4 minute read
5 minutes with Sarah Watson
Farmlands Senior Grain Trader Sarah Watson on the outlook for the arable sector in 2022 and why she loves her job.
In your role, every day you must be looking ahead to ensure shareholders get consistent grain supplies – how challenging is that?
At times the market dynamics can make it a challenge. 2021 resulted in a high demand for domestic grain and we don’t see this year being any different. A record dairy pay-out for New Zealand dairy farmers has driven strong demand for arable growers’ grain. Supply of offshore products, such as imported grain, has had challenges with global shipping delays, weather events delaying supply of grain, such as the East Coast Australian harvest in December, and general COVID restrictions. Guaranteed supply has been a key driver in the high demand for domestic grain. This resulted in the end of 2021 being very challenging, with little domestic grain available and strong demand, resulting in minimal carryover of old-season grain into 2022. Our small team works within these challenges to ensure a consistent supply of quality grain to our shareholders and end users.
Talk us through a grain trader’s typical working day.
There is no such thing as a typical day! Ensuring grain supply for our feed mills in Rolleston, Winton and our North Island blend sites is a key focus of my role. I monitor grain markets domestically and globally regularly to create a trading strategy. I keep a close eye on our trading position as this is a key KPI. Our trading team works closely with our field team for procurement of grain or sales. I keep in regular contact with our external large end users to give options to our arable shareholders, such as flour and oat milling, poultry and egg producers, pork producers and compound feed manufacturers.
Did you become a grain trader by design or accident?
In 2009 I graduated from University of Otago, keen to work in primary industries. The opportunity arose to work as a graduate grain trader with an Australian company, One World Grain (OWG), based in Melbourne. OWG is key to how my grain trading career kicked off. My role was a new position for the firm where I was given total scope to develop a buyer database
of New Zealand grain buyers to sell Australian grain to in containers. In this role I developed the reputation for how I conduct business and as a result I still work closely with many of these large end users today. The role also involved exporting grain into SouthEast Asia, Indonesia and Vietnam.
What advice would you give to someone keen to take up the role?
My advice is to continue to keep upskilling yourself and chase any opportunities. In 2020, I completed the Kellogg Rural Leadership course as part of cohort 41. My research project was focused on upskilling arable field reps in grain trading. This is an area I’m passionate about – upskilling our field team to be confident, have great communication in putting together grain purchases and sales and have some fun while trading grain!
What do you see as one of 2022’s bright spots in the arable industry?
All commodity markets are strong and looking to stay that way for 2022. Our arable growers are in a good position with strong interest for their grain and small seed production. Farmlands is one of the largest domestic retail seed companies in New Zealand and our arable shareholders benefit from growing seed that is then retailed by their own co-operative throughout the country.
How did you come to be working at Farmlands?
I was in between roles and was heading to Europe to do my OE for 4 months. There was a grain trading position at Farmlands. I was interested in the opportunity to be responsible for a large domestic grain trading position in New Zealand and working for a farmer-owned co-operative that had feed mills and is clearly invested in New Zealand agriculture. I was in the Greek Islands when I received the phone call and was offered the role.
What do you enjoy most about your job?
Every day is different. It’s a buzz putting together deals for both our arable grain suppliers and our end-user shareholders within the Farmlands network. It is rewarding to be able to contribute to shareholders’ businesses.
What is one of your goals in life?
Farm ownership is a long-term goal.
Tell us about your family?
Our family farm, Bingley, is 5km from Methven, a 446ha arable and store lamb trading farm. We have been farming at Bingley since the 1920s. My favourite time of the year is harvest; nothing beats chasing combine harvesters around the paddock when you’re the bin driver, or if you’re the favourite person delivering dinner out to the team.
Do you have a favourite inspirational quote or person?
Roger Federer – I enjoy watching the tennis grand slams and would love to go to the French Open in Paris one day.
