13 September 2004 - 3rd Quarter 2004

Results at a Glance:

• Rural confidence has improved dramatically in North Queensland.
• Sentiment has continued to improve in the sugar industry.
• Investment intentions and income expectations have also improved.
  

Rural confidence has improved dramatically in North Queensland and is significantly higher than the national average, according to the latest results of the Rabobank Rural Confidence Survey.

The survey shows 42 per cent of North Queensland primary producers expect an improvement in the agricultural economy during the next year, up from 22 per cent last quarter. And fewer farmers expect conditions to worsen in the next 12 months with the figure at 16 per cent this survey, compared with 10 per cent in the previous quarter.

Rabobank regional manager for North Queensland Peter Ciranni said the improvement in confidence was a positive sign, particularly for the sugar industry.

"The seasons have been favourable for sugar - the yield is good and the prices are better, but there is still room for improvement there," Mr Ciranni said.

Rural confidence among the state's sugar farmers had improved on the back of sustained higher world sugar prices and a relatively favourable harvesting season.

There was also improved confidence in the beef industry, with continued increases in prices underpinning sentiment in the sector.

Mr Ciranni said the price of beef had been holding, despite a worsening outlook for beef producers due to a poor season that had not provided adequate rain for some areas, resulting in less than reasonable pasture.

The Rabobank survey also found North Queensland farmers' investment intentions had improved, with 29 per cent planning to invest more in their business during the year, up from 16 per cent in the last quarter. Only 17 per cent said they expected to invest less in their business, compared with 38 per cent last quarter.

Income expectations had also improved dramatically - 62 per cent of North Queensland primary producers expecting higher incomes in the next 12 months, up from 25 per cent last quarter. Also fewer respondents expected lower incomes in the latest survey - a total of 14 per cent, down significantly from 45 per cent last quarter.

The Rabobank Rural Confidence Survey is a quarterly monitor of outlook and sentiment in Australian rural industries. The only study of its type in Australia, it is conducted by an independent research organisation interviewing a panel of more than 2100 farmers throughout the country. The next results will be released in November 2004.

Rabobank Australia is a part of the international Rabobank Group, the world's leading specialist in food and agribusiness banking. Rabobank has more than 100 years' experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness. Rabobank has a AAA credit rating and, in recent years, has twice been awarded the title of the world's safest bank by Global Finance magazine. The bank operates in 35 countries, servicing the needs of more than nine million clients worldwide through a network of more than 1900 offices and branches.

Rabobank Australia is one of Australia's leading rural lenders and a significant provider of business and corporate banking and financial services to the Australian food and agribusiness sector. The bank has 46 branches throughout Australia.

Contact

For further information about the Rural Confidence Survey, please contact Denise Shaw, Public Relations Manager (Tel: +61 2 8233 8744) or email on sydney.confidence.survey@rabobank.com.