Queensland beef producers are driving a lift in the state’s rural confidence seen in the most recent quarter, the latest Rabobank Rural Confidence Survey found.
A combination of favourable seasonal conditions in key beef-producing regions, strong global beef markets, and robust local prices are the chief reasons for optimism among Queensland cattle producers.
Completed last month, the survey found an overall lift in confidence levels among Queensland primary producers – with sentiment improving from the previous quarter, rising to a net reading of 10 per cent (previously -2 per cent).
This increase in confidence is driven by 31 per cent of the state’s producers expecting agricultural economic conditions to improve over the next 12 months (up from 24 per cent with that view previously), with 21 per cent expecting conditions to worsen (down from 26 per cent). Just under half of producers surveyed (47 per cent) predict business conditions will stay the same, unchanged from the previous quarter.
By region, the latest survey found most parts of the state had improved rural confidence, with south-west-based producers reporting the strongest sentiment – jumping up to a net reading of 51 per cent (from 19 per cent last quarter) and none surveyed in the region expecting worsening economic conditions (previously 19 per cent).
However, sentiment among Darling Downs-based producers declined to a net reading of -21 per cent (previously -3 per cent), with only 15 per cent expecting improved economic conditions in the coming 12 months (was 20 per cent last survey), leaving the region with the lowest rural confidence levels in the state.
By commodity, confidence was shown to have increased in most agricultural sectors in the state, with beef producer sentiment the strongest – at net 21 per cent (from 14 per cent previously), and 38 per cent of those surveyed in the beef sector anticipating improved business conditions in the coming year (up from 31 per cent).
Queensland grain producers, however, have lost confidence this quarter, with net sentiment in the sector down to -39 per cent (from -21 per cent). Even though more grain producers are expecting an improved year ahead compared with last quarter (20 per cent, up from seven per cent), 59 per cent now predict worsening conditions.
Overall, of those Queensland producers surveyed, over half (56 per cent) cited good seasonal conditions as a cause for optimism in the year ahead (previously 39 per cent had that view). And 34 per cent of the state’s producers are foreseeing improved overseas markets/economies having a positive impact on their agricultural businesses (previously 15 per cent). Producers optimistic about rising commodity prices remained stable at 36 per cent.
On the other hand, government intervention/policies were key concerns, cited by 42 per cent of Queensland producers surveyed this quarter (up from 37 per cent previously). Rising input costs and overseas markets/economies were also both nominated by 36 per cent (from 44 per cent and 23 per cent respectively in the previous survey). Concern about drought almost doubled to 30 per cent (was 16 per cent).
