The changing face of agriculture in Cairns

Posted on May 17, 2021 by Pete Faulkner - Cairns, Uncategorized

Agriculture is a major driver of the regional economy in the Cairns region. In the 2019-20 Financial Year the sector grew or reared over $1.1 billion of produce. The vast bulk of that comes in the form of sugar cane and bananas, which together account for about 70% of the total ($780 million); most of the rest coming from cattle for slaughter ($120 million), milk ($39 million) and vegetables ($21 million).

However, when we consider the fortunes of our two main agricultural sectors over the past 5 years a very different picture emerges. Whilst back in 2015-16 cane and bananas also accounted for 70% of total regional production the split between the two was very different. By looking at data not only for value but also land use, productivity and prices we see a story of decline for cane and growth for bananas.

The difference in the changes in the two sectors over the period is quite stark…

Since 2015-16 cane has seen 13% less land used and productivity decline by 16% resulting in a 27% drop in production. That, partly offset by an 11% increase in price, has resulted in a 20% decline in total value over the period. Whereas cane used to account for 27% of the region’s agricultural value that has now fallen to less than 18%.

Bananas, on the other hand, despite a 27% decline in land use have enjoyed a 33% increase in productivity which has meant just a 2% decline in total production. Prices have enjoyed a 50% increase and, as a result, total value is up 47% for the period. Bananas now make up more than 52% of the region’s agricultural value, up from less than 44% in 2015-16.

We should note that production and prices can often swing wildly due to weather events and the like. However, the chart below shows that this trend is not simply a one-off effect but is a long-term trend pattern that has been in place for some time.