PRIMARY INDUSTRIES SOLID DESPITE DROUGHT

Queensland’s primary industries sector is set to make a significant contribution to the state’s economy in 2006-07, with a forecast gross value of production of $10.43 billion, Minister for Primary industries and Fisheries Tim Mulherin said today.

Mr Mulherin, who tabled Prospects for Queensland’s Primary Industries, 2006-07, in State Parliament today, said the total was just 5 per cent lower than last year and 3 per cent lower than 2004-05.

“Queensland continues to be gripped by drought conditions - two thirds of the land area of the state is officially drought declared and has been since the beginning of 2002,’’ Mr Mulherin said.

“These exceptionally difficult conditions, along with international pressures on the beef and sugarcane industries, are expected to take their toll on the gross value of some of the state’s primary industries.

“Among the hardest hit will be cotton, wheat, barley and the turf and nursery sectors.

“While the drought is likely to have an effect on the quality of cattle slaughtered, Queensland’s beef industry faces the added strain of international price pressures as the US re-enters the Japanese market.

“The gross value of cattle and calf disposals for 2006-07 is forecast at $3.175 billion _ 14 per cent lower than last year.

“Falls in Queensland’s sugar pool price and a decline in the amount of cane crushed are expected to reduce the gross value of sugarcane production from last year’s high of $1 billion to $920 million.

“Expansion of supply from Brazil and Thailand as well as an 8 per cent fall in the world indicator price for traded raw sugar from 2005-06 are also likely to force prices down.’’

Mr Mulherin said the cotton industry faced particularly difficult conditions with water storages for irrigation at alarmingly low levels, particularly in cotton-growing areas near St George, Dirranbandi, Emerald and the Darling Downs.

“The gross value of production for cotton in 2006-07 is forecast at $250 million _ almost 40 per cent lower than the last two years.

“The outlook for Queensland’s fruit and vegetable industries is more optimistic with forecast increases in gross value of production.

“The fruit and nut industries are expected to contribute $925 million to the state’s total GVP _ 18 per cent higher than last year.

“Gross value of vegetable production is forecast at $775 million – 5 per4 cent higher than last year.’’

The top five primary industry commodities that make up 70% of the total primary industries GVP are:

• Cattle and calves: $3.175 billion
• Lifestyle horticulture: $1.41 billion
• Fruit and nuts: $925 million
• Sugarcane: $920 million and
• Vegetables: $775 million

“Queensland’s primary industries continue to provide a sound base for value adding,’’ Mr Mulherin said.

“Positive business perceptions of Queensland are demonstrated by investments projects in the state including: a number of planned and completed ethanol plants, using grains and sugarcane products; wastewater recycling in Mackay; and increased investment in the state’s feedlotting and aquaculture industries.’’

More detailed discussion of the short-term outlook for the state’s primary industries can be found in the September 2006 edition of Prospects for Queensland’s Primary Industries, available free of charge from the DPI&F website at: www.dpi.qld.gov.au/prospects/

Media:David Potter 32396530