The Australian government has forecast it’s agricultural industry to reach a value of $91 billion (AUD) in 2025-26, which, if achieved, would make it the third highest figure ever recorded for the sector.
This forecast value accounts for a fall of 1% from the $92 billion generated by the industry in 2024-25, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) reported.
However, the $91 billion figure rises to $98 billion, when fisheries and forestry are included, ABARES said.
This forecast figure is expected to be driven by record levels of global and processor demand for Australian livestock and animal products, as well as higher prices observed at market, which is expected to be up $700 million from last year’s figure, to $40.3 billion in 2025-2026.
However, the forecast value of Australian beef, veal, and live cattle exports is set to fall slightly to $15.8 billion in 2025-26.
Australian agriculture
Executive director of the Australian Bureau of Agricultural and Resource Economics and Sciences, Dr. Jared Greenville, said: “While this is slightly down on an exceptional 2024-25, particularly strong results are forecast for livestock and livestock products – expected to reach a new record value of $40 billion.
“Demand for red meat is reflected in both strong export volumes and rising export prices, which has led to the total value of meat exports expected to hit $15.8 billion this financial year.
“Agricultural exports are also looking healthy next year, with the value forecast to remain relatively steady at $72 billion – or $77 billion if we include fisheries and forestry,” he said.
In contrast, the value of crop production is expected to fall slightly by $1.5 billion to $50.8 billion in 2025-26, as lower production is expected to offset a slight rise in prices, due to the expectation of a poorer winter harvest.
“On the cropping front this year, national winter crop production is estimated to have increased to 59.8 million tonnes in 2024–25, 27% above the 10-year average and the third largest on record,” Greenville said.
“Summer crop production is predicted to fall slightly in 2024–25, but will remain 28% above the 10-year average at 4.7 million tonnes.
“Conditions for winter crops were favourable across most of New South Wales and Queensland, with timely rainfall in western Australia. However, both Victoria and South Australia faced poor seasonal conditions resulting in lower crop yields,” he added.
The value of Australian milk production is set to rise by 4% to $5.7 billion in 2025-26, ABARES reported, which is in contrast with the fall in the value of dairy product exports by 10% to $3.2 billion this year.
The value of Australian dairy product exports is expected to fall by 10% to $3.2 billion in the year 2025-26, ABARES predicted.
The value of sheep meat and live sheep production to the Australian economy is also set to rise by 3% to $5 billion in the year 2025–26, despite the forecast fall in sheep meat exports by 5% to $4.5 billion relative to last year.
