PRIMARY INDUSTRIES AND FISHERIES GVP BOOST
Published Thursday, 15 March, 2007 at 10:46 AM
Minister for Primary Industries and Fisheries
The Honourable Tim Mulherin
Minister for Primary Industries and Fisheries Tim Mulherin said the gross value of production forecast for Queensland’s primary industries and fisheries was $10.62 billion for 2006-07 - an increase on previous forecasts and just
three per cent lower than 2005-06.
Speaking in Parliament today, Mr Mulherin said: “With the debilitating effect drought has had on our primary producers, it was always anticipated that the GVP in 2006-07 would be down on last year.
“While this is still the case, the gross value of production of Queensland’s primary industry commodities is greater than was originally expected.’’
Mr Mulherin said forecasts for some commodities, such as grain sorghum, maize, barley, peanuts, sunflower seed, cotton and milk had been revised down for the year, largely because of the effects of the drought on production.
“Prospects have improved, however, for Queensland’s beef, banana and sugarcane industries with upward revisions to the initial forecasts for the year.
“Gross value of production of Queensland’s beef industry is now forecast at $3.525 billion. While this is lower than 2005-06, it is higher than expected as slaughter numbers coupled with higher prices resulted in a more optimistic forecast,” Mr Mulherin said.
“Higher than expected prices and continued strong demand have pushed the forecast gross value of production for bananas up to $400 million for the year; 11% higher than originally forecast and 33 per cent higher than 2005-06.
“The gross value of Queensland’s 2006 sugarcane crop is estimated at $1.095 billion.
“This is 19 per cent higher than the initial forecast of $920 million, mainly because of better prices being received by growers.
“Growers in Babinda and South Johnstone, however, have not been so fortunate. Post-Cyclone Larry wind and rain affected the crops resulting in lower commercial cane sugar levels and subsequent lower prices.
“Gross value of production of grain sorghum in 2006-07 is expected to fall to $215 million, 10 per cent lower than the initial forecast for the year.
“A smaller planting than initially anticipated and reduced yield because of the drought are expected to result in a fall in production to 805,000 tonnes. While prices are higher, because of demand for feed grain, this is not expected to compensate for the lower production.
“Gross value of production of maize and barley are forecast at $25 million and $20 million, respectively. As with sorghum, high prices for feed grains are not expected to offset lower plantings, lower yields and lower production of both maize and barley.
“A fall in milk production is expected to result in a decline in the gross value of milk to $200 million,” Mr Mulherin said.
The Department of Primary Industries and Fisheries’ latest gross value of production forecasts can be found in the March 2007 edition of Prospects Update, available on the DPI&F website at: www.dpi.qld.gov.au/prospects
Final forecasts for the 2006-07 financial year will be published in Prospects Update June 2007.
Media: 323 96530
three per cent lower than 2005-06.
Speaking in Parliament today, Mr Mulherin said: “With the debilitating effect drought has had on our primary producers, it was always anticipated that the GVP in 2006-07 would be down on last year.
“While this is still the case, the gross value of production of Queensland’s primary industry commodities is greater than was originally expected.’’
Mr Mulherin said forecasts for some commodities, such as grain sorghum, maize, barley, peanuts, sunflower seed, cotton and milk had been revised down for the year, largely because of the effects of the drought on production.
“Prospects have improved, however, for Queensland’s beef, banana and sugarcane industries with upward revisions to the initial forecasts for the year.
“Gross value of production of Queensland’s beef industry is now forecast at $3.525 billion. While this is lower than 2005-06, it is higher than expected as slaughter numbers coupled with higher prices resulted in a more optimistic forecast,” Mr Mulherin said.
“Higher than expected prices and continued strong demand have pushed the forecast gross value of production for bananas up to $400 million for the year; 11% higher than originally forecast and 33 per cent higher than 2005-06.
“The gross value of Queensland’s 2006 sugarcane crop is estimated at $1.095 billion.
“This is 19 per cent higher than the initial forecast of $920 million, mainly because of better prices being received by growers.
“Growers in Babinda and South Johnstone, however, have not been so fortunate. Post-Cyclone Larry wind and rain affected the crops resulting in lower commercial cane sugar levels and subsequent lower prices.
“Gross value of production of grain sorghum in 2006-07 is expected to fall to $215 million, 10 per cent lower than the initial forecast for the year.
“A smaller planting than initially anticipated and reduced yield because of the drought are expected to result in a fall in production to 805,000 tonnes. While prices are higher, because of demand for feed grain, this is not expected to compensate for the lower production.
“Gross value of production of maize and barley are forecast at $25 million and $20 million, respectively. As with sorghum, high prices for feed grains are not expected to offset lower plantings, lower yields and lower production of both maize and barley.
“A fall in milk production is expected to result in a decline in the gross value of milk to $200 million,” Mr Mulherin said.
The Department of Primary Industries and Fisheries’ latest gross value of production forecasts can be found in the March 2007 edition of Prospects Update, available on the DPI&F website at: www.dpi.qld.gov.au/prospects
Final forecasts for the 2006-07 financial year will be published in Prospects Update June 2007.
Media: 323 96530