Rabobank's 2017 Agribusiness Outlook
14/2/2017
A new report has sized up 2017 as a good year for Australian Agriculture but warns that storm clouds may be on more distant horizons. Rabobank’s Agribusiness Outlook detailed some of the more positive factors for the year ahead, including global economic growth, a rise in farm gate prices for crops and livestock and high dam levels.
A new report has sized up 2017 as a good year for Australian Agriculture but warns that storm clouds may be on more distant horizons.
Rabobank’s Agribusiness Outlook detailed some of the more positive factors for the year ahead, including global economic growth, a rise in farm gate prices for crops and livestock and high dam levels.
RaboResearch's GM of food and agribusiness; Tim Hunt pointed to “confidence levels” and “investment intentions” having an increasingly positive outlook in Australian farmers.
It wasn't all good news though. The report went on to highlight that a glut in global grain and oilseed stock piles would most likely lead to wheat prices decreasing.
The “storm clouds” mentioned in the report would, at best, bring “uncertainty”, and, at worst, “significant turbulence” on “economic and regulatory fronts”.
The report mentioned the economic “uncertainty” that came with Donald Trump’s presidency. The main threat the new administration posed to Australia’s agriculture export industry was its potential to spark a global trend of protectionism.
It went on to say that, while company tax cuts and fiscal stimulation would likely bolster the US economy in the short-term, it remained to be seen whether these benefits would last.
This article originally appeared in The Advocate
