The Importance of Agricultural Exports to Australia

Australia is a significant world producer of many agricultural products, including wheat, wool and beef. Major commercial crops include broadacre grains, oilseeds and legumes to more intensive crops such as rice, sugar, cotton, grapes, bananas, and potatoes. Major livestock products include beef, wool and dairy products, and sheep, pig and poultry meats. In 2010-11 total farm production was $60 billion and exports were around $45 billion.
A realy good short video on Australian farm value can be seen at
http://www.youtube.com/watch?v=nJHvz05mkfw

Relative to its size in the Australian economy, agriculture provides a disproportionately large share of Australia’s exports: 21 per cent of merchandise exports compared to 3 per cent of GDP. GDP is commonly used as an indicator of the economic health of a country, as well as to gauge a country's standard of living. GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period.

Agriculture is one of the largest employers in Australia, providing over 350,000 jobs in 2010-11. Agriculture also represents a significant input into many other industries, particularly the food processing industry, which had a turnover of $65 billion and a value added of $24 billion.

It is generally acknowledged that Australia has a strong comparative advantage in the production of agricultural products. This is a result of our size, geography, use of tech-nology and workforce skills. Consequently, agriculture is one of the most productive and internationally competitive sectors of the Australian economy. Productivity is expected to increase quite considerably over the next few year due to the ending of the recent drought which lasted around 10 years in some areas.


There are approximately 134,000 farm businesses in Australia, 99 percent of which are family owned and operated. Each Australian farmer produces enough food to feed 600 people, 150 at home and 450 overseas. Australian farmers produce almost 93 percent of Australia’s daily domestic food supply.

As of 2010-11, there are 307,000 people employed in Australian agriculture. The complete agricultural supply chain, including the affiliated food and fibre industries, provide over 1.6 million jobs to the Australian economy.

The agricultural sector, at farm-gate, contributes 3 percent to Australia’s total gross domestic product (GDP). The gross value of Australian farm production in 2010-11 was $48.7 billion.
Yet this is only part of the picture. When the vital value-adding processes that food and fibre go through once they leave the farm are added in, along with the value of all the economic activities supporting farm production through farm inputs, agriculture’s contribution to the GDP averages out at around 12 percent (or $155 billion).

Percentage of GDP of Australian Agricultural Exports


Australian farmers export around 60 percent of what they grow and produce. Australia’s farm exports earned the country $32.5 billion in 2010-11, up from $32.1 billion in 2008-09, while the wider agriculture, fisheries and forestry sectors earn the country $36.2 billion in exports. The value of our farm exports, and indeed the future of Australian agriculture, depends largely on conditions in overseas markets, due to our high level of exports.





Australian farmers continue to face the challenge of declining terms of trade in agriculture, yet remain internationally competitive through efficiencies and productivity growth. The growth in the farm sector has increased steadily over the 30 year period from 1974-75 to 2003-04 at an average rate of 2.8 percent, consistently out-performing other sectors. In more recent times, agricultural productivity growth has slowed to 1 percent per annum, illustrating the need for an increased spend on research and development to ensure the industry can meet the food and fibre needs of the growing world population.

Export markets take the bulk of Australian wheat, beef, cotton, sugar and wool production. Domestic markets are as important or more important than export markets for mutton, dairy products, coarse grains, pulses and horticultural crops.
Around 70 per cent of Australian farm production is exported. Strong opportunities for food exports have emerged in the Asian region, with rising living standards and changes in dietary preferences create demand for more food and for a wider variety. Processed food exports have increased, on average, by 10 per cent over the past 10 years.

http://www.nff.org.au/farm-facts.html
http://www.aust-immig-book.com.au/business/overview-australian-agriculture
http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=UDd-1WpoZeIgaM&tbnid=W5enS-ns0xXHJM:&ved=0CAQQjB0&url=http%3A%2F%2Farchibullprize.com.au%2Fff%2Fagriculturalexports.html&ei=_AvxUdi-B8bTkgWzlIDoDA&bvm=bv.49784469,d.aGc&psig=AFQjCNGfOpJH0i_OHS-tuJalch_oHmtUSA&ust=1374838090184212

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=3sfN6VJYXsYesM&tbnid=VCj-2jL1qvwz-M:&ved=0CAQQjB0&url=http%3A%2F%2Fwww.daff.gov.au%2Fmarket-access-trade&ei=ZQvxUaGVOMfPlAXRqICoDQ&bvm=bv.49784469,d.aGc&psig=AFQjCNEa2QzlH4jB8g7f0Dl6euKLv25dUA&ust=1374837867948578

The challenge for Australian agriculture and our farmers will, of course, be in meeting this booming world need for food and fibre through increasing production - at a time when we have less arable land, less water and less human resources.