Record-breaking year forecast for farm output

ABARES latest Agricultural Commodity Report has forecast that farm output will reach a record $53.7 billion in 2015-16.
The 3.1 per cent increase is expected to be driven by strong global demand for livestock along with increased production across a range of crops including sugar and barley. The industry will benefit from a lower Australian Dollar and increased competitiveness in key export markets resulting from new trade agreements with Korea, Japan and China.
The forecast record again demonstrates the underlying strength of Australia’s agriculture sector, which has capacity to sustain significant increases in value over coming years.
The National Farmers’ Federation (NFF) sees this record not as a one-off, but as part of an emerging trend with real significance to the Australian economy.
The NFF is working to maximise Australia’s potential as an agricultural exporter, with the implementation of True Aussie – a premium brand for quality, safe and reliable food products, which will form a unified mechanism to strengthen Australia’s position in fast growing export markets.
Currently over 80 per cent of Australian agricultural produce is exported, and agriculture is forecast to remain a strong contributor to export earnings in 2015-16 despite a slight decline in value to $41.8 billion. Exports will be reduced as a result of improving seasonal conditions driving up domestic demand for livestock as producers seek to restock.
This reminder of agriculture’s potential comes at an important moment in the policy cycle, as the Federal Government prepares to release the Agricultural Competitiveness White Paper.
The NFF expects the upcoming White Paper to outline a framework for taking the value of agricultural production to new record levels over coming years.
ENDS