Wednesday, July 24, 2013

The Importance of Agricultural Exports to Australia

Australian farmers export around 60 percent of what they grow and produce.
Each Australian farmer produces enough food to feed 600 people, 150 at home and 450 overseas.
Australian farmers produce almost 93 percent of a Australia's daily domestic food supply.
As of 2010-11, there are 307,000peoplpe employed in Australia Agriculture. The complete agricultural chain, including the affiliated food and fibre industries, provide over 1.6 million jobs to the Australian economy.
Value of Australian farm exports, by commodity, 2011–12.
Our farmers are doing well in Australia........
SO, why is it important to export food and fibre products???????

In the agricultural sector farmers contributes 3 percent to Australia's total gross domestic product (GDP).
The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy.
 
*  Australia’s farm exports earned the country $32.5 billion in 2010-11 while the wider agriculture, fisheries and forestry sectors earn the country $36.2 billion in exports.
*  The value of our farm exports, and indeed the future of Australian agriculture, depends largely on conditions in overseas markets, due to our high level of exports.
*  Australian farmers continue to face the challenge of declining terms of trade in agriculture, yet remain internationally competitive through efficiencies and productivity growth.

FACT: Australia is a leading agricultural producer, and exports around two-thirds of total production to the world. Australia actively seeks to lower agricultural trade barriers, which improves Australia's opportunities to export. Food imports provide Australian consumers with greater choice, including food which we don't produce.

 

It is important to export

* There are also non-economic reasons why exports are good for Australia. Exports create closer links between Australia and the rest of the world.
* They help create personal as well as business relationships between Australians and people overseas. By doing so they can assist Australia’s international relations.        
* Similarly they create opportunities for Australians to work and live overseas and learn about other cultures. This broadens Australia’s skill base, educational experience and cultural diversity.
* Immigrants come to Australia with ready-made export markets for future business growth and it has also contributed to the growth of Australian entrepreneurship.


Why don't we just look after ourselves
Production chains are very important to Australia on the whole, simply because we are exporters of a large amount of raw materials. The chain of production helps those raw materials get to where they can be processed, while we benefit from the proceeds.
We farm and produce products in Australia that meet a demand in other parts of the world. All these supply employment opportunities, help our economy and relations.
As each country will be able to produce different kinds of raw materials, trade is a necessity and production chains make that trade possible. For instance, Australia produces a large amount of uranium but uses very little, so it can sell that resource and use it to buy products that we do not produce a lot of.