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Australian Agriculture Exports May Achieve $26 billion
Australia, the world's fourth-largest wheat exporter, may produce more of the grain than previously predicted after rain lifted crop prospects, National Australia Bank Ltd. said July 22. Australian farmers sow crops including wheat, barley and canola from about April to June for harvest from November. Wheat production in Australia will rise in the next financial year, Penm said, without giving precise figures. An El Nino weather pattern may become a risk for Australian farming conditions later this year, he said.
Australia's farm exports may rise 2 percent in the year to June 30, 2010, helped by "relatively favorable" crop conditions and a recovery from the global recession, the country's commodity forecaster said. Total exports from farming may total A$32 billion ($26 billion), the chief commodity analyst for the Australian Bureau of Agricultural and Resource Economics, Jammie Penm, told a grains conference in Melbourne today. Increased grain demand may be offset by a rising Australian dollar, which would reduce earnings on export sales, he said. The Canberra-based bureau last month predicted the nation's wheat crop will increase 2.7 percent to 21.9 million metric tons in the year ending June 30, 2010, with exports surging 14 percent to 14.6 million tons. Barley output will jump 13 percent to 7.7 million tons, with exports climbing 12 percent to 4.4 million tons, the agency said June 23. Pricing Volatile Grain prices in Australia are likely to remain volatile in the wake of deregulation that removed the nation's monopoly trading mechanism, said Michael Iwaniw, managing director of ABB Grain Ltd., the country's biggest barley exporter. The removal of the "single desk" for grain exports has created a void, with no single entity representing the industry, he said. Growers are warehousing more grain and genetically modified crops will eventually become "widespread'' in Australia, said Iwaniw, who today brought forward his departure from the Adelaide-based company to the end of this month. Canada's Viterra Inc. agreed in May to acquire ABB for A$1.6 billion. Earlier at the conference, Australian Agriculture Minister Tony Burke said the government could not close its eyes to increasing the use of genetically modified crops. The nation needs to lift its farm productivity in the next three to five years and genetically altered crops may be part of that, he said.read source article