This article is from the Australian Property Journal archive
SOUTH Australia’s primary industries and agribusinesses have weathered ongoing domestic and international pressures, delivering solid growth in the 2023 financial year, according to state government data.
The latest Primary Industries Scorecard 2022-23 shows year-on-year revenue growth of 7% to $18.5 billion, and accounting for 51% of the state’s merchandise exports. The strong result was despite inflation and rising interest rates, the slow global recovery from the COVID-19 pandemic and the war in Ukraine.
A record grain harvest, coupled with strong global commodity prices for grain, was the main driver of the increase, with field crop revenue up 39% to $7.76 billion.
Other sectors to experience growth included forestry, up 5% to $1.46 billion, primarily attributed to the rise in the sale of wood products, while the dairy industry enjoyed a 34% increase in farmgate milk prices along with increased production and a rise in cheese exports.
The seafood sector posted a 5% increase in value to $508 million, driven by price increases for southern rock lobsters (up by 8% to $53 per kg) and southern bluefin tuna (up by 13% to $15.25 per kg).
Wool also recorded an upswing of $549 million in revenue, attributable to increases in export quantities and prices.
“Primary industries and agribusinesses are vital to South Australia and a significant contributor to the state’s economy. Despite some ongoing challenges, these results clearly illustrate the sector’s resilience,” said Minister for Primary Industries and Regional Development and Minister for Forest Industries, Clare Scriven said.
Total primary production value was up by more than 7% to $10.7 billion, and is 31% above the five-year average.
Professor Simon Maddocks, chair Primary Producers SA, said the Primary Industries Scorecard for 2022-23 “speaks to the seasonal and market variability that producers and commodity sectors have to contend with year-on-year”.
The contribution of primary production activity – agriculture, forestry, and fishing – to the state’s gross state product lifted 7%, to $7.78 billion. There was also a rise in the total employment for primary industries and associated processing, reaching an estimated 78,000 jobs (FTE).
“With strong demand for additional workers continuing across many agricultural and processing sectors, attracting and training the workforce required for the future remains an important focus for the industry,” Scriven said.
For the first time, Indonesia surpassed China to become the largest export market for South Australia’s agriculture and food exports. Other markets to significantly increase included India (182%) and Thailand (131%).
Overall overseas exports of agriculture, food, wine, and forestry products increased by 18%, totalling $8.8 billion, a major contributor being grain exports which increased by 33% in value to reach $5.1 billion.
