Follow on Google News News By Tag Industry News News By Place Country(s) Industry News
Follow on Google News | Recently released market study: Australia Agribusiness Report Q1 2011Fast Market Research recommends "Australia Agribusiness Report Q1 2011" from Business Monitor International, now available
Key Forecasts * Wheat production growth to 2014/15: 24.8%. Wheat consumption growth to 2015: 7.1%. Australia's signature export good will show strong production increases owing to increased deregulation in the sector and enhanced export opportunities, particularly to the Middle East. * A surge in rice-consuming Asian immigrants combined with increased interest in foreign foods should see rice gain in popularity. Assuming the rate of growth of immigrants, rice consumption growth to 2014/15: 18.3%. * Sugar Production growth to 2014/15: 11.83%. We expect growth on the back of yield improvement and increased consolidation in the sector to improve efficiency and economies of scale. * Milk production growth to 2015: 18.7% and consumption growth to 2015: 7.9%. Consumption growth will be driven mainly by population growth, since at close to 110kg per year, Australia already has one of the highest global per capita milk consumption rates. * 2011f Real GDP Growth: 1.6% (down from 2.8% in 2010e; predicted to average 2.5% from 2010 to 2015). * 2011f Real Lending Rate (% eop): 6.5%. Up from 6.3% eop in 2010. Industry Developments The Draft Murray Darling Basin Plan could potentially impact Australian Agriculture significantly given that the region sustains the largest agricultural region and houses more than half of the nation's farms. Estimates are that diversions listed in the plan would cause the value of irrigated cotton to fall by 25% in the region. A similar drop of 30% for rice and cereals is also expected. The plan is aimed to be apporved and enacted by mid-2012. Canadian fertiliser giant Agrium's offered to buy the Australian Wheat Board (AWB) straight up for US$1.1bn in an all cash deal on August 18 was finally approved on October 3 2010. For the recently privatised AWB, the move would help fulfill a goal of joining forces with a global player after its monopoly over Australian wheat exports was recently revoked in 2008. This could also benefit the sector as a whole by increasing efficiency and lowering costs. On July 6, Indonesian Wilmar International, the world's largest palm oil producer, agreed to buy Sucrogen, a major Australian sugar producer for US$1.75bn, in a bid to pursue growth strategies in Asian markets which synergise its operations. The postponement of the Ethanol Mandate (E5) to 2011 from end-2010 might pose downside risks to the country's sugar output in the short run. Over the longer term, however, BMI believes that this could be a step in the right direction to galvanise the once-large industry into being more efficient as producers strive to increase output to meet ethanol demands (to supply 5% of fuel consumed from sugar and sorghumbased ethanol). Politics-wise, we note the larger role that rural independents could play in the government going forward. Given the slim majority that the incumbent Australian Labor Party currently hold over the Liberal- National coalition. Consequently, rural independents could potentially hold more sway to votes, especially those pertaining to agriculture. Indeed, usually being more pro-farmer, we expect these politicians to lobby for more protectionist policies to be passed in the next few years. This will be intended to boost purchases of domestically produced agricultural products which have been facing stiff competition from cheaper imports. For more information or to purchase this report, go to: - http://www.fastmr.com/ About Business Monitor International Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at http://www.fastmr.com/ About Fast Market Research Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156. # # # Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available. End
Account Email Address Account Phone Number Disclaimer Report Abuse
|
|