Farm production to reach $58.5 billion

Farm production to reach $58.5 billion

Forecast increases in crop production will contribute to the total gross value of Australian farm production rising to $58.5 billion in 2016–17—around 12 per cent higher than the average value for the 2010-2015 period—according to the June 2016 edition of ABARES Agricultural Commodities report.

ABARES Executive Director, Karen Schneider, said a favourable start to the season, firm export demand and forecast increases in the production of key crop commodities supported this positive outlook.

“In 2016–17, the gross value of crop production is set to increase to $28.6 billion and this is being driven by forecast rises in the value of sugar, cotton and horticulture production,” Ms Schneider said.

“After rising by 10.9 per cent in 2015–16, the gross value of livestock production is forecast to remain at around $29.8 billion in 2016–17.

“The total value of export earnings from farm commodities is forecast to decrease by 2.5 per cent to $43 billion in 2016–17.

“However, export earnings are forecast to rise for wool (up 6 per cent), sugar (14 per cent), lamb (1 per cent), cotton (21 per cent), canola (12 per cent) and live feeder/slaughter cattle (3 per cent).

“These rises will be more than offset by falls in export earnings for beef and veal, wheat, dairy products, barley, chickpeas and mutton.”

Export earnings for fisheries products are forecast to remain at around $1.7 billion in 2016–17, after an estimated increase of 16.7 per cent in 2015–16.

The June 2016 edition of the ABARES Agricultural Commodities report includes the latest outlook for Australia’s key agricultural commodities.

This story was first published in Leading Agriculture magazine.