A new study into the future state of play for irrigated industries in the southern Murray-Darling Basin has found that there is likely to be a substantial increase in water demand and price over the next five years.
The study by water market advisory specialists Aither, projects significant increases in water demand and price driven by the rapid expansion of agricultural industries.
Modelling indicates that water allocation prices could increase over the next five years by around 10% in low allocation years and 7% in moderate and high allocation years, simply as a result of projected demand changes. If this scenario eventuated, water use could decrease by around 10% for dairy, and 15% for both rice and grapes.
“Water markets have contributed to resilience by allowing for the reallocation of water in response to changing demand, and will be essential in enabling industries to respond to new opportunities,” said Aither Director Will Fargher.
Image Credit: Mattinbgn (via Wikimedia)
