The industry is growing in importance and importance is now an economic driver.
It is also a huge cash cow for the nation’s agri-food companies.
That’s according to an analysis by the Australian Institute of Technology.
It says Australia’s agribusiness sector is worth about $30 billion.
The figures are based on a range of industries and the analysis also shows the value of all those companies and their products.
“Our research shows that Australia’s agriculture sector is now one of the most valuable economic sectors in the world,” says Dr Jocelyn Rimmer, a research associate at the Institute.
Dr Rimmer says the growth of the sector is driven by the rise in value added in the last few years, which has been fuelled by a new generation of farmers. “
This is because it is a key driver of Australia’s export-driven economy.”
Dr Rimmer says the growth of the sector is driven by the rise in value added in the last few years, which has been fuelled by a new generation of farmers.
“In particular, there has been a huge increase in the value added from small and medium-sized enterprises (SMEs), which is driven primarily by the increase in value of the seed, machinery and technology that is required to produce food,” she says.
“These factors are also driving increased demand for more expensive seed, so we’re seeing more people turning to seed, as well as more money being spent on seed.”
She says while the industry is a significant economic driver, it is also an increasingly valuable one.
“As we are seeing more and more farmers making more money, we’re also seeing a more and larger share of that going to the top 10 per cent of farmers,” Dr Rimmers says.
In her view, the sector could have a significant impact on the economy if it were to continue growing at a steady rate, and was able to keep up with demand.
She says farmers are also able to increase their returns from seed.
“With the ability to grow faster, farmers are able to reap more value from their crops than would be the case if they had to sell at a loss,” she said.
“So, the ability of a farmer to earn more money per hectare of land than they would have had to if they were selling at a profit is important.”
Dr Rhimmer says growing food in Australia is a very good thing, but there are a number of factors that can influence how quickly that happens.
“For example, the growth in the agricultural sector has increased by the hundreds of millions of dollars each year since the early 1980s,” she explains.
“And the value-added of these products has increased in a similar manner, with the cost of inputs being a key factor in determining how much food we produce.”
However, the industry has also been heavily impacted by climate change, which is the biggest driver of agricultural demand, with more and less land being available for cultivation, and climate change also means that the price of agricultural products has decreased.
“We see a similar story with transport.
The transport sector, for example, is also very reliant on imported feed and food, and this can increase the cost to transport.”
In addition, the value generated by the growing of agriculture is also increasingly being utilised in industries such as manufacturing, and as a result, our dependence on agricultural products will continue to increase,” she concludes.