December 20, 2007

Australian grains growing at 2.7 percent in nearly 30 years

The Australian grains industry continues to achieve productivity improvements, with annual growth averaging 2.7 percent for the period 1977-78 through 2005-06, according to an official report issued Wednesday (December 19).

Increased productivity has been the key to the continued success of Australia's farm sector, which is a major supplier to global markets of many farm products, according to the "Australian Grains: Outlook for 2007-08 and Industry Productivity Report" issued by the Australian Bureau of Agricultural and Resource Economics and Grains Research & Development Corp.

Wheat output this crop year ending March 31, 2008, is estimated at 12.7 million tonnes, barley at 5.5 million tonnes, and canola 931,000 tonnes, it reiterated.

Improvements in technology, structural adjustments and changes in management practices have long been the engine of growth driving Australia's farm sector, the report said.

In the past three decades, prices received for farm commodities have failed to keep pace with prices paid for farm inputs, it said.

Productivity growth in the crops industry 1977-78 through 2005-06 outstripped the average annual growth of 1.7 percent for all broadacre industries and 1.9 percent for mixed livestock/crops industry, it said.