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Copper demand is soaring due to the expansion of global power grids
The copper demand is growing faster than expected, due to the billions of dollars invested in modernising and expanding power grids worldwide for the digital and renewable energy revolutions which require vast amounts of electricity. A lack of investment into new mines is limiting the supply of major producers, including Chile and Democratic Republic of Congo, which will lead to a long period of high prices. Analysts predict that copper prices will reach record levels above $12,000 per ton by the end of this decade. This is a 23% increase from the current level of $9,700 per ton. Copper's superior durability, conductivity and versatility have made it difficult to replace. According to the International Energy Agency, grid investment will reach $400 billion this coming year after reaching a record of $390 billion by 2024. Copper is often an undervalued component of grid infrastructure. Many people understand the need for grid expansion, but underestimate the amount of copper that will be required. Michael Finch is the head of strategic initiatives of Benchmark Mineral Intelligence, a consultancy. He pointed out the investment needed especially in the U.S.A., UK, and China. BMI's latest figures reveal that the global demand for copper to upgrade power generation and transmission systems will increase to 14.87 millions metric tons in 2030, up from 12.52million tons this year. DATA CENTRES ELECTRIC VEHICLES DRIVE GRID ON DEMAND Michael Widmer, an analyst at Bank of America, predicts that global copper demand will increase by 10% from this year to 30,32 million tons in 2030. Widmer predicts that the global copper market will be in deficit of 1.84 million tonnes by 2030. In regions where artificial intelligence and machine-learning data centres are rapidly expanding, the need for resilient grids becomes even more acute. Peter Charland, Global Information and Communications Technology Lead at AECOM (a global infrastructure consultancy company), said that "Artificial Intelligence and Machine Learning data centres require bigger, better and faster computing." This means more power. CRU, a consultancy, said it expected copper demand in data centres to increase from 78,000 tonnes in 2020 to 260,000 tonnes this year and exceed 650,000 tons by 2030. "The electricity grid infrastructure is a bottleneck, and it's not just for data centres." This includes onshore and off-shore wind power, solar, and electric vehicles," Egest Balla said, wire and cable analyst at CRU. The copper content of electric vehicles is also significantly higher than that of traditional internal combustion engines. BMI predicts that the demand for copper in electric vehicles will increase to 2.2 millions tons by 2030. This is up from just 204,00 tons in 2020. Maria Cristina Bifulco is the chief investor relations officer and sustainability officer of Italian cable manufacturer Prysmian. Prysmian is the largest copper buyer in the world. Prysmian purchases 2%-3% global refined copper production. ALUMINIUM, FIBRE OPTIC CABLING CONSIDERED The looming shortages of copper and the record-high prices have led to a wave innovation, including recycling and substitution in industries like construction and manufacturing. Copper costs make up a significant portion of production costs. Aluminium has long been regarded as a cheaper option, but at a cost of about a third that of copper, it has been abandoned in the wiring of data centres. Charland, from AECOM, said that there was a time when copper wasn't meeting the demand. Some people coated aluminum cables with copper. "That was short-lived due to the performance issues." Recycling can help achieve sustainability goals as it uses 65% less energy to refine or produce secondary copper than primary production. Analysts predict that scrap copper will increase to 11 million tonnes in 2030, up from 10 million tons currently. Fibre optic cables have already replaced copper in the data transmission industry. They are more efficient and offer a higher bandwidth. Matt Miller, Global Networks Lead at AECOM said: "It is cheaper to make glass than to mine copper." "Silicon can be found in abundance on the beach. You can grab as much of it as you like." Analysts say that it is unlikely that the copper supply shortage will be resolved anytime soon. This is especially true for structural projects on which governments base their economic growth plans. "You can do green energy, but without a grid to support it, you will have a problem." CRU's Balla said.
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WGC reports that India's gold consumption will hit a 5-year low due to record prices affecting jewellery sales.
The World Gold Council announced on Thursday that India's gold demand in 2025 will be at a five-year-low, due to record high prices which are affecting jewellery purchases and overshadowing the slight increase in investment demand. Sachin Jain is the CEO of WGC India operations. He said that the demand for gold in the second largest consumer of precious metals could be between 600 and 700 tons by 2025. This would be the lowest level since 2020 and down from the 802,8 tons of last year. He said that if the price stabilizes, the demand could rise to 700 tons. However, a 10%-15% increase in the price due to geopolitical reasons may push it lower. Gold prices in India, which reached a record of 101,078 rupies per 10 grams in the month of June, are up 28% in 2025 after a 21% increase in 2024. The WGC reported that India's gold demand in the April to June quarter was down 10% on a year earlier, falling 17% from the previous quarter. However, investment demand increased 7%. Jain stated that the demand for September is expected to be lower compared to last year, when New Delhi reduced import duties, which boosted purchases. He said that the precious metal outperformed other asset classes and attracted investors who preferred both gold ETFs as well as physical gold. He said that "Gold ETFs are at an important growth juncture in India, and they are becoming more popular and prominent as India becomes increasingly digitised." Data from the Association of Mutual Funds in India earlier this month showed that gold ETFs in India experienced a tenfold increase in inflows month-on month to 20,81 billion rupees (US$237.5 million). This was a five-month record. $1 = 87.6390 Indian Rupees (Reporting and editing by Mrigank Dahniwala).
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State media reports that the death toll in China's northern region has risen following extreme rainfall
Eight people have died in extreme weather conditions near Beijing. Another 18 are still missing. Heavy rains flooded the hills of the region last week. State-run Xinhua late Wednesday reported citing local officials that the deaths took place in villages in the Xinglong region of Chengde, Hebei Province, without specifying how or when the people died. Xinhua reported that the search for missing persons is ongoing. Chengde, a mountainous town in China's Qing Dynasty, was a popular summer resort for Qing Emperors. Beijing and its surrounding areas have been ravaged by extreme rains since last Wednesday. In some places, a full year's rain fell in a matter of days. At least 30 people were killed in the suburbs of Beijing. Twenty-eight of these deaths were in the hilly Miyun District. The Chengde deaths occurred in villages that border Miyun, and are about 25 km (16 mile) from the Miyun Reservoir, which is the largest reservoir in China's northern region. During this period of heavy rains, the reservoir experienced record inflow and outflow as well as a high water level. The reservoir reached a new record of 3,63 billion cubic meters in its capacity on Sunday. Eight villages are located on higher ground in a valley upstream from the Miyun Reservoir. A landslide occurred in another village north of the reservoir on Monday, killing eight people and leaving four others missing. Meteorologists have linked extreme rainfall and severe floods to climate change. Chinese officials attribute a slowdown of factory activity to the heavy rains and flooding. (Reporting and editing by Stephen Coates; Xiuhao chen, Ryan Woo)
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ArcelorMittal reduces its steel demand forecasts following a slight Q2 beating
ArcelorMittal reported a quarterly core profit that was slightly higher than the market's expectations, but it lowered its steel demand forecasts due to U.S. president Donald Trump's new tariffs. In March, the Trump administration implemented its first trade measure with a tariff of 25% on steel and aluminum imports. In June, it doubled that rate to 50%. The Luxembourg-based firm's earnings before taxes, depreciation, and amortization (EBITDA), which are provided by the company, were $1.86bn in the second quarter. This was just slightly above the analysts' consensus estimate, $1.85bn. It said that the quarterly results were aided by a price-cost positive effect in Europe where increased selling prices exceeded increases in input costs, as well as a greater contribution from India. ArcelorMittal, however, cut its forecast for the global steel demand outside China. The company cited weaker U.S. consumer spending and trade disruptions. The company expects global steel demand to grow by 1.5% to 2,5% this year, excluding China. China is the top consumer and producer in the world. This compares to the February forecast of 2.5% - 3.5%. ArcelorMittal stated that tariff concerns and a subdued economy had dampened the demand in the U.S. where apparent steel consumption is expected to remain unchanged or even decline by as much as 2% in 2025. It had forecast growth between 1% and 3%. The company said that the European steel demand is holding up better than other regions. However, it has lowered its forecast for 2025 apparent growth in steel consumption to a range between -0.5% to +1.5% from an earlier range of 0% - 2%. It said that the revision was due to limited tariff effects and lower interest rates. Reporting by Anna Peverieri, Gdansk; editing by Milla Nissi-Prussak
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Austria's OMV 2nd-quarter results exceed forecasts, as the chemicals division soars
The second quarter results of Austrian oil company OMV were in line with expectations, thanks to higher results from the chemicals division. Lower contributions from its fuels and energy divisions were offset by lower results for the energy division. Vienna-based company posted a clean operational result of 1,03 billion euros ($1.18billion) for the second quarterly, which was in line with expectations. The consensus provided by the firm had expected 1.02billion euros. Clean operating results are based on current costs of supply and exclude one-off items, short-term gains or losses and energy inventory holdings. The Borealis Group's contribution to the company's second-quarter clean operating profit of 200 million euros was cited as the reason for this 76% increase. OMV's chemical division is a key growth driver for the company, as it transitions away from fossil fuels. It produces chemicals that are used in car parts, gas and water pipes and medical syringes. ($1 = $0.8747 euros) Reporting by Tristan Veyet, Gdansk. Editing by Christopher Cushing & Mrigank Dhaniwala
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Heidelberg Materials exceeds expectations in the second quarter with cost control
Heidelberg Materials, the second largest cement manufacturer in the world, announced a second-quarter operating income that was better than expected on Thursday. The company cited price adjustments and strict management of costs. The company's poll predicted that the group's RCO would be 1.03 billion euro, but it actually rose to 1.05 billion. Dominik von Achten, CEO of Dominik von Achten, said that our cost-management system has been particularly effective during the second quarter. The company has also confirmed that its full-year RCO forecast is between 3,25 billion and 3,55 billion euros. This is based on the assumption that the demand for construction will stabilise. The CEO said that despite the fact that demand is volatile in certain regions, it is stabilising in core markets. Construction industry sales have been declining in recent years due to high energy and inflation prices. The company responded by saying that it would continue to adhere to strict cost management and make price adjustments in order to meet its 2025 target. Von Achten said, "Our ongoing Transformation Accelerator program is progressing exactly as planned and with additional increases in savings has helped us improve our earnings again." The exchange rate is $1 = 0.8751 euro. (Written by Miranda Murray and edited by Rachel More, Subhranshu Sahu).
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China's iron ore exports continue to rise as storm clouds gather, Russell
Iron ore is the best performing commodity this year, with a price of over $100 per metric ton. This is despite signs that China's steel industry has been slowing down. The Singapore Exchange's most traded iron ore contract ended Wednesday at $101.71 per ton, down from $102.74 at its previous close. The rolling front-month contracts have traded within a narrow range this year. A high of $107.81 per ton was reached on February 12, and a low $93.35 was achieved on July 1. This stability is due to the fact that China has been a major buyer of seaborne products, accounting for 75%. Customs data shows that China imported 592.2 millions tons of goods in the first six months of this year. This is a 3% decrease from the same period last year. The June arrivals reached 105.95 millions tons, which is the highest level since December of last year. Kpler, a commodity analyst, estimates 101.32 millions tons for China's imports in July. Iron ore imports from China have been relatively resilient, and this has helped to keep prices around $100 so far in the year. The market will be watching to see if they can maintain that level, given the signals received from other iron ore and metal sectors. China, which produced just over half the world's total steel production, saw its output fall 9.2% from the same period in 2024 to 83.2 million tons. The first half of 2025 saw a 3% decline in production, to 514.83 millions tons. The outlook for the second part of the year also isn't very rosy, especially if the annual steel production stays around the informal goal of 1 billion tonnes, as it has been for the last five years. China's output of steel is unlikely to grow in the second half this year compared to the first. It may even decline, particularly if exports fall as importers impose higher duties on Chinese products. EXPORTS SLIPPERY Exports of steel product fell 8.5% in June compared to May. However, a good start to the year saw shipments rise 9.2% to 58.15 millions tons. The second half of the year is likely to see a decline in China's exports, which will put further pressure on this sector. Iron ore is becoming increasingly unattractive as China struggles to stabilize its economy and manufacturers are faced with uncertainty due to U.S. Tariffs and fierce domestic competition. SteelHome consultants SteelHome monitor port stockpiles to see if there is any room for iron ore inventory to grow. The week ending July 25 saw a drop of 131.05 millions tons compared to 151.8 million the previous week. Kpler data shows that iron ore imports outside China are also weak. They dropped to 136.56 millions tons in July, their lowest level since April. Kpler predicts that Europe's seaborne imports of iron ore will fall to 6,53 million tonnes in July, marking the third consecutive monthly decline. Japan is the second largest iron ore buyer in the world. Arrivals are expected to reach a record high of 7,73 million tons for July, a three-month-high. According to Kpler, South Korea is expected to import 4,71 million tons of soybeans in July. This is the lowest since February 2017. You like this column? Check out Open Interest, your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
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Holcim's first results after North America spinoff beat profit expectations
Holcim announced better than expected recurring operating profits during its second-quarter results on Thursday. This was the first time the building materials manufacturer has reported its North American operations separately. The Swiss manufacturer of cement and roofing products posted an operating profit of 955 millions Swiss Francs ($1.17billion) in the three-month period ending June. The 944 million francs figure from a year ago was up 1.2%, beating consensus expectations of 929 million. Sales dropped 3.8%, to 4,18 billion Swiss francs. This was slightly lower than forecasts of 4,19 billion Swiss francs. The decrease was due to the strength of the Swiss Franc, which lowered the value of sales in other currencies. It also reflected Holcim's divestment from its businesses in Kenya Tanzania Uganda and South Africa. In local currency, net sales are 2.4% higher and operating profit is 9.8% higher. These figures are the first Holcim published since its North American division was separated into Amrize, a separate company. June 23 Holcim's first 2025 guidance as a stand-alone business said that it expects its operating profit to increase by 6-10% in local currency. The company also forecasted a 3-5% increase in sales in local currency. Reporting by John Revill and Editing by Miranda Murray.
SPECIAL RELEASE-Less Rain, More Wheat: How Australian Farmers Fought Climate Doom
Curtis Liebeck, in a newly planted wheat field scoops up some sand and pours it through his fingers. The light brown dirt is a far cry from the dark, clumpy soil of more rainy nations.
The Liebeck farm in Western Australia is 300 km (186 miles), away from Perth. It receives half as much rain as the wheatbelts in central Kansas and northern France. The state's growing-season rainfall has decreased by one-fifth in the last three decades.
It should be harder to farm. Liebeck's yield of wheat has doubled in the last two years. Liebeck, 32 is part of the revolution in farm management which has allowed Australia to produce 15 million metric tonnes more wheat per year than it did in the 1980s despite the hotter and drier climate. This is the equivalent of around 7% of the wheat that is shipped around the world each year, and it's more than Britain's annual harvest.
According to U.S. Department of Agriculture statistics, Australia's wheat-farming productivity has surpassed that of the United States, Canada, and Europe. It continues to grow, while other developed markets are slowing or reversing.
Many growers and scientists say that the ability of Australia's wheat farmers to produce more for a growing world population is largely due to a series of innovations made since the 1980s. These innovations changed how farmers planted seeds, how they planted them, and the way they cultivated the soil. The Australian system of applied researchers and the relentless search for efficiency by farmers who receive minimal subsidies have accelerated these advances.
This account of the way Australia's wheat farmers defied climate odds is based upon interviews with over 20 farmers and scientists, a review and analysis of more than 12 academic papers and a thorough examination of decades worth of farm and weather records. Visited four farms, two government research facilities and a seed breeding company.
Australia's fields aren’t the most productive, nor is it the largest wheat producer. It is still important, but for two different reasons. The modest population of the country means that its extra production is used to feed other countries. It is also the driest continent inhabited, and climate variability may have made some farming unviable. It is one of the top exporters of wheat in the world.
Five scientists said that Australia's success in dry-crop land research has inspired other countries, such as the U.S., Canada and Australia. Some Australian practices like soil reengineering have not been widely replicated, but that's because the ground conditions were less suitable. The country's focus in closing the gap between maximum theoretical crop yields, and actual results has spurred worldwide efforts to improve productivity during the last 15 years.
Ken, his 66 year old father, was amazed that Liebeck's farm produced 1 ton per hectare despite the lowest rainfall it had seen in 50 years.
Liebeck said: "I asked my dad what life would have been in his time and he replied, 'Absolute Disaster'."
In such conditions, the elder Liebeck said he would only have produced 400 kg per hectare around the turn-of-the millennium.
BEACH SAND
Australia's farming has always been a precarious business. Weather conditions can change from drought to heat, fire, and flooding. The soil lacks nutrients.
Official weather data shows that Western Australia has experienced the largest decline in rainfall average of Australia's cropping regions over the last three decades. The rainfall patterns have changed, with more rain falling in the summer when fields are fallow and less in the winter when crops are growing.
It also has some the most poor soils.
Imagine beach sand, said Tress Wamsley, CEO at Perth-based InterGrain. The company develops wheat varieties to better adapt to Australian conditions. These soils are depleted of nutrients, toxic and resistant to water. At the end of every season, the crop is dehydrated.
The thirst for water was the catalyst for many changes in Australian agriculture. Scientists Reg French and Jeff Schultz calculated in 1984 that, under ideal conditions, Australia's growers should be able, after evaporation of water, to produce 20 kilograms per hectare of wheat for every millimeter rain received during the growing season from April to October -- four times more than they were currently achieving.
John Kirkegaard is a plant scientist with the Commonwealth Scientific and Industrial Research Organisation, the national science agency of the Australian Government. The researchers and growers focused on closing the yield gap and began benchmarking the water-use efficiency in order to extract more crop from each drop.
The key was to switch from tilling agriculture to no-till. The constant plowing of soil to control weeds damaged the soil and exposed it for evaporation. This reduced the amount water that could be stored by crops. The dust bowls of the 1930s in America gave rise to no-till techniques, which use herbicides rather than plowing. According to the Grains Development and Research Corp., Australian adoption increased from 5% to 80% in the early 1980s. Western Australia has a higher adoption rate than the rest of Australia.
Over time, the compacting of soils by farm equipment driving over tilled fields hampered water infiltration and root development. Farmers began to restructure the soil, first spreading lime to lower acidity and then using other types of heavy machinery to address this problem.
Liebeck shows off his deep ripper. It is a huge, orange steel frame with ten metal claws which can rip through soil up to 84 cm deep. The machine is so heavy that even his tractor with 540 horsepower can only pull it at walking speed.
The spader is a rotating cylinder that has protruding shovels heads. It breaks up the compacted earth layers. No-till farming is a tillage method that does not use plowing or ripping to prepare the soil for planting. Spading and ripping are bolder, but less frequent interventions that often go deeper. The soil is restructured and the constituents are changed. Unproductive layers become a more absorbent mixture that holds water and nutrients better.
Liebeck stated that dragging the ripper across a field could increase his wheat yield between 36% to 50%. The machine cost A$220,000 (roughly $143,396). He said that the machine was "a bit expensive for a glorified hoe," but "digs up profits."
Farmers and researchers say that rippers and spaders may be used in other countries, but not as extensively as they are in Australia. In areas that are wetter, such as Europe and the UK, rippers can be difficult to pull through heavy soils.
Two-thirds of Western Australia's roughly 4,000 growers had deep-ripped, spaded or inverted their soil by 2023, state government-commissioned research found, up from 52% in 2019.
Kirkegaard said that efforts to improve Australian soil echo those in Europe and North America, where land is drained and then reclaimed from the sea. He said that the strategies used in Australia to turn poor farmland into productive land were probably unique.
Other innovations helped farmers curb disease. They introduced new crop rotating, including canola (also known as rapeseed), an oil seed, and lupins (a legume used in animal feed). Canola area in Australia has risen from 50,000 ha in 1989 to 3.5 mil hectares now, according to data provided by the agriculture ministry.
Kirkegaard explained that farmers began sowing up to four weeks early, and sometimes on dry soil, in order for plants to flower at the best time. Kirkegaard said that sowing began around mid-April. This gives wheat a few months to grow in the winter and spring when there is still water available.
TAKE-OFF
Productivity soared. In the early 1980s, Western Australian farmers grew 3.3 kilograms of wheat per hectare, which is a third less than the national average. This was a third lower than the average for the entire country, according to government data. In 2024 they were only one-fifth short of the national average of 11.5 kg.
These improvements have helped Australia double its exports of wheat in the past four decades, to over 20 million tonnes a year. The majority of the wheat is exported to Southeast Asia and Middle East where population growth has been rapid.
The rising production has held prices in check. In the 1980s, a bushel of Chicago Board of Trade wheat, which is the benchmark for the world, cost an average of $3.50. Since then, the world population has increased by 3.5 billion. However, a Chicago bushel now costs $5.50. This is a far lower increase than inflation.
Dennis Voznesenski is an agricultural analyst with Commonwealth Bank of Australia. He said that a serious threat to the Australian wheat supply could cause prices to increase significantly. He noted that Australia accounts for the same proportion of global trade as Ukraine before Russia's invasion. Wheat prices increased by 60% after the war caused disruptions in production and exports.
Farmers and researchers agree that there is still room to improve productivity.
Kirkegaard said that advances in seed breeding and farming management should increase maximum theoretical yields from 25 kg to 30 kg, and possibly even more.
According to Greg Rebetzke of the CSIRO, researchers and breeders have been testing wheat varieties whose protective sheaths - called coleoptiles – can be pushed up to a depth of soil between 10 and 12 centimeters, rather than 2 to 4 centimeters, allowing the seeds to penetrate the subsoil. According to Rebetzke, field trials have shown that long coleoptiles can increase yields up to 20%. Several varieties will be commercially available in Australia within the next five years.
Rebetzke explained that people are interested in the technologies developed by Rebetzke and want to know if they will be useful for their country. He cited Canada, India and Bangladesh as examples of countries with a high level of interest. "The dry climate we are experiencing is the future for some countries which are currently wetter."
Researchers in Western Australia have been experimenting with soil re-engineering, including the addition of clay, compost, and gypsum, to increase the earth’s ability to retain water and produce grain, according to Gaus Azam.
Ty Fulwood is a grower from Grass Valley in the east of Perth who showed what was achieved. He said that they were trying to make the perfect soil by adding clay to the top 10 centimeters of soil.
Fulwood admitted that the system is expensive but, if it can deliver on its promise of doubling yields, researchers and farmers will invest money in it.
There are limits to adaptation. Wheat does not thrive in conditions of high temperatures, as they accelerate the evaporation process and growth phase. The rain is decreasing and becoming less predictable.
In a paper published in 2017, plant scientist Zvi Hochman found that hotter and drier conditions reduced Australia's maximum wheat yield achievable by 27% from 1990 to 2015.
Hochman said that if we continue to work hard, we could achieve 80% of the potential yields. But going beyond this in a climate with a high degree of variability is unlikely to be economically viable.
There are also downsides. Scientific studies have shown that herbicides are harmful to the environment and can encourage resistant weeds. Australian farmers use more synthetic nitrogen fertilizer, even though it is less per hectare, than other countries, according to U.N. This synthetic nitrogen is made from natural gas and contributes to carbon dioxide emissions. They are also affecting the Earth on a large scale.
Azam, a researcher, said: "We must always be careful because we disturb the natural soil." "But benefits far outweigh risks."
Other Nations
Australian yields are low by international standards due to challenging soil and weather conditions. USDA data shows that Australia's yield of 2.6 tons/hectare was lower than the U.S. (3 tons), China (5.9 tonnes), and Britain (7 tons) last year.
Since the 1980s, some developing nations have improved wheat yields faster than Australia, including China, India and South Korea. According to the USDA however, productivity growth has been slower in many advanced economies. This is due to soil degradation, restrictions on pesticides and fertilizers, and other factors.
Scientists and farmers credit Australia's low-subsidy system and its applied research system for setting it apart.
The Grains Research and development Corp is a statutory company established by parliament in 1990 to drive innovation within the industry. The government adds funding to the 1% that farmers give. The committees are made up of farmers, scientists and executives from agribusiness. Kirkegaard said that the research agenda doesn't revolve around farmers looking for quick fixes or scientists working on blue-sky projects.
This model is not replicated by many countries. Canada also has research groups that are funded by levy, but they're less centralised. Kirkegaard says that in Europe, researchers might never have spoken to a farmer. This can lead to studies that are not practical.
According to the OECD, Australia is among the countries with the lowest levels of agricultural subsidies. They are mainly used for biosecurity and research, not payments to farmers.
Liebeck, who lives in a farmhouse surrounded by eucalyptus trees, said that he's not intimidated by the increasingly hostile climate.
He said, "The challenge to grow more crops with less rain is thrilling." "I'm optimistic."
(source: Reuters)