March 1, 2011

Australia's 2010-11 winter crop harvest rises 19%

Australia's winter grain production for 2010-11 is estimated to have increased 19% on the previous year to 42.1 million tonnes, according to the Australian Bureau of Agricultural and Resource Economics (ABARES).

While the 19% increase in production for 2010-11 was a reflection of the much better growing conditions throughout 2010, it could have also been higher, after the very wet conditions during harvesting.
 

Indeed, the harvest period ended up being the most disappointing point in the season, with producers across the eastern states forced to wait out heavy rain in order to finish harvesting, with widespread crop downgrading.

The financial hit from the disrupted harvest and downgrading in quality across the eastern states was also very significant for many producers, especially after the high hopes, for both yields and prices, held throughout spring.

However, grain prices remained well above year-ago levels, even for feed grain, enabling some financial returns for most producers.

Reflecting the much wetter season, NSW winter grain production for 2010-11 was estimated to have increased 96% on the previous year, at a record 15.3 million tonnes - but still some 1.9 million tonnes below previous forecasts.

For Victoria, production was estimated to have increased 34% on-year, to 7.9 million tonnes, with wheat production surging 37% to 4.1 million tonnes.

Like NSW, SA also had a record harvest for 2010-11, at 9.8 million tonnes - up 38% on the previous year. Queensland winter grain production for 2010-11 was back 2% on-year, at 1.6 million tonnes.

In contrast to the east, the driest year on record for southern WA saw 2010-11 grain production slashed by 43%, to an estimated 7.4 million tonnes - the lowest total since 2002-03.

Reflecting the wetter conditions over the past year, summer crop plantings across Queensland and NSW for 2010-11 are forecast to increase 54% and 82%, respectively.

Total summer grain production is forecast to rise 66% on the previous year to 4.75 million tonnes - the highest level since 2001-02.