A few years ago, Australia was on the top of the list for wheat production and export. The bulk of the global supply of cereals comes from the country. But drought has been a hindrance to maintaining that top-ranking bid. Due to three years of severe drought, the country’s wheat production is declining. As a result, exports to Australia are falling behind.
Australia has had to produce wheat in the face of drought for a long time. But these initiatives are not working to increase production. On the contrary, the country’s production is on the decline. According to data from the US Department of Agriculture (USDA), Australia has produced 31.8 million tonnes of wheat in the past 2016-17 seasons. At the time, the country alone supplied 12 percent of global wheat. Through which the country occupies the third top wheat exporter.
But due to drought, Australia gradually lost its place in production and export. The USDA has already predicted wheat production to decline by 1 million tonnes over the next 2019-20 seasons. At this time, the country’s production could stand at 18 million tonnes. Whereas the previous year’s production was 17.3 million tonnes, which is the lowest in enliven years. As such, production is forecast to increase in the current season.
Meanwhile, exports are falling due to reduced production of wheat due to reduced production and drought. And Australia is lagging behind in global exports to other competing countries. Australia, in particular, exports significant wheat to Asia. The market is now occupied by countries like Argentina, Ukraine, Canada. As a result, Australia is lagging behind these countries in the export equation.
Australia’s wheat exports have fallen to over Nine million tonnes in the 2018-19 Season, the lowest in the last 11 years. Whereas two years ago, the country’s exports amounted to 22.6 million tons. And last year, the country’s wheat exports fell by 5.2 percent, the lowest in 60 years. However, the USDA says in its estimates, global wheat exports are expected to rise to 5.3 percent in the current season.
More than a year ago, Indonesia’s top wheat export market was Indonesia. Although it has maintained its position as the top wheat exporter in the country for the last 15 years, it is reduced due to drought. Indonesia, in particular, has reduced imports from the country due to poor wheat quality. As a substitute for wheat, imports from Canada, which is ranked second on wheat supply, have increased. Besides, the country has also significantly increased its imports of wheat from Argentina. Besides, the United States also exported a record amount of wheat to the country. 2018-19 season in America, the export of wheat to Indonesia was 1.38 tonnes. As a result, although imports from Australia declined, it did not affect Indonesia. Similarly, Australia’s wheat exports to other countries in Asia are also declining as markets for Russia, Ukraine and the Black Sea are expanding.
Hitherward, sectors are not seeing a sharp rise in Australia’s wheat production and export. Because of the low rainfall and drought prevailing in Western Australia more than a year ago, the major wheat-producing regions. But now the drought is spreading all over the country. Temperatures are worsening as rainfall decreases.
Especially in Western Australia, so far less than one-third of normal rainfall has been recorded. And in New South Wales half the normal rainfall was calculated. And in South Australia, production fell by 75 percent compared to year of 2017 & 2018. As a result, production is expected to suffer further.
The Australian government has announced an additional $ 4.7 billion after pledging to give $68 million to the agricultural sector.