Ag production value set to increase

The gross value of Australia’s agriculture sector is expected to increase by two per cent, from $87.6 billion in 2023–24 to $89.5 billion in 2024–25, according to the Australian Bureau of Agricultural and Resource Economics and Sciences’ (ABARES) latest forecast.

Executive Director of ABARES, Dr Jared Greenville, said this quarter’s Agricultural Commodities and Australian Crop Report show an expected improvement in agriculture following drier conditions seen in 2023-24.

“Some cropping regions are currently experiencing dry conditions, but an expected improvement in season conditions over winter, combined with improved livestock prices and production, will put Australian agriculture in a good position,” Dr Greenville said. 

“Strong global demand for Australian livestock products will support an improvement in prices and production, with the gross value of Australian livestock production and livestock products forecast to increase by three per cent to $35.5 billion in 2024–25.

“For crops, despite lower prices resulting from higher global production, the value of crop production is expected to grow by two per cent to $48.1 billion in 2024-25 on the back of higher production levels.

Australia’s horticulture sector is also expected to reach a record high of $17.4 billion, led by increases in fruit and nuts.

“The Australian Crop Report shows a strong response from growers to changing market and seasonal conditions,” Dr Greenville said.

“The area to chickpeas is growing 79 per cent in response to recent Indian tariff reductions and a good start to the season in NSW and Queensland. The area for lentil plantings is also at a record 885 thousand hectares.   

However, ABARES is predicting a four per cent decline in agricultural export value to $73.1 billion in 2024–25 due to a lower exportable supply of grains and oilseeds.

“Despite the fall in export value, this result will still be the third highest on record,” Dr Greenville said.

“At the farm level, improving seasonal conditions and higher livestock prices, are expected to see average broadacre farm cash incomes increase by $45,000 to $149,000 in 2024–25.

“The forecasts show Australian agriculture doing what it’s known for – being adaptable to seasonal conditions and able to respond to new market opportunities.”