The S&P/ASX Agribusiness Index offers a measure of companies within the Australian Securities Exchange (ASX) that operate in agriculture-related industries. The index involves businesses in sectors such as farming, food production, agricultural machinery, fertilisers, and related supply chains, reflecting the role agriculture plays in the Australian economy.
S&P/ASX Agribusiness Index, Price & Chart
As a key benchmark for the agribusiness sector, the index highlights the performance of companies contributing to Australia’s agricultural output and innovation. It captures a mix of large-scale producers, processors, and suppliers that support both domestic and global food demands.
The index currently holds 14 stocks, with the top 10 accounting for 86.4% of the total index weighting. It was launched in May 2022.
S&P/ASX Agribusiness Index Performance
While late 2023 and early 2024 saw the index perform extremely well, more recently, it has been subdued, slowly moving into a downtrend. So far in 2025, the index has continued to edge lower, currently down around 1% year-to-date, as of January 24.
| Period | Total Return |
|---|---|
| 1-Year Return | +1.95% |
| 3-Year Return | +0.07% |
| 5-Year Return | -2.79% |
| 10-Year Return | (Launched in May 2022) |
S&P/ASX Agribusiness Index Companies
The index is rebalanced semi-annually in May and November. Here are some of the names included:
| Company | Market Cap (USD) (As of Feb 2025) |
|---|---|
| The A2 Milk Company | $2.68 Billion |
| Nufarm | $870 Million |
| GrainCorp | $1.02 Billion |
| Inghams Group | $738 Million |
| Bega Cheese | $1.33 Billion |
| Elders | $1.28 Billion |
| Australian Agricultural Company | $530 million |
| Cobram Estate Olives | $540 Million |
| Ricegrowers | $430 Million |
| Select Harvests | $400 Million |
Australian Agricultural Stocks Forecast
The Bull Argument: According to a recent report from The Australian, foreign investors are eyeing the agriculture market in the country, with sales expected to rise. The publication said, “Foreign and US investors are expected to grab a larger slice of the Australian agricultural sector, with sales volumes forecast to rise in 2025 following more than three years of declines.”
Some of the factors that should benefit the sector include the growing global demand for food, particularly from Asia, where rising incomes are boosting consumption of higher-quality and processed foods, innovations in agri-tech, including automation and precision farming, which can enhance productivity and profitability for many companies within the index. Furthermore, some analysts expect strong growth in export markets, particularly for beef and grains, with government trade agreements potentially providing further tailwinds.
The Bear Argument: However, risks to the sector still remain, and there are no guarantees that the index's performance over the last year won't continue. For example, unpredictable weather patterns could disrupt production, while rising input costs, including fertilisers and energy, may also put pressure on profit margins. Additionally, global competition and potential trade disputes could challenge Australia’s export-oriented agricultural model. For example, a recent report said, “West Australian primary producers are bracing for years of uncertainty and disruption” as they try to assess the potential impacts of the tariffs threatened by new US President Donald Trump.
Our View: While the sector represents a unique opportunity for many investors, understanding the market and industry is extremely important here. It can be subject to cyclical challenges and many other factors which can impact its performance and that of those companies operating in the space. Its long-term growth potential, driven by global population growth and technological advances, makes it an appealing choice. However, the sector is better suited to those with a more complete knowledge of the industry.
Who Should Invest in The Australian Agriculture Industry?
Investors interested in the agribusiness sector should carefully consider their goals and risk tolerance. Those looking for ETFs in the Australian agriculture sector may want to take a look at the BetaShares Global Agricultural Companies ETF. However, the index is best suited to:Â
- Investors with sector-specific knowledge: As mentioned above, those looking to invest in the sector should gain sufficient knowledge beforehand.
- Sector-focused investors: Those who have gained that knowledge and believe in the growth potential of the agriculture industry may find the index particularly appealing.
- Income-focused investors: Many constituents in the S&P/ASX Agribusiness Index offer attractive dividends, making it a suitable choice for income-seeking investors.
Defensive investors: As agriculture is a vital industry, the index provides a level of stability, even during economic downturns, making it a good option for risk-averse investors.
