From cropping to horticulture, Queensland primary producers can expect the New Year to bring continued increases in production value for some agriculture products.

Latest figures released by the Department of Primary Industries and Fisheries (DPI&F) forecast the value of primary industry production and first-stage processing sectors as more than $12.5 billion.

DPI&F Director-General Jim Varghese said this figure is 3 per cent higher than the previous year, with many industries benefiting.

"Cereal grains production value is at an all-time high of $900 million due to high demand and high prices outstripping drought-induced production declines," Mr Varghese said.

"The value of grain sorghum has jumped by 116 per cent to $400 million, while wheat at $380 million represents a 58 per cent increase from last year.

"Potatoes ($45 million) and tomatoes ($215 million) have also benefited from higher than expected yields and good prices."

While recent summer rains have been a welcome relief for some producers, the effects of the drought on cropping is still being felt by livestock industries.

"High feed grain prices have impacted on the feedlot sector with a decline in slaughter numbers and prices, but there are some positive prospects," Mr Varghese said.

"The slaughter numbers and prices in the cattle and calf industry are expected to pick up in the latter part of 2007-08, with gross value of production forecast at $3.7 billion.

"An increase in the farm gate price being paid to dairy producers has also offset some of the drought-related costs. The gross value of milk production is expected to increase by 23 per cent from last year to $245 million.
 
"The value of poultry production is also forecast to increase to $280 million. This increase is due to a rise in production to meet Queensland's growing population, coupled with higher prices being commanded to meet high feed grain costs.

"An oversupply of eggs in Queensland means gross value of production is forecast to drop by 5 per cent to $95 million. Prices are likely to remain low until supplies are depleted.

"The gross value of production of mangoes is forecast to fall from initial forecasts for the year and at $55 million is 31 per cent lower than 2006-07. The fall in the forecast is due to heavy losses of immature fruit.

"While the gross value of strawberry production is higher than last year at $130 million, the forecast is slightly lower than initially anticipated because of poor weather reducing the quality and yield.

"The gross value of the 2007 sugarcane crop is forecast at $735 million, 32 per cent lower than 2006, due to a drop in sugar prices. The current forecast, however, is slightly higher than DPI&F's initial forecast for the year because of improved prospects for sugar content."