Outlook for current and prospective commodities Max Foster.

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Presentation transcript:

Outlook for current and prospective commodities Max Foster

Overview Kimberley region agriculture Beef industry –WA live cattle exports –Kimberley cattle property performance Ord River Irrigation Area –Existing crops –Prospective crops

Value of agricultural production, Kimberley, $m

Beef cattle

Live cattle exports, Australia $/hd ‘000

Kimberley beef cattle properties Average per farm $’

Rates of return, Kimberley beef cattle properties %

Ord River Irrigation Area

Ord River Irrigation Area Land use,

Sandalwood

Sandalwood oil: US imports and import prices from India t US$/kg 2009

Chinese Taipei: Sandalwood Imports and import prices tUS$/t 2009 US$/kg

Horticulture

Horticulture outlook Domestic markets Strong growth in demand, particularly for fresh produce ORIA producers benefiting from seasonal price premiums World markets Rapid growth in the value of world fruit, nut and vegetable trade

Value of Australian horticulture production $m

Value of world fruit and vegetable trade US$m 2009

Premiums for selected ORIA horticultural products Perth market %

Emerging and prospective crops Chia Cotton Exotic tropical fruit Native foods Food crops –Rice?

Cotton: daily indicator price Daily to 12 May 2009 c/lb

Australia cotton returns $/bale USc/lb

Summary of outlook Solid returns to the Kimberley beef industry Continuing strong demand for ORIA horticultural products –However, expansion in production of some horticultural products could pressure seasonal price premiums Interesting possibilities for ‘new’ irrigated crops

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