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Farm production forecast to pass $60 billion

Posted by on 18/07/2018

MORE GOOD NEWS: Export earnings from wheat are expected to be up by 25 per cent in 2016-17. Photo: Karleen MinneyTHE gross value of Australian farmproductionisforecastto increase by 6.1 per cent, passing $60 billion in 2016-17, according to the latest commoditiesreport.
Nanjing Night Net

Australian Bureau of Agricultural and Resource Economics and Sciencesacting executive directorPeter Goodaysaid this would make it about16 per cent higher than the average of $52 billion in the five years to 2015-16 in nominal terms.

Mr Gooday said it was more good news after abumper winter crop.

“Export earnings from farm commodities areforecastto increase by 6.7 per cent to $47.5 billion in 2016-17, following a modest increase of 1.4 per cent in 2015-16 to $44.6 billion,” he said.

“The gross value of cropproductionisforecastto increase by 14.7 per cent to $31.7 billion in 2016-17.

“This is due in part to recent record high winter cropproductionof 52.4 million tonnes andforecastincreases in the gross value of horticulture and cottonproduction.”

The commodities for which export earnings areforecastto rise in 2016-17 are wheat (up 25 per cent), wool (3pc), sugar (23pc), wine (3pc), barley (15pc), cotton (56pc), chickpeas (74pc), lamb (4pc), canola (33pc) and rock lobster (6pc).

Theforecastincreases in export earnings are expected to be partly offset byforecastfalls in beef and veal (down 17pc), live feeder/slaughter cattle (17pc) and mutton (12pc). Export earnings for dairy products are expected to continue unchanged.

“The gross value of livestockproductionisforecastto fall by 2 per cent to $28.5 billion in 2016–17, following an estimated 7.7 per cent increase in 2015–16,” Mr Gooday said.

JOYCE JOYMinister forAgriculture and Water Resources Barnaby Joyce said agricultural exports were Australia’s second-biggest after mining.

“Growth in exports can, in part, be attributed to the Coalition government’s successful trade deals, including the China-Australia Free Trade Agreement, the Japan-Australia Economic Partnership Agreement and the Australia Korea Free Trade Agreement,” Mr Joyce said.

“When it comes to the export of goods, agricultural exports are now Australia’s second-biggest export after mining.”

Mr Joyce said there had been great conditions for cropping.

“Seasonal conditions across most cropping regions have been very favourable, with above-average rainfall recorded in September, followed by mild spring conditions, which has encouraged increases across all states for the first time in nine years,” he said.

Mr Joyce said it had been “a big year for agriculture in Australia” and his government had helped achieve this through its Agricultural Competitiveness White Paper.

“The Coalition government has set about creating an environment where our farm businesses can continue to generate the kind of productivity we’ve seen in this latest ABARESforecast,” Mr Joyce said.

Measures includedchanges to Farm Management Deposits;allowing farmers to depreciate new on-farm fodder storage assets over three years; new rules on fencing depreciation; and Drought Concessional Loans.

“I’m proud of the Coalition government’s continued support for farmers and our delivery of White Paper measures,” he said.

“We’re giving our hard-working farmers a fairer go, promoting productivity and providing them the best opportunity to continue breaking records.”

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