Despite the impact of the severe weather conditions, Australia has positive prospects for agricultural production and exports, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

“While individual farmers have suffered as a result of the floods, overall the national outlook for agricultural production and exports looks positive,” Chief Commodity Analyst Dr Jammie Penm said.

“Loss of agricultural production and exports due to the recent adverse climatic conditions is estimated to have been $2.3 billion in 2010-11, with significant impacts on production of cereals, sugar, fruit and vegetables, cotton and grain sorghum. Excessive rainfall in late November and through mid-December caused considerable disruption to the winter grain harvest and a significant downgrading of crop quality.

“Continued rainfall and flooding in late December and through January caused further significant damage to agriculture in most of the eastern states, as well as in the Gascoyne region of Western Australia.”

ABARES will today discuss its assessment to date of the $2.3 billion impact of the recent floods on Australia’s agricultural production and exports.

The analysis will be released at Outlook, which is the agricultural sector’s key annual conference and is attended by the business leaders, policy makers and producers. The conference is being held at the National Convention Centre in Canberra, 1-2 March.

Mr Penm said Outlook 2011 will examine how the recent, extraordinary weather affected production, as part of a session beginning at 2pm today called Of drought and flooding rains — rebuilding agriculture.

“Outlook 2011 will also look at how Cyclone Yasi caused significant damage to banana and sugar production in Far North Queensland, which accounts for around 90 per cent of Australia’s banana production. There has already been a significant increase in banana prices on supermarket shelves.”

ABARES estimates that around $225 million of fruit and vegetables have been lost in Queensland as a result of the flooding. There has also been damage to production of fruit and vegetables in the flood-affected areas in New South Wales, Victoria and Tasmania, while livestock losses have been small in relation to the national herd and flock.

The Of drought and flooding rains — rebuilding agriculture session will be chaired by Tom Aldred from the Department of Agriculture, Fisheries and Forestry and features presentations by Dr Penm, the Bureau of Meteorology’s Greg Ayers and Wes and LeAnne Judd, dairy producers from Queensland, who will talk about their experiences in the Queensland floods.

ABARES provides independent, world-class research, analysis and advice to inform decision-makers on policy challenges affecting Australia’s primary industries.