Australian farmers expect a record harvest this season with the perfect combination of price increases and increased production.
The Australian Bureau of Agricultural Resources and Economics (ABARES) has upgraded the fiscal year 2021-22. Agricultural forecast To $ 73 billion ($ 53.5 billion).
This is the first time Australia’s total agricultural value has exceeded $ 70 billion.
Agriculture Minister David Littleproud said he was confident that the sector could reach at least $ 70 billion.
“Last year was a terrible year, but this year we plan to set a new record,” Little Proud said. Said ABC. “For the first time we will exceed 70 billion.”
ABARES states that the sector will benefit significantly from the “significant combination of events” of favorable seasonal conditions within the country and disadvantageous conditions abroad.
Domestically, Australian farmers enjoy a wide range of favorable growing weather conditions, leading to record high yields. Meanwhile, major international competitors are suffering from poor growth periods that lead to higher grain prices.
“Unfortunately, all the good things have to be done,” said ABARES Executive Director. Jared Greenville said ABC. “Australian farmers operate in one of the most variable climates in the world, so we can’t expect a good season to continue. The same is true for world highs.”
Despite the ongoing politically motivated trade war by the Chinese Communist Party, most of Australia’s major export commodities are expected to increase in value.
However, the wine industry continues to suffer from Chinese tariffs, whose exports are expected to fall by 13%.
Challenges still remain
ABARES noted that the sector faces three major challenges to achieving a record year: ongoing labor shortages, murine population threats, and commodity price risks. ..
Labor shortages especially affect horticulture. This means that Australians can have higher prices for fruits and vegetables. Little Proud called it the biggest constraint on sector growth.
To assist farmers on this issue, the government issued agricultural visas on August 23 for Pacific Islanders and Southeast Asian workers, including the road to permanent residence.
“Agricultural visas provide what so many primary producers are looking for,” said Deputy Prime Minister Joyce. Joint statement.. “This gives us the region of Australia, the workers needed to plate our products in Australia, and our export market.
Mouse plague is expected to cause serious problems in the affected areas of Australia, but ABARES said it would not have a significant impact on national production.
“The number of mice is unlikely to affect the harvest, but it can affect the grain stored in the field,” Little Proud said. Said.. “Bulk handlers are already increasing their storage to bring as many crops to market as possible.”
ABARES also said that the current high international freight costs have a particular impact on exporters of cotton, legumes and horticultural supplies.
It was also pointed out that trade relations with economic partners could worsen.
“Agricultural exporters have proven to be good at taking advantage of diversification into new markets and changing trade flows, which, as seen in barley, has migration costs and low prices. Accompanied by, “says ABARES.
However, the Minister of Agriculture said this year was a proud year as the agricultural sector overcame the uncertainties of the pandemic.
“Australians helped our farmers during a severe drought year. We are now seeing them helping the Australian community and the Australian economy beyond the pandemic. “Littleproud said.