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- Aussie farmers are expecting to reap the country’s second-biggest grain harvest on record, despite years of drought
- New South Wales, Victoria, and South Australia have enjoyed good rainfall recently, boosting their wheat, barley, and chickpea crops
- Despite drier conditions in southern Queensland and Western Australia, the nation’s overall winter crop is forecast to be 51.5 million-tonnes
- However, the grains industry is facing economic difficulties, after China imposed harsh trade tariffs on Australian barley exports
- The agricultural industry hopes that these high yields help might offset some of the impact caused by China’s tariffs
Aussie farmers are expecting to reap the country’s second-biggest grain harvest on record, despite years of drought.
States including New South Wales, Victoria, and South Australia have recently enjoyed good rainfall. These improved growing conditions have boosted the states’ wheat, barley, and chickpea crops, resulting in crop production forecasts being optimistically revised.
The Australian Bureau of Agricultural Resource Economics and Sciences (ABARES) said that New South Wales is on the verge of producing its biggest winter harvest crop. Despite unprecedented drought prior to the season, the state has a forecasted production of over 17.6 million tonnes.
Other regions, including Western Australia and southern Queensland, haven’t fared quite as well. The growing conditions in these states during late winter and early spring were drier, causing their production forecasts to be slightly revised down.
However, the nation’s overall winter crop is still forecast to be a strong one, with significant production increases in wheat, barley, and canola. Wheat is forecast to increase by 106 per cent from last year, while barley is expected to grow by 33 per cent from last year.
Canola is likely to rise by 59 per cent from last year.
Overall ABARES is predicting a national winter crop of 51.5 million tonnes, a 7.4 per cent increase on the Bureau’s most recent prediction in September. This harvest would be second only to Australia’s gargantuan crop in 2016-2017.
Despite this welcome good news, Australia’s grains industry is still facing some economic difficulties, due to ongoing trade tensions with China.
China has recently announced tariffs and outright bans on a number of Australian exports, such as wine, timber, cotton, coal, beef, and lobster.
One of the first industries impacted by harsh trade tariffs this year was the nation’s barley exports, which China imposed a harsh 80 per cent tariff on.
Victorian grain grower, David Jochinke, is one of many currently enjoying a high-yield harvest. Much like others in the Australian agricultural industry, he hopes these bumper crops will help offset some of the impact caused by China’s tariffs.
“If we can’t make it up in price, we’d prefer to make it up in yields,” he said in a recent interview with the ABC.
“For the average consumer, you won’t necessarily see this price in the supermarket, but for the farmers, they’ll feel it on the profitability of their businesses, especially those farms coming out of drought,” he added.
Next week, ABARES will release a report discussing how trade tensions with China are impacting various Australian goods.
