Published Thursday, 05 July, 2007 at 11:31 AM
Minister for Primary Industries and Fisheries
The Honourable Tim Mulherin
PRIMARY PRODUCTION DIPS WITH DROUGHT
Minister for Primary Industries and Fisheries Tim Mulherin said Queensland’s devastating drought had been the major contributor to a 4 per cent fall in the estimated value of Queensland’s primary industries and fisheries.
“The Department of Primary Industries and Fisheries’ Prospects Update for June 2007 estimates the gross value of production of Queensland’s primary industry commodities in 2006-07 at $10.485 billion - 4 per cent lower than 2005-06,” Mr Mulherin said.
“But the figure of almost $10.5 billion is nearly 1 per cent higher than DPI&F’s initial forecast for 2006-07 and a reflection of the resilience of our primary producers and fishers in extremely difficult circumstances.’’
Mr Mulherin said there were currently 85 shires and two part-shires drought declared by the State Government - equivalent to 62.5% of the land area of the State. There also are seven Individually Droughted Properties in a further four shires.
“But we are keeping our fingers crossed,’’ Mr Mulherin said.
“There has been a marginal improvement in the seasonal outlook throughout most of Queensland with a 50-70 per cent chance of getting median rainfall up to August.
“While the prediction is not for drought-breaking rains, there is cause for optimism.’’
Mr Mulherin said during 2006-2007 the drought had a significant effect in particular on livestock and cropping.
“Queensland’s livestock producers had to deal with the pressures of feed availability, higher feed prices and reduced quality of stock because of the drought.
“High cattle slaughter numbers throughout 2006-2007 have pushed the forecast gross value of production of Queensland’s beef industry up to $3.625 billion; 14 per cent higher than the initial forecast for the year, but lower than the 2005-2006 estimate of $3.675 billion.
”Queensland’s cattle and calf industry though remains the biggest contributor to the agricultural economy. In 2006-07 it is expected to account for more than a third – 35 per cent – of the total GVP of Queensland’s primary industries and fisheries.
“Gross value of sheep and lambs sold for slaughter in 2006-07 is now forecast at $45 million, 10 per cent less than 2005-2006.
“Higher turn-off and slaughter numbers have resulted in lower prices and a subsequent decline in GVP.
“A lack of water affected the nursery, landscape, cut flowers, and turf sectors; at $1.22 billion with lifestyle horticulture’s GVP at 18 per cent lower than 2005-2006.’’
Mr Mulherin said the gross value of production of cotton in 2006-07 is now forecast at $120 million, less than half the original forecast for the year and 70 per cent lower than 2005-06.
“Drought and a lack of irrigation water have led to some cotton producers opting to destroy parts of their crop to preserve any remaining cotton, and producers are also facing falling international cotton lint prices.
“Gross value of production of grain sorghum in 2006-07 is forecast at $185 million, 23 per cent lower than initial forecasts, due to a smaller planting and reduced yield that are expected to result in production falling to 690,000 tonnes.
“While prices are higher because of increasing demand for feed grain, this is not expected to compensate for the lower production.
“The gross value of the 2006 sugarcane crop is now estimated at $1.075 billion, 17 per cent higher than initial forecasts, mainly due to better prices than originally expected.
“The gross value of fisheries production in 2006-07 is forecast at $275 million, 20 per cent lower than 2005-2006.
“The fisheries trawl sector GVP has fallen by 25 per cent mainly due to increasing competition from imported products, the strong Australian dollar and the high price of fuel to operate trawlers. Cheaper imports have also contributed to a 25 per cent decline in non-trawl fisheries GVP,” Mr Mulherin said.
DPI&Fs’ latest GVP forecasts can be found in the June 2007 edition of Prospects Update, available on the DPI&F website at www.dpi.qld.gov.au.
DPI&Fs' initial forecasts for 2007-08 will be published in the September 2007 edition of Prospects for Queensland’s Primary Industries.
Media: 32396530
“The Department of Primary Industries and Fisheries’ Prospects Update for June 2007 estimates the gross value of production of Queensland’s primary industry commodities in 2006-07 at $10.485 billion - 4 per cent lower than 2005-06,” Mr Mulherin said.
“But the figure of almost $10.5 billion is nearly 1 per cent higher than DPI&F’s initial forecast for 2006-07 and a reflection of the resilience of our primary producers and fishers in extremely difficult circumstances.’’
Mr Mulherin said there were currently 85 shires and two part-shires drought declared by the State Government - equivalent to 62.5% of the land area of the State. There also are seven Individually Droughted Properties in a further four shires.
“But we are keeping our fingers crossed,’’ Mr Mulherin said.
“There has been a marginal improvement in the seasonal outlook throughout most of Queensland with a 50-70 per cent chance of getting median rainfall up to August.
“While the prediction is not for drought-breaking rains, there is cause for optimism.’’
Mr Mulherin said during 2006-2007 the drought had a significant effect in particular on livestock and cropping.
“Queensland’s livestock producers had to deal with the pressures of feed availability, higher feed prices and reduced quality of stock because of the drought.
“High cattle slaughter numbers throughout 2006-2007 have pushed the forecast gross value of production of Queensland’s beef industry up to $3.625 billion; 14 per cent higher than the initial forecast for the year, but lower than the 2005-2006 estimate of $3.675 billion.
”Queensland’s cattle and calf industry though remains the biggest contributor to the agricultural economy. In 2006-07 it is expected to account for more than a third – 35 per cent – of the total GVP of Queensland’s primary industries and fisheries.
“Gross value of sheep and lambs sold for slaughter in 2006-07 is now forecast at $45 million, 10 per cent less than 2005-2006.
“Higher turn-off and slaughter numbers have resulted in lower prices and a subsequent decline in GVP.
“A lack of water affected the nursery, landscape, cut flowers, and turf sectors; at $1.22 billion with lifestyle horticulture’s GVP at 18 per cent lower than 2005-2006.’’
Mr Mulherin said the gross value of production of cotton in 2006-07 is now forecast at $120 million, less than half the original forecast for the year and 70 per cent lower than 2005-06.
“Drought and a lack of irrigation water have led to some cotton producers opting to destroy parts of their crop to preserve any remaining cotton, and producers are also facing falling international cotton lint prices.
“Gross value of production of grain sorghum in 2006-07 is forecast at $185 million, 23 per cent lower than initial forecasts, due to a smaller planting and reduced yield that are expected to result in production falling to 690,000 tonnes.
“While prices are higher because of increasing demand for feed grain, this is not expected to compensate for the lower production.
“The gross value of the 2006 sugarcane crop is now estimated at $1.075 billion, 17 per cent higher than initial forecasts, mainly due to better prices than originally expected.
“The gross value of fisheries production in 2006-07 is forecast at $275 million, 20 per cent lower than 2005-2006.
“The fisheries trawl sector GVP has fallen by 25 per cent mainly due to increasing competition from imported products, the strong Australian dollar and the high price of fuel to operate trawlers. Cheaper imports have also contributed to a 25 per cent decline in non-trawl fisheries GVP,” Mr Mulherin said.
DPI&Fs’ latest GVP forecasts can be found in the June 2007 edition of Prospects Update, available on the DPI&F website at www.dpi.qld.gov.au.
DPI&Fs' initial forecasts for 2007-08 will be published in the September 2007 edition of Prospects for Queensland’s Primary Industries.
Media: 32396530