Rising fertiliser costs drive downturn in Australian wheat production

• BY India News Newsdesk
• June 3, 2026
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Rising fertiliser costs drive downturn in Australian wheat production

Canberra, June 2 (IANS) Australia’s annual wheat harvest is set to fall by 26 per cent year-on-year as a result of rising fertiliser prices driven by the conflict in the Middle East, according to a government report.

The agricultural commodities report published by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) on Tuesday said that national wheat production is forecast to fall to 26.7 million tonnes in 2026-27, down 26 per cent from 2025-26 and 8 per cent below the 10-year average.

A separate crop report also published by the ABARES on Tuesday said that the total area planted to wheat is forecast to fall by 12 per cent to 10.9 million hectares in 2026-27, the smallest area since 2019-20.

Overall, it said that Australian winter crop production is forecast to fall by 21 per cent year-on-year to 54.5 million tonnes, reports Xinhua news agency.

The commodities report said that many growers are expected to leave ploughed land unplanted due to increases in fuel and fertiliser prices, as well as dry conditions and a below-average national winter rainfall outlook.

“The impact of Middle East conflict is significant for Australian agriculture because the sector is export-oriented and farming systems use imports of fuel, fertiliser, chemicals, and packaging as inputs,” the report said.

AccordRising fertiliser costs drive downturn in Australian wheat production

Canberra, June 2 (IANS) Australia’s annual wheat harvest is set to fall by 26 per cent year-on-year as a result of rising fertiliser prices driven by the conflict in the Middle East, according to a government report.

The agricultural commodities report published by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) on Tuesday said that national wheat production is forecast to fall to 26.7 million tonnes in 2026-27, down 26 per cent from 2025-26 and 8 per cent below the 10-year average.

A separate crop report also published by the ABARES on Tuesday said that the total area planted to wheat is forecast to fall by 12 per cent to 10.9 million hectares in 2026-27, the smallest area since 2019-20.

Overall, it said that Australian winter crop production is forecast to fall by 21 per cent year-on-year to 54.5 million tonnes, reports Xinhua news agency.

The commodities report said that many growers are expected to leave ploughed land unplanted due to increases in fuel and fertiliser prices, as well as dry conditions and a below-average national winter rainfall outlook.

“The impact of Middle East conflict is significant for Australian agriculture because the sector is export-oriented and farming systems use imports of fuel, fertiliser, chemicals, and packaging as inputs,” the report said.

According to the ABARES, Australian grain and oilseed export prices have risen by around 20 per cent since the conflict in the Middle East began, but domestic prices for urea have risen by more than 80 per cent in the same period.

As a result of the declining winter crop production, the bureau is forecasting that the total value of Australia’s agricultural output will fall by 5 per cent to 98.3 billion Australian dollars (70.5 billion U.S. dollars) in 2026-27.

Agricultural export value is expected to fall by 9 per cent to 74.8 billion Australian dollars (53.6 billion U.S. dollars), the report said.

–IANS

sd/ing to the ABARES, Australian grain and oilseed export prices have risen by around 20 per cent since the conflict in the Middle East began, but domestic prices for urea have risen by more than 80 per cent in the same period.

As a result of the declining winter crop production, the bureau is forecasting that the total value of Australia’s agricultural output will fall by 5 per cent to 98.3 billion Australian dollars (70.5 billion U.S. dollars) in 2026-27.

Agricultural export value is expected to fall by 9 per cent to 74.8 billion Australian dollars (53.6 billion U.S. dollars), the report said.

–IANS

sd/