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Drought has also hit Australia

04 March 20142 min reading
As one of the country’s biggest grain milling companies, Australia Milling Group’s CEO said that no one should underestimate the crisis that can affect the food production system of Australia. As Australia’s leading pulses, cereals and oil seeds exporter; Australia Milling Group’s Chief Executive Officer Peter Wilson explained that the current drought is not only posing a risk to the farming families, but also a risk to Australia’s ability to supply its customers. Emphasizing that no one should underestimate the crisis now experienced in Australia’s food production system, Wilson added: “We’ve got to buy that grain off farmers who are increasingly running shorter and shorter of supplies. Domestic prices continue to firm which is compromising export margins so it’s an extremely tough environment.” Stating that grain supplies are decreasing and the sowing of some winter crops may not take place at all; Wilson continued as follows: “The profile in these beautiful soils here in the northern part of Australia is completely dry. Because it has been dry for so long we haven’t seen the farmer forward sell. He’s not out there selling, for example, his 2014/15 cereal or pulse harvest in northern Australia because he doesn’t know whether he’s going to plant a crop yet.”
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