Australian wheat is expected to supply a new flour mill in Vietnam

AUSTRALIAN wheat growers should benefit from a new flour mill to be built in Vietnam by Japanese commodity trader Sumitomo and its South Korean partner CJ CheilJedang.

Sumitomo, which owns Emerald Grain in Australia, will build a flour mill outside Ho Chi Minh City by May next year.

It will have capacity to produce 150,000 tonnes of flour for premium bread and bread rolls for Vietnam and neighbouring Cambodia.

Emerald Grain already exports about 100,000 tonnes of Australian wheat to Vietnam.

Sumitomo food, materials and real estate business unit head Hideki Hijiya said the new mill would open up new opportunities for Australia wheat growers.

“This mill is part of Sumitomo Corporation’s plan to build integrated supply chains across Asia and provide new pathways for Australian grain into the market,” Mr Hijiya said.

“Emerald Grain can work closely with Australian growers to make sure they can supply the right grade and quantity to meet the new mill’s production needs. “

“The end result will be an efficient supply chain direct from grower to the Asian milling customer, lowering costs and offering better pricing opportunities.”

Vietnam bought 1.27 million tonnes of Australian wheat last year but 2.5 million tonnes in 2011-12.