Australia Agriculture: 2021 Snapshot

In the official report released by the Australian Government, eight key aspects of Australian agriculture was minutely examined.

Overview

Australian agriculture currently is responsible for:

• 55% of Australian land use (427 million hectares, excluding timber production in December 2020) and 25% of water extractions (3,113 gigalitres used by agriculture in 2018–19)
• 11% of goods and services exports in 2019–20
• 1.9% of value added (GDP) and 2.6% of employment in 2019–20

The mix of Australian agricultural activity is determined by climate, water availability, soil type and proximity to markets. Livestock grazing is widespread, which means that it occurs in most areas of Australia, while cropping and horticulture are generally concentrated in areas relatively close to the coast.

The Growth of Australian Agriculture

At the present time, Australia has a diverse agricultural, fisheries and forestry sector, producing a range of crop and livestock products. In fact, the gross value of agricultural, fisheries and forestry production has increased by 7% in the past 20 years in real terms. Thus the growth has increased from approximately $62 billion in 2000–01 to $67 billion in 2019–20. In real terms, the value of agricultural exports has fluctuated between $40 billion and $60 billion since 2000–01. 

Future of the Agricultural Sector

Global agricultural demand 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 sectors.

• Exports to Australia’s eight largest markets in Asia increased by 62% to $33 billion over the 20 years to 2019–20 and accounted for 62% of the total value of agricultural, fisheries and forestry exports in 2019–20.
• China is Australia’s largest export market for agricultural, fisheries and forestry products, at $16 billion in 2019–20. Exports to China are about 5 times larger than they were in 2000–2001.
• Asian demand is projected to double between 2007 and 2050, providing opportunities for exporters of high-value, high-quality agricultural and food products.

Therefore, the future of Australia’s agriculture looks brighter than before!