Returns in the farm sector were mixed in 2004-05, both in volume and value terms, but good rainfall in the state’s agricultural areas during the past two months will ensure a strong harvest this year across most commodities.
Returns in the farm sector were mixed in 2004-05, both in volume and value terms, but good rainfall in the state’s agricultural areas during the past two months will ensure a strong harvest this year across most commodities.
Wheat is once again the top-performing crop in Western Australia, worth a total of $1.93 billion in the year to June 2005, down 27 per cent on the previous year. Of that amount, $1.74 billion worth was exported.
The next best performer, barley, was worth $429 million at the farm gate, a fall in value of 32 per cent on the 2004 crop. The value of WA’s barley exports, however, came to $490 million, caused by a carryover from the previous year and the incorporation of transportation costs, according to the Department of Agriculture.
Cooperative Bulk Handling Group is preparing for a predicted 13.2 million tonne harvest this season, making it potentially the second largest haul on record for the state.
Expected average wheat prices for the 2005-06 season sit at $190 a tonne, according to the Department of Agriculture, representing a decline in value of 26 per cent on 2003-04 prices.
But lower world wheat production in 2005-06 is expected to result in higher prices, according to the Australian Bureau of Agriculture and Resource Economics.
With the harvest of Northern Hemisphere wheat crops well under way, world wheat production in 2005-06 is forecast to be 608mt, ABARE said last month, down 15mt from the record of the previous season.
WAFarmers said that, despite the negative price movements, producers were still confident of an increase in the gross nominal value of 2005-06 crops over the previous year.
However, a higher Australian dollar and other world market factors still had to be considered in the equation for farmers, the farm lobby group said.
While ABARE predicts total production of coarse grains in Australia will decline by 6 per cent to 9.6mt, excellent conditions at the start of the cropping season in WA were expected to lead to higher production in the state.
Above-average rainfall in WA has boosted the area sown to canola. As a result, WA production of the crop is forecast to increase in 2005-06.
Wool production is expected to increase moderately during 2005-06 due to good autumn rainfall in WA, which enabled pastures to regrow prior to winter and encouraged restocking.
Carrying about a quarter of Australia’s sheep flock, WA is poised for higher spring lamb supplies due to the good autumn rainfall, which has also led to higher strong restocking demand for ewes, pushing the ewe price higher, ABARE said.
