The companies signed the distribution agreements yesterday in a deal that MSM Milling’s director Pete Mac Smith said will mean the companies will work together in the long term.

Mr Mac Smith said the new arrangement will not only benefit local mills but will also benefit local farmers who’ll grow the grain and seed to fulfil the export demand.

“It’s a good sign of the high regard they have for our products that they feel confident in signing a long-term supply arrangement,” Mr Mac Smith said.

Mr Mac Smith said the companies are “proud” to supply canola oil and high oleic canola oil to a rapidly expanding export market.

Mr Mac Smith said canola oil is the number one soft oil in the Filipino oil market.

“MSM can see the rapid growth in canola oil usage in the Philippines being an emerging trend throughout Asia as disposable income among the middle class increases, allowing these consumers to make healthier discretionary purchasing decisions,” he said.

“This change in the eating habits is great news for Australian farmers, as demand for Australian farm products grow.”

Manager of the Manildra Flour Mills John Brunner said signing the agreement bodes well for the industry as a whole.

“In the current economic climate with such a high Australian dollar, it’s rare to hear such good export news stories,” he said.

“Given the difficulties many exporters face competing in global markets, the Manildra Group wholeheartedly welcomes this distribution agreement as a vote of confidence in our products.”

The general manager of the Manildra Group Peter Simpson said there’s been a marked increase in worldwide demand for Manildra products.

“Manildra is noticing and embracing the increased demand for Australian wheat-based products, such as flour for noodles and glucose for use in confectionery production,” he said.

The Manildra Group and MSM Milling have supplied Oleo-Fats with oil and wheat products for five years however this latest deal formalises the arrangement.

tracey.prisk@fairfaxmedia.com.au