This article is from the Australian Property Journal archive
AUSTRALIAN agriculture saw mixed results over the first half of the year, with dry conditions across Western and South Australia and more favourable conditions along the east coast.
According to Rural Bank’s mid-year Australian agriculture outlook, Australian commodity prices have largely returned to levels last seen at the close of 2020, despite a degree of price instability over the first six months of 2024.
In terms of prices, the livestock sector was the strongest performer over the half, with the price index rising 9%.
Australian cattle supply is expected to stabilise over the second half to levels higher than in 2023, while export demand is likely to surge due to reduced beef production and exports out of the US.
Lamb prices are forecast to rise back above five-year average levels, thanks to steady demand which will be maintained over the second half, while supply is set to ease but still remain above averages.
The cropping sector saw steadier prices over the first half, after winter crop production increased 9% to 51.3 million tonnes in 2024/25.
Demand for cropping commodities will see strong demand for both domestic users and exported for the winter crop, with long range forecasts mostly normal.
In horticulture, output is forecast to rise over the second half due to low irrigation costs, falling input costs and increased plantings. With prices to ease after rises over the first half.
Demand for horticulture commodities will rise in exports and remain largely steady to slightly higher domestically.
Milk production is set to be flat to lower over the coming half, with demand to remain steady and prices down from recent record highs.
The production outlook depends upon the development of farming conditions over the winter and spring months, after a dry autumn impacted oil moisture levels across western and central Australia.
More typical rainfall is expected over July through to September in Australia’s eastern, northern and western regions, with the improved forecast set to boost winter crop potential and improve pasture growth.
While global freight rates remain elevated, increased stability across the global trade environment has had a positive impact on Australian agriculture over the last six months.
