similar to the combined area of Bass, Baudin, Gairdner and Vlamingh. In 2013, Bass, Baudin, Gairdner and Vlamingh were all sown on a similar area to each other in this port zone. In 2014 the area sown to Hindmarsh is expected to be similar to the combined area sown to Bass, Baudin and Scope CL. The variety popularity trend from 2013 to 2014 in this port zone suggests that in 2015 Hindmarsh will still be the most widely sown variety and could occupy around 2 of every 5 barley hectares. As with other port zones, any Hindmarsh BFOD1 segregation opportunities will be subject to the availability of accredited malting varieties, the differential between the malt and feed barley price and international demand for lower quality barley. In 2015, the new malting varieties Bass and Granger are likely to be more popular with growers than the established malting varieties Baudin, Gairdner and Vlamingh. Bass is not yet fully approved by our international customers. With international market development of Granger just beginning, growers should not expect a common storage service in this port zone. Production of Granger is encouraged where powdery mildew and barley leaf rust are a regular problem. Non-Coastal Northern Area Grain produced in the non-coastal part of the Albany Port Zone is primarily exported as grain to international customers. In years where there is a shortage of quality malting barley in the Kwinana Port Zone, some of the grain received in the northern part of the port is delivered to Perth for malting. This is then exported as malt. Production of Baudin, Buloke and Gairdner is encouraged. Production of Bass, Commander, Granger, Scope CL and Vlamingh should be considered where appropriate and after consulting with your preferred acquirer to confirm market demand and segregation opportunities. Coastal Southern Area Grain produced in the coastal part of the Albany Port Zone is exported as grain to international customers and not used domestically. Production risk from powdery mildew and barley leaf rust is high in this area and varieties with improved genetic resistance to those diseases are being considered by growers. From a market point of view, the greatest demand will be for Baudin, Buloke and Gairdner, with increasing segregation opportunities for Bass and Granger. Production of Commander and Vlamingh is discouraged in this part of the port zone.

Esperance Port Zone Grain delivered in the Esperance Port Zone is exported as grain. Growers are rapidly dropping varieties with poor disease resistance (with a focus on powdery mildew and barley leaf rust) and low yield potential. In 2012, Baudin was the most popular variety, but it has been quickly displaced by Hindmarsh. In 2013 Hindmarsh dominated production, being 3 times more popular than Gairdner, 3 times more popular than Bass and 5 times more popular than Baudin. Hindmarsh is expected to be sown on nearly 1 in every 2 barley hectares in 2014, with Bass the next most popular variety. The variety trend from 2013 to 2014 in this port zone suggests that in 2015 Hindmarsh will still be the most popular variety in this port zone followed by Bass. For the trade the volume of malt grade Baudin and malt grade Gairdner could be tight. Production in excess of 15,000 t is generally required to support the segregation of a variety. As Clearfield technology has had a lower uptake in the Esperance Port Zone, the large swing to Scope CL observed in the other three Port Zones is not as evident here. Grower estimates from 2013 indicated that Buloke was twice as popular as Scope CL. It is likely that Buloke and Scope CL will be closer in acreage in both 2014 and 2015. Clearly there is not room for both varieties in the receival system in this port zone. Production in excess of 15,000 t is generally required to support the segregation of a variety. The uptake of Granger has been slow to date, but is growing as growers look for high yielding, disease resistant varieties. With Granger only being introduced to the international market for the first time in 2015, growers will need to consult with their preferred acquirer and the seed licensee (Heritage Seeds) to confirm market demand and segregation opportunities at the 2015/16 harvest. Production of Commander and Vlamingh is discouraged in this port zone for 2015. Grain Industry Association of Western Australia (GIWA) Grain Industry Association of Western Australia (GIWA) PO Box 1081 BENTLEY DC WA 6983 Phone: 08 6262 2128 Email: info@giwa.org.au Web: www.giwa.org.au