ANZ forecasts strong outlook for grains industry

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According to ANZ’s latest agricultural research paper, Grains In Focus, global demand for grains and oilseeds will require up to 2.5 billion tonnes of additional production by 2050.

ANZ forecasts strong outlook for grains industry
ANZ sees greener pastures ahead for Australia's grain industry.

ANZ says Australia’s wheat production forecast is at 26.5 million tonnes, with crop conditions generally better than normal across south east Australia.

ANZ Head of Agribusiness Mark Bennett says China’s rapid demand growth is contributing to the optimism.

"We are currently seeing China emerge as a more significant importer of grain and animal protein," he says.

Bennett adds the weakening Australian dollar has also helped boost prices and grow profitability.

"China is already our largest agricultural export destination and now it could surpass Indonesia as the biggest buyer of Australian wheat," he says.

"Australia punches above its weight in global export share and this demand for grains is expected to grow over the coming decades, particularly for oilseeds."

"Whilst the Asian market is significant and growing, it is not ours for the taking. It is a very competitive market and we still have a lot to do to ensure our international competitiveness."

The report also states that Australia will need to see average annual grain production growth at 1.9 per cent to maintain its share of global production through to 2050.

1.9 per cent annual production growth will result in Australia producing 83 million tonnes of grain and oilseed in 2050 with a gross value of $28.4 billion.

The bank was recently at the AgQuip field days in Gunnedah, New South Wales to discuss the research with customers.

Find out more about the research and ANZ Agribusiness at www.anz.com/agri

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