Australia Agribusiness Outlook 2020

Production growth will remain elusive, as Australian agriculture starts the new year in extremely challenging circumstances, but firm prices will provide some offset. 2020 will likely prove a pivotal year for the world’s transition to tackling climate change, and rebuilding a robust industry will be important for the major transition ahead.

The 2019/20 season will see a third consecutive contraction in farmgate revenues. While most farmers were well set-up heading into the current drought, another dry year further erodes the buffers they had built. “A strong rebound in national production is possible, but less than likely in 2020/21,” according to Tim Hunt, Head of RaboResearch Australia/New Zealand. “From here, the most likely path is a multi-year rebuild for Australian agriculture. While Australian agricultural production will likely remain weak in 2020/21, we expect to see farmers gain some consolation from the extension of current high prices.”

There will be opportunities as well as threats to agriculture as the world makes the transition required to address climate change. Rebuilding a robust and adaptive industry post-drought will be important to prepare the industry to capitalise on these opportunities and mitigate the threats that lie ahead.

  • Tim Hunt

    Head of RaboResearch Food & Agribusiness - Australia & New Zealand
    Read more
  • Angus Gidley-Baird

    Senior Analyst - Animal Protein
    Read more
  • Michael Harvey

    Senior Analyst - Dairy
    Read more
  • Cheryl Kalisch Gordon

    Senior Analyst - Grains & Oilseeds
    Read more
  • Wesley Lefroy

    Analyst - Agriculture
    Read more
  • Emma Higgins

    Analyst - Dairy
    Read more
  • Blake Holgate

    Analyst - Animal Protein, Sustainability
    Read more
  • Hayden Higgins

    Senior Analyst - Horticulture, Wine
    Read more
  • Dennis Voznesenski

    Analyst - Grains & Oilseeds, Animal Protein
    Read more
  • Charles Clack

    Commodity Analyst
    Read more