September 18, 2013

In 2013-14, Australia's gross value of farm production is expected to hit a record of AUD49 billion (US$46 billion), according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

Executive Director of ABARES, Paul Morris, said the value of farm production was expected to exceed AUD46 billion (US$43 billion) for the fourth year in a row.

"This continues the recovery in the farm sector from the drought-affected decade of the 2000s. However, improved returns are not the universal experience across the sector, with some producers still suffering from adverse seasonal conditions and other producers facing declining prices for their products," Morris said.

The value of exports is also expected to remain firm, but with a slight easing to AUD37.2 billion (US$35 billion) in 2013-14 from the record high of AUD38 billion (US$35.6 billion) achieved in 2012-13.

Export earnings from beef and veal (up 6%), dairy products (15%) and wine (8%) are forecast to increase in 2013-14. Positive growth in livestock and livestock products earnings has been helped by higher world prices for dairy products and lamb, and the depreciation of the Australian dollar.

This increase is expected to be offset by lower export earnings for wheat (down 4%), rapeseed (33%) and cotton (16%). The decline in grains and oilseeds returns is, in part, a result of a decline in world prices for grains and oilseeds due to increased supplies in the US and the Black Sea region.