Australian sorghum is used in the production of Baijiu, a Chinese spirit which is a very popular gift and dinner drink.

Australian sorghum is used in the production of Baijiu, a Chinese spirit which is a very popular gift and dinner drink.

The rising strength of Australian sorghum

Australian sorghum makes Asian inroads

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Advertiser: The insatiable Chinese market has become a profitable venture for this Australian grain supply chain company dealing in sorghum.

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Advertiser content from CHS Broadbent

Whilst throwing up all kinds of weather and agronomic challenges, this coming sorghum harvest should see Queensland and New South Wales sorghum again bound for export markets.

The vast majority of exports will be headed for China and its particularly important market for Australian sorghum, the liquor market.

Chinese demand for sorghum is large and continually growing – somewhere in the order of nine million tonnes per annum.

To help put this in perspective, total feed grain demand in China for 2017-2018 was approximately 250 million tonnes.

Of the growing nine million ton of sorghum, most is feed demand, used in the huge pig, poultry and aquaculture markets.

Grain sorghum is the main summer grain crop in most regions in Queensland, and plays a key role in providing feed grains to the beef, dairy, pig and poultry industries.

Grain sorghum is the main summer grain crop in most regions in Queensland, and plays a key role in providing feed grains to the beef, dairy, pig and poultry industries.

However, there is another lesser known market for Australian sorghum that ends up on dinner tables and in bars all over China.

Baijiu, a Chinese spirit made from sorghum and other grains, is a very popular gift and dinner drink.

It is famous for its fragrance and strong taste. In fact, with demand at roughly five billion litres per year, it is the most consumed spirit in the world.

The various distilleries that make baijiu are primarily based in the provinces of Tianjin, Sichuan, Jiangsu and Hubei and make a variety of brands that promote different aromas and tastes at a wide range of prices.

The lowest priced bottle can cost as little as a bottle of beer whilst the most expensive can go up to $5,000 AUD per bottle.

Sorghum demand to make the liquor is approximately 2.5 million tonnes per annum and is sourced from the United States, Australia and local Chinese production.

Whilst Australian sorghum retains some advantages over United States origin grain by the way of tariff structure and quality and timing of production, inconsistency in supply from Australia has created opportunities for United States sorghum in the market over recent times.

CHS Broadbent is uniquely placed to service the Chinese market with Australian sorghum through their experienced CHS Incorporated marketing office in Shanghai and joint venture in the Port of Nantong.

CHS Incorporated distributes feed grains to port towns along the Yangtze River and all over China by barge and truck, direct to end users.

CHS Incorporated distributes feed grains to port towns along the Yangtze River and all over China by barge and truck, direct to end users.

This port gives access to the burgeoning demand on the Yangtze River, which provides goods and services including sorghum to roughly thirty percent of the Chinese population – approximately 413 million people.

CHS Incorporated distributes feed grains throughout this region and all over China by barge and truck, direct to end users.

Domestic Demand

The amount of sorghum that ends up in China is a function of available production in excess of domestic demand.

Domestically, sorghum demand is driven by price compared to competing feed grains and these will vary depending on the animal species. 

For example, domestically as the price of sorghum increases relative to wheat, demand from the beef industry declines.

Coupled with on-farm pick-up and warehousing services, CHS Broadbent strive to work with farmers to increase efficiencies and connect them directly with domestic and international markets to maximise grower returns.

Here for you

CHS Broadbent is committed to adding value to farmers, growers and customers by operating the most efficient supply chains possible.

The recent investment in Jondaryan and Moree receival sites and their long-standing packing facility at Toowoomba are proof of this commitment.

With energetic and committed teams in Australia and China, CHS Broadbent believe they provide farmers with the logistical solutions and market coverage they need to get their grain to market – and hopefully into the next bottle of baijiu.

For more information: chsbroadbent.com/sorghum or ring 1800 CHS Broadbent (1800 247 276) to talk to your local grain merchant.

Advertiser content from CHS Broadbent

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