Australian agriculture to reach record $73bn for annual produce

Australian farmers are expected to reap a record $73bn for their produce this year despite labour shortages exacerbated by the pandemic.

South Australian farmer Richard Konzag with his crops at Mallala, north of Adelaide, on Monday. Picture: Morgan Sette

Australian farmers are expected to reap a record $73bn for their produce this year despite labour shortages exacerbated by the pandemic.

The government’s commodity forecaster predicts a $7bn rise in the gross value of agriculture production for the 2021-22 financial year from last year’s record $66bn.

The outlook report from the Australian Bureau of Agricultural and Resource Economics and Sciences – to be released on Tuesday – reveals crop production will grow 7 per cent to $39.5bn.

Bureau executive director Jared Greenville said the record forecast was driven by “a combination of factors, all tumbling neatly into place”, such as optimal seasonal conditions and a favourable global market due to poor harvests sin North America and Europe.

South Australian grain grower Richard Konzag said the wet months of June and July on his Mallala farm had been a blessing for his crops.

“Grain prices at the moment are really good; we’re seeing lentils at over $1000 a tonne compared to last harvest when they were $450,” he said.

“It doesn’t seem to happen very often that we get good yields and good prices in the same year.”

Mr Konzag, who is also on the Grain Growers board, said there were still uncertainties for the ­sector.

“Not everyone across Australia will have a great year. I know there are some areas across the South Australian and Victorian Mallee that are still doing it tough,” he said. “If you get bad enough frost for example it can take the yield back to pretty much zero. Things are looking promising now but there are still these things that can pop up.”

Agriculture Minister David Littleproud said the 1.3 per cent ­increase in farming was significant, given the “unprecedented” economic environment.

“Plenty of industries in Australia haven’t been lucky enough to see that kind of growth,” he said.

The results would help Australia achieve the government’s goal of agriculture exceeding $100bn in value by 2030. Not only are we looking at a bumper harvest for winter crop, but there are also higher prices and greater demand for cotton, sugar and grains. Two good years in a row have lifted optimism in regional Australia, and this is reflected in the record prices farmers have been willing to pay for restocking cattle.”

The report also warned that ­labour shortages for seasonal harvest work would continue to be a challenge, particularly for the horticulture sector. The bureau said that the “free movement” of harvest workers between key growing regions and across state borders would be vital in the coming months. But it warned that different vaccination requirements by states could pose problems.

“Outbreaks of Covid-19 in ­regional centres could also present additional complications for securing labour into or out of those regions,” the report said.

Noting the mouse plague, the bureau said that the rodent’s ­effect on agriculture output was expected to be limited, despite their damage of grain stored on farms. It said baiting and other pest management practices were widely understood and practised, despite being an additional cost to farmers.

“The prospect of high-yielding crops and increased grain prices provide a clear incentive for farms and supply-chain participants to proactively manage mice this ­season,” the report said.