July 11, 2006

Dry winter could halve grain production in Western Australia

Western Australia's dry winter could slash grain production by half, based on projected data from the state's Agriculture Department.

Many areas of the state are having their driest winter on record, with the northern and central areas the worst hit.

Agriculture Minister Kim Chance says it would not help even if the state gets average rainfall for the rest of the year.

The state's wheat crop could be reduced from 13 to 14 million tonnes to around seven to 10 million tonnes, he said.

Chance said it may be too early to predict, but losses may reach US$500 and US$700 million."