June 18, 2009

PrimeAg Australia Ltd., one of the nation's biggest wheat producers, reported Thursday (June 18) that recent excellent rainfall on its properties in southern Queensland and northern New South Wales underpins a positive outlook for the 2009 crop.

The timely rainfall means sowing of PrimeAg's planned 10,500 hectares of wheat and 2,000 hectares of chickpeas is well underway and is expected to be complete by the end of June, Executive Chairman Peter Corish said.

"Timing of the rain was almost perfect with most of the summer crops having been harvested and at the optimum time for winter cereal plantings. Soil moisture levels are near capacity providing an excellent start for crops," he said in a statement.

Corish' comments about PrimeAg's properties can be taken as a proxy for the region - one of Australia's most productive areas for high protein, hard milling wheat.

Significantly lower costs for fertilizers, chemicals and fuel compared with 12 months ago and slightly higher prices means the profitability of wheat production has moved in the company's favour, improving the outlook, he said.

Corish was commenting while announcing that PrimeAg bought a 1,020 hectares irrigated and dryland farming property called Parker at Emerald district in central Queensland and 2,000 megalitres of water access entitlement for A$7.5 million. Parker lays between and adjoins two other PrimeAg properties, for a total holding of 4,816 hectares.