David Littleproud shares ABARES Outlook for 2018
14/3/2018
Despite a setback in the total value of Australia's agricultural sector, the new agriculture Minister David Littleproud was enthusiastic as he opened proceedings on his first Outlook conference at the head of the portfolio.
Despite a setback in the total value of Australia's agricultural sector, the new agriculture Minister David Littleproud was enthusiastic as he opened proceedings on his first Outlook conference at the head of the portfolio.A Decline in the sectors gross value saw a slide of around 5% for 2017-2018, this is down from the record $60 billion to an estimated $59 billion according to the Australian Bureau of Agricultural and Resource Economics and Statistics (ABARES) forecast.
Exports are expected to fall 4% to 47 billion, but this did not stop Mr Littleproud from sharing his optimistic outlook for the long-term growth of the sector and exports. He shared his expectations of a 1.2% growth forecast for exports and overall value of the sector towards 2023.
ABARES executive director Dr Steve Hatfield-Dodds explained that the downturn had been influenced by two key factors: increasing US beef production and a weak global crop market. Although global crop production is declining from the peak levels of 2016, enough stock is expected to remain in the system to keep prices low out as far as 2022 Dr. Stephen Hatfield-Dodds said. Similarly, the US beef industry has increased production and therefore put pressure on Australia's export market which will keep the price down in the foreseeable future. Value of the livestock industry, however, is expected to grow 2% as a result of global demand.
Mr Littleproud shed that 70% of Australian produce is currently being exported 52% of which we'll go to Asia this figure is set to grow to as much as 69% in the medium turn. The former Rural Banker highlighted the ongoing importance of trade agreements that have improved market access to China, Korea, Japan and more recently Indonesia.
Mr Littleproud further discussed the ongoing political issues surrounding the Murray Basin plan and decentralization of Government offices into Rural Communities.
