27 October 2006

2 minute read

Oceania

A new report by ABARE, Australian Crop and Livestock 2006-07 released in September this year, reveals that the national wheat crop is forecast to be 9.5 million tonnes for 2006-07. This is down by 15.5 million tonnes from last season and is the smallest harvest since the 9 million tonnes in 1994 – 95.

“Previous droughts have affected Australia’s total economic growth by around one per cent so ABARE’S total estimate of 0.7 per cent fall in growth is close to the mark,” Mr De Landgrafft said.

Mr De Landgrafft expects that the real effect of the drought in the livestock industry won’t be felt until next year.

“As sheep and cattle turnoff has gone mostly to the trade and export buyers with few sales to other farmers, there is less stock available for next season,” Mr De Landgrafft said.

“As farmers are forced to quit livestock, prices have fallen but the larger amount of stock available has kept total revenue reasonable.

“While not contained in the ABARE report, the large turnoff of sheep and poor feed conditions is also going to impact heavily on next year’s wool clip,” Mr De Landgrafft said.

“As with the 2003 drought, farmers expect applications to import grain into Australia to supplement the chronic shortage of feed grains.

“However, WAFarmers reminds the Government that we will not accept any watering down of the necessary high quarantine standards as this grain will be delivered into rural areas with high likelihood of contamination of weeds and diseases exotic to Australia,” Mr De Landgrafft said.

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