The total value of our agricultural exports in 2021-22 was $67.5 billion, an increase of 37% over the previous year, with predictions 2022-23 will be even higher
Australian grown agricultural exports sent around the world have achieved a record high value for 2021-22 according to figures just confirmed by a Rural Bank report.
The value of exports rose by an astonishing $18.2 billion, a 37% jump to reach a new high of A$67.5 billion.
The giant leap in value during for 2021-22 exports followed two consecutive years of declines in value and a period of five years where value stagnated around A$50 billion.
Increased farm production, which drove export volumes, was an important factor in the growth of export value but it was higher commodity prices that accelerated the lift in value.
Every agricultural commodity sector, except for wine, recorded an increase in average export price and five of those groups saw price growth of over 20%.
Of the main farm commodity sectors, cropping led the charge in 2021-22 with an increase in export value of A$10.8 billion, up a staggering 81.9%. This took the value of cropping exports to A$24 billion, and that made up 35.5% of total agricultural export value.
The extraordinary result for cropping exports was due to an additional increase to export volume and strong rises in crop prices.
The second largest growth commodity in 2021-22 was cotton as it more than tripled in value with a rise of $1.6 billion. However, at only A$2.2 billion cotton exports accounted for only 3.2% of total farm export value.
Efforts to rebuild the national sheep flock and strong demand translated into growth of $1.9 billion in sheep industry and wool exports.
Cattle industry exports also recorded strong growth of A$1.5 billion as improved prices offset beef export volumes falling to a 12-year low.
Wine exports recorded the largest decline in value as Chinese tariffs contributed to a fall of A$417 million.
Agricultural exports accounted for 11.3% of Australian goods and services exports in 2021-22, up from 10.7% the year before.
The increased share of exports was the result of a proportionately larger rise in agricultural exports compared to total goods and services exports that rose by 29.6%.
On the flip side, Australia also imported a record level of agricultural products in 2021-22 with import value rising A$928 million, 4.3% or A$22.3 billion higher.
The most valuable import commodities were miscellaneous prepared food at A$3.3
billion and wine, whiskey and beer were A$1.7 billion combined.
Australia’s largest sources of agricultural imports were from New Zealand at A$3.2 billion and the US at A$2 billion.
The Aussie dollar averaged 72.5USc in 2021-22, three per cent lower than 2020/21 and 1.1 per cent below the five-year average.
The Aussie dollar spent most of the year trading between 70 to 75USc but generally trended
lower and finished the financial year just below 70USc in June 2022.
A lower Aussie dollar was a timely supporting factor of stronger demand for local agricultural products by helping offset some of the impact of high agricultural commodity prices for international buyers.
Season 2022-23 will see record broken
In a separate report to the Rural Bank summary of agriculture exports for 2021-22, next season is expected to break the all-time record with farm exports forecast to reach A$70.3 billion.
Exceptional growing conditions and high global prices are behind this expected record result for farm production exports.
The overall forecast for farm commodities is for a gross value of A$81.8 billion with cropping leading the surge at a forecast, on the conservative side, 55.5 million tonne harvest.
Meat production is also rebounding, with the national herd and flock returning to pre-drought levels.
If the forecast level is met, it will be the first time our farm commodity exports have to exceed A$70 billion, with local farmers getting the full advantage of considerable global economic uncertainty with global food supplies.
The World Bank expects high global food prices through to the end of 2024 and that comes with adverse implications for global food security.
Local agriculture has edged into this uncertainty with the factors of continued global demand for our food and fibre, and another bumper winter crop.
Of the main farm commodity sectors, cropping will lead the charge again in 2022-23 with the previous export value of A$10.8 billion gazumped at A$11.7 billion.
Beef exports are predicted to come in second place with after wheat with a value of A$10.2 billion in 2022-23.
While the value of cotton exports is forecast to reach a record $7 billion in 2022–23 to be the third most valuable farm export commodity after wheat and beef.
Also available for export will be a forecast near record level of 6.6 million tonnes of canola production for 2022-23.
Barley production has also been strong and is forecast to reach 12.3 million tonnes, the fourth largest on record.
