Agricultural Overview

LH Benchmark_Nineteenth_Ed

Strength of the Agricultural Market The value of Australia’s agricultural output has been trending lower since moving through a record high in the March quarter of 2017 The Australian Bureau of Statistics’ national accounts data showed that the agricultural sector contributed $10.2 billion to the national economy over the March 2018 quarter. The sector’s output was –1.7% lower relative to the December 2017 quarter and –13.1% lower than the same time 12 months ago. With the recent fall, the value of agricultural output over the March ’18 quarter was tracking 2.2% below the decade average. Over the quarter, the agricultural sector accounted for 2.3% of Australia’s economic activity and over the 12 months it accounted for a slightly greater 2.5%. 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 2.6% over the twelve months ending May 2018 Over the twelve months ending May ’18 there was $47.0 billion worth of rural goods exported from Australia which was up 2.6% on the previous year. The rise in the value of rural good exports is largely attributable to higher export values over the first five months of 2018 which have more than offset a falling trend in the value of rural goods exports between February 2017 and January 2018. Rural goods exports comprised 15.1% of total goods exported over the twelve months to May 2018; well above the proportion ten years ago (14.0%) but substantially lower than 1970’s and 1980’s where rural goods consistently accounted for more than one third of exported goods. Indexes of prices received by farmers MAR-93 MAR-88 MAR-98 MAR-03 MAR-08 MAR-13 MAR-18 2.2% Source: ABS, CoreLogic MAY-88 MAY-93 MAY-98 MAY-03 MAY-08 MAY-13 MAY-18 10% Source: ABS, CoreLogic Agricultural Overview Commodity 2013–14 2014–15 2015–16 2016–17 2017–18 s 2018–19 f Crops Grains Barley 167.9 175.6 159.0 114.6 154.9 157.3 Canola 144.1 130.6 137.9 134.9 130.5 129.2 Grain sorghum 177.2 178.1 162.3 141.0 176.4 181.1 Lupins 176.4 149.3 185.0 141.4 133.8 228.3 Oats 156.0 183.1 224.0 174.0 184.0 175.3 Wheat 159.8 151.7 140.1 125.0 143.3 150.5 Total grains a 149.9 147.0 141.9 124.0 141.4 143.0 Cotton 103.9 104.4 111.7 123.4 121.5 124.3 Hay 160.9 169.6 176.4 179.3 184.5 184.5 Fruit 158.8 170.4 162.0 164.8 167.9 171.7 Sugar 125.4 127.2 117.8 126.0 109.0 99.3 Vegetables 174.1 179.1 172.9 175.8 179.2 183.2 Total crops 131.1 131.8 128.4 121.2 133.1 134.4 Livestock Livestock for slaughter Cattle 156.3 196.4 252.9 271.8 231.0 213.3 Lambs 201.8 233.4 236.2 291.6 301.2 307.8 Sheep 250.8 337.8 304.1 462.5 466.4 473.5 Live sheep for 233.4 286.6 312.3 321.3 329.3 335.9 export 2013–14 2014–15 2015–16 2016–17 2017–18 s 2018–19 f Livestock for slaughter (cont.) Pigs 151.7 156.4 181.0 170.7 133.8 142.1 Poultry 116.9 126.2 126.8 120.3 127.3 131.7 Total livestock for slaughter 161.2 192.4 227.5 245.5 224.7 218.2 Livestock products Wool 153.5 159.1 186.5 212.5 258.8 298.8 Milk 169.1 162.6 148.2 137.1 157.5 160.8 Eggs 112.7 114.6 112.7 113.7 114.8 116.1 Total livestock products 157.2 155.8 156.1 158.3 183.9 198.6 Store and breeding stock 169.2 209.7 260.1 298.5 270.2 255.4 Total livestock 157.4 177.8 201.5 215.1 210.4 210.7 Total prices received 142.9 152.4 161.0 162.0 167.6 168.6 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. Sources: ABARES; Australian Bureau of Statistics


LH Benchmark_Nineteenth_Ed
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