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Big year-on-year jump, but historically low

By Contributed

Apr 19, 2023

Water allocation prices in the southern Murray–Darling Basin are likely to increase to $80 a megalitre in the 2023/24 season, according to the latest ABARES Water Market Outlook.

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While a sizeable increase from the 2022/23 price of $29, ABARES says compared to previous years it means the prices will remain “low” for a fourth consecutive year.

ABARES executive director Dr Jared Greenville said based on the current climate outlook from the Bureau of Meteorology (BOM), ABARES considers the average scenario to be the most likely.

He highlighted that the average annual price over the last 10 years was $218 per megalitres.

“The run of La Nina years is set to come to an end, with the Bureau of Meteorology reporting a 50 per cent chance of an El Nino event developing in 2023/24,” Dr Greenville said.

“However, the shift to drier conditions is likely to be offset by high storages that have been built up over the past three years.

“High opening allocations and an exceptional allocation outlook for 2023/24 will translate into high water availability and provide a lot of certainty for irrigators making planting and water management decisions.

“Low water allocation prices and high water availability will continue to support irrigated agricultural production in 2023/24.”

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