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Published by: Business Monitor International
Published: Sep. 4, 2009 - 52 Pages
Table of Contents
- Executive Summary
- SWOT Analysis
- Australia Agricultural SWOT
- Industry Business Environment Overview
- Supply Demand Analysis
- Australia Rice Outlook
- Table: Australia Rice Production, Consumption & Trade
- Table: Australia Rice Production, Consumption & Trade
- Australia Grains Outlook
- Table: Australia Wheat Production, Consumption & Trade
- Table: Australia Corn Production, Consumption & Trade
- Table: Australia Barley Production, Consumption & Trade
- Table: Australia Sorghum Production, Consumption & Trade
- Table: Australia Wheat Production, Consumption & Trade
- Table: Australia Corn Production, Consumption & Trade
- Table: Australia Barley Production, Consumption & Trade
- Table: Australia Sorghum Production, Consumption & Trade
- Australia Dairy Outlook
- Table: Australia Milk Production & Consumption
- Table: Australia Butter Production, Consumption & Trade
- Table: Australia Cheese Production, Consumption & Trade
- Table: Australia Whole Milk Powder Production, Consumption & Trade
- Table: Australia Milk Production & Consumption
- Table: Australia Butter Production, Consumption & Trade
- Table: Australia Cheese Production, Consumption & Trade
- Table: Australia Whole Milk Powder Production, Consumption & Trade
- Australia Livestock Outlook
- Australia Livestock Outlook
- Table: Australia Poultry Production, Consumption & Trade
- Table: Australia Pork Production, Consumption & Trade
- Table: Australia Beef & Veal Production, Consumption & Trade
- Table: Australia Poultry Production, Consumption & Trade
- Table: Australia Pork Production, Consumption & Trade
- Table: Australia Beef & Veal Production, Consumption & Trade
- Australian Sugar Outlook
- Table: Australia Sugar Production, Consumption & Trade
- Table: Australia Sugar Production, Consumption & Trade
- Competitive Landscape
- Table: Agricultural Commodity Producers & Traders
- Table: Agribusiness Suppliers
- Table: Integrated Agricultural Producers
- Commodity Price Analysis
- Corn
- Table: Corn
- Rice
- Table: Rice
- Soy
- Table: Soybean
- Wheat
- Table: Wheat
- Softs Update
- Cocoa
- Table: Cocoa
- Coffee
- Table: Coffee
- Milk
- Table: Milk
- Sugar
- Table: Sugar
- Downstream Supply Chain Analysis
- Industry Forecast Scenario - Food
- Food Consumption
- Food consumption indicators -- Historical Data & Forecasts, 2006-2013
- Confectionery
- Confectionery Sales Indicators -- Historical Data & Forecasts, 2006-2013
- Canned Food
- Canned Food Volume/Value Sales - Historical Data & Forecasts, 2006-2013
- Trade
- Food & Drink Trade Indicators -- Historical Data & Forecasts, 2006-2013
- Industry Forecast Scenario - Retail
- Australia MGR Sales by Format -- Historical Data & Forecasts, 2006-2013
- Table: Grocery Retail Sales By Format (%) -- Historical Data And Forecasts
- Macroeconomic Forecast
- Australia - Economic Activity
- BMI Forecast Modelling
- How We Generate Our Industry Forecasts
AbstractJust as Australia's agricultural sector appeared to be breaking free from the long drought that has grippedthe country for most of the decade, fears are now rising of further dry conditions caused by the El Niñophenomenon. At the beginning of August, the Australian Bureau of Meteorology reported that conditionswere increasingly indicating that this would be an El Niño year. The phenomenon, technically known asthe El Niño-Southern Oscillation (ENSO), typically causes high temperatures and droughts in the AsiaPacific region and heavy rains in South America.
If the coming Southern Summer is indeed dry as feared, we would be forced to reduce our forecasts for2010 crop production as yields are once again struck by water shortages. This would be a cruel blow tofarmers who have seen crops ruined by dry weather in a number of years this decade. In 2009, grainproduction increased dramatically from levels seen in 2007 and 2008 owing to the greater availability ofwater. El Niño could put a stop to the continued recovery of the sector for another year, though we do notbelieve production will drop back to the level seen in 2008 even if the phenomenon does indeedmaterialise.
Australia's dairy sector is also under pressure, though it is now low prices rather than the weather which isthe main difficulty for farmers. In July, the main dairy processors announced that the price they paidfarmers for milk would be cut drastically in the coming year. Farmers will now be receiving less thanAUD0.30 per litre of milk. For many this will be below the cost of production. Following the long yearsof drought, this new blow will see more farmers leave the sector as they are unable to cope with mountingdebt. This will see milk production fall again in 2010 following a small recovery this year.
Despite this further setback, in the longer term we still see a bright future for the sector. As economicgrowth recovers, increasing demand for dairy products from emerging markets and restricted supplyowing to the drawdown in dairy herds in major producers should see prices climb back up. We thereforeexpect milk production to see strong growth towards the end of our forecast period.
One sector already benefiting from a supply deficit this year is Australia's sugar industry. Tight globalsupply, mainly due to the collapse of sugar production in India, has driven a rapid rise in prices through2009. This will bring a much needed windfall for Australia's sugar sector, which has been in decline inrecent years. The high prices will go to making up for the poor production level with the 2010 sugar canecrop again negatively affected by heavy rains in Queensland. The rate of conversion of sugar cane landfor other uses should also be lower now following the difficulties in the Australian property market.
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