Australia to produce more canola despite drought

13-12-2006 | |
Australia to produce more canola despite drought

Australia, which imported its first ever shipment of canola this month amid drought, may produce 11% more of the crop than forecast last month after better- than-expected output in Western Australia state.

Total production may be 467,000 metric tons in 2006-07, the Australian
Oilseeds Federation reported. That compares with its November estimate of
421,000 tons and last year’s 1.44 million tons.

Forced to import

Australia, normally the world’s second-largest exporter of the
oilseed, was forced to import the grain this month from Canada after an El
Nino-driven drought slashed output to its lowest level in at least 10 years.
“The 2006-07 season has been very difficult for growers with combined effects of
drought and major frost events, the federation said. With the canola harvest
virtually complete, Australia continues to face a shortfall in requirements.”

Western Australia may produce 320,000 tons of canola this year, 20% more
than estimated at the beginning of November.

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