Australia, one of the largest wheat exporters in the world, will produce another huge crop this season, which is set to boost agricultural export earnings of the country by almost 50% from a decade ago thanks to the favourable weather conditions and high global prices after accounting for inflation.
The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) said that farm export earnings could total a record of A$70.3Billion ($48 Billion) for 2022-23 i.e. around 8% up from its previous forecast in June.
Australia’s East coast has been dominated by La Nina which resulted in increased rainfall for the last 2 years and also triggered floods in several places. It brought good rains across the Eastern wheat belt which while raised the national production on the one hand, but also led to significant localised impacts such as flooding, livestock losses and quality downgrade of crops on the other.
Australia Sees a Massive Wheat Crop Boosting Export Earnings
Growers are on track to harvest 32.2 million tonnes of wheat in 2022-23, only a little less than previous years’ 36.3 million tonnes. The prospect of more supplies should offer some relief to a world facing an uncertain grain outlook as the war in Ukraine and extreme weather wreaks havoc in harvests in different parts of Europe, the US farm belt, China and India. Soaring crop prices have contributed to food inflation and a food crisis around the world.
Australia is reaping the benefits of favourable crop conditions and higher global prices and thus maximising its earnings from the bumper wheat harvests.
Jared Greenville, ABARES Executive Director said in his statements, ● ”Winter crop prospects in Australia are looking very promising at the beginning of spring we’re forecasting a 55.5 million tonne harvest.”. Production is forecasted to be well above 10-year averages in all states. Wheat Exporters
- ”Though favourable seasonal conditions are expected to persist, soaring global inflation, a sluggish Chinese economy and rising costs of fertilisers and farm equipment could take some shine off the bumper harvest.” Urea imports to Australia have not slowed
despite prices being around 3 times higher than average which indicates that fertiliser supplies will be sufficient over the 2022-23 season although higher costs will erode farm margins.
- “The latest forecasts have also factored in tapering global growth and the likelihood of a 3rd straight La Nina, roughly a once in the 30-year weather event.”. For the current season, planting of summer crops is forecast to be well above average supported by suitable soil moisture and more land that was left fallow during winter.
Australian farmers are expected to earn a record amount from agricultural exports this financial year owing to the favourable climatic conditions and high global prices. The country’s weather bureau last month said Australia was facing a 70% chance of La Nina returning in spring. ABARES also said that there has been a dramatic shift in Australian cotton export destinations from China to Vietnam and Indonesia and the meat production is rebounding with the national herd expected to return to pre-drought levels.