Farmers meeting challenge

CAREFUL management has helped Tasmanian farmers weather challenging seasonal and economic conditions according to the latest Agribusiness Insights Report .

The fourth annual report has been released, providing valuable updates across Tasmania’s agricultural sector.

Primary Industries and Water Minister Jane Howlett said the report featured a snapshot of industry performance, emerging opportunities and trends over the last year.

“While the Agribusiness Insights Report notes the challenging drought conditions faced primarily by the red meat sector, other sectors, such as fruit and wine, have managed the past season relatively well with the availability of irrigation water supporting the yield results,” Ms Howlett said.

Tasmania’s dairy sector was one of the standout performers with an increase in production for the reporting period of 3.2 per cent.

“Investment in infrastructure, including irrigation, has helped underpin the strength of the state’s dairy sector despite the challenging seasonal conditions,” Ms Howlett said. 

The report says Tasmanian slaughter numbers were above average from January-to-June. It says higher turnoff and continuing drought conditions resulted in incomes for livestock farms in Tasmania and other parts of southern Australia being subdued for beef cattle, sheep, wool and lambs.

King Island producers in particular were further impacted by logistical and shipping contraints.

Dry and cooling seasonal conditions slowed winter pasture growth.

Sourcing feed such as grains, pellets and almond hulls and fodder including hay and silage added complexity to operations and increased cost pressures.

Although producers across other parts of the country were more positive due to an increase in prices, the report says recent surveys undertaken by industry report that 28 per cent of Tasmanian red meat producers intended to reduce cattle numbers.

Heading into 2024-2025, sheep, beef and dairy-beef producers will be considering their market opportunities carefully and making cautious decisions regarding stocking rates until seasonal conditions normalise.

The report says although domestic and export prices were predicted to increase in 2024-25 due to local demand from restockers, the risk of a dry spring and summer meant that there remained a possibility of the higher-than-normal turnoff rates in Tasmania continuing. 

In contrast, the report said Tasmania’s fruit, vegetable and field crops sectors generally produced good yields.

Through access to irrigation and an extended irrigation season, potato growers across the state were able to finish their crops and then enjoyed ideal harvest conditions which saw crops dug in record time.

The report says although the dry season impacted onion yields, the quality remained high. 

Reduced European onion production and restricted exports from India and Egypt are expected to ensure elevated export demand for Tasmanian onions for the second season in a row, with the current year-to-date tracking 50 per cent above same time last year.

The domestic market is expected to remain stable, thus prices should remain in line with long-term averages, unlike last year’s inflated prices due to supply issues.