High Australian agricultural exports defy expectations
Australia’s agricultural exports are going to hit a record value of $64 billion in 2022–23 according to the new Agricultural Commodities Report from the Australian Bureau of Agricultural and Resource Economics and Sciences.
In this last quarter, despite rocky market conditions around the world driven by war, high grain and food prices, and cost of fertiliser, Australia’s exports have seen strong returns, and the total value of agricultural production remained high at just over $80 billion — the second highest value on record. The report notes that the value of exports is high due to high levels of crop production, with an excellent start to the quarter and a good outlook for winter-cropping suggesting a strong season ahead.
Unfortunately, the war in Ukraine is having an impact on the cost of food worldwide and is leading to food insecurity, and world fertiliser prices are at their highest level since 2008.
“Exceptionally high grain prices are expected due to poor seasons for major producers overseas and the unfortunate side-effects of Russia’s invasion of Ukraine on world grain markets,” said Executive Director of ABARES Dr Jared Greenville.
“Soaring fertiliser costs and access to farm labour and imported machinery will continue to challenge many Australian farm businesses, but Australia has shown throughout the pandemic that we are a reliable and resilient food producer and exporter.”
The report cautions the Australian agricultural industry due to ongoing international challenges.
“While Australian producers have been able to benefit from favourable growing conditions over the past few years, longer-term risks exist in the form of trade restrictions imposed by many countries in response to rising food prices,” Greenville said.
“Trade restrictions increase global price volatility and reduce the confidence countries place in buying food from global markets. Reduced confidence in international markets is a concern for Australian producers as they are central to both global food security and the long-term prosperity of Australian agriculture.”
The Agricultural Commodities Report for this quarter is available online.
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