Agriculture in Australia - statistics & facts
Through the production of a wide range of primary products such as wheat, milk, fruits, nuts, vegetables, and meat, Australia’s agriculture sector contributes to an essential share of the country’s GDP. The sector is export-oriented with the major agricultural export commodities including beef, wheat, wine, wool, and lamb. Highly dependent on climate and weather conditions, farm productivity can fluctuate. However, research and development in this sector has led to overall farming productivity growth for many agricultural products. Still, there are many issues that Australian farmers are concerned about that could impact the profitability of this industry.
The beef industry is the most significant for Australia regarding animal products. The nation is one of the leading beef exporters in the world. This position will likely remain as the country continues to export most of its red meat. Conversely, Australians’ per capita consumption of beef and veal has declined compared to previous years. Following global trends, consumer preferences have shifted towards fish and poultry products.
The dairy industry in Australia is heavily influenced by international markets, trends, and events, primarily because it is a deregulated, open market. Although most of the dairy products produced in Australia are consumed locally, Australia is a key exporter of dairy, particularly to China and Japan. Thousands of Australians are employed directly through dairy farms or dairy companies. Furthermore, the subsequent processing of dairy products provides even more employment opportunities.
In recent news, Australia’s leading supermarket retailers have come under scrutiny from Australian farmers, who are concerned that their pricing strategies could put smaller farms out of business. In the ongoing Australian Consumer and Competition Commission (ACCC) supermarket inquiry, a national vegetable grower group reported that fresh food specials intended to lure customers in with low prices negatively affect growers, who often need to sell their produce to supermarkets below the cost of production to meet the market price. While this inquiry is still in progress, Australian farmers and growers will be eagerly awaiting the final report due to be submitted in early 2025, potentially with proposed reforms to supermarket practices.
Australia's key agricultural products
Crop production in Australia is vital in providing food and livestock feed. Crops include cereals, grains, and legumes, among others. The area for wheat production in Australia is the largest for any crop in the country, with wheat accounting for the most significant contribution to the production value of cereals. Aside from the above-average yield reported in 2023, the yield of wheat in Australia fluctuates at around two metric tons per hectare.The beef industry is the most significant for Australia regarding animal products. The nation is one of the leading beef exporters in the world. This position will likely remain as the country continues to export most of its red meat. Conversely, Australians’ per capita consumption of beef and veal has declined compared to previous years. Following global trends, consumer preferences have shifted towards fish and poultry products.
The dairy industry in Australia is heavily influenced by international markets, trends, and events, primarily because it is a deregulated, open market. Although most of the dairy products produced in Australia are consumed locally, Australia is a key exporter of dairy, particularly to China and Japan. Thousands of Australians are employed directly through dairy farms or dairy companies. Furthermore, the subsequent processing of dairy products provides even more employment opportunities.
What current issues are concerning farmers in Australia?
Some of the leading issues concerning farmers in Australia include biosecurity, the growing market power of processors or supermarkets, and changes to environmental laws. Australia has some of the strictest biosecurity laws in the world. Invasive pests and diseases brought in across the borders can lead to crop failure and livestock deaths. With the economic risk of this significant, the incentive to keep pests out for both the government and farmers is high.In recent news, Australia’s leading supermarket retailers have come under scrutiny from Australian farmers, who are concerned that their pricing strategies could put smaller farms out of business. In the ongoing Australian Consumer and Competition Commission (ACCC) supermarket inquiry, a national vegetable grower group reported that fresh food specials intended to lure customers in with low prices negatively affect growers, who often need to sell their produce to supermarkets below the cost of production to meet the market price. While this inquiry is still in progress, Australian farmers and growers will be eagerly awaiting the final report due to be submitted in early 2025, potentially with proposed reforms to supermarket practices.
