Although the outlook for Australian farmers is mixed for the coming year, Rural Bank expects crop producers to enjoy a bumper winter season; production is forecast to be equal to the second highest on record.
In an Australian Agriculture Outlook 2023 report released on December 13, Rural Bank, a division of Bendigo & Adelaide Bank, said it expected trade conditions to continue improving next year, but noted that farm input costs would persist as a key issue across every sector.
The report identifies four major factors that will impact Australian agriculture in the first half of 2203. Seasonal conditions, production costs, trade conditions and global economic headwinds all featured prominently in the findings. With the UK Free Trade Agreement anticipated to take effect in 2023, and the Australia-India Economic Cooperation and Trade Agreement (IA-ECTA) coming into effect in December, Smith said he expected trade conditions to continue improving.
Rural Bank expected squeezed margins for horticultural producers to continue over the next six months. High packaging, fuel, freight, fertilizer, and labor costs were expected to remain a factor well into 2023.
Fruit and vegetable prices were forecast to remain well above average across most varieties, although it expected strong production to result in easing prices as the year progressed.
Improved export market access would hold horticultural exports in good stead, Rural Bank said. Vegetable producers expected some short-term supply shortfalls following a challenging spring and summer planting period that was heavily impacted by flooding and rainfall events. Potatoes have been negatively impacted by flooding and heavy rainfall, particularly crops throughout Tasmania.
Source: mpamag.com
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