Australian agriculture marching closer to $100b goal with sector forecast to reach $94.7 billion next year

Australian agriculture is marching closer to its $100 billion goal with the sector forecast to reach $94.7 billion in 2025-26. The price of livestock is set to tick Australia’s agriculture, fisheries and forestry production value to a record of more than $100 billion according to the latest forecast from Australian Bureau of Agricultural and Resource Economics and Sciences. Beef, lamb and milk products have boosted overall agriculture sector production with this financial year’s forecast a good omen for producers around the nation. National Farmers’ Federation president David Jochinke said despite the sector taking a hit from droughts, floods and uncertainty from global trade disruptions, farmers had held a steady hand. “The lift is largely underpinned by strong livestock prices, but credit must be given to calm approach by the government and industry on the tariff turbulence,” he said. “Most of all, the result is also a reflection of blood, sweat and smart investment from farmers.” The federal government’s commodities forecaster released its commodities report for the 2025 September quarter on September 2. It showed livestock and livestock product values will rise due to “robust” global demand and re-stocker activity driving higher prices, while aligns with Australia’s beef industry being poised to hit record production levels this year. Executive director Dr Jared Greenville said the new record value was mostly down to livestock. “We’ve seen high prices lately for both livestock and animal products, like beef, lamb and milk,” he said. “This has boosted the value of livestock production to $41.6 billion, helping to drive overall agriculture sector production value to a forecasted $94.7 billion, which would also be a record.” Australia’s gross gross agricultural production is forecast to rise by $685 million in the financial year. Livestock and livestock product values are forecast to rise by $1.1 billion in 2025–26. Lamb and sheep slaughter are up $500 million, milk $400 million and cattle $200 million. Pigs, poultry slaughtering and egg production have risen by $200 million as rising domestic production volumes “more than compensate for slightly lower prices for poultry meat”, Mr Greenville said. However, the nation’s beef production could fall within two years, experts say, as drier conditions prevail and producers adopt “more cautious” approach to their farming practices. Crop production value was also set to fall over the next 12 months following rainfall through July in South Australia and Victoria, drawing a continued lift into question. There are also concerns for southern NSW due to a slow start to the winter cropping season and relatively low soil moisture levels. Noting however, WA grain farmers were on track to deliver their fourth harvest exceeding 20 million tonnes since the record was first broken in 2021. Despite these factors, Mr Jochinke said with the 2030 Roadmap goal within reach, now was the time for smart policy to get the sector over the line. “We need to seize opportunities in front of us, like the EU FTA, ensuring they deliver meaningful market access for Australian agriculture,” he said. “Proposed federal tax and environmental reforms must build on this momentum. “Sensible reform that cut red and green tape, promotes competitiveness and encourages investment into innovation will pull us closer to $100 billion.” Mr Jochinke said policies proposals that do not adhere to best practice principles, such as taxing unrealised gains, risks sending the trajectory backwards. “If government can back agriculture with the right policy settings, farmers will do the rest,” he said. Agriculture, Fisheries and Forestry Minister Julie Collins said the record result stems from the hard work, resilience and skill of farmers working collaboratively with government. “The continued growth in our agriculture, fisheries and forestry sector is good for our farmers, it’s good for our regional economies, and it’s good for our trade relationships,” Ms Collins said. “This record forecast is not only a result of increased demand for our world-class products, but what you can achieve when government works with industry to deliver for them.”