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HI5003 Economics for Business OZ Assignments
In this assignment, there is the discussion regarding the economic perspectives of the Australian Agricultural growth. In this assignment, there is the discussion that is based on one News Article which is written for the Australian Agricultural growth. This article is written by Anna Vidot. In this article, there is the information on the present situation of Agriculture in Australia. There is the projected growth that can be seen in the Forthcoming years for the Australian. According to the present situation, there are some recommendations that are given in this assignment. After that, the conclusion is written.
Findings and Procedures
In the Australian Agricultural sector, there is the growth that has seen from the previous years. The total share in the economy of the agriculture is $ 63.8 billion in 2016-17. In 2016-17, the export ranges were $ 48.7 billion. This is the figure that is $1 billion higher from the last year. In 2016-17 there was a great production of wheat and barley that has increased the overall crop production in Australia more than 20%. The total share of the crop production in the economy of Australia is 33.9 billion in last financial year. There is also increase in the export value of sugar and cotton up to 10% and 35% respectively (ABC News, 2017).
(Figure: Depicting Wheat production in Australia)
Export to the US dropped to 42% in 2016-17. This is because the US recovered from its drought. Australian beef is also getting competition from the US beef in Japan. But the overall export earnings rise because of increase of exports in lamb, live cattle and wool that are 3%, 4% and 10% respectively.
(Figure: Future forecast of Beef prices that would bring more growth from export)
There is the slight change in the Australian dairy return from the export in the last financial year as compared to last three financial years. Less production of milk in New Zealand and Europe in there is a rise in the demand for the milk in Asia. This opportunity is optimised by Australia (Sheng, et. al., 2017). The dairy production in Australia is at the lowest level in this year from the 1990s but the data would improve in the next financial year by 2%.
(Figure: Future forecast of milk prices that would bring more growth from export)
The value of Australian Horticulture production is increased from the last financial year. Fruits and nuts exports to China, Korea and Japan are helping in the recovery of the decline of 2009-10. The production share of horticulture in 2015-16 would increase from 9.3 billion to 10 billion till 2020-21. This is the gradual process in which the production has increased in the last financial year and also increased (ABC News, 2017).
There is the increase in the lobster, tuna fish abalone production that is creating a growth in the Agricultural Industry of Australia. There are 45 of increase in the rock lobster production in the last financial year. As per ABARES, even though the value of Australian rock lobster, tuna and abalone production may increase in the next financial year, the decline in the value of prawns, salmonids, and other fish will negate those gains (Sheng, et. al., 2017). A downward forecast is projected in fisheries and aquaculture and it is estimated to be around $3 billion (Grundy, et. al., 2016). The strong export projection of rock lobster, which is the most lucrative fish product of Australia, is expected to be 2 percent higher at $1.5 billion. The total export is expected to be $716 million for rock lobster production. Since the growth of Asian markets and tariff deductions, the exports are expected to be higher (ABC News, 2017).
Agriculture is one of the key elements of the Australian economy, and as per estimates made by ABARES, the gross value of the farm production will be increased by 17.3%. Hence, the following key points should be considered for the development of agriculture in Australia:
The dairy industry is the most important sector and it can be improved by a reasonable increase in the price and adequate storage of pastures during droughts. The dairy industry can be further divided into:
- Beef: - The main reason for the reduced production of beef is drought conditions. Hence, adequate storage for Pasteur has to be done.
- Lamb: - Reduction of slaughter rates has contributed to lamb production and hence, the same trend should be continued.
- Wool: - Since the slaughter rates have come down along with a good price for raw wool, have contributed to increasing the wool production. Conditions for favourable pricing have to be adopted to increase the export of wool.
The important crops are:
- Wheat: - In order to maintain the production and exports, pricing has to be done favourably.
- Sugar: - In order to increase the production, proper weather monitoring systems have to be placed and the storage facilities can be improved further.
- Cotton: - Irrigation facilities have to be improved for increased production
It can be concluded that there is the increase in the production of the different branches of the Agriculture. Wheat production in Australia has seen good growth. The export from Australia has seen the good growth in the Agriculture sector. There is also increase in the sugar and the cotton production in Australia. There is also increase in the horticulture, meat and the dairy production in Australia. To sustain the particular growth in Australia it is very necessary to implement the different strategy that would help in creating sustainability to this sector. There would be an increase in the production and the profits only if there would be a proper strategy for the production of the Agricultural related products. If the recommendation used to be followed then there would be an increase in production of the Agricultural sector.
1.ABC News. (2017). ABARES Outlook: Value of Australia's agriculture sector to peak after three years of strong growth. [Online] ABC News. Available at: http://www.abc.net.au/news/rural/2017-03-07/abares-wrap-2017/8328922. [Accessed: 14 December 2017]
2.CANSTAR. (2017). Agriculture Industry Outlook for 2017-2018. [Online] CANSTAR. Available at: https://www.canstar.com.au/agribusiness/agriculture-outlook-for-australia/. [Accessed: 14 December 2017]
3.Sheng, Y., Jackson, T., Zhao, S., & Zhang, D. (2017). Measuring Output, Input and Total Factor Productivity in Australian Agriculture: An Industry?
4.Grundy, M. J., Bryan, B. A., Nolan, M., Battaglia, M., Hatfield-Dodds, S., Connor, J. D., & Keating, B. A. (2016). Scenarios for Australian agricultural production and land use to 2050. Agricultural Systems, 142, 70-83. Retrieved at : - http://www.sciencedirect.com/science/article/pii/S0308521X15300482
5.Sheng, Y., Jackson, T., & Gooday, P. (2017). Resource reallocation and its contribution to productivity growth in Australian broadacre agriculture. Australian Journal of Agricultural and Resource Economics, 61(1), 56-75. Retrieved at : - http://onlinelibrary.wiley.com/doi/10.1111/1467-8489.12137/full