Australian ’20-21 bulk grain exports a record at 33.3Mt

AUSTRALIA exported 33.3 million tonnes (Mt) of grain in 2020-21 (Oct-Sep), enough to break the previous record set in 2016-17 of 31.5Mt, according to data released in an Australian Competition and Consumer Commission (ACCC) report.

The 2020-21 figure is up 111 per cent on 2019-20 total of 15.8Mt, which reflects the impact of drought on eastern Australia, and is 37pc above the average since 2011-12 of 24.4Mt.

All states exceeded their average bulk-export levels in 2020-21,with Western Australia, New South Wales and Victoria achieving record bulkexport seasons.

The figures were contained in ACCC’s Bulk grain ports monitoring report – data updateƒ, and reflect the large export surplus created by the second-largest grain harvest since the ACCC started collecting grain data in 2011.

New ports grab business

The report found new grain export ports achieved their highest market share of Australian grain exports yet, and reduced the market share of long-established incumbent ports.

“The 2020-21 season presented a good opportunity to test both the effectiveness of new and competing ports, and the impact of reduced regulation on these markets, which has been implemented over the past few years,” ACCC deputy chair Mick Keogh said.

“The data shows the new facilities are opening up opportunities for growers and exporters, and the ACCC welcomes industry feedback on whether these developments are sustainable or are a response by exporters to constraints associated with existing facilities or limits to the overall effectiveness of the Wheat Ports Code.”

The report shows that on average only five exporters used each port, compared to eight in 2011-12.

“Despite a record year for bulk grain exports, the data shows a decline in the average number of exporters per port, while at the same time a growing number of new and smaller port facilities are increasing exports.”

This has meant significant changes over the past few years, with two of the three major port terminal service providers, Viterra and GrainCorp, beginning to lose market share to the growing number of the new bulk grain port terminal facilities across Australia.

The other major provider, CBH, continues to provide the vast majority of services in Western Australia.

“The ACCC is particularly interested in looking at whether the increased use of new port facilities is a result of the large harvest, the economic efficiency of these facilities, or the difficulty securing access to the incumbent ports.”

ACCC said in its report that, unlike previous shipping years, it had received limited contact from exporters concerning access in 2020-21.

An industry update report which includes feedback from growers, exporters, and port terminal service providers is due to be released in early 2022.