Big year for crops boosts exports

THE total value of Australian agri-food exports has increased for the seventh consecutive year, up by $3.9 billion to almost $50 billion according to Rural Bank’s 2016/17 Australian Agriculture Trade Performance report.

This upsurge in export value is predominantly due to the bumper year for Australia’s grains and fibre exports, which resulted in the cropping export value rising by $3.7 billion last year alone.

Cropping overtook beef and cattle as the most valuable agricultural export sector in 2016/17, thanks to a 49 per cent increase in production, more than offsetting lower export prices for wheat and coarse grains.

Australian wheat exports to India rose by 920 per cent after wheat tariffs were reduced, while Indonesia, Philippines and Vietnam all bought significantly more Australian wheat.

Volumes of Australian canola increased by 85 per cent with strong European demand also giving a boost to prices.

Legume volumes were also up 85 per cent over the past 12 months, with subcontinent markets soaking up this extra volume.

Conversely, beef and cattle export values declined by $1.8 billion, as supply tightened and competition from USA and Brazil heated up in Asian markets.

The value of dairy exports also fell by 1.3 per cent over the year, with production declining across Australia.