The total gross value of Australian farm production is tipped to rise to $58.5 billion in 2016-17 – about 12 per cent higher than the average value for the past five years.
According to the latest ABARES Agricultural Commodities report crop production will increase significantly to meet growing demand domestically and internationally.
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.”
Ms Schneider said 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),” she said.
“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 about $1.7 billion in 2016-17, after an estimated increase of 16.7 per cent in 2015-16.
The June edition of the ABARES Agricultural Commodities report is available on the ABARES website.