In NSW, 2021-22 was the second consecutive record-breaking year for primary industries’ gross value of production (GVP), reaching an estimated $23.1 billion, an increase of 23% year-on-year. This exceptional result was driven by numerous factors including near-record cropping production and a continued rebuilding of flock and herd numbers, both of which were underpinned by successive seasons of favourable growing conditions and strong commodity prices.

Cropping industries flourished due to strong seasonal conditions, and despite some crop losses and quality downgrades due to harvest rainfall and water inundation, winter crop production maintained near record levels, closely followed by a peak summer cropping program. Combined with firm grain and oilseed prices, this underpinned a second consecutive record sector GVP estimated at $11.9 billion. Livestock industries continued the task of rebuilding critical herd and flock numbers, boosting farm turnoff and production. Ongoing strong global demand for protein and high-quality Australian wool and dairy products, supported higher farm gate prices and drove a 13% increase in livestock and livestock products GVP to $7.9 billion, which was also the highest on record.

Solid international demand from most of our key export partners, including encouraging demand growth in many new and emerging markets, a large exportable surplus, and a favourable exchange rate, helped elevate NSW primary industries exports to a new record high of $10.9 billion. This increase in value was significant, particularly in-light of the record export values achieved in the previous year.

Despite the record result, the year didn’t progress without some challenges, including;

• global trade instability as a result of ongoing COVID-19 impacts on industry supply chains, labour, and consumer demand; geopolitical concerns and pressures, including the war between Russia and the Ukraine; and ongoing trade tensions with China with trade restrictions continuing to hamper some Australian primary industries exports;
• extreme flooding events across the NSW coastal areas and some inland regions during February and March 2022, which further compounded the production challenges faced by a number of industries, including fisheries, horticulture, and dairy among others, some of which had also been impacted twelve months earlier;
• the availability and inflation of key farm inputs such as fuel, energy, fertiliser, and freight, negatively affecting farmers cost of production and eroding some of the benefits of the high commodity prices;
• outbreaks of non-endemic disease and pests including Japanese encephalitis and varroa mite, and the ongoing threat of Foot and Mouth and Lumpy Skin Disease, which have the potential to endanger production and Australia’s global trade access and reputation.

• Sustainable Resources and Productive Landscapes – Natural resources are managed to improve the environmental value and productive performance, for present and future generations.
• Biosecure Industries and Environment – Primary industries, the environment, and the community, are protected from the increasing threat and impact of pests, weeds, disease and other biological incursions.
• Economic Growth - Primary Industries benefit the wider community through food as medicine, zero waste, food and fibre supply chain security, while underpinning growth and resilience in regional communities, and seeking opportunities to contribute to closing the gap for indigenous peoples.
• Carbon Neutrality and Climate Resilience - Primary industries are contributing to net zero by 2050 and adapting to climate change while maintaining productivity growth
• Response Capacity - The impact of adverse events is minimised and rapid recovery is supported, with increasing resilience over time.
• Food Safety and Animal Welfare - Markets and consumers are confident that industries and business meet high standards of food safety and animal welfare.

Looking forward, the short-to-medium term outlook for NSW primary industries remains bright. Strong production estimates and historically high commodity prices will help offset the challenges of the global trade environment and rising input costs. It is well-recognised that the positive state of the industry is only partially due to the impact of good seasonal conditions and favourable prices but is also attributable to the ability of producers to capitalise on these conditions, the efficiencies of our supply chains, and the resilience of the industry in dealing with challenges as they arise.

The outlook for 2022-23 indicates that crop production will fall from peak levels due to persistent rainfall preventing some sowing activities in both winter and summer crops, compounded by high input costs and late season crop damage. Horticultural production to remain subdued due to high input costs and labour shortages, partly offset by increased farm gate prices, while the livestock sector is expected to maintain momentum owing to continued herd and flock rebuilds and strong domestic and international demand. Taking into account the range of factors, the preliminary 2022-23 forecast is for GVP to decline by an estimated 10% to $20.3 billion.