Queensland floods hit cotton the most: ANZ
Sunday, 9 January 2011
BRISBANE, Jan 8 (Commodity Online): Devastating floods in Australian Province of Queensland could potentially lead to major production losses for cotton and sugar, but will have limited impact on wheat and beef exports, Australia and New Zealand Banking Group (ANZ) said Friday.
Queensland has suffered the worst flooding in more than 50 years in recent weeks, destroying infrastructure, housing and business activities. Mining - particularly Australia's A$50 billion coal export sector - was the worst hit, but agricultural production has also been affected.
The state is a major global supplier of sugar, cotton and beef.
The full impact of the floods on cotton production in the state is difficult to quantify at this stage, ANZ said in a report. Farmer lobby AgForce had earlier estimated cotton crop losses at more than 100,000 metric tons following the floods.
That would represent a 10 -per cent plus reduction in the size of the crop to be harvested around April, officially estimated at 900,000 tons. But even under this scenario, Australia's cotton output this year will still double on year, ANZ reported.
Queensland typically accounts for 25 per cent-35 per cent of the national cotton output.
The sugar industry has previously reported a reduction raw sugar production as rains through the second half of 2010 delayed the harvest. Some 20 per cent of the cane crop was left standing when the harvest ended before Christmas, resulting in a 20-per cent decline in raw sugar production to around 3.6 million tons in the fiscal year to June 30, and a corresponding decline in export availability.
Following rains and flooding, some industry experts have said production is unlikely to recover even in 2011.
As for wheat, Queensland typically produces less than 10 per cent of the national crop, and produced even less - around 5 per cent - this crop year, with harvest all but completed before the floods arrived.
Losses to the wheat crop will be "minimal at an aggregate level," ANZ said.
However, the issue now is the industry's "inability to move grain inland to the Brisbane Port," where GrainCorp Ltd. (GNC.AU) operates the state's major grain export terminal, ANZ said.
Queensland has suffered the worst flooding in more than 50 years in recent weeks, destroying infrastructure, housing and business activities. Mining - particularly Australia's A$50 billion coal export sector - was the worst hit, but agricultural production has also been affected.
The state is a major global supplier of sugar, cotton and beef.
The full impact of the floods on cotton production in the state is difficult to quantify at this stage, ANZ said in a report. Farmer lobby AgForce had earlier estimated cotton crop losses at more than 100,000 metric tons following the floods.
That would represent a 10 -per cent plus reduction in the size of the crop to be harvested around April, officially estimated at 900,000 tons. But even under this scenario, Australia's cotton output this year will still double on year, ANZ reported.
Queensland typically accounts for 25 per cent-35 per cent of the national cotton output.
The sugar industry has previously reported a reduction raw sugar production as rains through the second half of 2010 delayed the harvest. Some 20 per cent of the cane crop was left standing when the harvest ended before Christmas, resulting in a 20-per cent decline in raw sugar production to around 3.6 million tons in the fiscal year to June 30, and a corresponding decline in export availability.
Following rains and flooding, some industry experts have said production is unlikely to recover even in 2011.
As for wheat, Queensland typically produces less than 10 per cent of the national crop, and produced even less - around 5 per cent - this crop year, with harvest all but completed before the floods arrived.
Losses to the wheat crop will be "minimal at an aggregate level," ANZ said.
However, the issue now is the industry's "inability to move grain inland to the Brisbane Port," where GrainCorp Ltd. (GNC.AU) operates the state's major grain export terminal, ANZ said.