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.

 For further analysis download the full report.

• Quarterly Agribusiness Survey – December 2014 (PDF, 1MB)