Rabobank: Demand Will Far Outstrip Australian Grain Supply Over the Next Decade
A new report issued by Rabobank forecasts that increasing demand for grain for both animal feed and human consumption will materially outstrip Australian supply over the next 10 years.
The report called The Australian Feed Grain Squeeze states that by 2030 the percentage of Australia’s grain harvest that is exported will decline from 60 percent to 53 percent, while the possibilities of greater volumes of grain imports into the country will increase.
Over the same time period, climbing demand for wheat, barley, oats, and sorghum will absorb an additional 6 percent of the country’s annual output, cutting grain stores for export by 2 million tons, or 10 percent under the current five-year average.
Meanwhile, Rabobank’s agribusiness specialists forecast that supply is expected to climb by only 0.4 percent annually over the coming decade, noting that climate change is already contracting the country’s cropping belt, and stating that although new genetic modification and breeding technologies have the potential to increase yields to offset the grain squeeze, they predict that development, adoption, and end-market acceptance rates will be low over the next decade.