June 7, 2024

 

Australia's agricultural production set to hit third-highest year on record

Australia's agriculture, fisheries, and forestry sectors are poised for their third-highest production year on record in the upcoming financial year, Daily Cargo News reported.

 

The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) projects that the gross value of Australia's agricultural industries will rise to AUD 89.5 billion (US$59.6 billion) in 2024-25, up 2% from AUD 87.6 billion (US$58.3 billion) in 2023-24.

 

This optimistic forecast is supported by an improved seasonal outlook, following the drier conditions experienced in 2023-24.

 

Jared Greenville, ABARES executive director, said some cropping regions are currently experiencing dry conditions, but an expected improvement in seasonal conditions over winter, combined with improved livestock prices and production, will put Australian agriculture in a good position.

 

Strong global demand for Australian livestock products is expected to bolster prices and production, with the gross value of livestock production and livestock products forecast to increase by 3% to AUD 35.5 billion (US$23.6 billion) in 2024-25.

 

Last week, China lifted import bans on several Australian beef exporters, a move that has been welcomed as "a great outcome" for the companies, their clients, and the farmers and feedlots that support them through cattle purchases.

 

Dr Greenville also noted despite lower prices for crops due to higher global production, the value of crop production is expected to grow by 2% to $48.1 billion in 2024-25, thanks to higher production levels.

 

Dr Greenville emphasised the adaptability of Australian agriculture as a key factor in its continued success.

 

Much of the positive outlook hinges on the anticipated arrival of La Nina later in the year, which analysts expect will bring improved rainfall to parts of the country that have experienced a dry start to the season.

 

-      Daily Cargo News