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Science1 publisher2 min readPublished

Australia's record El Niño call splits the harvest forecast by crop and by state

The Bureau of Meteorology says models put the current event ahead of anything in 76 years of reliable records. The Department of Agriculture's forecaster has three states falling 16% to 44% next season while Victoria and South Australia rise.

The Scientist · Science desk

Illustration accompanying Australia's record El Niño call splits the harvest forecast by crop and by state

What happened

  • The Bureau of Meteorology said this week that "models indicate the current event is likely to become the strongest El Niño event on record, with reliable records dating back to 1950."
  • ABARES forecasts winter crop output falling by between 16% and 44% in Queensland, New South Wales and Western Australia in 2026-27 on below-average rainfall, while Victoria and South Australia are forecast to rise.
  • Consumers could see lower availability and higher prices later in the year for leafy greens, peas, broccoli and cauliflower, while drier growing conditions are expected to increase supply of citrus, apples and stone fruit.
  • Food and non-alcoholic beverage prices rose 3.2% in the year to July, the second-largest contributor to Australian inflation after housing costs.

Compiled by The ScientistSomething wrong?How this is made

Why it matters

  • exposure Food was already running 0.2 points above the top of the Reserve Bank's 2-3% band before this spring's shortfall could reach a shelf, so the bank's inflation judgement now carries a rainfall input it cannot influence.
  • constraint Graziers facing less pasture choose between buying feed supplements and cutting stock numbers, and if enough of them sell at once the price they receive falls. The cost moves into the following season.
  • contradiction The Bureau ranks the event against every El Niño since 1950 while ABARES calls the rainfall impacts uncertain, so the ranking leaves the yield and the price for any particular crop still open.
  • cost Because the diesel and fertiliser increases come from outside the weather system, a wet turn in December would leave that part of the cost base intact, and growers carry it before shoppers do.

Reliable records start in 1950, so the comparison set behind the Bureau's ranking is about 76 years deep [19]. The claim is also forward-looking: the wording has the event likely to become the strongest, a forecast about where it is headed [2]. ABARES, the research division of the Department of Agriculture, puts the same caution on the ground effects, saying the event could lower spring rainfall in parts of Australia and that the impacts are uncertain [3].

That caution shows up inside its own numbers. The forecast fall in winter crop output across the three affected states runs from 16% to 44%, a spread of 28 percentage points, and in two other states the forecast points up [22][10][11]. The crops counted are wheat, barley and canola [10].

Two of the cost pressures here sit outside the Pacific. The phys.org analysis attributes the fuel and fertiliser increases to conflict in the Middle East and to inflationary pressure already in the economy [4]. Diesel is the one that spreads: higher fuel prices raise transport, freight and logistics costs past the farm gate and along the supply chain [13].

The most recent price data predates any of this year's spring. The Australian Bureau of Statistics figure covers the twelve months to July, a window that closes before this spring's rainfall could reach a harvest or a shelf [16]. The analysis expects higher food prices to keep inflation above the Reserve Bank's 2-3% target for some time [17].

Heat has a second effect on produce, and it is cosmetic. Extreme heat and sun exposure can make fruit and vegetables look worse without changing their quality, and the industry has used that point to sell "imperfect" produce [7]. The piece says such predictions are not easy given the supply- and demand-side factors at play, so it puts no figure on any specific item, and its expectation that wheat, sugar and beef stay above longer-term averages through the rest of 2026 rests on business forecasters it never names [18][12].

The event also lands on a baseline that has been drifting down. CSIRO has pointed to declining rainfall in southern Australia since 1970 during the April-to-October growing season, attributing it to both natural variability and climate change [15]. Severe droughts coincided with El Niño in 1994, 2002, 2006 and 2015, with lower pasture availability, reduced crop yields and reduced profits across the farm sector [14].

What to watch

  • The Bureau's next update. Either observed indices keep this event ahead of every El Niño since 1950, or they put it only near the top of them.
  • Whether the Victoria and South Australia upside survives a dry spring, in ABARES' next winter crop forecast.
  • Monthly ABS food price prints through summer will show whether leafy green and brassica prices move as forecast while stone fruit supply rises.
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