Australia’s agri-food exports increased in value for the seventh consecutive year in 2016/17, the top ﬁve destinations accounting for 48.2% of the value. The largest growth market in 2016/17 was India with China still the main destination.
Australia’s agri-food exports increased in value for the seventh consecutive year in 2016/17, the top ﬁve destinations accounting for 48.2% of the value. The largest growth market in 2016/17 was India. The overall increase of $1.7 billion came from growth in exports of legumes (+$689m), wheat (+$670m) and cotton (+$326m).
Australia Export Destination Highlights
China: Exports to China grew by $309 million, driven by a $406 million increase in wool exports
Japan: Japan’s main imports were beef ($1,910m) and Cheese ($375m)
EU: Strong growth in exports to the European Union were recorded for the second year in a row, up 20% after growth of 24% in 2015/16. This came largely from increasing canola exports, up $897m in 2016/17
USA: The United States recorded the most signiﬁcant decrease in value (-$992m) in 2016/17, almost exclusively attributed to a fall in beef exports which accounted for 41% of all exports to the US.
Indonesia: Exports to Indonesia recovered some of the value lost last year with an increase in exports of $239 million, mostly coming from growth in wheat ($136m) and live cattle ($50m) exports.
Middle East and North Africa: Exports to the Middle East and North Africa region fell $600 million. Signiﬁcant declines were recorded for barley (-$315m), beef (-$100m) and wheat (-$98m) while legume exports to the region rose $113 million
A $3.7 billion (+36.4%) increase in the value of crop exports was the main driver, followed by ﬁbre (+$897m) and sugar (+$374m). Cattle exports recorded the largest decline in value, dropping $1.9 billion (-16.6%), followed by dairy (-$88m).
The value of agri-food imports to Australia increased by $41.5 million in 2016/17. Miscellaneous edible preparations and beverages (wine, whiskey and beer) were the top imported commodities, accounting for 13.1% and 12.7% of total imports, respectively. The European Union, New Zealand and the United States accounted for 53% of agri-food imports in 2016/17. Cheese and butter imports from New Zealand accounted for most of the increase in value, increasing by 18% and 74%, respectively. Cheese imports from Europe also increased by 7.7%. Despite exports increasing in 2016/17, agri-food’s share of national goods and services exported dropped as the value of mining exports grew by 23
Rural Bank believes this should lead to another year of increased export value and volume.
Rural Bank said Australia’s agricultural exports rose by $3.9 billion to almost $50 billion in the last financial year, mainly because of a bumper year for grain and fibre. Cotton production in Australia is expected to lift slightly in 2017/18, further boosting exports.
From The Traders Community Research Desk