Get all your news in one place.
100’s of premium titles.
One app.
Start reading
ABC News
ABC News
Business

Record-breaking exports, big crops put Australian farmers on track for bumper season

Australian farmers have planted a record area of canola this season. (ABC News: Jeremy Story Carter)

Grain growers are set to enjoy another record-breaking year for Australian farm exports, according to the national commodity forecaster ABARES.

The forecaster's June estimates for Australian agricultural production are  tipping exports to hit $65 billion in 2022–23, just higher than last year's figure.

While, for only the second time, the total value of all farm produce will exceed $80 billion.

Record-high grain prices, another wet summer and a favourable start to winter, as well as poor seasonal conditions in other grain-growing regions around the world, are driving the numbers higher this season, according to ABARES.

Ukraine has consistently been among the world's top exporters of grain and oilseeds, and Russia's invasion in March sent prices for those commodities skyrocketing.

La Niña, the same climatic system bringing drenching rains to Australia's east coast, is causing droughts in India and Pakistan, France and sub-Saharan Africa, as well as extremely dry conditions in grain-growing regions of the USA, Canada and South America.

While La Niña brings flooding rains to the east coast of Australia, it is causing severe droughts across parts of India and sub-Saharan Africa.  (Supplied: Facebook/BridgeWatcher)

Australian farmers have responded to these cues, planting 1 per cent more wheat than they did last year, at 13.2 million hectares, and a record amount of canola, at 3.4 million hectares.

"One of the things we're seeing given the really high back-to-back crops is a high pace of exports," ABARES executive director Jared Greenville said.

"In the 12 months to March this year is a combined monthly average of 3 million tonnes of wheat, barley and canola leaving Australian ports, which is equally as high as the bumper 2016–17 crop."

In a separate report published last week, Rabobank analysts said Australian wheat exports could hit 26 million tonnes this season — about 50 per cent above the 10-year average.

About 3 million tonnes of wheat, barley and canola have been pumped out of Australian ports since harvest. (ABC News: Clint Jasper)

Horticulture record

The value of fruit, nut and vegetable production for 2022–23 is also forecast to break a record; at $13.5 billion it will be the most valuable crop ever harvested.

That is mainly due to the loss of crops in flood-hit areas of Queensland and New South Wales, as well as soaring prices for fuel, gas and fertiliser.

Unfortunately, food prices in Australia will not ease over the coming 12 months, because even as flood-hit farms return to production, input and distribution costs will remain high enough for those expenses to be felt at the check-out, according to ABARES.

Food prices are not expected to fall over the coming 12 months. (ABC News: Bec Whetham)

"It's unlikely [that prices will fall] given the pressures we've got in terms of the demand pulling grain and meat prices higher, and the supply-side impact of higher input costs," Mr Greenville said. 

Consumer prices of fruit rose 4.9 per cent over the March quarter of 2022 and vegetables rose 6.6 per cent.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.