The record crop of grain in Australia last year has created an unprecedented buying appetite among arable farmers. (Seeding) machines, fertilizer, crop protection products and other products cannot be dragged on, reports Reuters news agency. With only a few weeks to go until winter wheat sowing starts, suppliers are struggling to meet demand.
There is sufficient moisture in the soil in several key Australian grain regions. This, in combination with high grain prices and good demand for wheat, makes arable farmers very optimistic about the new season.
Not available on time
The prices of consumables and machines have risen sharply due to high demand. But even with the higher prices, farmers are not assured that they will have access to fertilizer, for example, in time. The demand for fertilizer is extra high this year due to last season's good harvest. As a result, more minerals have been removed and the soil supply has been used.
Farmers now have a strong liquid position and want to expand and improve their farms. The supply of products that have to come from outside the continent was disrupted last year due to the corona crisis. "In order to have the necessary extra or larger machines available in a timely manner, farmers are turning to second-hand equipment," says Roger Moylan tractor dealer in New South Wales. "Prices are therefore sometimes 50% higher than estimated in advance."
Mood changed
The mood in Australian arable farming has completely changed in 18 months. Then the country was in the grip of extreme drought. Parts of the eastern states were not even cultivated due to lack of moisture. Wheat is the most important crop in Australian arable farming. On average, the crop represents an export value of 6 billion Australian dollars (approximately €3,9 billion). The Australian Bureau of Agricultural and Resource Economics and Sciences is less optimistic than farmers. They expect a yield of 2021 million tons for the 2022/25 season. That is 25% less than last season, but in line with the 10-year average.