Australia Floods Disrupt Some Farm Industries -Participants

Australia Floods Disrupt Some Farm Industries -Participants

Widespread flooding in northern New South Wales and Queensland states is disrupting some agricultural and transportation activities, including sorghum harvesting and cattle sales, though the impact of the wet weather isn’t all negative, according to industry participants.

Farmers in much of northern New South Wales are suffering the effects of a second flood in as many months after a harvest of winter crops was delayed and damaged, while Queensland farmers are experiencing their third major flood in two years.

The two states are home to some of Australia’s best agricultural land, including the Darling Downs west of Brisbane.

More than two-thirds of Australia’s A$500 million sorghum crop, which is estimated to yield 2.4 million metric tons, grows in Queensland, but most of the flood-affected areas are west of the major growing areas, resulting in only minor damage to crops and disruptions to the harvest, which is getting under way, GrainCorp Ltd. spokesman Angus Trigg said by phone.

Sorghum crops in northern New South Wales are mostly four-six weeks from harvest and could yet benefit from the wet conditions, he said.

While there could be some disruption to grain haulage in the region due to the impact of floods on some rail lines, GrainCorp is working with customers to minimize any impact, he said.

Meanwhile, the transportation of cattle to markets in Queensland, which accounts for about half of national output, is also being disrupted due to restrictions to weight loads on roads and bridges, with some sales halted, Tim McRae, chief analyst at marketing concern Meat & Livestock Australia Ltd., said by phone.

While floods are easing in some areas, it could be two weeks before the situation normalizes and what happens during that period is unknown, he said.

There is some short-term pain in terms of cattle movement disruptions, but for many producers this rain is perfectly timed and underpins a pretty good start to the year, with its boost to pastures and therefore improved production outlook, he said.

Many meat processors in these areas have been working reduced days anyway, as export markets are slow at the moment, and the flood situation isn’t nearly as severe as a year ago–when Brisbane Port, which moves 60% of Australia’s annual A$4.5 billion in beef exports, was closed for more than a week, McRae said.