Grain output cut as drought bites

- Last updated on GMT

Related tags: Cent, Australia

Australia's grain crop could fall by four million tonnes, as
further droughts impact the start of the season.

According to Industry Search​, the Australian Bureau of Agricultural and Resource Economics (ABARE), reduced the 2006-07 winter crop production to 36 million tonnes, down 11 per cent on last season's 40.5 million tonnes.

A dry autumn in most crop states, except South Australia, led ABARE to reduce its estimates for major crops. Wheat production is expected to shrink nine per cent to 22.8 million tonnes.

Queensland and NSW are expected to show the biggest falls in production, a fall of 20 per cent and 14 per cent respectively.

The hardest hit is Western Australia, scant rainfall is due to cut the crop haul by 13 per cent.

According to ABARE, the federal government's commodities analyst, barley and canola crops are also expected to record reduced plantings and yields, with production for barley due to fall 14 per cent to 8.5 million tonnes, and canola three per cent to 1.4 million tonnes.

Related topics: Markets, Oceania, Supply chain, Bakery

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