Mid-Year Agriculture Outlook

Bendigo Bank's Australian Agriculture Outlook Mid-Year 2025 report provides an in-depth perspective on supply, demand, and price outlooks for Australia's major agricultural commodities. By analysing historical trends and considering future scenarios, the Outlook presents a detailed view of what lies ahead for Australian farmers, helping them make informed business decisions.

Two major themes are driving a varied outlook across the agricultural sector over the next six months. These themes include varied and challenging seasonal conditions, as well as a volatile geopolitical environment that has undergone significant changes over the past six months.

As we move into the second half of 2025, Australia's seasonal situation reflects a period of sharp climatic contrasts, marked by extreme weather events that have both supported and hindered production. Widespread and above-average rainfall in parts of New South Wales and Queensland during the summer and autumn periods significantly improved soil moisture and summer crop yields while also providing a solid foundation for winter sowing. Conversely, the flooding associated with this rainfall has had devastating impacts on livestock numbers and farm infrastructure. Parallel to this, large portions of southeastern

Australia and Western Australia have been grappling with drought, elevated feed costs, reduced production and poor crop and pasture outlooks.

The season so far highlights the increasing unpredictability of Australia's agricultural climate, requiring producers and the broader supply chain to demonstrate resilience and adaptability across the sector. Looking ahead at the Bureau of Meteorology's three-month rainfall outlook, Queensland, New South Wales and South Australia are generally forecast to have a greater than 50 per cent chance of exceeding median rainfall. In contrast, Victoria, Tasmania and Western Australia have a more neutral to slightly higher chance of drier outlooks. The development of the season will be a significant factor in determining the industry's performance in the second half of the year, with several regions aiming to recover from drought conditions and the resulting shortages of feed and water for livestock.

Full report below.

2025-mid-year-outlook.pdf

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