Optimistic Outlook for Agricultural Sector

The Dalby region’s agricultural and agribusiness sectors can look forward to a bright 2006, with leading rural financier Rabobank forecasting an optimistic outlook for the year ahead.
 
Dalby-based southern Queensland regional manager Justin Harrison said the bank’s latest data indicated a positive outlook despite a softening in some commodity prices and a surge in farm input prices.

“This is due to the fact that, as we enter 2006, global economic growth remains firm, oil prices appear to be approaching their peak and the seasonal outlook appears better than at any time in the past four years.”

In terms of the region’s predominant agricultural sectors, he says that following a very positive 2005, the beef sector could soon be facing a number of challenges due to increased competition in key markets and the recovery of US beef production.

When it comes to grains, Rabobank predicts an upside in the outlook for 2006 as demand and supply of feed grain also becomes influenced by the growth in the ethanol and biodiesel manufacturing capacities of countries like the US and EU.

In the cotton industry, the adoption of new technologies was helping to minimise the impact of low world prices and the over-production of lower quality fibre .

He says, “Given a reasonable season, this should ensure the industry remains profitable into the future.”

This is good news for Rabobank’s local branch. Dalby branch manager Michael Webber says the bank has experienced impressive growth across the state, with the Dalby office at the forefront of this expansion.

The branch opened in October 2003 with no accounts on its books. Dalby now employs seven staff who manage a significant portfolio of primary producers.

It’s a transition that Michael considers ‘a great accomplishment’.

“Our growth reflects the enduring strength of the Darling Downs rural sector."