Western Australian bumper grain crop under threat

Western Australian (WA) farmers are facing workforce shortages, congestion concerns, storage problems and a potential mice plague as they work to deliver a bumper grain crop in the middle of a pandemic and an iron ore boom.

WA is expected to have a record crop in 2021, with the state's grain industry association (GIWA) forecasting total combined production of 20.03mn t of wheat, barley, canola, oats, lupins and pulses for the year. There is significant upside risk to this forecast, according to GIWA. But there are also significant headwinds.

WA is cut off from the rest of the world, including the more populous states in eastern Australia, as its government seeks to maintain its Covid-19 free status. This means it is very difficult for WA farmers to secure enough workers to manage the bumper harvest, which is due to start in October. The skills shortages are affecting recruitment for everything from basic labour to skilled operators of harvesting machinery to truck drivers to port operations staff.

Farmers are competing for skilled and unskilled workers with a resurgent iron ore industry, which is still booming despite a slight easing of iron ore prices from record highs in mid-May. Wages are traditionally much higher in the mining industry and there is a clearer pathway from casual mineworker to full employment than there is in the seasonal farming sector, making it a preferred pick for many jobseekers. Iron ore is also exported through many of the same ports as grains, adding to congestion at ports like Geraldton and Kwinana.

Farmers and iron ore miners have been lobbying the Perth government to allow more workers in, but the premier is maintaining tight border controls while vaccination rates remain relatively low in WA and the Delta strain of Covid-19 is out of control in Australian states like New South Wales and in most nations outside Australia. It is unclear if he will consider it safe enough to open borders before the harvest starts in October, but it is not looking likely.

The bumper crop also faces the risk of frost damage, although this is easing as we move into September and spring in Australia. Increased mice populations are beginning to damage canola and lupin crops in the northern areas of the state, while locusts are eating all grain crops in the east.

Frost, mice and locusts are normal annual risks that farmers face at this time of year but the size of this year's crop, combined with the labour shortage, could slow the harvest down and increase harvest losses, according to GIWA.

WA grain logistics firm CBH is preparing for an above-average harvest by building at least an extra 1mn t of storage capacity across its rail and port system in the state.

By Jo Clarke