Deniliquin

Hard times for country Australia (Deniliquin, Australia)

http://www.nytimes.com/2008/04/17/business/worldbusiness/17warm.html?_r=1&hp&oref=slogin

DENILIQUIN, Australia — Lindsay Renwick, the mayor of this dusty southern Australian town, remembers the constant whir of the rice mill.  “It was our little heartbeat out there, tickety-tick-tickety,” he said, imitating the giant fans that dried the rice, “and now it has stopped.”

The Deniliquin mill, the largest rice mill in the Southern Hemisphere, once processed enough grain to meet the needs of 20 million people around the world.  But six long years of drought have taken a toll, reducing Australia’s rice crop by 98 percent and leading to the mothballing of the mill last December.

The drought’s effect on rice has produced the greatest impact on the rest of the world, so far.  It is one factor contributing to skyrocketing prices, and many scientists believe it is among the earliest signs that a warming planet is starting to affect food production.

Drought has already spurred significant changes in Australia’s agricultural heartland.  Some farmers are abandoning rice, which requires large amounts of water, to plant less water-intensive crops like wheat or, especially here in southeastern Australia, wine grapes.  Other rice farmers have sold fields or water rights, usually to grape growers.

Still, Australia’s total rice capacity has declined by about a third because many farmers have permanently sold water rights, mostly for grape production.  And production last year was far lower because of a severe shortage of water; rice farmers received one-eighth of the water they are usually promised by the government.

The accidental beneficiaries of these conditions have been the farmers who grow wine grapes in the river basin where the Deniliquin mill stands silent.

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