Basis of Economic Perspective - Australian Agriculture SectorMarket

ECONOMIC ANALYSIS

Over a period of time agriculture industry has added 1.5% in annual growth in GDP. This year rainfall in many cropping regions has been above regions which has impact positively on the output (Larder, Sippel and Lawrence, 2015). This has contributed positively in overall economy condition.

Statistical records show that in the year 2009/10 overall production was 23 billion. At that time total contribution of agriculture industry in the economy was 2%. Records of Australian Bureau of Agricultural and resources economics and Sciences (ABARES) show that this sector employed 10% of population. Around 440000 people work in this industry but till 2009/2010 they have remained 325000 (Cronshaw and Grafton, 2016).

Over a period of time output has been decreased but rural exports have remained unchanged. But it has weak growth that tend to have high export. Recently this sector is performing well and it is expected that in coming year it will be risen more. Last three years growth of agriculture industry has been seen amazing. ABARES records reflect that production will be enhanced and more export will be done of agricultural products. Crop production is increasing with the rapid speed that has helped in enhancing export which has been recorded 48.7 Billion in the year 2016-2017. Since four years seasonal condition of Australia is good which is creating positive environment for the farmers and it is supporting in enhancing output of agricultural products. This year production has been raised by 20% as compare to last year.

Agriculture industry is considered as biggest employer in rural and regional communities. It has hired more than 1.6 million Australian. There are 135000 Australian farmers those who are working well for producing enough food to feed approx 80 million people. It is beneficial for fulfilling domestic food requirements but also assist in exporting agricultural products to other nation in order to fulfil their need as well (Australia’s ‘five strong pillar economy’: agriculture, 2015). Export market value of this industry is 41 Billion per annum. ABARES figures reflect that grains and oilseeds (29.8%), meat (24.0%), Dairy (6.6%), Horticulture (4.5%), Wool (13.5%) contributes in export market. Asia is the emerging nation, income level of people are increasing that contributes 60% Australian export of farm products. It exports its goods to China, Japan, Indonesia, Singapore etc. many countries. Its export business is expected to grow well in coming future (Agriculture is now the powerhouse driving economic growth in Australia, 2017).

Though, due to increasing demand, high competition recently Australia has to face huge difficulties Government of Australia support agriculture industry just 960 million. Climate change is the major factor that influence overall growth of the farm industry. Because of poor weather condition farmers fail to produce adequate material. Furthermore, advance technological support is beneficial for the growth of this sector to great extent (Australia's booming ag sector grows 23% in a year, 2017). Despite of huge contribution in economy, still this industry is not getting required investment capital from the government and other investors.