Australian Bureau of Agricultural and Resource Economics (ABARES) executive director, Jared Greenville, said if the forecast in the Agricultural Commodities September Quarter report proves to be accurate, then it will be the first time the agriculture sector has been valued at more than $70 billion.
"The forecast for the next year is due to a combination of factors, all tumbling neatly into place," Greenville said.
"The value of crop production is set to rise by seven per cent to $39.5 billion because of another near-record winter crop harvest, combined with strong global prices for grain, sugar and cotton," he said.
"While there are risks related to mice, labour availability and continued uncertainties due to COVID-19, we are expecting national production to remain robust. The value of livestock production is also tipped to rise to $33.5 billion, an increase of eight per cent.
"The international market is also tipped in our favour, as poor harvests in North America and Europe are pushing up the price of grain. Strong domestic production and a favourable global market are set to see exports also hit a record of close to $55 billion in 2021-22.
"The biggest contribution to growth in exports will be crops, which are set to rise by 17 per cent to $30 billion."
To read the Agricultural Commodities: September Quarter report, visit https://www.agriculture.gov.au/abares/research-topics/agricultural-outlook
