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The sharp decline in the Australian wheat export forecast for this year presents opportunities for the United States to export wheat to New Zealand, says a US agricultural attache in Wellington.
"There is potential for US exports of wheat to New Zealand, despite strong wheat prices in the United States," the attache said. "New Zealand is forecast to face shortages in wheat and, to a lesser extent, other grains. This is the result of high Australian wheat prices and a large decline in Australian wheat exports."
The Ministry of Agriculture and Forestry is revising New Zealand's import health standard for wheat to make it easier to understand.
"A large decline in Australian exports has the potential to greatly affect the New Zealand industry," the report said.
"Currently, it is unclear how significant New Zealand's wheat shortage will be. Many importers are closely watching the Australian market to assess what volumes and types of wheat they will need to source from alternative suppliers."
Some have already organised shipments with US suppliers. Others are putting this off until they are certain of the volumes they will need.
New Zealand's production is forecast to increase only slightly, creating opportunities for US exporters, the attache said.
- REUTERS
