19/12/2007 - 14:28

Grains industry maintaining growth: ABARE

19/12/2007 - 14:28

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The grains industry continues to achieve productivity improvements, with average annual growth of 2.7 per cent between 1977-78 and 2005-06 according to latest figures from the Australian Bureau of Agricultural and Resource Economics.

The grains industry continues to achieve productivity improvements, with average annual growth of 2.7 per cent between 1977-78 and 2005-06 according to latest figures from the Australian Bureau of Agricultural and Resource Economics.

On releasing the Australian Grains: Outlook for 2007-08 and industry productivity report, ABARE executive director Phillip Glyde said increasing productivity had been the key to the continued success of the agriculture sector.

ABARE farm surveys data shows that Australian grain producers have continually pursued more efficient ways to produce more output from less input, Mr Glyde said.

"The outlook for grain prices in 2007-08 is strong. The pool return for Australian premium white wheat (APW 10) is forecast to increase by more than 50 per cent on the previous year, while Australian malting barley prices are forecast to remain high at around $346 per tonne."

Mr Glyde explained that strong growth in global demand, including demand for grains and oilseeds as an input to biofuels production, was contributing to the positive price outlook.

However, he cautioned that the ability of growers to capitalise on these prices had been hampered by poor seasonal conditions.

"ABARE estimates that in 2007-08 wheat production will be around 12.7 million tonnes, barley production will be around 5.5 million tonnes and canola production around 931 000 tonnes," he said.

Although these winter crop production levels are significantly higher than production in 2006-07, they remain well below average.

The report, Australian Grains: Outlook for 2007-08 and industry productivity was funded by the Grains Research and Development Corporation.


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