Australia’s Agriculture Forecast to Hit Record $100B Year
Industry Insights from Next Move Strategy Consulting
Australia’s agriculture, fisheries, and forestry sector is poised to achieve an unprecedented milestone, with production values projected to surpass $100 billion in the 2025-26 financial year. Fueled by robust global demand for livestock and innovative industry-government collaboration, this record forecast underscores the resilience and strength of Australian producers in a dynamic global market.
Livestock Drives Unprecedented Growth
The Australian Bureau of Agricultural Resource and Economics and Sciences (ABARES) released its commodities report for the September 2025 quarter, highlighting a significant surge in livestock and livestock product values.
High prices for beef, lamb, and milk have propelled livestock production to an estimated $41.6 billion, a key driver behind the sector’s overall forecast of $94.7 billion—a record in itself. This growth is expected to push the total agriculture, fisheries, and forestry production value beyond $100 billion in 2025-26.
“We’ve seen high prices lately for both livestock and animal products, like beef, lamb, and milk,” said Jared Greenville, ABARES Executive Director. “This has boosted the value of livestock production to $41.6 billion, helping to drive overall agriculture sector production value to a forecasted $94.7 billion, which would also be a record.”
Key Highlights of the Forecast:
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Livestock Surge: Livestock and livestock product values are projected to rise by $1.1 billion in 2025-26, with lamb and sheep slaughter up by $500 million, milk by $400 million, and cattle by $200 million.
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Pigs, Poultry, and Eggs: These sectors have risen by $200 million, as increased domestic production volumes offset slightly lower poultry meat prices.
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Crop Production Outlook: Despite a small rise in output volume, crop production value is expected to decline due to lower domestic prices, though it remains the third highest on record.
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Seasonal Support: Favorable winter conditions and a positive spring outlook are expected to support strong production volumes, despite challenges in southern NSW, South Australia, and Victoria due to low soil moisture and a slow start to the winter cropping season.
Challenges Amid Growth
While livestock success fuels optimism, the report notes challenges for crop production. Lower domestic prices are expected to offset a modest increase in output, particularly in South Australia and Victoria, where rainfall in July has not fully alleviated concerns. Southern New South Wales also faces hurdles due to a delayed winter cropping season and suboptimal soil moisture levels. However, favorable seasonal conditions in winter and a promising spring outlook provide hope for robust crop yields.
A Collaborative Triumph
Agriculture, Fisheries, and Forestry Minister Julie Collins emphasized the role of industry-government partnerships in achieving this milestone. “The continued growth in our agriculture, fisheries, and forestry sector is good for our farmers, it’s good for our regional economies, and it’s good for our trade relationships,” Ms. Collins said. “This record forecast is not only a result of increased demand for our world-class products, but what you can achieve when government works with industry to deliver for them.”
A Global Powerhouse
Australia’s agricultural sector continues to solidify its position as a global leader, with livestock products like beef, lamb, and milk meeting robust international demand. The projected $685 million rise in gross agricultural production this financial year highlights the sector’s adaptability and economic significance. As challenges like variable rainfall and market fluctuations persist, the industry’s ability to innovate and collaborate ensures a strong outlook.
Looking Ahead
With livestock leading the charge and government backing industry efforts, Australia’s agriculture, fisheries, and forestry sector is on track to set a new benchmark in 2025-26. This record forecast not only celebrates the hard work of farmers and producers but also reinforces Australia’s role as a vital contributor to global food and fiber markets.
Prepared by: Next Move Strategy Consulting
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