Value of Australian agricultural production forecast to fall 2.8 pct in 2025-26

CANBERRA, June 3 (Xinhua) -- The value of Australia's agricultural production is expected to fall by almost 3 percent in 2025-26 due to lower crop production amid drought and dry conditions, according to government forecasts.

The Australian Bureau of Agricultural and Resource Economics (ABARES) on Tuesday released its agricultural commodities report for June 2025, projecting that nationwide agricultural production will be worth 90.7 billion Australian dollars (58.9 billion U.S. dollars) in 2025-26.

That would mark a fall of 2.6 billion Australian dollars (1.6 billion U.S. dollars), or 2.8 percent, from the value of production in 2024-25 but would still represent the third-highest result on record, ABARES said.

The decline in 2025-26 is expected to be primarily driven by a fall in crop production amid drought and dry conditions in southern Australia.

The ABARES report said that the value of Australian crop production is expected to fall by 2.1 billion Australian dollars (1.3 billion U.S. dollars), or 4 percent, in 2025-26 to 50.7 billion Australian dollars (32.9 billion U.S. dollars) as a result of lower production volumes.

It said that Australian wheat production is forecast to fall by 10 percent, barley production by 3 percent and canola production by 6 percent.

ABARES Executive Director Jared Greenville said in a statement that production outcomes in parts of South Australia, Victoria. New South Wales and Western Australia where there is a "total lack of soil moisture" are highly dependent on a positive rainfall outlook.

"The rainfall outlook for these regions is currently positive, which is embedded in our current forecasts, but if not realized creates a downside risk to national production figures," he said.

The value of livestock production is forecast to fall by 500 million Australian dollars (324.7 million U.S. dollars) to 40 billion Australian dollars (25.9 billion U.S. dollars) in 2025-26 mainly due to a projected 3.1 percent decline in livestock production volumes.

Agricultural export values are expected to fall by 3 percent to 71.7 billion Australian dollars (46.5 billion U.S. dollars) in 2025-26. Enditem