Friday, April 26, 2024

High global prices boost local producers

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Australia is expected to see above average levels of winter crop production in 2021-2022, with climate conditions and high global prices set to make this season bountiful for many of the country’s producers.

According to the latest ABARES, Australian crop report for Junes, winter crops are forecast to reach well above national averages, though there will be different levels of production across different regions.

“Winter crop production is forecast to be 46.8 million tonnes in 2021–22, which is below the near record high production last year but 13% above the 10-year average to 2020–21,” said Dr Jared Greenville, acting ABARES executive director

Though areas sown to winter crops are anticipated to hit a record 23.2 million hectares, 2% higher than the previous year, some areas will still see reduced levels of productions as a result of tougher seasonal conditions.

“Yield prospects in most cropping regions in New South Wales, Western Australia and much of Queensland are very favourable given the favourable conditions at the beginning of the winter crop season and the outlook for winter rainfall,” said Greenville.

While yields in NSW will be lower than the record levels of last season, they will still significantly supersede the 10-year average to 2020-2021.

Meanwhile in WA, yields will likely be stable from the previous season, sitting at around 9% higher than the 10-year average to 2020-2021.

South Australia and Victoria will likely take the brunt of the poorer conditions throughout the season, with producers reliant on winter rainfall.

Though the Bureau of Meteorology three month outlook for June to August suggested rainfall would be above average in most cropping regions in both the eastern states and South Australia.

Increased mouse populations are likely to impact production volumes and increase costs of production, though on a national level these effects are expected to me minimal.

“Area planted to canola is forecast to increase by 25% to almost 3 million hectares, the third highest on record. Area planted to canola is expected to be boosted by favourable world prices and excellent planting conditions in Western Australia and New South Wales,” said Greenville.

Canola production is expected to reach 4.2 million tonnes, up 4% and 22% above the 10 year average to 2020-2021.
“Among other crops, area planted to chickpea is forecast to increase by 20% to 607,000 hectares, in response to high prices and favourable planting conditions in Queensland and New South Wales,” added Greenville.

While wheat production is set to fall by 17% to 27.8 million tonnes, though this is still 15% higher than the 10 year average.

Barley is also predicted to fall by 21% to 10.4 million tonnes and is again still 7% above the 10 year average.

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