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Agriculture to shine in 2010: Rabobank

Agriculture to shine in 2010: Rabobank article image
A new report by agriculture specialist Rabobank predicts that food commodity prices will rise in 2010 on the back of improved economic conditions, which will be of benefit to Australian agricultural exporters. The latest annual Australian Agriculture in Focus report sees increasing global demand for agricultural commodities such as dairy and sheepmeat, while the supply of many of these commodities is limited. After the freefall of the market last year, this is a welcome change, said Rabobank’s general manager for Food & Agribusiness Research and Advisory Justin Sherrard. But he warned that businesses had to manage rising costs as well. "To benefit from higher commodity prices, farmers and agribusinesses need to manage any related increases in production and processing costs, and see higher prices passed down to consumers." The rising Australian dollar and rising energy prices will also be a major factor in increased commodity prices, particularly as resources such as oil and natural gas are used in manufacturing farm inputs, such as fertilisers and chemicals. "Dairy, sheepmeat, sugar and fibres are the sectors that appear best placed to capitalise on the positive outlook," Sherrard said.

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