by PressAustralian producers expect high wheat harvest
Australian wheat producers buy equipment and fertilizer en masse
Last year Australia had a record wheat harvest, which was a real salvation after dry periods. However, experts say that the weather conditions will be favorable for growing grain this year as well. Therefore, Australian producers are actively preparing for the new sowing season, upgrading machinery, stocking up on fertilizers and making plans to cultivate land. This rush has led to a surge in demand for a number of farmer commodities, and suppliers are struggling to keep up with orders.
After last year’s record volumes of wheat, farmers are optimistic, especially since weather conditions do not portend a prolonged drought and temperatures will be within normal limits for this season.
Grain prices, which have reached historical peaks for the last 7 years, are also contributing to the high spirits among Australian producers. Interestingly, plans for the new season and high yields from local farmers are fueling demand for agricultural equipment, which in turn is pushing prices for machinery up as well. Moreover, all of this is happening against the backdrop of the country’s economic recovery that began after the pandemic ended. Australia is seeing an increase in property values, as well as a strong rebound in the labor market.
Huge demand for farm equipment has caused problems with the delivery of orders. Farmers complain that equipment has to wait about 6 months, and some items are not on sale. Equipment suppliers cannot cope with the volume of orders. The situation is especially serious in the state of New South Wales, which last year became a leader in grain production.
Wheat cultivation is a major crop for agriculture in Australia. Exports of this grain bring in about $4.6 billion annually, making it one of the largest suppliers of the crop on the world market.
However, there is not only a lack of equipment for farming. A number of experts fear that some producers may be left without necessary amounts of fertilizers. And it is not even taking into account the fact that their prices continue to rise, a much bigger problem is their limited amount. Carrying out a sowing campaign without the necessary fertilizers may lead to lower yields and deterioration of grain quality. Besides, the high yield of the last year had a negative impact on the soil and its reserves of mineral substances. Therefore, this season it is necessary to recharge the plots as much as possible, and with the limited availability of substances, it will be difficult to do. However, many farmers hope that the fertilizer situation will soon improve and they can start sowing grain.