Document Type

Article

Publication Date

2025

Journal Title

Australasian Journal of Regional Studies

ISSN

1324-0935

Keywords

Supply chains, Grain export, Grain production, Food inflation

Disciplines

Agricultural Economics

Abstract

The size of grain harvests are increasing in most Australian states, enabling farmers to supply increasing volumes of grain to domestic and international customers. There is a market preference to supply international customers in the months prior to the availability of the northern hemisphere grain harvest that commences from June. To expedite export sales of Australian grain, most owners and operators of regional export grain supply chains in Australia are increasing their investments in the velocity, reliability, and capacity of their export grain supply chains. Larger volumes of Australian grain are now more rapidly exported. But what are the ramifications of these investments? Drawing on historical datasets of regional grain production, domestic grain consumption, and grain exports in each Australian state, this paper explores the national and state impacts of the enhanced investments in Australia’s export grain supply chains.

The implications for Australian farmers, domestic consumers of grains, and owners of grain supply chain infrastructure are discussed. Farmers benefit from the enhanced capacity and velocity of grain flows in Australia’s grain supply chains, but in some eastern states in particular years, food price inflation may be triggered whenever more grain more quickly leaves Australia’s shores prior to a severe emerging drought that constrains future local grain supplies and places upward pressure on local grain prices. In periods of prolonged drought, concerns about domestic food price inflation may lead to social and political pressure for changes to grain export and grain import policies and additional investments to facilitate interstate grain flows.

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