Tasmania and the Northern Territory have reported positive agribusiness performance while South Australia and Western Australia have performed the worst in the first Westpac and Charles Sturt University (CSU) Agribusiness Index.

 

For the first time, the health of Australia’s agribusinesses in each region and State has been measured and reported. The results of the December Quarter of 2006 were released today.

 

CSU’s Western Research Institute (WRI) will carry out the quarterly surveys for Westpac. WRI CEO Mr Tom Murphy said the Index will provide invaluable information for industry and government.

 

“The Index tells us how particular regions are performing. It gives the financial institutions an insight into where and what type of finance is required to assist farmers and agribusinesses, both as opportunities arise and as recovery comes about.”

 

The Index will give governments information on which areas are in most need of assistance, or where and how their policies are impacting on particular regions. It will also indicate to farmers how they are performing comparatively, both within their own region, and across Australia.

 

Mr Murphy said one of the most interesting facts to emerge out of this survey is that 70 per cent of agribusinesses feel very confident about the next 12 months, despite the drought.

 

The Index shows that agribusinesses across Australia reported mixed business performance in the December Quarter, with the majority experiencing negative performance. However, Tasmania and the Northern Territory (NT) went against the trend, while Victoria had very varied performance.

 

“In addition to the drought Victoria had frosts which damaged some of their horticulture. So, overall it is in the negative range, but it also has positive sections in the east and south east,” said Mr Murphy.

 

“NSW is negative overall. Positive results were recorded for the Richmond-Tweed, Hunter and Murrumbidgee regions. Overall results were lifted by the upstream and downstream businesses such as abattoirs and food processors.

 

“NSW producers are generally confident about the next twelve months.”

 

Queensland and NT performed well because of recent good rainfall, while Tasmania ranked second overall. Western Australia (WA) and South Australia (SA) are both suffering due to drought. In WA, the booming mining industry has had two effects: “Agribusinesses are losing workforce on one hand, but are benefiting from increased demand for their products due to the mining boom.”

 

All regions of SA experienced negative to poor performance, but anticipate improved performance in the March Quarter.

 

“Australia’s agribusinesses look far more positive for March Quarter, with improved seasonal conditions set to drive four States from negative to positive performance,” Mr Murphy said.