In the eastern states of Australia, confidence among farmers is growing. Rabobank reports this following a survey that the bank conducted among a group of farmers in the country. In fact, confidence in the future has never been higher. The favorable weather conditions and high income are the main motivators.
Rabobank's survey shows that 39% of agricultural entrepreneurs in Australia expect growth in the agricultural sector this year. In addition, 51% expect the sector to remain stable and only just under 7% of respondents have a pessimistic view about 2021. The pessimistic expectations come mainly from entrepreneurs from Western Australia and Queensland.
Looking to the future with some certainty leads to many investment plans. Particularly among the dairy farmers in the country. Peter Knoblanche, director of Rabobank Australia, says: "We noticed that mainly location-oriented investments were made, such as new stables and modernization of the water infrastructure." The good feeling, the low interest rates and the government assistance programs seem to have eased the crisis Chinese tensions and corona-related problems fade slightly.
The survey also shows that agricultural entrepreneurs from New South Wales expect the greatest income growth. This is also where they are most confident about the future. New South Wales is one of the worst affected states in Australia. Last year it was frequently affected by forest fires and drought.
Government supports the countryside
To increase resilience and profits in the agricultural sector, the government recently established a new $16 million aid program. It is called '4Hs', which stands for healthy milk, cows, milk flows and people. It must fully utilize the potential of milk to create new markets. It should also ensure less financial risk in dairy farming.
The Australian Minister of Agriculture says the following: "The financing and cooperation of this long-term plan will accelerate the recovery in the agricultural sector and ensure resilience and growth in the dairy farming sector. This after two difficult years with the bushfires, the corona crisis and the drought."
Due to the above 3 themes, milk supply in Australia has been at a low level in recent years, which not only has an impact on dairy farmers, but also on processors and consumers. “Fortunately, we see the sector turning around again towards the productivity that makes Australia a global leader in the dairy producing world.”