Is agriculture the new hot sector for export in Australia?
Team Veye | 31-Jul-2022
Australia is a major agricultural producer and exporter. The sector plays a vital role in Australia, contributing to the nation’s social, economic and environmental sustainability. According to Department of Agriculture, Fisheries and Forestry, Australian agriculture accounted for:
- 55% of Australian land use (427 million hectares, excluding timber production, in December 2020)
- Goods and services exports constituted 12% in 2020–21;
- 1.9% of value added (GDP) and 2.5% of employment in 2020–21
The latest figures released last week, by Australian Bureau of Statistics revealed that
- The gross value of Australian agriculture grew 17% to $71 billion in 2020-21
- Better growing conditions led the gross value of broadacre crops to $23 billion (up 79%)
Australia exports around 72% of the total value of agricultural, fisheries and forestry production. The sector has come out to be quite resilient. Despite many adverse happenings which caused havoc in the recent past, like catastrophic bushfires, multitude disruptions caused by Covid-19 and serious rainfall deficiencies in some areas (though improving lately), the sector has maintained its position as a leading global exporter of premium produce.
Worldwide agricultural demand is growing strongly, considering rising per capita incomes as well as population growth. Asia is the fastest growing export region for the Australian agriculture, fisheries and forestry sectors.
However, because the export competition is increasing, productivity growth is also essential for maintaining and improving international competitiveness. Australian farmers have been successful in achieving strong productivity growth. As compared to other sectors of the Australian economy, Agricultural productivity growth has been stronger over the long term. This growth has been powered by its improvements in technology and structural change.
Australia is preferably positioned within growing global markets and is well connected through established trade channels and free trade agreements.
Australia realises that it is a compelling destination to develop, commercialise, scale and source the next generation of agriculture and food technologies. Its strategic location offers international enterprises a choice base to build sustainable export businesses.
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