Western Australia has outshone the rest of the country with the biggest growth in agricultural export value, becoming the second largest exporter in Australia for 2022/23.
Driven primarily by crop exports (which rose by $3.6 billion, a 42.6 per cent increase), WA had a rise in export value of $4 billion.
This is just over 33pc year-on-year.
The impressive increase knocked New South Wales out of second place for the first time in five years - and finishing just behind Victoria.
Western Australia's rise in export value is on the back of good seasonal conditions for cropping.
Crop exports accounted for 75.4 pc of the value of WA's agricultural exports in 2022/23.
The value of the State's agricultural exports was also supported by growth in seafood, sheep and beef exports.
Rural Bank head of agribusiness development Andrew Smith said WA, being such a large State with a strong grain crop, was reflected in the end of financial year statistics.
"It's one of those years where you've had that perfect formula - really good production, good export demand for grain, but also some really strong prices for export of grain," Mr Smith said.
"So that's been a really good result."
It was one of the biggest years for not only WA, but the entire country.
Mr Smith said he was "thrilled" by the result for the country, which has had three consecutive record export years.
"That was pretty exciting, it's been a good run for Australian agriculture and just gave some evidence to what felt like a really good year," Mr Smith said.
Australia-wide export value was almost 50pc above the five-year average, totalling nearly $80 billion, a rise of $12.5 billion from the previous year and building on an $18 billion increase in 2021/22.
Growth in agricultural export value was recorded across most of the country in 2022/23, with only Tasmania and the Northern Territory seeing declines.
Victoria retained its position as Australia's largest agricultural exporter in 2022/23.
The State saw a rise in export value of $1.3b (+7.7pc) to a record high of $18.7b and accounted for 24.2pc of the national agricultural export value.
The value of Australian cropping exports increased $7.08b (+29.6pc) in 2022/23 to a total of $30.99b.
Record production for most Australian crops in 2022/23 was complimented with a new record average export price.
A decline in cropping production brought about by below average seasonal rainfall will see the value of Australian cropping exports fall in 2023/24.
Wheat (+47.7pc), barley (+11.9pc), pulses (+24.6pc) and other coarse grains (+64.0pc) all recorded year-on-year increases in export value.
The value of Australian cattle industry exports increased $725.9m (+5.9pc) in 2022/23 to a total of $13.12b.
Export value was driven by increased domestic production and stronger demand from China and the United States.
Australian beef exports are expected to record a lift in value for 2023/24 due to further production growth and strong international demand, in particular from the US which will be continuing its herd rebuild.
Although many commodities saw an increase in export value, dairy export value fell by about 3pc to $3.07b in 2022/23 (a decrease of $96.5m).
This is still the third highest value on record.
Strong export value was driven by record average export prices but characterised by reduced volumes.
Easing global prices, increased global production but high Australian farmgate milk prices will see Australian dairy export value decline in the 2023/24 season.
Similarly, the value of Australian sheep industry exports fell $104.9m (-2.1pc) to a total of $4.79b.
Export value was driven lower by weakened prices due to increased supply and softer consumer demand.
Rural Bank expects Australian sheep industry exports to see a slight decline in value again in 2023/24, as increases in production will be offset by lower prices.
This had a flow-on effect on Australian wool exports, which fell $73.8m to a total of $3.2b.
Export value was driven lower as weaker demand led to lower prices which more than offset an increase in export volume.
Wool exports are set to decline in value again in 2023/24 due to lower prices and a minor production decline.
Production for wheat across the country increased by 47pc this year, which was matched with higher wheat prices.
A "particularly bright spot" on Australia's exports was cotton exports which more than doubled in value to $4.9b, up $2.7b from the year before.
Increased beef production helped drive a rise of $726m in the value of cattle industry exports and sugar exports also added a further $650m or 32pc on top of the strong rise recorded in 2021/22.
Mr Smith said the record amount has also been achieved by Australia diversifying their export markets.
"We haven't been solely dependent on any particular country, I think China makes up about 20pc of our exports," he said.
"But then we've seen really good growth in countries like Vietnam and South Korea, particularly over the last 12 months.
"So that's been good for us as well."
Diversification has had a positive impact on grain exports from WA, which is branching more into South East Asia - including Vietnam, South Korea, Indonesia, and Thailand.
Mr Smith said the substantial increase in the value of wheat exports helped to drive growth of over $1b or more across the Vietnamese, South Korean, Indonesian and Thailand markets with Vietnam recording the largest increase of more than 50pc to $1.8b, thanks to strong growth in both cotton and wheat exports.
China was the largest growth market in dollar terms for the second year in a row.
"The value of exports to China rose $3.1b or almost 23pc in 2022/23 to a record high of $16.6b, led by a 66pc or $1.5b increase in wheat exports and with beef, almonds and cotton also recording growth", Mr Smith said.
Growth was a consistent story across Australian agriculture's major export markets in 2022/23 according to Rural Bank.
The top 13 markets all recorded year-on-year growth and the top 12 markets all achieved record highs.
"Japan and the US retained their places as Australian agriculture's second and third most valuable markets but both saw modest growth of less than 10pc," the report said.
Export value to Japan rose only by 4.6pc as growth in crop exports was diluted by reduced beef export value.
In contrast, the US saw an increase in beef export value but declines in the value of sheepmeat and wine exports.
This meant the US export market only saw growth of $451m, to $5.6m in 2022/23.
Rural Bank said Australia did not diversify any further in 2022/23, but held onto the gains it has made in the past two years.
Australia's reliance on China has lessened in the past year.
The share of value of the top 10 markets, excluding China, has increased by 2.1pc.
"This suggests that while the reliance on China has lessened in recent years, there has not been much diversification outside of the other major markets," the report said.
The forecast for a smaller crop in 2023 and lower prices for most commodities will see export values return closer to average in 2023/4.
Current estimates are for a 34pc decline in winter crop production compared to last season.
Mr Smith forecasts 2023/2024 to be the third most valuable year on record.
He said the main driver for the decrease would be the smaller crop and global prices.
"It's going to play out over the next few weeks, I think with harvest coming closer, but also with what is expected to be a smaller winter crop," he said.
"We've also seen some lower prices for our red meat and wool
"When we look at the demand side, world markets are also a big challenge."
Livestock products including red meat, wool and dairy are all experiencing lower commodity prices in recent months.
Although production levels of red meat are set to rise in 2023/24, lower prices will likely limit growth in export value.
Challenging economic conditions for consumers in key markets are weighing on prices for exports and are not expected to improve in the near-term.
However, Rural Bank believes appetite for Australian products may be supported by a lower Australian dollar.
While he predicted the agricultural industry to come off the "boom" period, he did think the sector would continue to have sustainable growth.
"We expect productivity growth to continue to improve with diversification of our world export market, so we are securing a good premium for our product in the market," Mr Smith said.
"Diversification is always good."
Sign up for our newsletter to stay up to date.