Australia: Australian barley producers expected to see higher returns due to Russia’s invasion of Ukraine
Russia’s invasion of Ukraine could create a global shortfall in wheat and grain supply, meaning Australian grain producers could see even “higher returns,” according to ABARES’ Dr Jared Greenville, SkyNews.com.au reported on February 28.
The Australian Bureau of Agricultural and Resource Economics and Sciences has estimated the country stands to make an extra A$12 billion this year from bumper crops, with the total value of those crops sitting at A$81 billion dollars.
However, conflict in Ukraine will only serve to bump up the prices for wheat and barley, as Russia and Ukraine account for about 20 to 30 per cent of the world’s wheat and barley exports.
“Russia’s also been limiting exports,” Dr Greenville told Sky News host Ross Greenwood.
“And so, as production globally starts to go back up into the next year, we’d expect some downward pressure on prices, but this is going to put upward pressure on prices.
This will mean “higher returns, higher incomes for Australian grain producers,” according to Dr Greenville, especially as there is a “real premium” for milling quality wheat at present.
“It would mean that our prices that we see, our export prices, remain pretty high.”
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