Things are looking good for Australia’s rural and agribusiness industries

Things are looking good for Australia’s rural and agribusiness industries

10 March 2017



According to the latest Colliers Rural & Agribusiness Report for 2017, things are looking good for Australia’s beef, wine, wheat, wool and poultry industries. This is off the back of a strong 2016 with low interest rates, a stable Australian dollar and increased international demand.


Regarding Australia’s beef industry, Shaun Hendy, Director said: “Current strong conditions for the beef industry continue to mirror 2016, namely being a combination of low supply numbers, competition between re stockers and meatworks buyers and
solid domestic demand for beef.”


Australia’s wine industry is also looking rosey. Reports from Wine Australia demonstrate that demand for Australian wine continued to grow in 2016. The weaker Australian
dollar and the trade agreement with China have contributed to a strong recovery in sales to export markets in particular to China. China is now Australia’s third most important export market after the USA and the UK for our wine exports.

Grain and Wheat

Shane McIntyre, Head of Rural and Agribusiness, said: “Idyllic seasonal conditions created unprecedented volumes across the majority of Australia’s grain belt. The favourable exchange rate will continue to spur demand from our major trading partners, at current values, with any significant increase unlikely in the short term due to abundant global grain surpluses.”

Current forecasts suggest wheat prices are likely to remain stable as ending stocks of wheat remain high after the current bumper crops. Feed grain prices which have reached record levels are expected to ease into 2017 due to softer demand from the Chinese market.


Kelvin Shelley from the Wool Network commented that: “The nation’s buoyant wool industry is filled with opportunity and optimism. The industry hasn’t seen returns like those being experienced at present for many years with some growers reporting their best returns in 20-30 years.”

Australia is currently producing half the wool it did in the 1980s creating much greater competition. Demand is also being driven by consumers who are looking for renewable, environmentally friendly fibres especially with an increase in the number of next to-skin
products being manufactured.


Australia’s chicken meat industry is a significant employer and contributor to Australia’s regional and metropolitan communities. 20 years ago the global demand for meat was around 173 million tonnes, of which poultry made up 23 per cent. Today, the annual
global demand for meat sits at 260 million tonnes, with poultry now comprising 35 per cent or 90 million tonnes.

According to the Australian Chicken Meat Federation Inc., Australia’s demand for chicken meat mirrors this global trend. In the last 20 years, Australia’s production of chicken meat has increased by over 160 per cent, with Australians now eating chicken more than any other meat.


Regarding Australia’s dairy industry, Nick Cranna, Director, said: “The Australian dairy sector has experienced some challenging market conditions over the past six months with steep cuts to farm gate milk prices and challenging seasonal conditions in the
first half of 2016 impacting sentiment.”
To read the full report, click here.