Quarterly Agribusiness Survey – December 2014

The December quarter 2014 saw a rebound in post-farmgate agribusiness conditions, confidence and expected conditions at both 3 and 12 months. However forward orders declined and profitability remained negative. Overall, the sector experienced a more optimistic December quarter.

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Key points:

    • The December quarter 2014 saw a rebound in post-farmgate agribusiness conditions, confidence and expected conditions at both 3 and 12 months. However forward orders declined and profitability remained negative.
    • Overall, the sector experienced a more optimistic December quarter, partly reflecting generally stronger seasonal performance. However, good early summer rainfall in many parts of Queensland, combined with a falling AUD, likely provided some encouragement.
    • We expect the AUD to continue to fall., which, combined with a stabilisation in international dairy prices and continued demand for Australian beef, may lead to further signs of improvement in conditions. However, grain prices remain supressed.

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