Lentils and faba beans are the standout and preferred pulse crops this year.
Photo by
Cathy Walker
Producers look set to have a rosy finish to 2022 although input costs continue to take a bit of the gloss off, according to the latest Rural Bank Australian Agriculture Mid-Year Outlook Report.
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“Overall, the forecast is expected to hold producers in good stead during the second half of 2022 as Australian farmers reap the benefits of high commodity prices and strong production, however elevated input costs such as fuel, transport and fertiliser are expected to remain a headwind throughout the remainder of 2022,” Rural Bank’s Andrew Smith said
“The three standout themes highlighted in the report as impacting the performance of Australian agriculture in the second half of 2022 are seasonal conditions, trade conditions and supply chain disruptions.”
The report reveals the outlook for a number of agricultural sectors.
Cattle
Demand from re-stockers remains strong and cattle prices remain well above average.
Australian beef production will rise in the second half of 2022.
Australian cattle prices will ease marginally during the second half of 2022.
The beef industry is expected to be strong throughout the remainder of the year with good export opportunities and favourable seasonal conditions, which are likely to accelerate the herd rebuild and expand production.
Cropping
Near record production, strong export demand and high global prices provide an excellent outlook for cropping.
Low international supply and strong export demand will support Australian cereal prices at high levels, although Australian growers’ margins will be squeezed by the high cost of inputs.
Lentils have been the standout performer of pulses this season, with prices regularly pushing $1000/tonne and faba beans are also expected to be favoured as a preferred pulse crop as they require less fertiliser and are a lucrative rotation crop.
Horticulture
As well as lettuce, consumers may have to fork out more for onions and capsicums
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StockSeller_ukr
Strong production, increasing export demand and high prices will benefit producers, though rising input and labour costs will impact grower margins.
Export demand will tick higher as freight shortages ease.
Rising prices may also weigh on domestic demand and shortages of lettuce, capsicum and spinach will continue for at least the next couple of months, with onion supply also impacted.
Sheep
Sheep producers should benefit from increased lamb production and demand in key markets.
Strong demand from the United States and a range of smaller markets will drive increased export value.
Lamb and mutton prices will decline through the second half of the year but will remain above average.
Sheep producers remain well positioned to increase production and capitalise on strong global demand.
Wool
The finer the wool the better the premium paid.
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TRACEY NEARMY
Increased wool supply and some softening demand will see prices begin to stagnate.
Australian wool producers are positioned to increase the supply and stabilise prices.
Strong seasonal conditions are expected to grow flock numbers and increase wool production. There will be a growing premium for high quality fine wool, particularly at the 17-micron end.
Exporters remain nervous about growing international headwinds decreasing the buying power of consumers in key international markets.
Dairy
Higher yields from good seasonal conditions may support a slight increase in production for 2022-23, forecast at 0.5 per cent.
Production growth is being curtailed by competition for land, high beef prices, rising input costs and labour shortages.
Volatile global conditions and high prices will see an overall average outlook for the dairy industry.
Australian dairy production is forecast to see a modest increase for the remainder of 2022; however, global supply will continue to be constrained.
Butterfat products are in high global demand with current price levels reflecting this and the combination of tight supply and robust demand will continue to drive dairy prices higher.
