Free webinar: Water Markets Report: 2022-23 Review and 2023-24 Outlook

Exceptionally wet conditions in 2022-23 created the best water availability conditions across the southern connected system in the last 15 years. There were record volumes of carryover, maximum allocations to most major entitlements in the southern Murray-Darling Basin, and regular, widespread rainfall that reduced demand for irrigation water and kept storages topped up.

Unsurprisingly, these dynamics set the scene for a third year of tumbling water allocation prices in all trading zones. This was mixed news for irrigation businesses as the ongoing wet conditions caused challenges on-farm but means that 2023-24 will be another year when high water availability will support lower allocation prices.

While water register data suggests prices for most major water entitlements in the southern Murray-Darling Basin have increased, the Aither Entitlement Index (AEI), based upon our latest fair market unit values, decreased over the year. Continuing economic headwinds, including rising interest rates, caught up with water entitlements and provided downward pressure, leading to the AEI’s first annual contraction in a decade.

From a water policy and management perspective, 2022-23 was dominated by the implications of the change in federal government for the Basin Plan and its fast-approaching deadline of June 30, 2024. With a major water recovery shortfall looming, there are lots of challenges in front of the government, but time is the most significant.

Join us for the launch of our Water Markets Report. During this webinar, we shared analysis and insights from market activity in 2022-23, and provided outlook for water markets in 2023-24, including the potential for further Commonwealth entitlement purchases.

Disclaimer:

This webinar recordings was produced by Aither Pty Ltd before its acquisition by Ricardo Plc and therefore do not feature Ricardo branding. The combined offer of Ricardo Water and Environment Australia now spans water policy, strategy and economics, resilience and adaptation, strategic engineering, environmental assessment and approvals, strategic and statutory planning, climate and water risk, hydrology, and decarbonisation.