Global Focus - Australia Ag in Focus
Once they emerge from the effects of the current drought, Australian farmers will be well positioned to take advantage of a positive global environment in 2007. This is the finding of the annual Rabobank Australia industry report, “Australian Agriculture in Focus”.
“Climatic conditions will remain the dominant concern over the coming year, however not everything is working against the sector,” the report says. “The global and the local economy remain strong, providing solid support for demand growth, while agricultural commodity prices are also generally high.”
As with 2006, when drought dominated the Australian agricultural scene, seasonal conditions will again be the most important determinant of prospects for the sector in 2007. Decent autumn rains will be crucial to many farmers.
Head of Food & Agribusiness Research for Rabobank Australia & New Zealand Bill Cordingley says for many sectors, it will be the March/April period that determines their production prospects in 2007.
“A decent autumn break, and typical rainfall patterns thereafter, would enable production levels in the cropping sector to recover quickly, with the potential to return to a normal harvest by the end of 2007,” he says. “While recovery will be slower for the livestock sector, given the time lags inherent in rebuilding culled herds, improved pasture growth would also provide some immediate benefits to most.
“Once producers are able to finally emerge from the effects of drought, they should find a positive global market for agricultural products in 2007.”
Click here to read more.