Page 13 - Australian Pork Newspaper

Snapshot of Australian Agriculture
2021 report shows production growth
THE Australian Gov- ernment has released its Snapshot of Australian Agriculture report, out- lining the current state of Australian agriculture.
tralian land use, with The mix of Australian Australia has a diverse Drivers of output growth China is Australia’s tural trade to remain resil-
Here’s an overview of the eight key aspects of Australian agriculture it covers.
Livestock grazing is widespread, occurring in most areas of Australia, while cropping and hor- ticulture are generally concentrated in areas rela- tively close to the coast. Agricultural production is growing
The gross value of ag- ricultural, fisheries and forestry production has increased by 7 percent in the past 20 years in real terms – adjusted for consumer price inflation, from approximately $62 billion in 2000–01 to $67 billion in 2019–20.
• In cropping, long-term falls in real prices have been offset by volume growth, as producers have improved productivity by adopting new tech- nologies and management practices
Exports to China are about 5 times larger than they were in 2000–2001.
Agriculture's place in Australia
• 11 percent of goods and services exports in 2019–20
• In livestock, higher prices have been the main driver of growth, re- flecting growing demand for protein in emerging countries and also tem- porary factors such as drought in the US and disease outbreaks such as African swine fever in meat importing countries. Around 70 percent of agricultural output is exported
Asian demand is pro- jected to double between 2007 and 2050, pro- viding opportunities for exporters of high-value, high-quality agricultural and food products. Agriculture was resil- ient despite COVID-19 uncertainty
throughout 2020–21.
One of the lasting chal- lenges of COVID-19 re- lated travel restrictions has been the reduced availability of farm workers from overseas and higher airfreight costs for exporters of high-value
Australian agriculture accounts for:
• 1.9 percent of value added or gross domestic product and 2.6 percent of employment in 2019–20.
• 55 percent of Aus-
427 million hectares ex- cluding timber production in December 2020 and 25 percent of water extrac- tions, with 3,113 gigali- tres used by agriculture in 2018–19
agricultural activity is determined by climate, water availability, soil type and proximity to markets.
agricultural, fisheries and forestry sector, producing a range of crop and live- stock products.
over the past 20 years vary by sector:
largest export market for agricultural, fisheries and forestry products, at $16 billion in 2019–20.
ient through the pandemic. International food pro- cessors continued to op- erate and demand Aus- tralian products as inputs, and the resurgence of international textile and wood products manufac- turing strengthened export demand for these products
Australia exports around 70 percent of the total value of agricultural, fish- eries and forestry produc- tion.
Because food is an es- sential good, demand does not fall significantly in times of crisis, though the types of goods being demanded through the pandemic shifted away from high-value products consumed typically in the hospitality sector – wine and seafood – to foods consumed at home.
production and meat pro- cessing industries have been most affected by the reduced number of over- seas workers.
Export orientation of each industry can vary by commodity type.
The result has been in- creased costs of produc- tion for these industries and potentially lower hor- ticultural production, as producers find it difficult to harvest.
Wheat and beef, which are large sectors, are more export-focussed than dairy, horticulture and pork.
Exports of high-value and highly perishable products, such as live sea- food and fresh produce, have also faced cost in- creases given the reduced supply of cargo space on flights to key export mar- kets.
In real terms, the value of agricultural exports has fluctuated between $40 billion and $60 billion since 2000–01.
Disruptions to do- mestic and international food supply chains early in 2020 were largely re- solved, allowing agricul-
COVID-19 was a major event for Australia’s agri- cultural, forestry and fish- eries sector in 2019–20, but the sector demon- strated an ability to adapt and transition to new op- portunities.
commodities. Horticulture, intensive
Livestock grazing is widespread occurring in most areas of Australia, while cropping and horticulture are gener- ally concentrated in areas relatively close to the coast.
Wheat and beef, which are large sectors, are more export-focussed than dairy, horticulture and pork.
Meat and live animals have been the fastest- growing export segments, growing 86 percent over the period, followed by horticulture up 64 percent and forest products up 16 percent.
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Australian Pork Newspaper, March 2021 – Page 13
Global agricultural de- mand is growing very strongly, reflecting rising per capita incomes as well as population growth, but export competition is also increasing.
Asia is the fastest growing export region for the Australian agriculture, fisheries and forestry sec- tors.
Exports to Australia’s eight largest markets in Asia increased by 62 per- cent to $33 billion over the 20 years to 2019–20 and accounted for 62 percent of the total value of agricultural, fisheries and forestry exports in 2019–20.