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Benchmark April18

Landmark Harcourts Benchmark | 3 Agricultural Overview Commodities Export values for rural goods have risen over the past year across each of the four broad export categories The $48.3 billion worth of rural goods exported over the twelve months to December 2017 is divided amongst four major categories: meat and meat preparations (25% of rural good exports), cereal grains and cereal preparations (19%), wool and sheepskins (8%), and other rural goods (48%). The ‘other’ category includes commodities such as cotton, butter, cheese and milk powders. Over the 12 months to December 2017 the export value of Australian meat was up 6.9% to reach $11.86 billion which was its greatest annual increase since February 2016. The value of cereal exports was up 19.6% year on year to reach $9.2 billion. Wool and sheepskin exports saw an 18.9% rise in export value over the past year, the greatest increase since February 2016, to reach $4.1 billion. Other rural exports surged 13.6% higher over the year at $23.2 billion worth of export value. Annual value of rural goods exports $25,000 $20,000 $15,000 $10,000 $5,000 Rural commodity price index Rural commodity prices ease after a recent surge The Reserve Bank’s rural commodity price index reached a 32 month high in July 2017 at 112.0 points, but slipped 4.6% to January 2018. The January 2018 reading was 2.0% higher than a year ago. The recent declines in rural commodity prices can be attributed to the ongoing strength of the Australian dollar. It is encouraging to note however, that the Index reached a recent low in September 2016 and has increased each month since to be 5.3% higher than this low. 150 140 130 120 110 100 90 80 70 Gross unit values of farm products a Source: ABS, CoreLogic Meat and meat preparations Cereal grains and cereal preparations Wool and sheepskins Other rural $ Million DEC-07 DEC-08 DEC-09 DEC-10 DEC-11 DEC-12 DEC-13 DEC-14 DEC-15 DEC-16 DEC-17 $0 Source: RBA, CoreLogic JAN-08 Commodity Price Index (SDR) JAN-17 JAN-09 JAN-10 JAN-11 JAN-12 JAN-13 JAN-14 JAN-15 JAN-16 JAN-18 60 Commodity unit 2012–13 2013–14 2014–15 2015–16 2016–17 s 2017–18 f Crops b Grains Barley $/t 276 267 280 253 191 246 Corn (maize) $/t 238 297 330 326 242 316 Grain sorghum $/t 252 300 301 275 239 222 Oats $/t 236 213 250 306 238 255 Rice $/t 260 340 395 419 350 365 Triticale $/t 249 258 256 248 126 161 Wheat $/t 313 316 300 277 247 272 Oilseeds Canola $/t 548 555 503 532 570 560 Soybeans c $/t 468 538 588 560 557 528 Sunflower seed c $/t 570 660 756 652 590 650 Pulses Chickpeas $/t 394 352 567 784 833 939 Field peas $/t 406 419 413 449 328 315 Lupins $/t 340 345 292 362 277 303 Industrial crops Cotton lint d c/kg 199 229 199 226 243 267 Sugar cane $/t 37.3 40.2 40.3 37.3 48.2 45.6 (cut for crushing) Wine grapes $/t 499 441 476 544 565 539 Commodity unit 2012–13 2013–14 2014–15 2015–16 2016–17 s 2017–18 f Livestock Beef cattle c/kg 318 304 382 492 521 457 Lambs c/kg 371 410 474 480 592 625 Pigs c/kg 262 300 310 358 335 274 Poultry c/kg 205 209 226 223 226 225 Livestock products Wool c/kg 579 604 626 734 821 946 Milk c/L 39.6 50.5 48.5 44.2 40.9 47.0 Eggs c/ dozen 195 221 229 238 242 245 a Average gross unit value across all grades in principal markets, unless otherwise indicated. Includes the cost of containers, commission and other expenses incurred in getting the commodities to their principal markets. These expenses are significant. b Average unit gross value relates to returns received from crops harvested in that year, regardless of when sales take place, unless otherwise indicated. c Price paid by crusher. d Australian base price for sales in the financial year indicated. f ABARES forecast. s ABARES estimate. Note: 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


Benchmark April18
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