CANBERRA (Reuters) - Drought in Australia's main food growing region of the Murray-Darling river system continues, with water stores near record lows despite recent rains, the head of the government's oversight body for the system said on Wednesday. The long-running drought has hit irrigated crops such as rice, grapes and horticulture hardest, but has had less impact on wheat with good falls of rainfall in grain-growing areas to the north of the Murray-Darling River basin.
"The immediate prospects are not good as only about 10 percent of Murray system inflows normally occur between February and May, and the latest rainfall outlook from the Bureau of Meteorology shows only neutral conditions across the Basin for the next three months," said Rob Freeman, chief executive of the Murrary-Darling Basin Authority.
The Murray-Darling basin, which is as large as France and Germany combined, accounts for 41 percent of Australia's agriculture and provides A$21 billion ($13.54 billion) worth of farm exports to Asia and the Middle East. Around 70 percent of irrigated agriculture comes from the basin.
Dry land wheat crops are also grown in the region but crops have struggled in recent years. The region contributed little to a boost in Australia's wheat production to 20 million tons for the just completed 2008/09 harvest from 13 million tons harvested a year earlier. The drought has already wiped more than A$20 billion from the $1 trillion economy since 2002. It is the worst in 117 years of record-keeping, with 80 percent of eucalyptus trees already dead or stressed in the Murray-Darling region.
EDIT
http://www.reuters.com/article/environmentNews/idUSTRE5127CY20090203?feedType=RSS&feedName=environmentNews