Wheat exports soared 48% in FY 2023

A record year of crop production, bolstered by the rise in grain prices following the invasion of Ukraine, has pushed Australian agricultural exports to a record high last financial year.

The value of exports rose by 17% to $80.4 billion with wheat the standout, rising 48% in terms of value, according to the latest figures released by Department of Agriculture, Fisheries and Forestry (DAFF). 

There was strong growth for beef and barley, while lentils and uncarded cotton surged 58% and 120% respectively. 

The beef industry accounted for 13.3% of total exports at $10.7b, a rise of 8% on the previous financial year. The war in Ukraine had an unexpected impact on the beef industry — exports of non-edible tallow crossed $1b for the first time as high global oil prices prompted biofuel makers to source new inputs. According to DAFF, ‘fat from red meat’ was 55% higher in terms of prices in 2022-3 than the previous three years. 

Per cent increase in export prices of key commodities

It was a less rosy picture for the sheep and goat meat sector, with the value of exports falling 2% to $4.7b. A bright spot for the sector, which accounted for 5.8% of total exports, was the impact of the free trade agreement with South Korea. 

Following the phaseout of tariffs from January 1, 2023, exports of sheep and goat meat increased 54% by volume, and 49% by value compared to the previous year. 

Source: ABARES

Cropping benefits from weather effects, global events 

In 2022, thanks to the favourable La Niña, Australia became the second largest exporter of wheat, overtaking Canada and the US, to sit behind the EU’s output. This followed drought in the US, the EU, and Canada that cut production in those regions. Those unfavourable conditions are expected to continue into 2023-4, according to the US department of agriculture, and Russia’s exit from the Black Sea Grain Initiative in July is expected to put further upward pressure on grain prices. 

Drought in the US and flooding in Pakistan severely curtailed the cotton market, leading to a 31% in cotton prices, pushing the export value of uncarded cotton to $4.9b. 

Value of Australia’s ag exports by destination, 2018–19 to 2022–23

India powers into export destination following trade agreement 

The Australia-India free trade deal came into effect in December 2022 and the value was immediately felt. 

Exports leapt 102% year-on-year in just six months with cotton exports tripling, and sheepmeat exports leaping 30% to pass $1 million for the first time. 

But it was the lentil industry that really reaped the benefit, with exports to India rising by 220%. That meant lentils entered Australia’s top 10 agricultural exports for the first time to make up 1.8% of total agricultural exports by value after rising 52% year-on-year. 

Despite the surge in exports to India, China remains Australia’s most important export market, worth $17b in 2022-3. While China has recovered as an importer following Covid-19 lockdowns,  ASEAN countries have also significantly risen as importers of Australian goods, with Indonesia also contributing to the strong growth seen in India and South Korea.