THE AUSTRALIAN Government has declared the agriculture sector is forecast to have its second-highest value of production on record in the 2024–25 financial year.

Despite setbacks and drier conditions across some parts of Australia, executive director of Australian Bureau of Agricultural and Resource Economics (ABARES), Jared Greenville said the overall value of the agriculture, fisheries, and forestry sectors is projected to reach $94.3 billion this financial year.

“The agriculture sector alone is set to be worth $88.4 billion, up $6 billion from last year,” Dr Greenville said.

“The gross value of crop production is also forecast to rise by $2.2 billion as higher domestic production more than offsets lower prices on global markets.

“Winter crop production volumes have risen by 16% to a total of 55.1 million tonnes thanks to favourable growing conditions across major parts of New South Wales, Queensland, and Western Australia.”

Dr Greenville said the chief driver of the increase is higher prices for livestock, which has in turn driven higher livestock production.

Agricultural export values are forecast to fall to $70.1 billion in 2024–25, on the back the exportable crops returning to more normal levels following three record production years between 2020–21 and 2022–23, but will be third highest on record, indicating the ongoing demand for Australian products regardless of global volatilities.

Production volumes in South Australia and Victoria however have suffered from poor conditions across the winter cropping season, according to Dr Greenville. leading to year-on-year declines in both states.

“There is also good news for Australian red meat exports, which rose significantly in 2023–24 and are expected to reach a new record in 2024–25, thanks to strong demand from key trading partners such as the US, China, Japan and the Middle East,” Dr Greenville affirmed.

“In 2024–25, red meat export values should reach record levels for both beef and veal exports (worth $13.9 billion) and sheep meat exports ($5.3 billion).”

Exports in 2024-25 are being driven by strong demand from the United States, Japan, and South Korea, with lower supply from the United States promoting improved prices and competitiveness for Australian producers in international markets, with producers responding with higher turn-off.

Minister for Agriculture, Fisheries and Forestry, Julie Collins said the results from this quarter’s forecasts show that Australia’s farmers are still “punching above their weight”.

“It’s especially heartening to see demand for our red meat increase. It shows there is room for these markets to grow and improve,” she said.

“In 2023-24, Australia exported over 70 per cent of its agricultural, fisheries and forestry production to 169 markets globally – the most diversified trade has ever been.”

The federal government said sustained engagement and advocacy has led to positive developments with China, which includes the lifting of suspensions on eight Australian meat export facilities.

Red meat exports to China reportedly remain well above long-term averages, valued at $3.1 billion in 2023-24.