Australia’s Agricultural Production Value Set to Climb 4%

ROBERT HEYWARD

Australia’s agricultural sector is poised for signifcant growth in the 2024-25 fnancial year, with the gross value of agricultural production projected to rise by 4%, according to the latest ABARES Agricultural Commodities and Crop Reports. The sector’s value is expected to increase from $82.5 billion in 2023-24 to $86.2 billion in 202425.

ABARES Executive Director, Dr. Jared Greenville, highlighted that the overall value of production across agriculture, fsheries, and forestry is forecasted to reach $92.1 billion in 2024-25.

This growth is attributed to favourable seasonal conditions in many regions, easing input prices, and stronger livestock prices, all of which are bolstering farm incomes.

“While many regions are benefting from improved conditions, not all areas are experiencing the same positive outcomes,” Dr. Greenville noted.

“Crop production in New South Wales and Queensland has been strong, with better-thanexpected conditions in Western Australia. However, unfavourable conditions in northern and western Victoria, as well as most of South Australia, due to below-average winter rainfall, have resulted in lower-than-expected crop yields.”

Despite these regional disparities, the value of agricultural exports is forecast to reach $68.5 billion in 2024-25, or $72.6 billion when including fsheries and forestry. Although grain export values have slightly declined due to reduced carry-over stocks from the previous record-breaking years, production levels remain among the highest on record.

Australian exports continue to be in strong demand globally, with red meat exports performing well in key markets such as the United States and the Middle East. Trade fows with China have also increased across various commodities, following improved market access.

The horticulture sector remains resilient, maintaining its forecast of record-breaking production values. Additionally, average cash incomes for broadacre farms are expected to surge by 64%, reaching $192,000 per farm in 2024-25, driven by higher cattle and sheep prices.

“The ABARES Commodities and Crop Reports paint a positive picture for Australian agriculture, underscoring the sector’s ability to capitalize on global demand for our highquality products,” Dr. Greenville concluded.