Farmgate value to exceed $66B

The Department of Agriculture, Water and the Environment (ABARES) has just released its latest June 2021 crop report and if its findings are anything to go by, Australia’s agricultural industry is one step closer to realising its goal of $100 billion in farmgate value by 2030.

Farmgate production this year is set to hit a record high of $66.3 billion, up $400 million from earlier estimates, the report stated.

“This is due to strong domestic livestock prices, and because the pace of Australian grain exports has been faster than expected after harvesting the second largest winter crop on record,” said ABARES Acting Executive Director, Dr Jared Greenville.

“We have seen an impressive turnaround in wheat, barley and canola shipments. Particularly for barley, this result demonstrates the resilience of supply chains, the benefits of a diversified production base and access to a diverse range of international markets."

The gross value of production next year (2021-22) is forecast to fall from the record high to a still impressive $65 billion.

“Prospects are positive for the next winter crop which has seen record high area planted, but it's very unlikely to see two record years back to back,” Dr Greenville said.

The value of agricultural exports is forecast at just under $47 billion in 2020-21.

“The value of exports is forecast to grow to $49.7 billion in 2021-22, driven by higher beef, wool and dairy exports, as well as a sharp recovery in cotton exports,” Dr Greenville added.

“Herd and flock rebuilding is still ongoing but we are expecting more animals to begin flowing into meat processing in 2021-22, which is also likely to ease margin pressures on the red meat processing sector."

While the mouse plague has devastated parts of the country especially New South Wales and Queensland, damage on the national scale has been reasonably limited, ABARES said.

“The worst impacts have been to stored grain and hay across parts of Queensland and New South Wales, although high mouse activity has been observed in many parts of the wheat belt,” Dr Greenville said.

“The worst of the mouse plague is likely to be behind us as cool and wet winter conditions slow breeding rates.

“There does remain a risk of a resurgence if winter is warmer than expected.”

You can read ABARES’ full June quarter 2021 Agriculture Commodities report on the ABARES website.