World Grain - December 2008 - 15

newsreview
Drought prompts reduced grain forecasts for Australia
CANBERRA, AUSTRALIA - With
much of southeastern Australia returning
to drought conditions, the U.S. Department
of Agriculture's (USDA) Foreign Agricultural Service (FAS) recently lowered the
country's total wheat production forecast
for 2008-09 to 20.15 million tonnes, down
from the previously forecast 21.6 million
tonnes. The FAS also lowered the total
barley production forecast for 2008-09 to
7.013 million tonnes, down from the previous forecast of 7.875 million tonnes. The
FAS said there remains significant scope
for further reductions in forecast production for both wheat and barley.
Despite very low or no rainfall for the
month of August in southeastern Australia, many winter cereal producers in these
regions had hoped for at least average or
above average rainfall during the crucial
period of late September and early October, the FAS said. This did not occur
however, and the winter cereal producing
regions in Western Victoria, Australia and
Southern New South Wales, Australia are
expecting a very poor harvest with many
crops cut for hay or abandoned altogether.
The FAS believes the conditions faced in
these areas are so severe that they will
significantly constrain Australia's overall
production of wheat and barley and thus
have provided the basis for the downward
revision in both area and yield. In revis-

ing production downwards, the FAS has
cut area by 500,000 hectares and has also
trimmed yield.
Recent FAS investigations have revealed
the local production credit conditions for
Australian growers (in the context of ongoing drought) remain of greatest importance, at least for the foreseeable future.

Many growers believe that without widespread rainfall prior to planting next year's
(2009-10) crop, credit required to "dry
sow" crops may be constrained. On the
positive side, growers believe that falling
oil, fertilizer and the weaker Australian
currency will likely provide some economic relief going forward.

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Kazakhstan to double grain
production, export
ASTANA, KAZAKHSTAN - In the near
future, Kazakhstan should be able to double
its grain production and export volumes, said
Akulbek Kurishbaev, minister of agriculture,
on Oct. 27. The increase is based on the assumption that new, modern technical equipment will come into use in Kazakhstan's agricultural industry, he said.
Annual grain production in Kazakhstan
averages nearly 15.5 million tonnes, while
annual grain exports average around 6 million tonnes, he noted. To date, the country is among the world's largest grain exporters, and in 2007 Kazakhstan was the
world's leading flour exporter.
At the same time, the country can increase grain production volumes by increasing yield only, he said. Grain production in Kazakhstan is one of the best
prospects for foreign investments, noted
Kurishbaev.

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For more information, see Page 82.

www.World-Grain.com / World Grain / December 2008

15


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World Grain - December 2008

Table of Contents for the Digital Edition of World Grain - December 2008

Contents
World Grain - December 2008 - 1
World Grain - December 2008 - 2
World Grain - December 2008 - 3
World Grain - December 2008 - Contents
World Grain - December 2008 - 5
World Grain - December 2008 - 6
World Grain - December 2008 - 7
World Grain - December 2008 - 8
World Grain - December 2008 - 9
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World Grain - December 2008 - 11
World Grain - December 2008 - 12
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World Grain - December 2008 - 14
World Grain - December 2008 - 15
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World Grain - December 2008 - 18
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World Grain - December 2008 - 27
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World Grain - December 2008 - 83
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