Queensland beef producers have driven a lift in confidence among the state’s primary producers.
The latest Rabobank Rural Confidence Survey found sentiment in the state’s rural communities had risen to net 10 percent, up from -2 percent last quarter.
Rabobank group executive for Country Banking Australia Marcel van Doremaele said a combination of favourable seasonal conditions in key beef-producing regions, strong global beef markets and robust local prices were the chief reasons for optimism among Queensland cattle producers.
Mr van Doremaele said the lift in confidence was a national trend, as farmers hoped for continuing strong commodity prices, particularly in livestock sectors, and better seasonal conditions in a number of regions.
He said the survey found net farm sector confidence rose nationally to 14 percent, up from a neutral zero percent.
“Across the nation, confidence in the performance of the agricultural economy increased during the quarter, with just over a third of farmers (35 percent) predicting farm business conditions to improve over the next 12 months, up from 29 percent with that view in the previous survey.”
Mr van Doremaele said those expecting conditions to worsen had fallen to 21 percent (from 29 percent), while 41 percent of the nation’s farmers expect conditions to remain unchanged.
“Australia’s beef and sheep producers have been buoyed by relatively consistent and robust prices – driven by strong international demand – throughout this year,” he said.
“And while softer prices for cotton, grain and sugarcane are holding back sector confidence, growers are hoping average to above-average crop yields will go some way to offsetting the weak markets.”
