Agribusiness owners in the Central West region of New South Wales are optimistic about the performance of their companies over the next 12 months, but are also facing the challenge of increased operating costs.
According to the latest quarterly Westpac and Charles Sturt University (CSU) Agribusiness Index, 79 per cent of Central West agribusinesses are expressing an increase in business confidence, up from 57 per cent at the same time last year - an increase of 22 per cent.
At the same time, Central West agribusinesses are feeling the pinch of increased operating costs, with the high prices of fuel identified as the most significant factor.
Westpac regional manager Ian Porch said increased business confidence was a good sign for the Central West region.
"These latest research results are headed in the right direction for agribusiness and this will bring flow-on benefits to the Central West region as a whole," Mr Porch said.
"However in saying that, local business owners have identified rising operating costs, with local agribusinesses feeling the effects of higher costs for farm essentials like fuel and fertiliser as a result of poor seasonal conditions and increasing oil prices."
The Westpac and CSU Agribusiness Index is a quarterly survey of Australia's Agribusiness sector conducted by the Western Research Institute (WRI) of Charles Sturt University.
Forty-eight regional communities are surveyed with some 1200 regional businesses interviewed over the past twelve months.
Western Research Institute CEO Tom Murphy conducted the survey and said the Central West region was showing many similar traits to other regional communities, but some nuances specific to the Central West region were also shown in the results.
"With 12 months data collated on agribusinesses from the Central West region we are able to look at the trends through the seasons, and look at how that impacts on business confidence,” he said.
"I am pleased to see the increase in business confidence for the Central West region and believe there are greater benefits to the community to be seen in coming months.”
Westpac is also expressing its confidence in the regional and agribusiness sectors with employment of regional and agribusiness staff and investment in regional communities.
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