ECONOMIC recovery in Australia is rubbing off on the agribusiness sector, a new survey has found.
The latest quarterly agribusiness survey by the National Australia Bank shows post farmgate conditions and confidence improved in the three months to September.
Rising local demand was the key factor, while exports remained weak in the face of the rising Australian dollar.
NAB's general manager of agribusiness, Khan Horne, said agribusinesses were feeling upbeat, with the view that the worst of the global economic slowdown was over.
"Strong domestic demand and rising final product prices are behind much of the sentiment," Mr Khan said.
"Confidence in the outlook for business conditions over the next 12 months has risen significantly, resulting in an increase in planned capital expenditure for the coming year."
While many agribusinesses were still reporting a lack of demand as a major concern, only three per cent were concerned about seasonal conditions and drought, Mr Khan said.
