A MONSTER grain export program has spearheaded a new record in Australian agricultural exports.
Rural Bank this week issued a report finding ag exports for 2021-22 reached $67.5 billion, up $18.2 billion or 37 per cent on the previous year and smashing the previous record.
A red-hot grains industry, where record production combined with decile 10 prices and intense demand from major grain importers to meet shortfalls created by the conflict in Ukraine was the major talking point.
Export earnings from grain hit $23.9 billion, up a staggering $10 billion, or 82pc year on year, with commodities such as canola and lentils trading at record prices on the back of strong demand from Europe for canola and the subcontinent for lentils.
The overall figure for grains exports near doubled the next biggest earner, beef, at $12.4 billion.
Rural Bank general manager of sales, partnerships and marketing Simon Dundon said a rare combination of bullish factors had helped the sector.
"We had a lower Australian dollar and an unusual set of beneficial factors such as increased production and higher commodity prices and the supply chain managed to get as much product out as it could across the entire agriculture sector, it has meant there are some seriously big numbers in terms of exports," Mr Dundon said.
Smaller commodities that recorded big jumps in percentage terms included cotton, the star performer by percentages, up a staggering 250pc off the drought impacted 2020-21 season to $2.2 billion, with volumes rising by 202pc.
Wool also kicked strongly, with exports worth $3.3 billion.
On the other hand, wine, heavily hit by China's import tariffs, dropped 16pc to $2.2 billion as the US overtook China as our most important wine buyer, while fruit also fell 1pc to $1.3 billion, the only two commodities monitored that recorded a fall.
State by state Victoria lived up to its Garden State nickname, topping the export list with $17.4 billion, followed by NSW, $12.7 billion and WA, $12.1 billion.
Mr Dundon cautioned against the industry thinking this sort of result would become a new benchmark, but said things were set up well again this year.
"We're in the middle of another pretty good season once again, and grains in particular is set up for further good production, but longer term it becomes difficult to make forecasts primarily because of our volatile climate but also because other factors can change," he said.
"You only need to look at what happened in Ukraine and the influence that had on ag markets, now the obvious example of something turning things on its head would be a serious biosecurity incursion, so you just can't say this is now the status quo."
Mr Dundon said it was encouraging to see the wide range of markets buying Australian agriculture products.
"We've seen a real diversification, the free trade agreements are really coming into play, while we've seen other markets, such as Saudi Arabia for barley, coming back into play."
"There is still a very strong focus on eastern and south-eastern Asia, but we are seeing increased diversification across a range of commodities."
"A great indicator of Australia's export strength was the breadth of markets which rose in value over 2021-22, building upon the diversification seen the previous year".
And he reported a pleasing trend with our largest agricultural partner, China.
"We have seen a strong recovery in exports to China following a large decline in 2020-21 when there were issues with trade restrictions on some commodities."
China was the largest growth market in 2021-22 and retained its place as Australia's most valuable market for the 12th year in a row, followed by Japan, which recorded growth of 38.1pc and the United States, up 30pc.
Mr Dundon said the US was a growing opportunity for exporters of high value product.
"The American market continues to develop a taste for clean, green, premium produce, with the US toppling China as our number one market for exports of both Australian lamb and wine."
"In fact, diversification of export markets remained quite a theme for Australian agricultural exports in 2021-22 with strong growth seen in a wide range of markets and 28 countries recording growth of more than $100 million - up from 16 markets in 2020/21".
He said proposed FTAs with India and the United Kingdom could signal further growth for agricultural exports.
"The signing of trade agreements with the UK and India will also expand opportunities to grow exports when in effect while progress toward a trade agreement with the EU has resumed and if signed in 2023 will provide further growth opportunities."