March 2, 2004

Australian Wheat Output To Fall In 2004-05

Australian wheat production will fall to 21.90 million metric tons next crop year ending March 31, 2005, from an actual 24.92 million tons this crop year, according to the government's Australian Bureau of Agricultural and Resource Economics.
 
In its quarterly Australian Commodities outlook publication issued Tuesday, Abare said the area sown to wheat next crop year will fall to 12.19 million hectares from 12.40 million hectares previously.
 
Yield from the next crop will drop to 1.80 metric tons/hectare from 2.01 tons/hectare from the last crop, it said.
 
The forecast slide in production reflects expected lower plantings in southern and western growing areas as farmers diversify and rebuild flocks and herds, it said.
 
This crop year, these farmers sowed record areas of wheat to lift cash- flow coming out of a drought, it said.
 
The slide in southern plantings won't be offset by expected increased sowings in northern growing areas, which suffered dry weather this crop year, it said.
 
Abare also forecast barley production next crop year at 7.96 million tons down from 8.53 million tons this crop year.
 
Canola output next crop year is forecast at 1.63 million tons, up slightly from 1.62 million tons for the previous crop, it said.
 
Australia usually is a major global supplier of cereals.