Rabobank

Australia’s beef sector is set for a return to "more normal" market conditions in the season ahead, after a recent extraordinary period marked by record prices levels and volatility, according to Rabobank’s Australian Beef Seasonal Outlook 2023. But while prices are projected to track in a narrower range – at close to current levels – through the year, this is still "historically high’ and expectations are that beef producer margins will remains strong, the agribusiness banking specialist says.

The global avocado trade will continue to grow in the next few years, but the market will be more competitive, forcing operators to be not only more efficient, but also increasingly sustainable, according to a new report by agribusiness banking specialist Rabobank. In the report Global Avocado Growth Far From Over, Rabobank says world avocado production expanded by a compound annual growth rate (CAGR) of approximately seven per cent over the past decade.

Australian dairy producers can look forward to another favourable season in 2023/24, with the sector set for its fourth consecutive profitable year, Rabobank says in its recently-released annual Australian Dairy Seasonal Outlook.

The latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics, released on 26 April 2023, shows annual top-line Australian food price inflation had slowed to 8.0 per cent in the March 2023 quarter, from 9.2 per cent seen in the previous (December 2022) quarter. Rabobank senior food retail analyst Michael Harvey said while this easing was good news for consumers ... the figure was still well above the long-term (10-year) average of food inflation of 2.2 per cent.

For now, the orange juice market is staying tight for at least another season, unless there is a significant supply-side surprise for the 2023/24 harvest in Brazil or a much sharper contraction in global demand in 2H 2023. According to a recent Rabobank report, record-high orange juice (OJ) prices in 2023 are a consequence of a very tight market, with smaller-than-expected production and low inventories.

Australia’s future food and fibre production is being threatened by surging land prices, NSW Farmers says. NSW Farmers Young Farmers Council chair Martin Murray said the price rises meant young people looking to enter the industry will find it harder to get a start.

Australian agricultural land is on track for another year of strong price growth in 2023, agribusiness banking specialist Rabobank says in its newly-released annual Australian Agricultural Land Price Outlook ... Agricultural land prices were found to have recorded double digit percentage growth on the previous year in all states, with South Australian farmland prices rising the most – at 34 per cent.

Australian farmers continue to ride the rollercoaster of seasons, commodity prices and economic factors, with rural sentiment at the start of 2023 dipping to its lowest level reported since late 2018. The latest quarterly Rabobank Rural Confidence Survey, released on 16 March 2023, found after rallying late last year, sentiment in the rural sector had fallen again this quarter as farmers continue to navigate a range of economic and financial uncertainties.

According to a new report from Rabobank, participants all along the dairy value chain are being squeezed. Producers’ milk prices have tumbled from 2022’s lofty levels while feed prices are at record highs.

The liquid ‘drinking’ milk market remains of key importance to Australia’s dairy sector – with improved domestic retail pricing and opportunities for further export growth – Rabobank says in a newly-released industry report.