OPTIMISM was flowing from acting Prime Minister Barnaby Joyce, as he delivered his stump speech for Australian agriculture to the national commodity forecaster’s Outlook 2017 conference.
“Economic nobility of agriculture sector was highlighted when Australia’s national account figures were released (last week),” the Agriculture and Water Minister said.
“There is something noble about a person who gains their wealth by feeding and clothing people, as opposed to exploiting them,” he told the annual gathering for the Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES) projections.
Highlighting the rosy forecast for a wealth of commodity groups, Mr Joyce waxed lyrical about the “smart wealth” that is flowing from international investors into Australian agriculture and highlighted growth opportunities in the rapidly developing Indian and Chinese export markets.
ABARES forecasts a upbeat outlook for producers of wool, dairy, sugar, wine, sheepmeat, barley and canola,
Investors have enjoyed average returns of about 4.5 per cent in the past year, which is “markedly better than terms deposits, or land value growth,” Mr Joyce said.
And potential growth is almost exponential, he said. “Australia feeds about 60 million people, but that will have to grow to meet population growth.
“We also have the growing affluence of Asia… but our national goal is to provide not bulk products, but quality.”
“Australian farming is booming” and banks have reported a record amount of of farm debt paid off. “Even dairy prices are stepping back up.”
Mr Joyce left the crowd with a “bold prediction” of future market movements.
“We will have a fats deficit and we will be searching for dairy products,” he said.
Turning to more homely matters, Mr Joyce recalled his time as a bush bean counter and reflected on his observations of primary producers.
“As an accountant in the rural sector it was fascinating to see who became extremely wealthy, those who went broke and the others in the middle that paid their way but never seemed to learn.
“The people who went broke focused on peripheral issues like purchasing polocrosse ponies and accoutrements that couldn’t be supported by their business. They always had a litany of excuses and hard luck stories.
“Those who got ahead were ruthless zealots” about their business with “crystal clear” plans and “only purchased on facts and forensic evidence”, he said.
“This symposium is for that latter group.”
