Western Australia wheat output could increase 29%

Wheat output in Western Australia, the nation’s biggest exporting state for the grain, may increase 29 percent by 2016 as producers respond to expanding global demand, Bloomberg reported.

“We could increase wheat production on average from around 7 million tons to around 9 million tons by further improvements in farm technology,” Premier Colin Barnett said in an interview in Tokyo. The target could be achieved in five to six years, he said.

Food output will have to climb by 70 percent by 2050 as the population swells to 9 billion and rising wealth boosts meat and dairy consumption, according to the United Nations Food & Agriculture Organization. The world food price index compiled by the body rose to a record in February, while food inflation fueled unrest across North Africa and the Middle East that toppled leaders in Tunisia and Egypt, the largest wheat importer.

“High prices will encourage wheat growers to increase planting this year globally. If weather conditions aren’t as bad as last year, the harvest this year will grow, leading to a drop in Chicago futures to as low as $5 a bushel,” said Takaki Shigemoto, an analyst at research firm JSC Corp. in Tokyo.