BUSINESS conditions for post-farmgate companies in the farm supply chain are back in positive territory after reaching their highest level in nine years at the end of 2013, according National Australia Bank (NAB) research.
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It was also the first time in three years the three key indicators in NAB's post-farmgate agribusiness survey recorded positive readings.
Trading, profitability and employment all rose to push the agribusiness index into positive territory for the first time since the December quarter of 2005.
"Trading conditions were the leading contributor, rising sharply (to +24 points) to their highest level since the start of the survey," said NAB agribusiness general manager, Khan Horne.
"Driving this was the sharp depreciation in the Australian dollar, which fell three per cent in November and December, stronger asset prices and a sustained low-interest global environment."
Despite the currency's recent kick back above US90c, NAB is forecasting the dollar will continue to track lower to US84 cents by the December 2014 quarter.
Protein exports continued to grow at a robust pace, with beef and lamb capping off last year on a strong note and dairy prices also setting new records overseas.
Andrew Marshall
National agribusiness writer for Fairfax Agricultural Media.
National agribusiness writer for Fairfax Agricultural Media.
