June 3, 2010
Australian farm production falls in Q1
The value of production from agriculture, forestry and fishing fell 5.5% in the past quarter, dragging down gross domestic product (GDP) by 0.1 of a percentage point, as grain prices eased after the harvest.
Agricultural production was worth US$6.6 billion from January to March 2010, down from US$7 billion in the previous quarter in 2009. Forestry and fishing production dropped slightly, from US$1.24 billion to US$1.23 billion.
It is not unusual for the value of the sector's production to decline in the March quarter, but this year it dropped by a bigger percentage than in the same quarter last year. But the latest figures come after six months when growth in farm production was much stronger than elsewhere.
Farmers hope that rain has moistened soil and set productrs up for good yields from winter grain crops.
