Higher farmgate prices for beef, lamb and wool are expected to push Australia’s farm production values to a record $53.7 billion in 2015-16, according to a new report released by ABARES today.
Despite a forecasted decline in the volume of livestock production, ABARES executive director Karen Schneider says the strong prices will more than offset the decline in production.
According to the report, the gross value of livestock production is expected to increase by 5.2 per cent to $27.2 billion in that period.
Crop production including sugar and barley is also forecast to increase by 0.9 per cent to $26.5 billion.
Despite record production values, farm export dollars are expected to experience a slight decline this year to an estimated $41.8 billion compared to $42.4 billion last year.
“Despite the forecast year-on-year fall, export earnings for farm commodities in 2015-16 are still expected to be around 10 per cent higher than the average of five years to 2014-15 in nominal terms,” Schneider says.
Other key findings of the report include:
- Export earnings for fisheries products, coarse grain, live sheep, wool, sugar, dairy and lamb are expected to increase in 2015-16
- Export earnings for beef and veal; wheat; cotton; live cattle and mutton are forecast to decline in 2015-16
Australia’s peak farming body National Farmers’ Federation sees the record-breaking production value as part of an emerging trend with real significance to the Australian economy.
“The forecast record again demonstrates the underlying strength of Australia’s agriculture sector, which has capacity to sustain significant increases in value over coming years,” the organisation says.
NFF is currently working to maximise Australia’s potential as an agricultural exporter with the implementation of True Aussie – a premium brand for quality, safe and reliable food products which the organisation hopes will form a unified mechanism to strengthen Australia’s position in fast growing export markets.
For ABARES’ full Agricultural Commodities report, visit ABARES’ website.