Australia-grain forecasts.

AUSTRALIA-AFTER THE DROUGHT.

Better weather and significantly increased prices for grain crops helped push the overall value of Australia’s agricultural production up by 24pc to $44.6 billion for 2007/08, according to preliminary figures from the Australian Bureau of Statistics.

The ABS reports that cereal and other grain crops had the biggest increase - up by 41pc or $25 billion - as a result of both higher production and prices, while cotton suffered from a severe drop in production to be down 44pc. The value of livestock products (wool, milk and eggs) also went up as higher prices outstripped a fall in production giving an overall increase of 26pc to $7.3 billion. However, livestock fell slightly to $12.2 billion (down 1pc). Increased prices for sheep, lambs and poultry didn’t offset the fall in value for cattle, calves and pigs.