Victoria leads states for Australian export value
Rural Bank, Media Release, 10 September 2024
Rural Bank’s Australian Agricultural Exports Report 2023/24 has found that the value of Australian agricultural exports fell by -8.5 per cent to $72.4 billion or $6.7 billion lower than the record high achieved in 2022/23. States with large cropping industries saw the most significant declines, with Western Australia, New South Wales and South Australia most impacted by the dip in this sector.
Year-on-year decreases in Australian agricultural export value were recorded across the majority of Australian states in 2023/24 with Victoria and Queensland the only states to see export growth. Of note, growth in agricultural export value from Queensland was driven by increased beef exports, accounting for 57 per cent of the state’s exports – elevating Queensland to second place, above Western Australia and New South Wales and behind Australia’s export value leader, Victoria.
Neil Burgess Senior Manager Industry Affairs said “Cropping exports led the overall decline in Australian agricultural export value in 2023/24, but while the value of crop exports fell $8.4 billion or -27.3 per cent, we have still had the second most valuable export year on record.
“Overall, agriculture accounted for a slightly greater share of Australian goods exports, growing to 13.5 per cent – and with cropping out of the mix, the value of other agricultural commodities actually rose by $1.7 billion (+3.6 per cent) to what was a record high for the year.
“Cattle industry exports saw the largest growth in value, with a rise of $1.6 billion or more than 12 per cent, driven by increased production and strong US demand followed by a moderate lift in sheep industry exports to $309.3 million (+6.5 per cent) to a record total of $5.1 billion.
The value of citrus and stone fruit exports lifted to the highest level on record and sugar is now just behind dairy in terms of export value, with a strong rise of more than 40 per cent on top of an impressive fourth consecutive year of increased sugar production and a surge in prices.
“Solid growth of 14.6 per cent was also seen for wine, but declines across the cotton, wool and nut industries saw sector falls of between 12 to17 per cent. Wool and dairy are also expected to experience lower export values in 2024/25, with reduced production and prices impacting both sectors.
“Lower sheep meat production in 2024/25 is set to push sheep industry export value slightly lower, but horticulture is a bright spot and forecast to add growth, driven by a general improvement in both production and prices. Wine is also set to see further growth in value following the resumption of access to the Chinese market in mid-2024.
Top trading partners and drivers
“China remains firmly in number one position as Australia’s top export market for agricultural commodities with an increase in export value for a third consecutive year of 2 per cent to $16.8 billion, now accounting for almost a quarter of total export value.
“Export growth to China was driven by barley, cotton and wine with combined growth of $3.6 billion in 2023/24, while the value of all other products to our largest trading partner fell $3.2 billion (-20 per cent) led by significant falls in wheat, dairy, wool, sheep meat and horticultural produce.
“Exports to the US leapt an impressive 21 per cent to $6.8 billion, driven by beef exports, with Australian beef export value again set to increase in 2024/25 as further growth in production combines with higher average prices supported by tight US supply.
“China and the US aside, Australia’s other eleven major export markets saw declines in export value in 2023/24, however export value to eight of these markets remained above 2021/22 levels. Japan fell behind the US for the first time in almost a decade and Indonesia climbed ahead of Vietnam in the top ten export markets for 2023/24.
“Looking to 2024/25, a further decline in the value of Australian agricultural exports is expected and despite the outlook for improved winter crop production compared to last year, the volume of exports in the financial year ahead is forecast to decline, largely due to carryover stocks inflating 2023/24 volumes”, Mr Burgess concluded.
