Queensland primary industries bounce back in new year forecasts

The fortunes of Queensland’s primary industries have turned a corner with its total value set to increase in 2008-09, Primary Industries and Fisheries Minister Tim Mulherin said today.

"The latest forecasts released by the Department of Primary Industries and Fisheries report a 6 per cent increase to $13.137 billion for the primary industry production and agricultural processing sectors," Mr Mulherin said.

“This is a welcome boost for the State’s economy for 2008-09 and a positive sign of industry development.

"The farm gate value of Queensland's primary industry commodities is forecast at $10.136 billion in 2008-09, and the value of first-stage processing of agricultural commodities is forecast at $3 billion.

"The farm gate value of many industries is expected to increase this year, with some industries showing signs of recovery after the difficult drought conditions of the past few seasons. Production of many commodities is forecast to rise in 2008-09.

“In gross value of production terms, the largest percentage increase is 209% for cotton at $340 million, which is a welcome turnaround after last year recorded the lowest cotton production in many years due to severe water shortages.

“Cotton plantings in 2008-09 are expected to double that of last year and water storages in Queensland’s cotton growing regions are looking positive. In addition, high world cotton prices are expected to contribute to the increase in gross value this year.

Mr Mulherin said the gross value of wheat production was forecast at $500 million, 39 per cent higher than 2007-08, as well as a massive 65 per cent increase in production from 930,000 tonnes in 2007-08 to more than 1.5 million tonnes.

Despite a projected fall of 15 per cent from last year’s high wheat prices, he said the large increase in production was expected to outweigh the fall in price and boost the total gross value.

Sugarcane production was forecast to increase in value by 12 per cent to $840 million, with production about the same as last year, but with forecast higher prices, he said.

“Improved seasonal conditions are expected to result in a 10 per cent increase in nursery production gross value, now forecast at $450 million, with the easing of water restrictions in South East Queensland expected to boost demand for turf for new and renovated lawns.

“Poultry gross value of production is also forecast to increase in 2008-09 to $320 million, with production similar to last year and an increase in prices.

“We forecast a 10 per cent increase in wool production, which is expected to outweigh falling wool prices, resulting in a 4 per cent increase in gross value of production.”

The Minister said Queensland's cattle and calf industry continued to be the state's largest primary industry with a forecast gross value of production of $3.36 billion in 2008-09, accounting for 33 per cent of the state’s total farm gate value.

“Potato gross value of production is forecast at $55 million in 2008-09, 22 per cent higher than last year. Increased plantings and growers moving out of processing contracts are expected to result in higher production volumes in the coming year.

Further information can be found in the September 2008 edition of DPI&F’s publication Prospects for Queensland's Primary Industries (Prospects).

Prospects can be found on the DPI&F website at www.dpi.qld.gov.au

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