The latest report from the Rural Bank could put a smile on the face of farmers in the Goulburn Valley region. According to the banks’ Australian Agricultural Trade 2018/19, agricultural exports have increased in value to a record high of $50.7 billion.
Cattle exports had the largest increase notwithstanding the drought-induced de-stocking activity taking place during the year. Horticulture was next, particularly nuts with a 39.1 percent increase over the year, followed by fruit (22.1 percent) and vegetables (18.4 percent).
Other commodities to see export growth were cotton, sheep, wine, dairy and sugar, while cropping, wool and seafood all experienced declines.
Chief Operating Officer for the Rural Bank, Will Raynor said, “Exports to China experienced benefit from tariffs being reduced or eliminated.
“The ongoing US-China trade war and the tariffs imposed by China on US products has created several opportunities for Australian producers of dairy, cotton and almonds. Wool has unfortunately experienced a rapid decline in consumer demand into China,” Mr Raynor said.
The report suggests tariffs imposed on Chinese clothing in the US trade war have directly impacted on Chinese production and fibre demand coupled with weaker global confidence.
While demand for Australian agricultural exports remains positive, supply challenges, particularly for sheep and cattle due to poor seasonal conditions, will limit production and as a consequence will limit export volumes in the coming year.
With over two-thirds of Australian agricultural production going overseas, farmers need to take note of overseas trends and global politics.
