Grains market in Australia - statistics & facts
The grains market is one of Australia's most important agricultural sectors. Wheat, barley, and canola are a few of the significant grains produced in Australia. Apart from domestic use for animal feed and human consumption, a substantial portion of the nation's grain output is exported globally. Although experiencing a decline in the production value of grains in financial year 2024, Australia's grain production looks set to rebound in the 2024-25 season.
China, Indonesia, and Vietnam were the leading export destinations for Australian wheat in 2022. While Australian barley has seen an increase in export volume in recent years in the Middle East, China has returned as the dominant buyer of Australian barley, having removed tariffs on the grain in August 2023.
How are Australian grains consumed?
In general, Australian's regularly consume grain and cereals. Products such as noodles, bread, and pasta were commonly manufactured from Australian wheat in international markets. Australian barley is used in malt products such as beer, distilled spirits, and cereals, while canola can be processed into cooking oil or biodiesel. Aside from human consumption, a large share of wheat, barley, and canola is used for livestock feed. The consumption volume of wheat in Australia was almost evenly split between animal feed and food, seed, and industrial (FSI) consumption. In comparison, barley was predominantly consumed as animal feed. The export value of animal feed from Australia has increased in recent years, with Australian grains being an important source of nutrition for livestock overseas.The global importance of Australian grains
Australia could see an increase in wheat production in the coming year, primarily due to more rainfall increasing soil moisture levels. Wheat production in Queensland and New South Wales should increase in 2024/25, recovering from an arid 2023 season. Similarly, barley and canola should also see increasing levels of production. While just one factor influencing grain trade, the overall increase in supply could lead to a higher volume of grains being exported.China, Indonesia, and Vietnam were the leading export destinations for Australian wheat in 2022. While Australian barley has seen an increase in export volume in recent years in the Middle East, China has returned as the dominant buyer of Australian barley, having removed tariffs on the grain in August 2023.
