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Tony Slade from Condobolin Milling is urging local farmers to make growing oats part of their crop rotation.
Condobolin Milling has secured good contracts for milled oats going forward its milled oats for petfood manufacturers and birdseed mixers.
Condobolin Milling has grown on the back of this district ability to grow great oat grain for Milling.
The expansion which is pushing forward aims to process 240 tonnes of oat grain a week.
Mr Slade of Condobolin Milling have built a strong relationship of supply with Pet Care Kitchen (Parkes) and other smaller petfood manufacturers. The relationship has grown significantly with the company willing to gain a stronger closer relationship with the growers at large. These Petfood manufactures have strong moral focus on longevity of supply and holistic management goals.
This yearly consumption has great benefits for the crop growing community of our district.
“I never thought in my wildest dreams that a Pet food manufacturing company like Petcare would start up business in Parkes, and have such a strong consumption for the Milled Oat groat, and then turn and decided to deal with Condobolin Milling,” he explained.
“Our company fits in with their goals of getting their product within 200 kilometres of their factory and dealing direct to growers.
“They are making a very conscious effort to deal with Condobolin Milling directly – as we are processing the oat grain so they can turn it into a dog biscuit and in turn we are dealing with oat growers firsthand.
These business connections can have a positive impact for all oat growing districts producers, bulk transportation grain storage and general employment according to Mr Slade.
“This [business relationship] has many benefits for the community – the manufacturing companies need product weekly running 24 hours 5.5 days a week its real pressure every week and if you fail to supply its tough to gain there confidence back as they move on very quickly, he said. “We are consuming about 140 tonnes of oats a week, and subsequently we are building our business to grow to 240 tonnes a week. “With that consumption in the grower’s heads, they have got to be saying that’s not someone who is doing this as a hobby but is a significant user. “It works out to be about 8,000 to 10,000 tonnes of oats a year just to supply the Pet Care factory. This is how much Condobolin Milling will run through its business.”
Mr Slade said the Condobolin and surrounding districts are exceptional oat growing districts.
“Farmers like to grow wheat but why not think about incorporating oats into your cropping program?” he asked.
“We have an opportunity to deal directly with the factory monthly. They want a relationship with growers and the community. This type of partnership has benefits for everyone.
“The more we can source oats withing the district the better off we all are.”
The quality of oats grown is an important part of the process, Mr Slade advised.
“I really want to emphasise that we are after good quality milling oats for this market<’ he said. “We would like growers to try hard to grow good oats like they would grow good wheat.
“Make the effort to grow good oats, because Condobolin Milling will reward them for those good oats. It needs to weigh well and have low screenings. There is a bonus if the oats grown is good quality.”
To encourage local farmers to grow oats in 2024, Mr Slade and Condobolin Milling are prepared to invest directly with the grower.
“Condobolin Milling is going to put out 4000-5000 tons contacts this year,” he said.
“Condobolin Milling is going to have available 50 tonnes of seed oats (Bulka Bags) available. “If the take up is successful I will get graded another 50 tonnes. Payment for this seed will not need to be made until after harvest time. If they have a failed harvest, then Condobolin Milling will negotiate a deal with the grower. I am making that investment.
“I am trying to make it easier for someone who may not have the seed or may not have thought about growing oats. This seed is an incentive to grow oats.
“Oats has slipped off the radar in this district. We are going to work on a storage facility. There will be a storage facility at harvest time. So that concern of not being able to deliver it will be alleviated. There may be a warehouse option as well. “I encourage people to think about growing oats as you have an industry that is willing to work with local growers to secure oats for their products.”
“Condobolin Milling has been supplying Petcare Kitchen Parkes, a company owned by Master Pets, and they take the manufacture of Pet Food very seriously,” Mr Slade added.
“Master Pet company has a very grounded and focused team, and they know they need farmers to grow the fresh products.
“The Black Hawk brand of pet food has an extremely loyal following. “There is increased demand for the product, so there is an opportunity for local farmers to capitalise on this demand and supply a great product for a great return.”
Traditionally, Condobolin and surrounding districts has been a very good oat growing area. But over the years it moved back to Wheat and Canola, and to a lesser extent barley.
“This year will be a tester – there is not a lot of oats around,” Mr Slade said.
“This area needs the confidence to grow oats. We are offering a perennial income stream over 12 months. “Fifty per cent what we process is Yarran Oats (traditional feed oat) but there are economic benefits to growing dwarf varieties of oats such as Matika. The 100 tonnes of oats that will be supplied through me will be Matika variety. “I am an oat grower – and a livestock grazier – I am trying to grow enough oats to satisfy a percentage of the mill’s expectations. I also show a loyalty to existing customers, contracts for loyalty. Then we will look at area and the ability to be able to grow oats and we will really support that.
“We are trying to sponsor the production of oats in the district to get it going. We feel confident that this confidence will be well received.” The oat price is travelling well this year with consumption and end users bidding above Wheat and Barley prices. Oats prices have strengthened when all others have declined.
You can have confidence that stored grain will be lifted in bulk runs of at least 150 -200 ton a weekly shift. It works well with bagged grain, unloader usage and cashflow management.
“Oats derived protein is hitting the palette of more than just our pets. More and more people are turning to plant-based diets – so that could be another avenue that we could pursue down the track. “I want to give this community an opportunity to latch onto this. There is room for people to come and talk to me about putting an area in and putting oats into their rotation for several years. There are many ways we can build on the supply of oats in our district, I am open to any suggestions on how to achieve this.
“I am paying a $360 tonne for oats now. This is an indicator that oats are travelling well in the market. “Why no give growing oats a go?” Mr Slade concluded.
To find out more information on what growing oats could mean for your farming enterprise, contact Tony Slade at Condobolin Milling on 0428 975 236.