Agriculture forecast to produce a ‘record crop’, but mixed result across sectors

NEW data released today confirms that many of Queensland’s agricultural industries are forging a strong recovery following the summer of floods and Cyclone Yasi.

According to Queensland Farmers’ Federation CEO, Dan Galligan, today’s Prospects report from the Department of Employment, Economic Development and Innovation also confirmed that recovery will be a long, hard road, and will come at a varying pace for different industries.

“This report shows that some of our key industries are returning to more normal trading and seasonal conditions and an improved outlook, which is especially welcome after a particularly testing summer in 2010-2011,” Mr Galligan said. “It also confirmed that other sectors are still facing very tough trading conditions and are still recovering from the disasters.”

Key agriculture sectors forecast for growth in 2011-2012 include:

• Sugar: up 30% from the previous forecast to $1.22 billion.

• Cotton: up 32% from the previous forecast to $872 million.

• Fruit and nuts: Up 18% from the previous forecast to $1.176 billion.

• Vegetables: Up 3% from the previous forecast to $1.188 billion.

• Poultry production: Up 2% from the previous forecast to $377 million.

Mr Galligan said that unfortunately there were other sectors were not enjoying the same bounce-back.

“Our primary producers in the lifestyle horticultural sector – including nurseries and flower production – are facing an 11% forecast drop in value. The sector is battling twin challenge of disaster recovery and an uncertain economic outlook that is impacting on consumer confidence and spending.

“Aquaculture production has also been hit very hard by the cyclones and wet weather, with a 3% forecast drop to about $91 million.”

“The milk industry is also forecast to face a drop in value of about 5% to about $229 million. Our dairy farmers have been heavily hit not just by natural disaster, but also the man-made disaster with the supermarket milk price war ongoing in 2011.”

Despite the challenges, Mr Galligan added that it was testament to the importance of the entire agricultural sector that, overall, it is forecast to produce its highest value ever to the Queensland economy for the year ahead.

“This is evidence of the resilience of farmers that they are on track for such a good result, even as the disaster recovery continues. It is also testament that agriculture continues to be such an important pillar of the Queensland economy.”

According to DEEDI, for 2011–12, the total value of Queensland’s primary industry commodities (combined gross value of production and first-stage processing) is forecast at $14.69 billion (5% higher than 2010–11).

“Farmers also know that these numbers are forecasts. It’s a long way to go before we reap this harvest, and in many cases the figures refer to crops that are not yet in the ground.

“Therefore, the hard work is yet to come. But the important message is that farmers are getting on with the job of recovering from disaster, and that the sector is continuing to be a very important and valuable contributor to the economy.”

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