Is agriculture the new hot sector for export in Australia?

Team Veye | 31-Jul-2022 hot sector for export in Australia

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.


Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website, and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.

veye logo

Grab Your Free Report On 5 ASX Dividend Stocks To Buy In 2024