ABARES is forecasting record agricultural production of $73bn for 2021/22, to break the $70bn gross mark for the first time in history, an upward revision of $8bn after release June forecasts. The value of crop production is forecast to increase by 7% to $39.5bn due to strong price hikes for grains, cotton and sugar. Meanwhile, the value of livestock production is forecast to lift by 8% to $33.5bn due to higher volumes. As the value of production is expected to lift, so is the value of agricultural exports, up an estimated 12% to $54.7bn in 2021/22.

ABARES forecasts a 7% lift in the Australian average farmgate milk price in 2021/22 due to stronger global demand. Towards the end of 2021, prices are expected to ease, but will still be higher on average in 2021/22 than 2020/21 due to strong Chinese demand.