Australia’s agricultural prospects continue to remain strong in a humid climate and complex global conditions, a report says.
According The latest Agricultural Outlook Report from the Rural BankAlthough the global environment was still unstable, Australian farmers continued to benefit from high commodity prices and robust production.
Rural Bank sales manager Andrew Smith said farmers had done well due to favorable seasonal conditions in most parts of the country. In addition, the strong performance of agriculture was expected to continue.
“It’s a good outlook and quite positive, and it’s great to see this three years in a row for our growers… where we’ve had good conditions both in seasons and in commodity prices,” said Smith said in comments obtained by AAP.
While growers in Queensland and New South Wales suffered from heavy rains and flooding earlier this year, seasonal conditions boosted production in most agricultural sectors.
Wet conditions were expected to continue across much of the country through September, with a third La Nina weather event likely to occur in the summer.
In addition, the report predicted Australia‘s winter crop production would remain above average for three consecutive seasons and horticulture performance would return to high levels following the Queensland flood crisis.
Wet conditions boost Australian meat production
Meanwhile, the report says wet conditions are likely to bolster Australia’s cattle and sheep herds.
Smith said the country is expected to achieve strong results in the production of beef, sheepmeat, wool and dairy products in the second half of 2022.
Furthermore, he noted that while global trading conditions had presented challenges for some exporters, Australia had been able to diversify its agricultural customer base in 2021.
“For example, lamb, we’ve increased our lamb exports to the United States quite strongly over the last couple of years, but in the last 12 months we’ve seen markets like the UAE, South Korea South, Malaysia, Saudi Arabia also increase.”
As Australia and India recently signed an economic and trade cooperation agreement, Australian producers of mutton, almonds, wool, lentils and wine anticipated significant benefits from improved access to South Asian country market.
At the same time, the report says little to no grain supply from Ukraine has caused demand for Australian grain to skyrocket, particularly across Asia.
However, he said there were no tangible signs of improvement in relations with Australia’s biggest trading partner, China, as the country was still imposing tariffs on barley, Australian wine, lobster and beef.
As the year progressed, Smith said seasonal conditions, trade conditions and supply chain disruptions would shape Australian agricultural production for the remainder of 2022.