Australia’s Grain Sector Poised for Significant Growth – Report
A new Grains Muster report issued by the Australia and New Zealand Banking Group (ANZ) concludes that Australia’s grain industry will be on the receiving end of global interest from investors that had previously focused on the beef sector, resulting in notable growth within the industry, reports ABC.
Expanding middle classes in emerging markets are driving growth in both domestic and foreign dairies and feedlots, which in turn is creating an awareness around the long-term potential for strong demand for grain.
Based on these growth drivers, the bank forecasts that the value of Australian wheat exports will range between $6.2 billion and $9.2 billion by 2030, and at the same time that Australian national crop body, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), reported that Australian wheat output is expected to climb by 1% next year.
ANZ Head of Food, Beverages, and Agribusiness, Michael Whitehead told ABC that the influx of capital into the sector will bring with it a wave on farm consolidations.
"Farmers will need to create new partnerships and joint ventures to work with these capital providers," he said. "They'll need to increase efficiency and technological capability, and to consolidate their operations."