A forecast easing in world production should support a small increase in prices of grains and oilseeds in 2005-06,’ Ms Leanne Lawrance, Research Economist with ABARE, told the OUTLOOK 2005 conference in Canberra today.

In presenting the outlook for the grains industry, Ms Lawrance highlighted the importance of China as a major consumer of grains and oilseeds. ‘Continued strong economic growth in China can be expected to translate into growing demand for grain for livestock feed,’ Ms Lawrance said.

Over the medium term, world grain prices are likely to continue to decline in real terms. This will maintain the pressure on Australian farmers to improve productivity to remain economically viable.

In addressing issues related to increasing productivity, Dr Phil Larkin, Senior Principal Research Scientist for CSIRO Plant Industry, discussed some of the risks and benefits associated with the adoption of genetically modified (GM) technology in the Australian grains industry.

Dr Larkin said, ‘the greatest risk facing Australian agriculture from GM technology is that we fail to position ourselves to benefit from its impact. Future genetic technologies will be important for the efficiencies of Australia’s agricultural production systems and will be crucial to their competitiveness in world markets.’

Andrew Hirst, Cropping Manager of the Twyford Pastoral Company, gave a first hand account of implementing new technologies in mixed cropping enterprises on the family farm in the Darling Downs district of southern Queensland.

Mr Hirst said zero tillage practices, such as controlled traffic farming, have enabled improvements in the structure and moisture retention of soils, as well as flexibility in planting times, providing increased productivity and returns compared with conventional techniques.