South Australia to record most valuable grain harvest on record

High yields and global grain prices are underpinning South Australia’s most valuable grain harvest, forecast to hit $4bn.

South Australian grain farmers are set to reap the most valuable crop on record, forecast to be as much as $4bn.

The yield is also higher than expected at about 11.6m tonnes, resulting in grain handler Viterra needing an extra 150 seasonal workers.

The crop value reflected high global grain prices caused by drought in the US and war in Ukraine – one of the world’s largest grain exporters.

Grain Producers SA chairman Adrian McCabe said this season’s crop would break the record farm gate value of $3.2bn set last year.

“It’s the biggest value of the South Australian grain crop we’ve ever seen – possibly 20-30 per cent higher because of the unfortunate circumstances in Ukraine and droughts in the US and China,” Mr McCabe said.

“We’re scoring the SA crop 20 out of 20 for yield and value.”

However, crop growers are being warned to prepare for a potential locust plague that could cause outbreaks in the Upper Eyre Peninsula, Upper North and Flinders Ranges.

The state government has provided $1.6m for the necessary planning and surveillance for the anticipated outbreak and having a plane on standby for control if required.

“While locust populations are not predicted to reach the high outbreak levels experienced in

2010, there is some uncertainty in predicting the scale of the 2022 Spring populations and

the subsequent damage,” Primary industries minister Clare Scriven said.

“Due to favourable seasonal conditions and evidence of locusts migrating from remote parts

of South Australia and the eastern states last Autumn before laying eggs, it’s important these

measures are in place to control the potential outbreak when those eggs hatch.”

Mr McCabe said there was every chance the upcoming harvest would rival the yield record of 11.79m tonnes set in 2016/17.

South Australian grain farmers Bradley and Colleen Lowe with kids Ethan, Macy and Josie at Wasleys, SA. Picture Emma Brasier

“I reckon we’ll be well above 11.5m tonnes yield-wise, because tip to toe (across the state) it looks fantastic,” he said. “Normally, some of the more marginal grain growing areas might miss out when we have big yields, but the Mallee and Far West Coast look astonishing.

“Canola looks fantastic and the barley is starting to lay over with a lot of grain weight.”

It’s the second season farmers have been able to grow genetically-modified canola, which will account for about 20 per cent of the canola crop.

Hamley Bridge and Wasleys farmer Bradley Lowe said the crops “struggled to get much better than what we’ve got now” which helped offset high inputs.

“As much as it’s the most valuable crop, it’s the most expensive crop to produce,” Mr Lowe said. “The inputs are high: fertiliser, machinery, fuel, labour, it all adds up.

“It looks like the costs won’t be doing down next year, so we’ll be hoping for a higher yielding year as well.”

Regional roads are also expected to be under enormous pressure this harvest as grain makes its way to ports destined for Bangladesh, Indonesia, Europe and Saudi Arabia.

Viterrra’s chief operations officer James Murray said the company was hiring a larger than normal amount of seasonal workers to cope with the demand.

The company normally employs about 1400-1500 seasonal workers across its 55 country receival sites, but this season was advertising for 1650 staff.

“The rain over the last few months has been impressively timed for growing grain across the state, so it’s lifted our requirements on the back of record production,” Mr Murray said.

“It’s fantastic for the growers and for regional communities to have a crop of that size and with elevated prices, it’s of real economic benefit across the state.”

Mr Murray said the company was for the second year offering temporary accommodation in transportables at locations including Kimba, Wolseley and Pinnaroo.

“We noticed coming out of Covid we saw more applicants from Adelaide coming to the country areas, so having accommodation was key to getting the staff numbers required in the locations we need,” Mr Murray said.

He said the company provided the accommodation “free of charge”and partnered with local hotels, motels and caravan parks to offer a total of 180 rooms.

Regional South Australia contributes around $31bn to the state’s economy, just over one quarter of our Gross State Product.

Harvest was expected to start in the next few weeks, as the weather dried and days become longer, stretching past Christmas.