Farm gross value only down 3% on last year despite drought
- By: "Farm Tender" News
- Hay & Fodder News
- Dec 12, 2018
- 408 views
- Share
The gross value of Australian farm production is forecast to decrease by 3 per cent to $58 billion in 2018–19, 6 per cent lower than the record production in 2016–17 but still above the 10-year average of $56 billion.
ABARES Executive Director Dr Steve Hatfield-Dodds said that while drought was forecast to affect the production of some commodities—especially crops—increases in farmgate prices and strong production in Western Australia are providing a buffer to the national outlook.
“The annual value of crop production is forecast to decline by seven per cent to $29 billion in 2018–19, driven by a 23 per cent fall in winter crop production nationally, as a result of the drought in cropping regions in New South Wales, Queensland and Victoria.
Ad - Forest Springs Merinos now have Flock Rams available - Give Bruce Dean a call on 0407 054 342 - Ad
Ad - Forest Springs Merinos now have Flock Rams available - Give Bruce Dean a call on 0407 054 342 - Ad
“Forecasts for an above average winter crop harvest in Western Australia and higher prices for broadacre crops are keeping the value of production from falling further. A lower Australian dollar will also help” Dr Hatfield-Dodds said.
“On the other hand, the value of livestock and livestock products is forecast to increase by two per cent to almost $30 billion. Droughts tend to increase meat production, but high prices for lamb and wool are also forecast to support the value of production."
Ad - Forest Springs Merinos now have Flock Rams available - Give Bruce Dean a call on 0407 054 342 - Ad
Ad - Forest Springs Merinos now have Flock Rams available - Give Bruce Dean a call on 0407 054 342 - Ad
“The high cost of feed is a significant challenge for producers in drought affected regions and is resulting in higher than average cattle turn-off across eastern Australia.
“In 2018–19 export earnings for agricultural commodities are forecast to decline by seven per cent to $45 billion. This is largely the result of lower production due to poor seasonal conditions and increased domestic consumption of coarse grains and wheat for feed."
“The Trans-Pacific Partnership will come into force on 30 December 2018, and is a welcome development for Australian farmers. However, the continuing trade conflict between the United States and China is a key source of uncertainty in the outlook for Australian agricultural exports.”
See the full December Agricultural Commodities report here:
Share Ag News Via