WA to play big role in agricultural export drive

26/12/94

Western Australia will play a big role in the nation's agricultural export drive this financial year, Primary Industry Minister Monty House said today.

Mr House said drought in the Eastern States had driven up prices for most of the State's key agricultural commodities, boosting the value of agricultural production to an estimated $3.3 billion for 1994-95. 

Commodity prices should be higher despite a stronger than expected Australian dollar.

Stronger grain prices had helped lift farmers' incomes and improvements in wool, beef and sheepmeat prices were tipped to continue.

"The crop in WA coupled with higher prices will mean we have a vital role in filling many export grain contracts and carrying Australia's export load," Mr House said.

"Most of the State's grain crop has been harvested and is generally better than was expected earlier in the season, with good quality coarse grains and legumes and wheat with high protein levels.

"More than four million hectares of wheat were planted in WA which will produce an estimated 5.4 million tonnes, or about 63 per cent of the nation's wheat crop. 

"WA will also produce around 800,000 tonnes of barley, 31 per cent of the nation's crop, and 770,000 tonnes of lupins which is 90 per cent of Australia's output.

"Improved international demand and the drought have lifted prices significantly for grain producers in the past couple of months with ASW wheat returning about $182/t before deductions, lupins $185/t and barley at a historic high of $200/t."

Mr House said the State would harvest its biggest ever canola crop - expected to exceed 100,000 tonnes - and gross farmers about $350/t.

For the first time in a number of years, world demand for wool was expected to outstrip production.  Stocks of wool held by supplier countries and commercial stocks held by processors were now reduced from their peaks in the early 1990s.

"This is a positive sign for producers, reflected by increased prices for wool, with the Eastern Market Indicator forecast to be between 700 and 800 cents per kilogram clean next year," Mr House said.

Demand for live sheep is likely to remain firm with growth expected in most of the major Middle Eastern markets.

Over four million sheep have been exported annually from WA in the last two years, with prices for shippers in 1994 rising by 25 per cent to average about $17 a head.  Continued strong demand should see prices average slightly higher in 1995.

The prospects for lamb prices appear favourable in 1995, with increased competition by local meat processors since deregulation of the domestic market and strong export marketing by the WA Meat Marketing Corporation.

Out-of-season lamb production will be encouraged by the new marketing arrangements with lamb prices again expected to be more than $2/kg dressed weight in the saleyard.

The prospects for beef in WA remain bright, with prices expected to be slightly higher in 1995 following on from a 10 per cent rise in cattle prices in 1994. 

Also, a good late summer break in drought affected areas in the Eastern States could result in further upward pressure on prices as herd building and restocking take place.

Improved prices in 1994 have been caused by reduced turn-off from local producers, higher domestic consumption as a result of improved economic conditions, and an expansion in the live cattle trade.

Media contact: Will Henwood (09) 481 2044