The federal agriculture department says it is implementing a number of initiatives to help move huge grain inputs and storages in Australia whilst one bulk handler has recorded a half-billion dollar profit off the back of bumper harvests.
Despite the severe impact of rain and flooding in parts of New South Wales and Victoria, the nation's grain growers are still expecting to harvest another record - or near-record - crop, on top of recent bumper seasons.
Peak forecasting agency ABARES estimated in early December that 62 million tonnes would be produced nationwide, which would be the second largest on record. Thanks to international factors, the large supply won't dent the prices like it normally would, with an expected near-record $85 billion in Australian farm gate value across all agricultural production in 2022/23.
The Department of Agriculture Forestry and Fisheries Acting Deputy Secretary of the Agricultural Trade Group, Nicola Hinder PSM said they were doing all they could to help grain exporters:
"The department has successfully negotiated a treatment program for bulk shipments of grains to Mexico and is currently trialling the same treatment for grains and pulses to India.
"In-transit treatment removes the need for grain to be treated onshore for seven to ten days, which reduces congestion at ports and lowers costs for exporters.
"We’ve improved the assessment and issuance processes for export permits by automating and digitising manual certificates. So far, we have assessed and issued over 52,000 grain export permits for 2022—with such volumes every improvement we make can have positive impacts for industry.
The recent record harvests have also boosted major bulk handler CBH Group's bottom line, reporting a surplus last Friday of almost half a billion dollars. CBH chief officer Ben Macnamara said on Friday:
"For the first time in our co-op’s history, the record 2021/22 receivals of 21.3 million tonnes exceeded the logistical capacity of the network, with the size of the crop 50 per cent bigger than the five-year average.
"Unsurprisingly, the record harvest placed pressure on the supply chain, but our people worked together to overcome all the challenges thrown at them to receive, store and outturn the crop, while also delivering the largest network investment program on record, and navigating through significant global market volatility. "
The federal agriculture department has also approved two new mobile bulk loading operators—with two more under assessment—providing more options for exporters to move grain through the ports.
Acting Deputy Secretary Hinder said on Tuesday the agriculture department was also looking to expand the number of grain destinations for Australian exporters:
"We’re doing everything we can to improve market diversification. This year we’re looking to send feed barley to the Gulf states, malting barley to Mexico, Peru and Ecuador, and lentils to India.
"And we are actively pursuing market access for wheat and barley to Brazil, and wheat to Mexico and Ecuador while working to improve conditions and reduce costs for Australian grain into a number of key markets, such as India, Pakistan, Sri Lanka, and the Philippines."