In the 2025–2026 fiscal year, Australia’s agriculture sector—which includes farming, fishing, and forestry—is expected to perform at a level never seen before. The aggregate gross value of production is expected to break records and surpass $100 billion for the first time, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).
Values of Record Production
In 2025–2026, agriculture alone (farm productivity) is expected to reach a record-breaking $99.5 billion.
The entire value increases to almost $106.4 billion when the forestry and fisheries sectors are taken into account.
This outstanding expansion is a result of strong prices, robust production, and consistent demand for Australian commodities around the world. The combined sectors’ export values are expected to reach an all-time high of almost $83.9 billion, highlighting their competitiveness on a worldwide scale.
Sector Drivers
This performance is being fueled by several important dynamics:
- Strong livestock markets: High prices for dairy, cattle, and sheep have greatly increased production values, particularly in the category of livestock and animal products.
- Seasonal crop yields: Winter crop output in 2025–2026 is among the second-largest on record at roughly 66.3 million tons, while some crop estimates vary depending on the climate.
- Export demand: Strong trade performance is nevertheless supported by persistent global demand, particularly for luxury animal goods and cereals.
When taken as a whole, these factors show a sector that is adaptable and robust to both internal climate concerns and changing global markets.
What Does This Signify for the Economy of Australia?
Even while agriculture’s contribution to the country’s GDP is still quite small, roughly 2.4% in recent years, its impact goes well beyond this amount. Rural jobs, regional economies, export revenue, and downstream sectors like food processing, logistics, and retail are all supported by agriculture.
The 2025 estimates are important for the following reasons:
- GDP contribution: Agriculture contributes significantly to stabilising overall economic growth, particularly in the face of global uncertainties, with a predicted production close to $100 billion.
- Exports and trade balance: Australia’s trade balance and foreign exchange earnings are supported by the anticipated export value of around $84 billion, particularly as commodity markets remain strong.
- Regional prosperity: Strong agricultural performance translates into direct and indirect employment across rural Australia, supporting local business activity, services and infrastructure.
The Road to $100 Billion (and Beyond)
Under the government’s Ag2030 program, Australia’s agriculture sector has long aimed to become a $100 billion industry by 2030. The goals of this project are to increase productivity, increase access to export markets, and enhance sustainability in forestry, fisheries, and farming.
Important elements of this strategy consist of:
- Productivity improvements: Using innovation, precision farming, and new technologies to increase yields and cut expenses.
- Resilience and sustainability: Developing climate-smart methods to control environmental hazards and drought while preserving long-term productivity.
- Global market integration: Increasing trade and lowering obstacles to maintain Australian produce’s competitiveness in the global market.
These strategic pillars are intended to support the industry’s sustained expansion well beyond 2025–2026 and help it reach and beyond the $100 billion output benchmark in this decade.
Present challenges and future outlook
Despite the positive outlook, the industry continues to encounter difficulties:
- Climate variability: In certain areas, output is still hampered by droughts, floods, and erratic seasonal circumstances.
- Productivity pressures: Continued investment in labour capabilities and technology is necessary to maintain greater growth rates.
- Global competition: Export success may be impacted by changes in global commodity prices and trade conditions.
Despite these obstacles, Australia’s agriculture sector is still a vital component of the country’s economic resiliency and is expected to make a significant economic contribution.
Conclusion
In addition to getting close to a historic $100 billion value in 2025–2026, Australian agriculture is solidifying its position as the country’s main economic engine. The sector’s growth narrative is substantial and important for Australia’s overall economic environment, supported by favorable market circumstances, robust global demand, technical innovation, and strategic policy frameworks.
Agriculture in 2025 is both a reflection of past resiliency and a basis for future prosperity, with projected data indicating record highs in production and exports.
To obtain more information on this topic, please visit KG2 Australia.
Recent Comments