March 7, 2016
Australian Agricultural Export Update – March 2016
Overall, 2015-16 has been a broadly promising export year for most major Australian agricultural exports.
- This report presents an update to our Australian agricultural export forecasts released in December 2015. Overall, 2015-16 has been a broadly promising export year for most major Australian agricultural exports, supported in no small part by a lower Australian dollar. We recently updated our exchange rate forecasts, which sees revises up Australian dollar forecasts for the first half of calendar year 2016 but lowers them by the end of the year.
- This update includes an in focus section on beef, sheep meat and wool. Although beef export volumes are slowing and the US market is showing some volatility, domestic prices are expected to remain at or near record levels in the coming months as stock remains scarce. The value of beef exports is forecast to be 3.7% higher in 2015-16.
- Lamb prices are currently at similar levels to last year and overall we see prices 3.9% higher in 2015-16. However, with slaughter declining after two years of elevated production, we forecast that the value of lamb and mutton exports to fall 7.6% will fall in 2015-16
- Wool is the beneficiary of improved prices and we forecast the value of exports to increase 8.6% in 2015-16.
For more details, please refer to the attached document.