Situation and outlook for New Zealand agriculture and forestry (August 2007)
Australian drought
Drought conditions across most of southern and central Australia in 2006 have had a large negative impact on agricultural production and farm incomes in these areas. Significant rains in May 2007 heralded the end of the drought and the beginning of recovery.
Grain production in the 2006/07 season is estimated to be down about 60 percent. This has meant a drop in average farm cash incomes of 65 percent for Australian grain farmers.
Lamb and beef producers have de-stocked adult sheep and cattle by an estimated 3 percent. The effect of the drought has varied regionally. Farmers in less affected areas have been able to increase stock numbers, taking advantage of lower prices. Average lamb and beef producer cash farm incomes were down by more than 50 percent on the previous year.
Dairy producers’ incomes are down 80 percent on the previous year, but they have purchased additional feed supplies to maintain herds as much as possible.
Australian farmers, on average, were in a strong financial position before the drought, so will be able to fund their recovery in coming months and years. Grain growers can resume production quickly. Lamb producers will need until at least 2008/09 to rebuild production. Beef and dairy producers will need more time to recover, because of the longer breeding cycle of cattle.
Australian drought, reported seasonal conditions, January 2007
Source Australian Bureau of Agricultural and Resource Economics.
Contact for Enquiries
Manager
Monitoring and Evaluation
MAF Policy
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0623
Fax: +64 4 894 0741
Contact this person
