ABA Agribusiness Report 2022 : Key Stats

From the ABA Agribusiness Report 2022

In the 12 months to February 2022, ABA member banks lent an average of $4.2 billion to agribusinesses across the country every month, a 29% increase in the average of $3.2 billion lent per month the previous year.

On top of that, average monthly lending to small agribusinesses grew 7% to $280 million from $261 million in the 12 months to February 2022, compared with the 12 months to February 2021.

Agriculture and the recovery

• Lending to agricultural businesses reached a record high of $93 billion credit outstanding in 2021, a growth of $8.4 billion from $84.6 billion in August 2020.
• The value of farm production is forecast to reach a record $78 billion in 2021-2022.
• Winter crop production 21/22 is forecast to reach the 3^rd highest on record.

Growth in Australian Agribusiness

• The total value of agricultural, fisheries and forestry export has risen from $16 billion in 1988-89 to a forecast $61 billion in 2021-22.
• All crops have risen from 35% of total value in 1988-89 to 54% of total value in 2021-22 (440% growth)
• All livestock has risen from 15% of total value in 1988-89 to 26% of total value in 2021-22 (529% growth).
• All wool has fallen from 38% of total value in 1988-89 to 6% of total value in 2021-22 (44% drop)

The Impact of COVID-19 on Agribusiness

• Despite growth in Agribusiness, COVID-19 and its associated economic impacts contributed to a decline in some agricultural exports.
• Agricultural exports fell $399 million, (0.8 per cent) in 2020/21 to $49.6 billion, the lowest level since 2015/16.
• Weaker demand was a key theme across many commodities in 2020/21, softened by the economic downturn and restrictions on dining in foodservice outlets. This was evident in lower average export prices for red meat, wine, wool, seafood and horticultural products.

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