Cropping exports outpace beef

CROPPING knocked off beef and cattle to become Australian agriculture’s most valuable export sector for 2016-17.

Rural Bank’s 2016-17 Australian Agriculture Trade Performance report says agricultural exports rose by $3.9 billion to almost $50 billion last financial year, mainly because of a bumper year for grain and fibre.

The total value of crop exports was $13.9 billion, up by $3.7 billion, as farmers benefited from good weather.

The value of beef and cattle exports was $9.5 billion — down by $1.9 billion — as a 16 per cent drop in cattle slaughter hit export volumes.

Rural Bank’s general manager of agribusiness, Andrew Smith, says the cropping sector increased winter crop production by 49 per cent, which offset lower export prices for wheat and coarse grains.

“The year’s value increase in cropping was largely to do with exceptional seasonal conditions that we haven’t seen a repeat of this year,” Mr Smith said yesterday.

“However, the long-term trend of expanding international markets will continue to drive value in Australia’s exports.”

In 2016-17, Australian wheat exports to India soared by 920 per cent after tariffs were reduced.

Indonesia, the Philippines and Vietnam also bought a lot more Australian wheat. Canola production lifted by 85 per cent and strong European demand boosted prices. But lower volumes are expected in 2017-18.

India also bought more Australian cotton, increasing its intake by 569 per cent, as Australian cotton farmers expanded the area of cotton planted.

China reduced its imports of Australian cotton in 2016-17 but expressed strong demand for Australian wool.

Rural Bank said demand for wool was likely to remain strong, especially fine wools.