Booming meat exports puts agriculture on track for $100bn target

In 2018, the agriculture sector set a target to be worth $100bn by 2030. It’s on track to meet the goal.

Red meat exports have helped boost the value of Australian agriculture. Picture: Jack Tran

The value of Australian agricultural production is expected to hit the second highest level on record this financial year, putting the industry on track to meet its target of $100bn by 2030.

New modelling released by the federal government forecast the agriculture sector would rise in value by $6bn to $88.4bn in 2024-25, a figure eclipsed only by the $94.37bn posted in 2022-23.

Higher livestock values are the main driver of the improvement, with farmers, buoyed by higher prices, willing to sell their stock, even though weather conditions in most of the country have been favourable.

Despite lower global prices for crops, higher domestic production is expected to raise crops value by $2.2bn, according to ­latest data from the Australian Bureau of Agricultural and Resource Economics and Sciences.

It is the fourth year in a row the value of the agriculture industry was higher than $80bn, with decent rainfall in 2020 laying the foundation for consecutive good seasons.

The data indicated the industry was in a position to meet the 2018 goal, set by the National Farmers Federation, to build the agriculture sector to $100bn by 2030.

At the time, the sector was worth $60bn.

ABARES executive director Jared Greenville said surging red meat exports, which rose significantly last year and were expected to reach a record this year, were being driven by growing demand from US, China, Japan and the Middle East.

“Good production conditions in the last few years for livestock have meant continued availability of livestock for turn-off in Australia,” Dr Greenville said.

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

The record lamb and mutton exports, up $1bn on last year, were driven by demand from major trading partners the US and China, and growing demand in the Middle East and North Africa.

The Albanese government, which has been at war with the sheep industry over its looming live sheep export ban, seized on the improvement to argue that its push for increased markets for chilled and frozen sheep meat would help farmers transition away from live exports.

“The results from this quarter’s forecasts show Australia’s farmers are still punching above their weight. Our government is proud to be backing our farmers to succeed,” Agriculture Minister Julie Collins said. “It’s especially heartening to see demand for our red meat increase. It shows there is room for these markets to grow and improve.

“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 release of the data came shortly before the government announced the last two meat processors barred from shipping ­produce to China had been granted re-entry after a four-year ­suspension.

The reopening of the Chinese market to Australian wine producers earlier this year has also led to a boost for the wine grape industry, which increased in value by $100m.