December 12, 2006

Australia's summer crop production down on extended dry weather

Australia's 2006-07 winter crop production fell by 62 percent from last season, to 15.5 million tonnes, reported the Australian Bureau of Agricultural and Resource Economics (ABARE).

The factors attributing to the decline included continuing dry weather conditions extending August to October and some of the highest mean maximum temperatures on record.

Wheat production in 2006-07 declined by around 61 percent from the previous season to 9.7 million tonnes, while barley registered a decline of 63 percent to 3.7 million tonnes. Canola production dropped by 71 percent to around 426,000 tonnes from last season.

The persistent dry conditions have also placed summer crop production in an uncertain position. Assuming average summer rainfall, ABARE forecasts a 33 percent fall in summer crop production. According to ABARE, a below average winter and spring rainfall in southern Queensland, northern NSW and the Riverina has depleted soil moisture profiles and water storage levels, severely limiting summer crop production prospects, particularly for rice and cotton.

Impacted by the dry weather, livestock feed availability could remain tight until June next year, given the high demand from livestock producers in states other than eastern Australia, per ABARE reports.