February 2, 2012

 

Western Australia's CBH expects grain intake to hit 15 million tonnes

 

 

Wheat and other winter grains deliveries to Western Australia-based Cooperative Bulk Handling's (CBH) facilities are expected to reach 15 million tonnes amid a strong export programme.

 

Western Australia is the biggest wheat producing state in Australia, which is now the third-biggest supplier to the global trade. Nearly all of the wheat produced in Western Australia is available for export, making the state a major supplier in its own right.

 

CBH's intake figures suggest Australian wheat production could approach 30 million tonnes this year, exceeding official projections and weighing on an already well-supplied global trade.

 

With deliveries into CBH's system upcountry storage sites and coastal export terminals totalling 14.95 million tonnes and counting, "we're reasonably confident we'll hit the 15 million tonnes mark," Daw said by phone.

 

CBH's previous record intake was 14.7 million tonnes in the crop year ended March 31, 2004.

 

CBH's intake suggests Western Australian winter grain production could total 16.5 million tonnes this crop year, well over double last year's drought-affected crop.

 

The amount of grain retained on farms or in other storage facilities is difficult to measure, but it's a "fair assumption" that CBH's intake typically represents about 90% of the crop in the state, he said.

 

Wheat generally comprises 70% of the harvest, suggesting production of the grain this crop year could be around 11.55 million tonnes, which would also be a record.

 

The government's Australian Bureau of Agricultural and Resource Economics and Sciences estimated 2011-12 wheat production at 28.3 million tonnes based on Western Australian output of 10.1 million tonnes.

 

There is still more than enough milling wheat of reasonable quality available for export, despite the weather-related downgrading of some of the wheat crop to livestock-suitable from milling grades for human consumption, Daw said.

 

There are no major holdups to the export program at this stage, he said.

 

"All the ships are going out on time," he said, "but it's a challenge it must be said. It's definitely a busy shipping program: all the ports are full and we've got a full stem (shipping schedule) at this stage and we're accumulating for ships there at the moment."