- Agricultural exports are expected to hit a new high of $64.9 billion in 2022–23.
- As beef export prices decline, the value of animal exports is expected to dip slightly to $25.1 billion.
- Food prices in Australia are unlikely to fall in the next 12 months.
According to the national commodities forecaster ABARES, grain growers are likely to enjoy another record-breaking year for Australian farm exports as exports are expected to hit a new high of $64.9 billion in 2022–23.
The crop exports are expected to reach new highs of $39.8 billion, representing the greatest percentage (61%) of crops to agricultural exports record. As beef export prices decline, the value of animal exports is expected to dip slightly to $25.1 billion. The overall value of all farm produce will top $80 billion for only the second time.
Furthermore, the Russian invasion of Ukraine has put even more strain on food markets, which were already strained due to a string of bad seasons for major producers. Energy prices are another underlying driver of food inflation, which has resulted in higher fertiliser prices.
According to ABARES, food prices in Australia will not fall in the next 12 months. On this note, let's look at the performance of a few ASX-listed food stocks. These include Elders Limited, Costa Group Holdings Limited and Select Harvest Limited.
Image Source: © 2022 Kalkine Media ®
Data Source- ASX website dated 07 June 2022
Elders Limited (ASX:ELD)
Australian agribusiness company Elders Limited works under three segments - Branch Network, Wholesale Products and Feed and Processing Services.
In its financial results for the half-year ended on 31 March 2022, Elders reported a 38% growth in revenue to AU$1,514.8 million.
Expansion across all product lines and geographies, according to the corporation, has fuelled growth. The Rural Products segment, on the other hand, was the star of the show, with revenues up 47% to AU$312.9 million. Due to favourable seasonal conditions, fertiliser and crop protection commodities are in high demand in important farming regions.
Elders' shares closed at AU$13.11 each on ASX today (07 June 2022), down 1.79%. However, the company's shares have recorded a growth of almost 7% YTD.
Source: © Artiso | Megapixl.com
Costa Group Holdings Ltd (ASX:CGC)
Costa Group Holdings Limited is a company that grows, packs, and sells fruits and vegetables to supermarkets. The company provides mushrooms, citrus, avocados, raspberries, strawberries, blackberries, tomatoes, bananas, grapes, and other fruits.
It also offers wholesale and marketing services and chilled logistics warehousing and services. The company also operates in blueberry variety licencing in Australia, the Americas, China, Africa, and globally, and berry growing in Morocco and China.
Costa Group Holdings' shares last exchanged hands at AU$3.13 each, down 1.26% on ASX today. The shares have grown a little over 3% on YTD basis.
Image source: © Lovelyday12 | Megapixl.com
Select Harvests Ltd (ASX:SHV)
Select Harvests Limited is a producer, manufacturer, processor, and marketer of nut products situated in Australia. The company is a grower and marketer of almonds, having expertise in horticulture, orchard management, net processing, sales and marketing.