by PressAustralian agriculture expects record profits
Australian agriculture boosts production thanks to the weather
For the past few years, agriculture in Australia has been highly productive. The main reason for successful seasons is favorable weather conditions, which please local farmers in 2022-2023.
Last marketing year was tough for many producers. This is primarily due to the effects of La Niña, a climatic phenomenon that causes severe cold weather on some Pacific coasts and drought and rising temperatures on others. La Niña is expected to weaken in 2023, reducing precipitation. However, according to Australian experts, there will be sufficient rainfall across the country. Thanks to this, a good harvest of crops can be expected. Local economists estimate the income of the sector in 90 billion Australian dollars.
It should be noted that the country has been experiencing heavy rains for three years already. This has a favorable effect on the agricultural industry. Analysts expect a record gross harvest for Australia this season. Moreover, large farmers’ profits were not affected by floods observed in the eastern part of Australia.
Australian farmers’ production and exports
Rising world market prices have played an important role in the record profits of agriculture. Australian farmers’ exports are projected to reach $75 billion in 2023. Previously, sales were at most $70 billion. Australia’s winter crop harvest was 67.3 million tons, up 4 million tons from the previous period.
Experts await new records for wheat and canola production. The barley harvest should become the third largest in the country’s history. Despite such optimistic forecasts, analysts warn that the current season will also end a good streak for agriculture in Australia. In 2024, the favorable effects of La Niña will gradually diminish. A dry period will begin. That said, the production value in the 2023-2024 season will be tentatively $81 billion. By 2027-2028, weather patterns can be expected to return to traditional levels. In addition, the situation in the world market will stabilize. And product prices will fall by the above deadline. At the same time, experts estimate the cost of agriculture in Australia as high. It will hold at the level of more than 74 billion dollars.
Two factors combined successfully for local producers: weather conditions and growing prices for raw materials. This helped the country significantly increase product exports and achieve record profits. In addition, Australia managed to increase supplies at the expense of their reduction from other producers, for whom the weather was less favorable.