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Crop Production

Victoria is currently Australia’s fifth largest grain producing state, accounting for approximately 8 per cent of Australia’s production.3 Cereal (wheat and barley) production represents approximately 86 per cent of broad acre crops excluding hay grown in Victoria, with wheat accounting for around 46 per cent of total production.4 Since 1980, production of oilseeds and pulses has grown rapidly from 1 per cent to almost 20 per cent of total production.

Primarily due to drought, Victoria’s grain production has fluctuated over recent years, peaking at 6.95 million tonnes in 2003-04 and reaching a low point of 1.79 million tonnes in 2006-07.

In 2008, the gross value of Victoria’s wheat production was $687.6 million, with barley at $563.6 million and canola at $125.9 million.5 Since 1999, the area cropped has increased by approximately 16 per cent to around 3 million hectares.

Victoria’s domestic grain consumption is approximately 2.5 million tonnes per year,6 underpinned by relatively stable demand from the dairy, intensive livestock and flour milling sectors. The remainder of Victoria’s grains are exported. Victoria exports approximately 2 million tonnes of grain per annum.7 In 2009, exports were valued at $659 million, an increase of $152 million on the previous year, reflecting the higher prices on offer. Victoria accounted for approximately 8 per cent of Australia’s grains exports in 2009.

In 2008, Victoria’s major grain export markets were South Korea ($62 million), Indonesia ($54 million), Thailand ($49 million), and Japan ($49 million). No destination country details were available for $56 million of grain exports from Victoria.8


Notes:

3. ABS, Principal Agricultural Commodities, Australia Preliminary 2008-09, 7111.0.

4. ABS, Principal Agricultural Commodities, Australia Preliminary 2008-09, 7111.0.

5. ABS, Value of Agricultural Commodities produced 2007-08, 7503.0.

6. 10 year average – ESC grain handling and storage issues paper, November 2008.

7. 10 year production estimate minus 10 year domestic demand average.

8. DPI, Victorian Food & Fibre Export Performance for 2008-09, DPI Agribusiness Group.