Grain export volumes drop to lowest in seven years

Bulk grain export volumes dropped significantly in 2018-19 and they are only expected to worsen this season.

Volume reduction: An ACCC report has found just 13.2 million tonnes of bulk grain was exported during 2018-19.

DEVASTATING drought conditions have pushed Australia’s 2018-19 bulk grain export volumes down to the lowest in about seven years.

And the decrease in volumes is expected to worsen.

A report from the Australian Competition and Consumer Commission found just 13.2 million tonnes of bulk grain was exported during 2018-19 – the lowest bulk exports since at least 2011-12.

The ACCC says bulk grain exports recorded in the previous 2017-18 season reached 20.11 million tonnes.

The report showed Victoria exported 2.20 million tonnes in 2017-18 compared to just 150,000 tonnes during the 2018-19 season.

“Intensified” drought conditions in South Australia and on Australia’s east coast were found to have contributed to the plunge in volumes.

Grain Producers chairman Andrew Weidemann agreed the east coast drought last season had a “major impact” on exports.

He said this season’s export volumes were not expected to improve.

“There is no doubt the industry is now in a worse position than last year,” Mr Weidemann said.

He said a significantly lower Western Australia crop of about 9 million tonnes – compared to about 17 million last year – will further drop export volumes.

“Because of the drought this year, grain from Western Australia is booked to go north which will take away from the state’s export markets,” Mr Weidemann said.

“It is a major concern for our export markets as other competitors will take them up.”

For barley, Mr Weidemann said major Australian grain markets included China, Indonesia and Egypt.

“There has also been a rise in demand in India for pulses while Sri Lanka and Turkey are also strong markets,” he said.