New research has revealed that two thirds of SA grain growers do not have a business plan and 50pc have not undertaken any grain marketing training, prompting a new educational campaign from the State Government.
South Australia’s primary producers will soon be able to improve their knowledge of grain marketing, risk management and business planning through an educational lift-out called ‘Looking Ahead – a toolkit to better manage your farm business’.
State Agriculture Minister, Rory McEwen, said the lift-out was developed in response to a survey of more than 300 grain growers from across the State, which revealed the startling statistics.
The survey conducted by the Lucas Group in April 2008 aimed to investigate South Australia's grain growers' capabilities to implement risk management strategies and successfully market and sell their grain.
“I understand drought conditions and the deregulation of the grain industry have put our farmers under enormous pressure, but understanding fully how to market your grain and manage your business risks should be a priority,” Mr McEwen said.
“While training might be seen by some as a waste of time or not a priority when money is tight, this study shows that if farmers have a better understanding of grain marketing and risk management, they have a greater chance of having a profitable future.
“This lift-out was a key recommendation from the survey, which will enable farmers to up-skill and better manage their business in a way that’s suitable for them.”
The survey, supported by PIRSA, the Department of Agriculture, Fisheries and Forestry and the South Australian Farmers' Federation also found:
* 83pc of survey respondents relied on themselves and their own knowledge when making decisions about marketing their grain;
* around 15pc of growers did not read and understand either their written or verbal contract; and
* on average, 15pc of growers could not meet the terms of their contract.
The Mallee region seemed to be the worst affected last year from a grain marketing perspective with nearly double the proportion of respondents indicating they could not meet the terms of their contract.
Growers who had attended training were more confident in using the non-physical methods of grain trading.
Around 50pc of growers indicated they would not be attending training in the near future due to lack of time, location and cost.
* A copy of the survey and the lift out is available from www.pir.sa.gov.au.