December 6, 2024

 

Australian agriculture sector set for second-highest production value

Despite challenges from drier conditions in parts of Australia, the agriculture sector is forecast to achieve its second-highest value of production on record for the 2024–25 financial year.

 

According to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), the combined value of the agriculture, fisheries, and forestry sectors is projected to reach AUD 94.3 billion (US$60.6 billion) this year.

 

ABARES executive director, Dr Jared Greenville, stated that the agriculture sector alone is expected to contribute AUD 88.4 billion (US$56.8 billion), an increase of AUD 6 billion (US$3.8 billion) from the previous financial year.

 

"The primary driver of this growth is higher livestock prices, which have led to increased livestock production," Dr Greenville explained. "The gross value of crop production is also forecast to rise by AUD 2.2 billion (US$1.4 billion), as higher domestic production offsets lower prices in global markets."

 

Winter crop production volumes have risen by 16% to a total of 55.1 million tonnes, driven by favourable growing conditions in New South Wales, Queensland, and Western Australia. However, South Australia and Victoria experienced declines due to less favourable conditions during the winter cropping season.

 

While agricultural export values are forecast to fall to $70.1 billion in 2024–25, this figure remains the third highest on record. The decrease is attributed to exportable crops returning to normal levels following three consecutive years of record production from 2020–21 to 2022–23. The strong performance underscores the continued global demand for Australian products despite market volatilities.

 

Dr Greenville noted positive developments in Australian red meat exports, which saw significant growth in 2023–24 and are projected to set a record in 2024–25. This growth is fuelled by strong demand from major trading partners, including the US, China, Japan, and the Middle East.

 

"Good production conditions for livestock in recent years have ensured the continued availability of livestock for turn-off in Australia," he said.

 

In 2024–25, red meat export values are expected to reach record highs for both beef and veal, projected at AUD 13.9 billion (US$8.9 billion).

 

-      Beef Central