A combination of booming food demand in Asia, better access to financing for agri producers and increasing numbers of private investors entering the agri investment market contributed to a positive outlook for Australian and New Zealand agribusinesses in a recent report by Colliers International, the Australian real estate services company.
Demand for dairy and poultry products is the highest across sectors while the wine industry has flagged, according to the report. This decline does provide a good entry point for investors, however, reads the report
Australia’s wool industry is closely correlated with demand from China, the effect of which can be seen in the firm’s 2014 projections.
“A contraction in production volumes from Australia, the world’s largest wool producer, is expected to result in the indicator wool price increasing by 6 percent in 2014-15… This increase will be somewhat constrained by weakening demand from China, attributable to declining growth in Chinese retail garment sales and diminishing use of natural fibres in major developed economies,” reads the report.