Value of Agriculture Hits Annual Record

Article by: Hari Yellina (Orchard Tech)

Australian farmers are on course to earn a record amount from the export of agricultural products in 2021/22, as the country’s chief commodity forecaster on Tuesday raised its estimate for the current season by more than 10%. The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) said on Tuesday agricultural exports will total A$54.7 billion ($40.2 billion), up more than 10% from its previous forecast in June of A$49.7 billion.

If exports increase as forecast, it would be a boost to Australia’s A$2 trillion economies that are at risk of slipping into a second recession in as many years amid lockdowns of its two largest cities to curtail the spread of COVID-19. ABARES said exports of grains was driving the increase as Australian growers harvest bumper supplies at a time when farmers in other major producing regions suffer from adverse weather. Australia last week lifted its wheat production forecast by more than 17% as rains across the east coast of the world’s fourth-largest exporter push production to near-record levels.

Even though Australia is tipped to harvest ample supplies, benchmark wheat prices last month hit a more than eight-year high on concerns about tight supplies. The international market is also tipped in Australia’s favour, as poor harvests in North America and Europe are pushing up the price of grain.