The confidence of Queensland’s primary producers has dropped off the back of higher costs and government policy decisions.
The latest Rabobank Rural Confidence Survey found net Queensland rural confidence over the past quarter dropped sharply to negative territory (-2 percent), from 10 percent over the previous three months.
Rabobank Queensland State Manager Polly Saraiva aid high costs for inputs, such as fertiliser, ag chemicals, machinery, labour and fuel drove the drop in confidence.
Ms Saraiva said concerns about government intervention and policies were also a factor.
“There is a level of concern around rising input costs and the geopolitical tensions that may be contributing to these cost increases and price volatility,” she said.
“Queensland and Australian agricultural exports and imports are intricately linked to global affairs, and producers are highly aware that international conflicts and trade disputes can affect their bottom line.”
Ms Saraiva said the survey found confidence had declined almost across the State, with only producers in the south west posting a small improvement in sentiment.
She said across commodities, sentiment was down slightly among beef producers, at a net 14 percent (from 19 percent).
“Net confidence among the state’s grain growers was also down from -6 percent last quarter to -21 percent this survey, largely driven by a fall in those who felt the agricultural economy would improve (from 19 percent, down to 7 percent this quarter).”
Ms Saraiva said confidence within the state’s sugar sector also declined, with 48 percent of cane growers surveyed expecting a deterioration in economic conditions in the 12 months ahead (up from 37 percent in the previous survey) and 10 percent expecting conditions to improve.
“Sentiment remained subdued in the dairy industry, with no Queensland dairy producers surveyed anticipating improved business conditions (unchanged from last survey).”
She said good rainfall, particularly early in the season, however, had provided cause for some optimism among some producers, with much of the state set up for a positive growing season.
