Australian Agriculture Outlook: Here are the key highlights of Rural Bank’s latest report

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In its latest forecasts, Australia’s Rural Bank painted a positive picture for the rural sector in the first half of 2021 amid ongoing trade tensions with China and global economic uncertainty due to COVID-19.

The bank’s Australian Agriculture Outlook predicted cattle prices would ease for the first six months of 2021 and recovery will be witnessed in the wool market.

Looking into its crystal ball for the first six months of next year, the report said milk production would continue to climb led by Tasmania and Victoria with national output to top around 9 billion litres for the first time in a period of three years.

Although Australian milk processors are not likely to offer better prices, producers’ costs as well as profit margins would benefit from low feed bills.