Miller Magazine Issue: 142 October 2021

36 MILLER / OCTOber 2021 NEWS Australia's agricultural sector is looking at another record-breaking year, with the gross value of produc- tion forecast to reach $73 billion in 2021-22 season. The gross value of Australia’s agricultural production is forecast to reach a record $73 billion in 2021–22. If re- alised, this would be the first time that agricultural gross value has surpassed $70 billion. The value of crop pro- duction is forecast to increase by 7% to a record $39.5 billion because of strong price increases for grains, cot- ton and sugar. ABARES Executive Director Dr. Jared Greenville said if the forecast in the Agricultural Commodities: Septem- ber Quarter report proves to be accurate, then it will be the first time the agriculture sector has been valued at over $70 billion. “The forecast for next year is due to a combination of factors, all tumbling neatly into place,” Dr. Greenville explained. “The value of crop production is set to rise by 7 per cent to $39.5 billion because of another near-record winter crop harvest, combined with strong global prices for grain, sugar and cotton. While there are risks related to mice, labour availability and continued uncertainties due to COVID-19, we are expect- ing national production to remain robust. The value of livestock production is also tipped to rise to $33.5 bil- lion, an increase of 8 per cent.We’ve had a solid cropping year across the wheat-sheep belt, so we’re looking at another robust harvest.” Crop exports are forecast to make the largest contri- bution to growth. The value of crop exports is forecast to increase by 17% to $30 billion, the highest since 2016–17. This is being driven by higher forecast prices for most crops, combined with continued high export volumes. Poor growing conditions in key grain exporters including the United States, the Russian Federation and Canada have resulted in sharp increases in world prices, which will benefit Australian growers. “The international market is also tipped in our favour, as poor harvests in North America and Europe are pushing up the price of grain, “says Dr. Greenville. “Strong domestic production and a favourable global market are set to see exports also hit a record of close to $55 billion in 2021-22.” CHINA STEPS UP AUSTRALIAN WHEAT IMPORTS China is snapping up cargoes of Australian wheat de- spite a bitter trade standoff between the two countries, as crop downgrades elsewhere lead to a global shortfall in output, Reuters report. China, the world’s top importer of agricultural products, has imposed anti-dumping du- ties on Australian wine and barley and slashed purchas- es of Australian coal and beef during the long-running dispute, but is seeking out wheat as prices hover near eight-year highs. China has emerged as a leading buyer of Australia’s upcoming wheat crop, taking close to two million tonnes out of the five million or so that farmers have sold so far from the 2021/22 (July-June) crop, which will be harvested at the year-end, three trade sources and one analyst told Reuters. Australia's agriculture looks to record-busting year