The value of Australian agriculture, fisheries and forestry production is set to reach a record A$101.6 billion in the 2025-26 financial year.
This comes despite farmers enduring horror drought conditions and volatile international trade markets, with the Australian Bureau of Agricultural and Resource Economics (ABARES) predicting an A$7.3 billion rise from the previous year.
There are also still other concerns in the industry, including the crop production value falling over the next 12 months due to rainfall in July in South Australia and Victoria, as well as concerns for southern NSW because of a slow start to the winter cropping season.
According to ABARES executive Jaren Greenville, the record value was mostly boosted by livestock.
“We’ve seen high prices lately for both livestock and animal products, like beef, lamb and milk,” Greenville said.
“This has boosted the value of livestock production to $41.6 billion, helping to drive overall agriculture sector production value to a forecasted $94.7 billion, which would also be a record.”
Australia’s gross agricultural production is forecast to rise by A$685 million in the financial year, with livestock and livestock production values tipped to grow by $1.1 billion in 2025-26.
The report also said that lamb and sheep slaughter are up $500 million, milk is up $400 million and cattle $200 million.
It also said rising domestic production volumes of pigs, poultry slaughtering and egg production “more than compensate for slightly lower prices for poultry meat”, lifting it to $200 million.
While livestock continues to grow, total crop value is set to drop year-on-year due to lower domestic prices more than offsetting a small rise in output volume.
Despite this, the report still said the decline in 2024-25 would still be the highest on record if it follows predictions.
“Favourable seasonal conditions in winter, combined with a positive spring outlook, will support strong production volumes,” the report said.
Agriculture, Fisheries and Forestry Minister Julie Collins said growth in the sector would be good for Australia’s regional economies and trade relationships.
“This record forecast is not only a result of increased demand for our world-class products, but what you can achieve when government works with industry to deliver for them.”
This comes after the National Farmers Federation (NFF) set a goal for the agriculture industry to be worth A$100 billion by 2030.
The report shows agriculture alone is forecast to sit at $94.7 billion.
NFF president said it was now a near reality while acknowledging farmers are facing “headwinds” with costs of production, water policy, supply chain issues and infrastructure investments, as well as community concerns around renewables and land use changes.
"It does demonstrate that we are doing a really good job in challenging scenarios," he said.
"We have to get some of these pillars right around that value chain, the growth in sustainability [and] making sure that we've got innovation, people and capital to help drive our businesses.”
