Agricultural Overview

Benchmark April18

Strength of the Agricultural Market The value of Australia’s agricultural output has fallen slightly over each of the past two quarters The Australian Bureau of Statistics’ national accounts data showed that the agricultural sector contributed $11.2 billion to the national economy over the September 2017 quarter. The sector’s output was –4.1% lower than over the previous quarter and –0.8% lower than the September 2016 quarter. Despite the slippage, over the 12 months to September 2017 the agricultural sector recorded output of $47.0 billion which was a near record-high. Over the quarter, the agricultural sector accounted for 2.6% of Australia’s economic activity and over the 12 months it accounted for a slightly greater 2.8%. 40% 35% 30% 25% 20% 15% 2 | www.landmarkharcourts.com.au Annual contribution of agriculture, forestry and fishing to GDP 3.4% 3.2% 3.0% 2.8% 2.6% 2.4% Annual exports of rural goods as a proportion of total exports The value of rural goods exports rose 13.2% over the 2017 calendar year Over the 2017 calendar year there was $48.3 billion worth of rural goods exported from Australia which was up 13.4% on the previous year. The significant jump in the value of exports highlights the increasing international demand for Australia’s rural goods. Over recent months the value of rural exports has been fairly steady, accounting for 16.0% of annual exports, however it is slightly lower than the 2016 calendar year when rural exports accounted for 16.5% of all exports. Although rural goods exports have fallen as a proportion of total goods exports, the 13.4% increase on the previous year highlights demand is strong and continues to grow. Indexes of prices received by farmers SEP-92 SEP-87 SEP-97 SEP-02 SEP-07 SEP-12 SEP-17 2.2% Source: ABS, CoreLogic DEC-87 DEC-92 DEC-97 DEC-02 DEC-07 DEC-12 DEC-17 10% Source: ABS, CoreLogic Agricultural Overview Commodity 2012–13 2013–14 2014–15 2015–16 2016–17 s 2017–18 f Crops sector Grains Barley 173.4 167.9 175.6 159.0 119.8 154.4 Canola 142.1 144.1 130.6 137.9 147.8 145.3 Grain sorghum 148.9 177.2 178.1 162.3 141.0 131.3 Lupins 173.5 176.4 149.3 185.0 141.4 154.6 Oats 172.9 156.0 183.1 224.0 174.0 186.2 Wheat 158.3 159.8 151.7 140.1 125.0 137.7 Total grains a 147.9 149.9 147.0 141.9 126.1 139.5 Cotton 98.2 103.9 104.4 111.7 123.4 121.5 Hay 144.9 160.9 169.6 176.4 180.4 184.0 Fruit 156.5 158.8 170.4 162.0 164.8 168.1 Sugar 117.5 125.4 127.2 117.8 163.5 145.3 Vegetables 172.8 174.1 179.1 172.9 175.9 179.4 Total crops 129.3 131.1 131.8 128.4 124.9 130.4 Livestock Livestock for slaughter Cattle 164.2 156.3 196.4 252.9 267.8 235.0 Lambs 182.8 201.8 233.4 236.2 291.6 307.8 Sheep 200.0 250.8 337.8 304.1 462.5 400.6 Live sheep for 247.6 233.4 286.6 312.3 321.3 340.5 export 2012–13 2013–14 2014–15 2015–16 2016–17 s 2017–18 f Livestock for slaughter (cont.) Pigs 132.5 151.7 156.4 181.0 169.2 138.4 Poultry 114.4 116.9 126.2 126.8 125.9 125.6 Total livestock for 158.6 161.2 192.4 227.5 244.8 226.0 slaughter Livestock products Wool 147.3 153.5 159.1 186.5 208.7 240.4 Milk 134.7 169.1 162.6 148.2 137.1 157.5 Eggs 107.4 112.7 114.6 112.7 113.7 114.8 Total livestock 136.1 157.2 155.8 156.1 157.1 178.1 products Store and breeding stock 173.8 169.2 209.7 260.1 295.5 273.3 Total livestock 149.0 157.4 177.8 201.5 214.2 209.3 Total prices received 137.9 142.9 152.4 161.0 163.9 165.4 a Total for the group includes commodities not separately listed. f ABARES forecast. s ABARES estimate. Notes: The indexes for commodity groups are calculated on a chain-weighted basis using Fisher’s ideal index with a reference year of 1997–98 = 100. Indexes for most individual commodities are based on annual gross unit value of production. Prices used in these calculations exclude GST. Series break in 2015–16. Prior to 2015–16 figures are based on establishments with an estimated value of agricultural operations (EVAO) of $5,000. From 2015–16 (inclusive) figures are based on establishments with an EVAO of $40,000. Source: ABARES


Benchmark April18
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