Corporate advisory and consultancy in Australia, South East Asia and India.
“We have an historic opportunity to revitalise agriculture… I call on you to take bold and urgent steps to address the root causes of this global food crisis†– UN Secretary General Ban Ki-Moon
Agriculture is an important industry for Australia and a significant exporting industry. Two thirds of Australia’s total agricultural output is exported. According to DFAT and ABS statistics the following is an overview of current state of agriculture exports:
Value of Australia’s top agricultural exports – 2009 (calendar year) | |||
Major agriculture export products | CY2009 A$m | Share of Rank | Total |
Total Agriculture (excluding fish, forestry and rubber)a | 27,985 | 100.0% | |
Beef | 4,764 | 1 | 17.0% |
Wheat | 4,756 | 2 | 17.0% |
Wine | 2,297 | 3 | 8.2% |
Wool | 1,809 | 4 | 6.5% |
Lamb and mutton | 1,455 | 5 | 5.2% |
Animal feed | 1,234 | 6 | 4.4% |
Live animals | 1,152 | 7 | 4.1% |
Milk and cream | 940 | 8 | 3.4% |
Barleyb | 766 | 9 | 2.7% |
Hides and skins (excl furskins) raw | 764 | 10 | 2.7% |
Fruit and nuts fresh or dried (not incl oil nuts) | 763 | 11 | 2.7% |
Vegetables, fresh or frozen | 702 | 12 | 2.5% |
Cheese and curd | 701 | 13 | 2.5% |
Canola | 678 | 14 | 2.4% |
Sugara | 664 | 15 | 2.4% |
Edible products and preparations | 565 | 16 | 2.0% |
Cotton | 537 | 17 | 1.9% |
Cereal preparations | 498 | 18 | 1.8% |
Malt | 412 | 19 | 1.5% |
Animal fats and oils | 272 | 20 | 1.0% |
a Deficient the confidential sugar component July-December 2009
b Deficient the confidential barley component September-December 2009
Australia’s major exports of agriculture by destination – 2009 (calendar year) | |||
Major agriculture export markets | CY2009 A$m | Rank | Share of Total |
Total All countriesa | 27,985 | 100.0% | |
Japan | 4,271 | 1 | 15.3% |
China | 3,122 | 2 | 11.2% |
United States | 2,670 | 3 | 9.5% |
Indonesia | 1,931 | 4 | 6.9% |
Republic of Korea | 1,440 | 5 | 5.1% |
New Zealand | 1,402 | 6 | 5.0% |
United Kingdom | 910 | 7 | 3.3% |
Malaysia | 774 | 8 | 2.8% |
Singapore | 699 | 9 | 2.5% |
Taiwan | 590 | 10 | 2.1% |
Hong Kong (SAR of China) | 574 | 11 | 2.0% |
Thailand | 570 | 12 | 2.0% |
Saudi Arabia | 561 | 13 | 2.0% |
United Arab Emirates | 526 | 14 | 1.9% |
Vietnam | 483 | 15 | 1.7% |
a Deficient the confidential sugar component July-December 2009.
Note: the country totals exclude any confidential items.
Sources: DFAT STARS database consistent with ABS catalogue 5368.0, Feb 2010; ABS special data service for sugar.
We have decided to put quotes from some of the world leaders who presented in 2008 at a UN sponsored summit on tackling global food shortages, through our article.
Current Factors Affecting Agriculture
“I call for a global contribution to deal with the reasons for the current crisis and its repercussions in a way that achieves the interests of both developed and developing countries; a global contribution that goes beyond policies, attitudes and interests in their narrow national perspectives so that this contribution will deal with the people’s food security more comprehensive… a global contribution that witnesses our joint efforts on the national, regional and international levels to contain this crisis and stop the mounting rise in food prices.â€
– Egyptian President Hosni Mubarak
Over the past couple of years an increasing number of scientists, economists and agricultural advisers have become increasingly concerned about emerging issues of food – food production, food supply and food security. Trends and drivers that are contributing to the concern over food are:
Other Sector Influences
“The international community must be prepared to consider bold and unprecedented measures. The burden, which is now borne largely by the developing countries and the poor, can easily spill over into the developed societiesâ€.
– Malaysian Prime Minister Abdullah Ahmad Badawi
Agriculture and therefore food and food supply have a number of unique factors that influence the sector. These issues include:
Most pundits agree that in the future in regard to food security we will most likely be facing deteriorating global conditions. True food security for any country means regional food security. If shortages do occur in the future, and many economists and experts are confirming they will, each nation will feed itself first.
So Australia and its agricultural sectors have some strategic opportunities, notwithstanding the challenges outlined above.
Perhaps the final word in this article should go to Brazilian President Luiz Inacio Lula Da Silva: “Genuine food security should be global, and achieved through cooperationâ€
About the authors
Lindley Edwards is CEO of the AFG Venture Group and is a specialist adviser in merger, acquisition, divestments, fund raising, strategies consulting and licensing for public and private companies.
Mitchell Brown works as an analyst and advisor for AFG Venture Group in the corporate advisory sector. He is an Agricultural Economist by training, and has an interest in Australia’s primary industries, and the opportunities that are available for these industries in Asia.