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LH Benchmark_Nineteenth_Ed

Landmark Harcourts Benchmark | 3 Agricultural Overview Commodities The export value of rural goods has surged higher over the year due to strong rises in the export value of wool and meat products The $47.0 billion worth of rural goods exported over the twelve months to May 2018 is divided amongst four major categories: meat and meat preparations (27% of rural good exports), cereal grains and cereal preparations (17%), wool and sheepskins (9%), and other rural goods (47%). The ‘other’ category includes commodities such as cotton, butter, cheese and milk powders. Over the 12 months to May 2018 the export value of Australian meat was up 12.8% to reach $12.45 billion which was its greatest annual increase since January 2016. The value of cereal exports was down 9.4% year on year to reach $8.1 billion. Wool and sheepskin exports saw a 16.2% rise in export value over the past year, continuing a solid trend of growth that has been evident since mid-2016. ‘Other’ rural exports held reasonably firm over the year (+0.2%) as the previously strong growth trend winds down. Annual value of rural goods exports $25,000 $20,000 $15,000 $10,000 $5,000 Rural commodity price index Rural commodity prices on a strong upwards trajectory The Reserve Bank’s rural commodity price index reached a 41 month high in June 2018 at 107.7 points, rising 7.7% over the first half of the year and up 11.5% relative to the recent low in September 2017. The improvement in rural commodity prices can be at least partially attributed to recent weakness in the Australian dollar. With the Australian dollar likely to remain subdued and demand for Australian rural goods remaining high, there is a high likelihood the index will continue to trend higher. 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 MAY-08 MAY-09 MAY-10 MAY-11 MAY-12 MAY-13 MAY-14 MAY-15 MAY-16 MAY-17 MAY-18 $0 Source: RBA, CoreLogic JUN-08 Commodity Price Index (SDR) JUN-17 JUN-09 JUN-10 JUN-11 JUN-12 JUN-13 JUN-14 JUN-15 JUN-16 JUN-18 60 Commodity unit 2013–14 2014–15 2015–16 2016–17 2017–18 s 2018–19 f Crops b Grains Barley $/t 267 280 253 197 281 303 Corn (maize) $/t 297 330 326 320 315 307 Grain sorghum $/t 300 301 275 238 323 364 Oats $/t 213 250 306 242 268 338 Rice $/t 340 395 419 313 463 358 Triticale $/t 258 256 248 178 225 264 Wheat $/t 316 300 277 231 286 291 Oilseeds Canola $/t 555 503 532 559 543 542 Soybeans c $/t 538 588 569 780 865 876 Sunflower seed c $/t 660 756 652 1,125 905 701 Pulses Chickpeas $/t 352 567 784 833 849 497 Field peas $/t 419 413 449 328 297 291 Lupins $/t 345 292 362 277 262 272 Industrial crops Cotton lint d c/kg 229 199 226 257 256 283 Sugar cane (cut $/t 40.2 39.4 37.3 44.4 33.5 29.7 for crushing) Wine grapes $/t 441 476 544 565 539 551 Commodity unit 2012–13 2013–14 2014–15 2015–16 2016–17 s 2017–18 f Livestock Beef cattle c/kg 304 382 492 529 450 415 Lambs c/kg 410 474 480 592 612 625 Pigs c/kg 300 310 358 338 265 281 Poultry c/kg 209 226 223 215 228 236 Livestock products Wool c/kg 604 626 734 836 1,018 1,176 Milk c/L 50.5 48.5 44.2 40.9 47.0 48.0 Eggs c/ dozen 221 229 238 242 242 244 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 gross unit 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. Notes: 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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