Launch of the 2026 State of the Australian Grain Industry Report, Canberra

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National Press Club, Canberra

Good morning, everyone. 

I’m pleased to be here today on behalf of the Albanese Government, representing Minister Collins to officially launch the 2026 State of the Australian Grain Industry Report.

I'd like to start by acknowledging the Ngunnawal people, the Traditional Owners of the land on which we meet this morning, and pay my respects to Elders past, present and emerging.

I’d like to offer a special thanks to the CEO of GrainGrowers, Shona Gawel, and Chair, Rhys Turton, for inviting me to share in today’s launch.

To everyone joining us here today – industry leaders, growers, exporters, researchers, policy makers – welcome.

It's a pleasure to share the room with so many people who contribute to one of Australia's most important agricultural success stories.

Today's report launch is significant because it provides a clear assessment of where the industry has been, what it's achieved, and the opportunities and challenges that lie ahead.

A remarkable Australian success story

Australia's grain industry has every reason to be proud.

Over the past five years, growers have navigated extraordinary conditions.

We've seen record harvests.

We've seen drought and flooding.

We've seen supply chain disruption, global uncertainty and volatile markets.

Through all these challenges, Australian grain producers have continued to do what they have always done best.

Adapt. Innovate. And deliver. The strength of this industry is reflected in the scale of its contribution to the Australian economy and to our food system.

Australian grain producers help feed domestic consumers, supply livestock industries, underpin regional jobs and communities, and provide export markets around the world with high quality grain they can rely on.

That contribution matters now more than ever as the global demand for food continues to grow. 

And Western Australia continues to lead the charge in this endeavour, exporting 90 of its grain crop.

A clear indication of the importance of grain to our international partnerships.

Late last year I spent time with CBH Group in Western Australia and had the opportunity to tour the Metro Grains Centre, just outside of Perth.

As a key hub in the grain supply chain, the Metro Grains Centre exports grain to its export terminals and across Australia, and provides state of the art grain testing before crop is exported to our trading partners. 

It was fantastic to speak to some of the team and workers who contribute so much to making this important industry thrive. 

The current outlook

This latest state of the industry report reminds us that agriculture remains a major driver of regional prosperity.

ABARES forecasts Australia's gross value of agricultural production to reach $98.3 billion in 2026-27, making it the second-highest result on record in nominal terms.

While seasonal conditions and higher input costs are expected to weigh on production in some sectors, Australian agriculture continues to demonstrate remarkable resilience, and the grains sector remains a key player in that story.

ABARES is forecasting a national winter crop production of 54.5 million tonnes in 2026-27. 

While this is lower than the exceptional results achieved in recent seasons, it would still be the seventh-largest winter crop on record and remains above the 10-year average.

Australian growers today are producing more grain from their farming systems than previous generations could have ever imagined.

Innovation driving productivity

One of the strongest themes emerging from both the report and the experience of growers across the country is the role of innovation.

Across Australian agriculture, innovation is transforming how producers manage risk, improve productivity and remain globally competitive.

The grains industry has been at the forefront of this transformation.

From precision agriculture and variable-rate technology to improved genetics, soil management and digital decision-making tools, growers continue to find smarter ways to do more with less.

These improvements matter because the operating environment is becoming more complex.

Input costs remain high.

Seasonal variability remains a constant challenge.

And global competition continues to intensify.

Yet Australian producers continue to respond, by investing in new practices, new technology and new ways of doing business.

That culture of continuous improvement has become one of the defining strengths of the Australian grains sector.

Managing the challenges ahead

Of course, no honest assessment of the next five years can ignore the challenges.

The ABARES outlook highlights several pressures facing grain producers.

Seasonal uncertainty remains a key risk.

The possibility of drier conditions across many cropping regions is influencing planting decisions and production forecasts. 

At the same time, growers continue to grapple with higher fuel and fertiliser costs, intensified by the war in the Middle East.
The Albanese Labor Government understands these pressures and we are acting. 

Following disruption to global supply chains resulting from the Middle East crisis, we have worked with industry and utilised our international partnerships to support fuel and fertiliser supply. 

We are investing more than $14 billion towards the Strengthening Australia's Fuel Resilience package.

This has helped to provide immediate relief, including securing more fuel and fertiliser, while boosting our sovereign capability into the future. 

We’ve supported the purchase of nearly 800 million litres of additional diesel, and around 340,000 tonnes of urea for Australian farmers.

Securing this additional supply is about giving certainty to our farmers as the season progresses. 

It’s about keeping Australia moving. 

And keeping our agricultural supply chains strong.

Our government also established the Fertiliser Supply Working Group with industry representatives, including many of you in the room today, to continue supporting the import of critical inputs while maintaining Australia's strong biosecurity standards.

Alongside Minister Collins, we have engaged with farmers, workers and industry representatives as a priority during this period because we know collaboration matters in times of emergency.

Global events continue to remind us how interconnected agricultural production has become and how vulnerable supply chains can be to disruptions beyond our control. 

They are real pressures and they affect business confidence, profitability and investment decisions, but they also reinforce the importance of long-term planning and highlight the value of strong industry leadership.

The role of government

The Albanese Government understands that the best outcomes are achieved when government works alongside industry.

Our Government continues to develop a National Food Security Strategy, informed and led by industry through the National Food Council.

It’s because we recognise that food security is not simply about production.

It is about resilience. It is about supply chains. It is about workforce capability, and it is about ensuring that Australian agriculture remains strong and competitive in an increasingly uncertain world.

Another area which the Albanese Government wants to harness future opportunity for our grains and other agricultural industries is bioenergy and liquid fuels.

Late last year, we announced a $1.1 billion investment to kickstart production of Low Carbon Liquid Fuels here in Australia.

And soon the Albanese Government will begin consultation on a demand measure to further support industry development.
This will complement the release of the National Bioenergy Feedstock Strategy in the near future.

These measures are targeted at reducing our reliance on imported fuels and improving the resilience of industries in our backyard.

I look forward to continuing to engage with industry to harness these new economic opportunities for our agricultural producers.

Looking ahead

As we look ahead to the next five years, the opportunities are significant.

Global demand for food and fibre will continue to rise.

Technology will continue to evolve.

New market opportunities will emerge, and we are very well placed to take advantage of these opportunities.

We have world-class growers.

We have strong research capability.

We have trusted trading relationships, and we have a well-earned reputation for quality, reliability and innovation.

This success though, is never guaranteed.

We must continue investing in research and development.

We must continue strengthening our workforce.

And we must continue supporting the adoption of technologies that improve productivity and resilience.

Because the nations that lead in agricultural innovation will help shape the future of global food production, and I firmly believe that we can be one of those nations.

In closing, I want to congratulate GrainGrowers on producing this important report.

This report provides a valuable contribution to the national conversation about the future of not just the Australian grains industry, but Australian agriculture.

It recognises what the industry has achieved.

It identifies the challenges ahead.

And it highlights the opportunities that lie before us.

Most importantly, it reminds us that the success of Australia's grain industry is built on people, many of whom are here today, but also:

• the growers making decisions every day in the paddock
• the researchers driving innovation
• the businesses supporting the supply chain, and
• the regional communities that depend on a strong and prosperous grains sector.

On behalf of the Albanese Government, thank you for everything you do.

It gives me great pleasure to officially launch the 2026 State of the Australian Grain Industry Report.

I look forward to working with all of you as we continue to build a grains industry that is productive, resilient and globally competitive.

Thank you.