Australia’s agricultural outlook remains strong in rainy weather and complex world conditions, according to reports.
according to Rural Bank’s latest agricultural outlook reportAlthough the global environment was still volatile, Australian farmers continued to benefit from high commodity prices and strong production.
Andrew Smith, Head of Sales at Rural Bank, said farmers are doing well due to good seasonal conditions in most parts of the country. In addition, strong agricultural performance is expected to continue.
“The outlook is good and very positive, and it’s great for producers to see this for the third year in a row. It’s been in good shape both in season and in commodity prices,” Smith said in a comment from AAP. It states.
Producers in Queensland and New South Wales were hit by heavy rains and floods earlier this year, but seasonal conditions boosted production in most agricultural sectors.
Rain conditions are expected to continue nationwide until September, and a third La Niña weather event may occur in the summer.
In addition, the report predicted that Australia’s winter agricultural production would be above average for three consecutive seasons and that horticultural performance would return to strong levels after the Queensland flood crisis.
Wet conditions boost Australian meat production
Meanwhile, the report said that moist conditions are likely to strengthen Australian herds of cattle and sheep.
Smith said production of beef, mutton, wool and dairy products is expected to be strong in late 2022.
In addition, he said Australia was able to diversify its agricultural customer base in 2021 while the global trade situation presented challenges for some exporters.
“For example, in the case of lambs, exports of lambs to the United States have grown significantly over the past two years, but over the last 12 months, markets such as the UAE, South Korea, Malaysia and Saudi Arabia have also increased.”
When Australia and India recently signed economic cooperation and trade agreements, Australian sheep, almond, wool, lentil, and wine producers hope to benefit significantly from improved access to markets in South Asian countries. Was there.
At the same time, the report states that grain supply from Ukraine has had little or no surge in Australian grain demand, especially across Asia.
However, he said there are no concrete signs of improvement as Australia’s barley, wine, lobster and beef are still subject to tariffs in relations with Australia’s largest trading partner, China.
Over the years, Mr Smith said seasonal, trade and supply chain disruptions would shape Australia’s agricultural production for the rest of 2022.