May 6, 2008

Australia's 2008 winter grain output to double from past years

Production from Australia's grain crops including wheat will likely rebound sharply in 2008, though substantial rainfall is still required in many areas, National Australia Bank said Tuesday (May 6, 2008).

Total output this year is forecast at 38.8 million tonnes, if achieved, up 72 percent from actual output of 22.6 million tonnes from drought-affected crops in 2007 and more than double the badly-affected drought-hit production of 17.4 million tonnes in 2006, the bank forecast in a monthly farm outlook.

Annual average production in the five years ended 2007 was 31.8 million tonnes.

The bank forecast 2008 wheat output at 25.2 million tonnes, almost double actual output of 13.1 million tonnes last year.

If the bank's forecast is achieved, and after annual domestic demand of 7 million tonnes is met, this would leave around 18 million tonnes of wheat available for export - renewing Australia's role as a major global wheat supplier and providing a massive injection of funds into rural areas.

It would also boost throughput, revenue and profits of grain companies such as ABB Grain Ltd, GrainCorp Ltd. and AWB Ltd.

Other major winter crops grown in Australia are barley, rapeseed, lupins and oats.

Western Australian wheat production is forecast at 9.2 million tonnes in 2008, up 50 percent from last year and up 15 percent on a five-year annual average.