Trade

Despite recent flood and rain damage in the eastern states, the ABARES Agricultural Commodities: December Quarter is forecasting a history-making agricultural gross production value of $78  billion – $5.4  billion more than predicted just a few months ago. The value of agricultural exports is forecast to hit a record $61 billion.

Tasmania’s economy continues to surge as the latest ABS export statistics reveal a record export figure of $4.225 for the 12-months to October 2021. This is 18.6 per cent higher than the previous year and marks a run of three consecutive months when the annual export figures have exceeded the $4 billion mark.

On the back of strong cattle and grain prices, the NAB Rural Commodities Index is now almost 20% higher than the same time in 2020, according to the bank’s November Rural Commodities Wrap. With a La Nina event now officially underway, the prospect of a wet summer for eastern and northern Australia could see grass fever push record cattle prices even higher, while grain prices are also rising.

The South Australian Government welcomes the Japanese Government awarding funding to Marubeni Corporation for a project to export green hydrogen produced in South Australia to the Indo-Pacific region. Japan’s Ministry of the Environment has selected Marubeni Corporation’s hydrogen production project in South Australia as a pilot project, as part of a program looking to cooperate with developing countries to reduce greenhouse gas emissions.

The National Farmers’ Federation says a critical report released by the ACCC should be a wakeup call for governments, failing to curb the chaos on our waters. The 2020-21 Container Stevedoring Monitoring Report confirms Australian importers and exporters are struggling amid a perfect storm of extreme congestion and delays, reckless industrial action, and skyrocketing costs.

The Australian Mohair Marketing Organisation’s (AMMO) auction at Narrandera last Friday achieved exceptionally high prices against a slightly downward trend in South Africa. There was a 100 per cent clearance and another Australian record average price of $34.65 /kg which was $4.60 higher than the previous best auction average.

Australia is set for a second consecutive bumper winter harvest, with total production forecast to come in just five per cent shy of last year’s near-record crop, according to Rabobank. In its just-released Australian Winter Crop 2021/22 Production, Price and Inputs Forecast, the specialist agribusiness bank estimates the nation will harvest 52.87 million tonnes of winter grains, oilseeds and pulses this season. While down five per cent on last year’s crop, this is still a hefty 25 per cent above the five-year average.

The  Abrolhos Island and Mid-West Scallop Trawl Fishery  has achieved certification to the  MSC fisheries standard. It is the first scallop fishery in Australia and the eleventh fishery in Western Australia (WA) to gain this certification.

Australia and Singapore are developing a Green Economy Agreement (GEA) to further accelerate both countries’ transition towards a green and sustainable future, and help to create good jobs and lower carbon emissions. The GEA will look at practical initiatives to promote and facilitate trade and investment, including lowering the regulatory burden on businesses. It aims to remove non-tariff barriers to trade in environmental goods and services and to accelerate the uptake of low emissions green technology.

From their headquarters at Birtinya, Kilcoy Global Foods manages the production, distribution, and export of eight million cartons of premium beef annually to more than 35 global markets. KGF is also a major supplier to Australian supermarkets, food wholesalers, fine dining establishments and family restaurants including McDonalds.

A Memorandum of Understanding (MoU) between the Department of Agriculture, Water and the Environment and  DT Global  will grow agricultural trade between Pacific Island countries and Australia, through improved food security, better market access and biosecurity outcomes.

Townsville is a step closer to a huge industry and jobs boost from a proposed advanced manufacturing facility at the Lansdown Eco-Industrial Precinct that would refine ore to produce critical materials for use in new-technology batteries. Deputy Premier and Minister for State Development Steven Miles said the proposed Townsville Energy Chemicals Hub (TECH) had been declared a prescribed project and would support North Queensland’s economic recovery.

Widespread global disruption to supply is set to see Australian farmers again move to lock in fertiliser and other inputs early for the season ahead, Rabobank says in a recently-released report. This is despite global fertiliser prices at near-decade highs and expected to remain elevated in the short to medium term.

Fund manager Gunn Agri Partners has picked up an avocado orchard in northern NSW, looking ahead to higher retail prices for the popular fruit after this year’s massive harvest. The group has paid $11 million for the orchard despite avocado prices plunge from as much as $4 to just $1 each this year as strong seasonal conditions in Western Australia particularly created a bumper crop ... Gunn Agri bought the asset for a European institution with a mandate to invest in permanent Australian crops assets.

Strong month-on-month price increases for most commodities saw Australian agribusiness industry conditions rise to record levels, according to Rabobank, and key drivers are expected to hold out to the December quarter. The latest Rabobank Rural Commodity Price Index rose by another 3.26% in August to its highest-ever reading.

Australian farmers and businesses will get more opportunities to reach new markets and create more jobs through global trade as Peru becomes the eighth economy to bring the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) into force. Minister for Trade, Tourism and Investment Dan Tehan today welcomed Peru joining Australia, Canada, Japan, Mexico, New Zealand, Singapore and Vietnam as a Party to the CPTPP.

The domestic softwood timber industry in NSW has received a significant boost with the NSW Government directing Forestry Corporation to divert selected softwood log exports impacted by the China trade embargo, to domestic markets. Deputy Premier and Minister responsible for Forestry John Barilaro said this will see at least an additional 270,000 tonnes of timber enter the domestic supply chain over the next three years.

Minister for Resources and Member for Townsville Scott Stewart said the Port of Townsville was a key piece of infrastructure when it comes to developing hydrogen exports. “Sun Metals is one of Townsville’s most innovative businesses and it’s exciting to have their sister company, Ark Energy, plan to export renewable hydrogen to South Korea from Queensland’s publicly-owned port,” Mr Stewart said.

The Greens have introduced a bill to parliament that would ban the export of greyhounds from Australia for commercial purposes including breeding and racing.

In an increasingly competitive world, Australia has some innate advantages in delivering high quality red meat protein to global markets: it is in the right neighbourhood to access growing demand in the Asia Pacific and world-leading shelf-life performance underpins an expanding chilled trade ... However, global shipping and air-freight have been in turmoil over the last year.