Australian Farmers Should Invest in Storage Systems to Combat Weather

A Row of Storage FacilitiesBad weather caused poor harvest numbers for Australian farmers in 2017-2018, which should spur a need to invest in storage solutions to prevent spoilage.

Whether they are shipping container sheds or general fabric structures, agribusinesses need to look into more investments in better storage facilities. Another reason to do so involves the U.S. Department of Agriculture’s (USDA) forecast rebound in grain production for 2018-2019.

Weather Conditions

A dry spell, frosty weather and flooding affected grain production in the country during the previous season. This would take a turn for the better in the next one. According to the USDA, wheat production in Australia would increase almost 12 percent to 24 million metric tonnes in 2018-2019.

However, rice production would largely remain the same in the following season, while growing demand from livestock farmers and higher prices in some parts of the country may limit grain exports.

The domestic feed market is responsible for roughly 10 percent of the grain supply chain, but this has changed in recent years due to the changing weather and a shortage of grassland.

Funding Assistance

A robust harvest greatly depends on the available supply of water, especially rainfall. Some states have provided funding assistance for farmers that grapple with dry weather. In New South Wales, farmers can apply for a $20,000 loan under the Drought Transport Fund.

The financing would help farms to deal with the freight expenses such as water delivery and fodder distribution. While it may be small, the loan would still be useful given that the recent droughts may be the worst in the last eight centuries.

Conclusion

Australian farmers need to consider all options to protect their crop harvest. Pest and spoilage are some of these concerns, so farmers should think whether they have an efficient storage system.

Posted on by Nihonmagazine in Hot Spots

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