‘If you’re getting $1700 a hectare, you can make money’
Lentil prices in Victoria have dropped by up to $100 a tonne compared to last year due to global market volatility and tariffs.
Lentil prices have fallen up to $100 a tonne in Victoria compared to this time last year, but farmers say they are still a valuable rotational crop.
In July last year, lentils were trading at $930 a tonne in Melbourne and Adelaide and $872 a tonne in NSW.
The current prices in Melbourne and Adelaide are $850 a tonne, and in NSW, the value is $772 a tonne.
Market Check market research analyst Richie Mould said prices were currently flat, with old crop lentils at around mid $800 a tonne delivered to Melbourne.
“Demand is weak, and growers are not very active in selling, and that is limiting market liquidity,” he said.
“Prices have softened recently, mainly due to low demand from major export partners.”
Mr Mould said the new Canadian crop harvest was imminent causing buyers to wait for fresher supply.
He said growers should be cautioned against expecting $1000 a tonne for lentils at harvest.
“There is potentially a large lentil crop in Australia, and Canada is also producing a reasonable crop, plus there is subdued Indian demand, which might result in lower prices than in recent years,” he said.
Jason Mellings from Carron said, despite the falls, lentils were still making reasonable money.
He has been growing lentils as part of the winter rotation for 20 years.
“If the season pays off and we can get 2 to 3 tonnes to the hectare, and at that price, I would be wrapped,” he said.
“If you are getting $1700 a hectare, you can make money,” he said.
However, Mr Mellings said the pricing was still a long way off when considering harvest values.
“Who knows where prices will be at harvest? They could be up or down, and we are seeing a lot of volatility in world markets at the moment,” he said.
The focus was now on looking for some decent rainfall for spring to help finish crops.
His area received a welcome 30mm in June.
Manangatang grower Rick Plant said the lentils at his place were variable, depending on the conditions they had endured.
“There has not been a lot of rain, and some of the crops have been sandblasted and killed by the wind,” he said.
“Wind knocks lentils around,” he said.
Mr Plant said, looking at lentil prices historically, the values were still good if farmers could get a crop at harvest.
He has planted 1600ha of lentils this year and said they represent a “significant portion” of the winter crop.
“We have had bugger all rain and they are still miles in front of everything else here,” he said.
The property recorded no rain in May, 10-12mm in June, and just 5mm so far in July.
“We need a fair spring to get through,” he said.
Meanwhile, the Australian Bureau of Agricultural Resource Economics crop report forecasts a planting area of 530,000ha of lentils in Victoria with estimated yields forecast at 1.42 tonnes a hectare.
In addition, national lentil production is tipped to increase by 1.5 million tonnes, 71 per cent above the 10-year average.
According to ABARES, the overall area planted to lentils nationally was forecast to increase further in 2025-26 to a record 1.1 million hectares, reflecting high grower returns and the ability for lentil crops to perform in dry conditions.
