Dr_Neoh_Soon_Bin,_Seberang_Flour_Mills

Comparative and Competitive Position of Australian Wheat in Typical Asian Flour Products Presented by Dr Soon-Bin Neoh Managing Director, Seberang Flour Mill, Malaysia Agriculture Australia 2004 10th-11th August 2004 Malaysia & South East Asia PENANG Seberang Seberang Flour Flour Mill Mill One of the many BEAUTIFUL BEACHES in PENANG PENANG BRIDGE The Third Longest Bridge in the World KOMTAR Kompleks Tun Abdul Razak in Penang South East Asian Countries Key Economic Data (Year 2000) POPULATION REAL GDP GROWTH GDP PER CAPITA Million % USD Malaysia 23 8.3 3,852 Indonesia 220 4.8 723 Thailand 70 4.4 1,986 Philippines 80 4.0 990 Singapore 9.0 25,864 Seberang Seberang Flour Flour Mill Mill South East Asian Countries Wheat Consumption (Year 2003/2004) POPULATION Million WHEAT IMPORT MT PER CAPITA WHEAT CONSUMPTION KG Malaysia 25 1,300,000 52.0 Indonesia 222 4,225,000 19.0 Thailand 70 1,035,000 14.8 Philippines 83 3,035,000 36.6 Vietnam 81 805,000 9.9 130,000 32.5 10,530,000 21.7 Singapore ** Canadian Canadian Wheat Wheat Board Board 485 Total Wheat Import into Malaysia (MT) 1,200,000 1,300,000 1,100,000 1,121,157 1,104,059 1,000,000 1,054,471 1,175,000 900,0001,013,366 1,011,561 957,567 975,735 800,000 971,395 943,224 700,000 600,000 500,000 400,000 300,000 200,000 100,000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Seberang Seberang Flour Flour Mill Mill Breakdown of wheat import into Malaysia by country (MT) 850,000 Australia Canada USA Others 750,000 650,000 550,000 450,000 350,000 250,000 150,000 50,000 -50,000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Breakdown of wheat import into Indonesia by country (MT) 2,500 Australia Canada USA India 2,000 1,500 1,000 500 2000/2001 2001/2002 2002/2003 2003/2004 Others Steamed bread (i) Medium protein wheat ASW APW CPSW Iindian wheat 87.56 -1.21 15.12 84.07 -2.41 11.21 83.70 -1.2 15.21 82.34 -0.23 16.47 83.31 -0.87 12.8 83.-03 -1.11 10.5 82.55 -0.90 13.97 79.66 -0.06 13.47 4.6 7.4 4.6 7.7 4.4 7.8 3.2 8.2 Skin color ( Minolta Chromometer) L a b Crumb color L a b Steamed bread dimension Height 9cm) Width (cm) Steamed bread evaluation Volume Symmetry form Skin color Moderately good Very good Bright but slightly yellowish Crumb color Crumb fineness eating quality Bright but slightly yellowish Fine Springy Ranking Good Very good Less bright but whiter whiter Fine More springy Good Very good Slightly dull Poor Poor Dull whitish Slightly dull Slightly coarse Springy Dull Fine Slightly gummy Performance of high protein Australian wheat in comparison to other wheats in Asian food products Product APH AH CWHW CWRS DNS Alkaline Wet noodle + ++ +/- n.a n.a Instant Noodle ++ ++ ++ +/- +/- Wantan noodle ++ + ++ +/- +/ - Cracker +/- ++ ++ + n.a Marie +/- +/- +/- n.a n.a Bread +/- +/- + ++ + Steamed Bread ++ best + good +/++ +/- acceptable + - poor - Performance of medium protein Australian wheat in comparison to other wheats in Asian food products Product AS ASW A PW CPSW Indian Alkaline Wet noodle - + /- ++ + /- - Instant Noodle n.a +/- + +/- +/- Wantan noodle n.a n.a +/- n.a n.a Cracker n.a - +/- +/- +/- Marie + ++ ++ + +/- Bread n.a n.a n.a n.a n.a Steamed Bread +/- + ++ + - _ ++ Best + Good +/- Acceptable - Poor Price competitiveness of Australian wheat vs other origins (August 2004) South East Asian C&F cost (USD/MT) for various wheat types at different shipment size APW 199 HRW 194 189 184 179 174 15,000 30,000 55,000 South East Asian C&F cost (USD/MT) for various wheat types at different shipment size AH 204 HRW 13 199 194 189 184 179 174 15,000 30,000 55,000 South East Asian C&F cost (USD/MT) for various wheat types at different shipment size APH DNS CWRS 30,000 55,000 214 209 204 199 194 189 184 15,000 Summary • Generally Australian wheat is priced competitively when shipment size is below 30,000 MT which is the norm at the moment • If wheat is shipped in Panamax vessel of >50,000 MT, then US & Canadian wheat would be price competitive Summary • Generally, Australian wheat performs well in noodles and biscuits when compared to Canadian/US wheat • However, the new Canadian Hard White Wheat (CWHW) also performs well in noodle and biscuit products and is a long term threat to Australian Wheat Summary • Canadian and US spring wheat perform better in bread products due to the predominance of the sponge and dough method in the region • The new CWHW also performs well in bread Thus fulfilling the promise of a universal wheat suitable for bread, noodles and biscuits Summary • US wheat is perceived as inconsistent in quality and is not the preferred wheat except in Thailand where much of it is used in aquaculture Conclusion What can Australia to remain competitive in Asia? Answer Develop a universal hard white wheat that can perform well in noodle, bread and biscuit products Seberang Seberang Flour Flour Mill Mill