London, January 2011

In this report, ABARES attempt to assess the impact on Australian commodity production of recent floods in eastern Australia. While it is still too early to determine the full impact of the floods, this assessment is based on information sourced from industry organisations, including major grain handlers, marketing organisations, agricultural and mining companies,state departments, transport authorities, the Bureau of Meteorology and satellite imaging.

As observed in other major natural disasters, significant damage to property and infrastructure has occurred, which has resulted in disruption to economic activity in the flood-affected regions. While there have been widespread reports on flood-related disruption, no attempt has been made in this report to quantify these short-term impacts. The situation can be expected to improve gradually as rebuilding starts and gathers momentum in the near future.

While the focus of this assessment has been on the aggregate effect on a state or national basis, there will be significant financial hardship for individuals and businesses who have experienced substantial crop or livestock losses and damage to their property.

ABARES will release its next Australian crop report on 15 February 2011, which will contain its updated estimates of major summer (grain sorghum, rice, cotton and sunflowers) and winter crops (wheat, barley, canola and pulses) on a state and national basis for 2010–11. The next quarterly edition of Australian commodities is to be released on 1 March 2011 and will include forecasts of the value of Australian commodity production and exports in 2010–11, as well as medium-term projections.

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