Economic and Commercial Division 8 September 2015 ABARES AUSTRALIAN CROP REPORT Summary The ABARES forecast for South Australia’s 2015–16 winter crop production has been revised upward by 5.5% since June to 7.5 million tonnes, 0.7% below the five year average and down 0.5% (or 0.04 million tonnes) from the 2014–15 season, which was the third largest on record. National winter crop production in 2015–16 is estimated to be 41.4 million tonnes, 0.7% above the five year average and up 7.9% (or 3.0 million tonnes) on 2014–15. According to the Bureau of Meteorology (BoM) an El Niño event persists in the tropical Pacific Ocean and the Indian Ocean is characterised by record warm sea surface temperatures. The BoM states that this combination means that chances of a wetter or drier than average three months in the eastern half of the country are roughly equal and chances of above average rainfall across Western Australia and South Australia are greater than 60%. Further Analysis South Australia Following unfavourable seasonal conditions in early winter, rainfall in August improved the outlook for 2015–16 winter crops in South Australia. The total area planted to winter crops is forecast to rise by 1.2% in 2015-16 to around 4 million hectares. This reflects a rise in the area planted to cereals and pulses, which is expected to be largely offset by a reduction in the area planted to canola. Wheat production in 2015-16 is forecast to fall by 2.6% to 4.5 million tonnes, reflecting a 3.0% fall in the yield. Barley production is forecast to increase by 3.6% to 2.0 million tonnes, reflecting a 7.5% increase in the area planted to barley, with the average yield forecast to fall by 3.6% to 2.1 tonnes a hectare. Canola production is forecast to fall by 14% to 281,000 tonnes, reflecting a 21% fall in the area planted—a response by producers to relatively unfavourable returns from growing canola compared with barley and pulse crops. Australia As a result of the generally favourable seasonal conditions over winter and the favourable outlook for spring rainfall, forecast winter crop production in 2015–16 has been revised up from the June 2015 forecast. Total winter crop production is forecast to rise by 7.9% in 2015–16 to 41.4 million tonnes as a result of forecast production increases in Western Australia, New South Wales, Queensland and Victoria. Winter crop production is expect to remain largely unchanged in South Australia, falling by just 0.5%. The total area planted to winter crops is forecast to be 1.2% higher in 2015-16. A decline in the area planted to canola is forecast while the area planted to wheat is expected to be similar to the previous year. There has been an estimated increase in the area planted to barley, oats and pulses. 12 Winter Crop Production (Million Tonnes) 10 120 100 South Australia (LHS) 8 80 6 60 4 40 Australia (RHS) 2 20 0 0 Note: State winter crops include wheat, barley, oats, lupins, canola, field peas, chickpeas, faba beans, and lentils. Australian winter crops also include triticale, linseed, safflower and vetch. Next release of ABARES Crop Report is 1 December 2015