Pat O’Shannassy, chief executive officer, Grain Trade Australia reports that the 2020-21 season Australian winter-based grain crop is generally very favourable as compared to the recent drought-ravaged seasons of recent years.
Grain Trade Australia is expecting increased activity for the shipping industry from grain exports in 2021 [compared to] prior years.
ABARES supports this forecast, as its winter crop production is forecast to increase by 53 per cent in 2020-21 to 44.5 million tonnes. This forecast is 11 per cent above the ten year average to 2019-20.
Normally an export-oriented business, this is great news for Australia, as over 70 per cent of Australian grain production is exported annually, with the Asian region accounting for over 50 per cent of these exports. This return to a more normal season will be important to Australia’s economic growth, especially to rural and regional economies.
[fl_builder_insert_layout id=”14481″]
One thing these favourable conditions are anticipated to reverse is the recent trend where bulk shipments of grain, instead of loading, have been discharging at the major ports all along the east coast. This has been occurring from late 2017 and will continue until the new crop is harvested and the east coast supply is replenished. These shipments have been required to meet domestic demand for human consumption, such as flour milling and malt production, and for animal feed.
Reversing the supply chain into eastern Australian ports and back up the supply chain has certainly had its challenges.
