Bright outlook agribusiness in 2019

RURAL Bank’s Ag Answers division takes out the crystal ball for the New Year and looks back on 2018 that will be remembered for below-average rainfall, high feed costs, record lamb and mutton prices and the smallest grain crop on the east coast in nearly a decade.

As we head into 2019, Rural Bank’s Ag Answers insights team has turned its attention to the year ahead for Australian farmers.

In the Australian Agriculture Outlook 2019, Ag Answers has analysed the performance of six industries, cattle, horticulture, cropping, dairy, sheep and wool, plus the broader economy to provide a forecast of what we can expect in 2019.

“Drought and drier conditions have affected large parts of the eastern seaboard,” said Simon Dundon, General Manager Sales and Distribution for Rural Bank.

“However, with improved seasonal conditions and continued strong export demand, farmers can expect more stability across agricultural markets.”

The report identifies several possible agribusiness trends for this year that include:

1. Cattle prices strengthen due to reduced supply and strong export demand

2. Farmgate milk prices continue an upwards trajectory

3. Horticultural export value to rise

4. Lamb and mutton set new annual average records

5. Chinese sportswear market drives wool exports

6. The wider economy will see growth