Farm production value to top $58 billion

In the June edition of ABARES' Agricultural Commodities report, the organisation predicts Australia will deliver $58 billion worth of farm produce in the upcoming financial year – around 12 per cent higher than the average value for the past five years.

This is due to a forecasted increase in crop production thanks to a favourable start to the cropping season as well as firm export demand.

"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," says ABARES Executive Director, Karen Schneider.

"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."

Schneider says increases in export earnings have been forecasted for a number of sectors including wool (up 6 per cent), sugar (up 14 per cent), lamb (up 1 per cent), cotton (up 21 per cent), canola (up 12 per cent) and live feeder/slaughter cattle (up 3 per cent).

However, the rises will most likely be offset by falls in export earnings for beef and veal (down 9 per cent), wheat (down 7 per cent), dairy products (down 6 per cent), barley (down 2 per cent), chickpeas (down 43 per cent) and mutton (down 18 per cent).

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

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 edition of the Agricultural Commodities report is now available on the ABARES website.