Grain sales push SA exports to record high

SA producers are helping to fill the global wheat and grain shortage caused by the war in Ukraine, and pushing the state’s exports to record highs.

South Australian exports have surged to a record high on the back of global demand for Australian grain in the wake of the war in Ukraine.

The latest ABS figures reveal exports of goods from the state reached $15.6bn in the 12 months to September, up 19.6 per cent on the previous year.

Agriculture and metal commodities are estimated to represent nearly 70 per cent of SA exports of goods in the 12-month period, and according to Trade Minister Nick Champion, were driving the recent growth.

Russia and Ukraine are two of the world’s largest producers of wheat, accounting for close to 30 per cent of global exports, and both are major players in corn, canola and sunflower seed production.

However with the war suspending commercial shipping at Black Sea ports customers have been left scrambling to find alternative suppliers.

SA producers are on track for a bumper grains harvest.

Australian farmers, who account for 10 to 15 per cent of the global wheat trade, have been called on to fill the void as prices surged on the back of global shortages.

Grain Producers SA chief executive Brad Perry said SA producers were on track for a bumper harvest, and hoped higher grain prices would continue to offset the impact of higher fertiliser, fuel and other farming costs.

“We are predominantly an export state when it comes to grains and a lot of what’s happening overseas with conflict and draughts has impacted grain pricing,” he said.

“Grain prices have been really positive, and given input costs are really high at the moment, hopefully that will put some money in the pockets of farmers and the state’s economy.

“There will be a lot of demand for South Australian grain this harvest and we want to make sure that the grain is good quality because there have been some disease and weather issues.”

Bulk grain handler Viterra is forecasting the second largest grain crop production on record for SA at 11.4 million tonnes. It expects record wheat production of 6.85 million tonnes, record canola production and the second largest barley and pulses crop.

According to the ABS figures, wheat exports from Australia rose by 56.8 per cent in the 12 months to September, reaching $13.1bn.

The total value of goods exported rose by 30 per cent to $562bn, with SA accounting for 2.8 per cent of the national figure.

Mr Champion said it was encouraging that demand for SA products remained strong.

“We’re experiencing record levels of export value and growth in many markets but there’s plenty of work to do,” he said.

“I look forward to continuing that with South Australian companies to ensure our state’s economy is strong and durable.”

SA exports to major trading partners including the US (up 33 per cent), Malaysia (up 22 per cent), India (up 12 per cent) and Japan (up 14 per cent) were all higher in the 12-month period.

However exports to China fell by 14.5 per cent to $2.2bn as Chinese tariffs on Australian wine continued to weigh on local wine companies.