Growth in Australia Agricultural Sector for Export Market

This article discusses the growth in Australia's agricultural sector for export market, including the economic analysis, livestock trade, and market entrance to Asian countries. It also provides recommendations for policy holders to improve the industry.

Running head: GROWTH IN AUSTRALIA AGRICULTURAL SECTOR FOR EXPORT MARKET 1
GROWTH IN AUSTRALIA AGRICULTURAL SECTOR FOR EXPORT MARKET
Student’s name
Professor’s name
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Growth in Australia Agricultural sector for export market 2
Prior to growth in Australia agricultural sector for export market, agriculture can be
defined as the exercise or art of cultivating the earth, producing yields, and nurturing livestock
and in fluctuating degrees the ground work and selling of the resulting yields. On the other hand,
export market can be said to be a foreign republic to which properties and amenities from a
particular nation are sold. Agricultural sector is the greatest prospect business which includes a
market impression of occupation data (Griggs, 2011). The United State and Australia contracted
a mutual food security acknowledgment agreement in April 2017. The contract was signed
between the Australian Department of Agriculture and Water resource, and the United State food
and drug administration. The contract’s compliance was to be accomplished by the exporting
nation.
The contract is anticipated to greatly simplify Australian exports to U.S and vise verses thru
superior dependence on Australian food governor systems to guarantee the production of
nontoxic food. Foods included in this contract included seafood, egg products, dietary
supplements, fresh fruits and vegetables, canned food, dairy products, sweetmeat and baked
food. The following discussed information in this paper shall show the economic analysis
(McClannahan, 1998).
Consumers and sophisticated Australians are prepared to try new foodstuffs since the
residents have accommodated an increasing number of freshly arrived settlers from all over who
carry along different tastes and preference. In addition, remote travel is moderately common
particularly by the group now arriving in the work force plus these customers have extended
their cooking horizons. Australian demographics remain a like to those in the U.S hence huge
number of two-income people thus increasing the demand for consumer-ready nourishments.

Growth in Australia Agricultural sector for export market 3
The consumers from both states are willing to pay additional money for them to get healthy
lifestyles (Griggs, 2011).
Figure 1: The demand for consumer ready nourishment
(Source: Leroy & Pop, 2018)
Conferring to Global trade atlas data, Australian importations of U.S fishery, agricultural
and forestry products in 2016 remained valued at above 1.39 billion USD. Given that the
Australian big agricultural base plus market predictions for U.S nourishments foodstuffs are best
in regions drawing on inventive products, markets of scale and the U.S counter-seasonal seller of
fresh products. The nature of farming yields imported from to Australia from U.S consist mostly
of buyer oriented and transitional food products. Development in livestock trade has been
controlled by continued development in red meat and living animal trade. Veal and beef trade are

Growth in Australia Agricultural sector for export market 4
valued to have improve by more than 50 per cent in the price terms over the past decade.
Recently, it has been observed the evolution in the price of live cattle trade. Export Supply Chain
Assurance System (ESCAS) promotes livestock trade hence facilitating the transfer of more than
12 million animals to 20 states since 2011 (Aderson, Lloyd, & MacLaren, 2012)
Figure 2: the increase in the supply of livestock
(Source: Behlul et al. 2017)
Ever since the mid-2000s there has existed development in both the worth of cropping
and livestock trades. Cropping exports varies with periodic conditions that affect manufacture
hence wheat remains the main crop traded in value terms. Also in recent years tree nuts and fruits
exportation has developed strongly. Chickpea exports, reasonably small crop in Australia, its
exportation is estimated to double in worth in terms in 2015 to 2016 (Moran, 2012). An instance
of how revenue growth and better trade sincerity in the Asian section have contributed
considerably to growth in trade is Australian’s cherry industry (Moran, 2012). Market entrance

Growth in Australia Agricultural sector for export market 5
was enhanced for cherries to the republic of Korea subsequent a reduction in assessments rates in
January 2015. Market entrance to Thailand for a variety of fruits including cherries improved in
December 2015. Whereas a relatively small business, cherry trade improved to 48 million USD
in 2014-2015, thus up from 13 million USD in 2010-2011. Tasman has been enjoying this as a
particular advantage by fruit-fly unrestricted position and promising air freight responsibilities to
Asian markets. The evolution in the markets for Tasmania and the rest of Australia is
demonstrated below (McClannahan, 1998).
Figure 3: the increase in both the supply and demand for the exported product
(Source: Labonté, 2018)

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Hong Kong China Taiwan Republic of korea Singapore Thailand
0
2
4
6
8
10
12
14
2014-2015 value of cherry export
Series 1 Series 2 Column1
(Moran, 2012).
1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015
0
5
10
15
20
25
30
35
40
Australian export of goods and services to China, 1987-
2015
Series 1 Column2 Column1
(McClannahan, 1998)

Growth in Australia Agricultural sector for export market 7
My recommendation to the Australian policy holders would be to accelerate work with the
nations and zones to more evidently article, corresponding roles and duties for regulating the
cattle export source chain (Moran, 2012). I would also recommend that the policy holders to urge
the countries and territories in mounting and applying as one of their significance hence
enforceable values of welfare to exchange codes of practice besides to incorporate the morals
into legislation. Plus arrange and implement agreement programs to observer and implement the
regulations in the internal phase of agricultural export trade.
In addition, some other recommendations would be that the Australian administration on
the foundation of its latest decisions, approval by industry regime working groups, fixed out a
clear declaration of its intended strategy and operational methods to the livestock trade industry,
stressing the elements of surety of trade and guarantee of animal welfare for shipped Australian
livestock. Nevertheless, the Australian authorities should also consider the role and effective of
exports ethics advisory and it should be revised (Griggs, 2011).
Conclusion
Trade must take the direction in developing the evolution and export chances. Plus the
skills then experiences of the more extremely qualified employees affected by the termination,
may be convertible to other divisions. However, some employees may want to undertake
teaching to access alternative occupation. For instance, a percentage of the work force has low
knowledge, language and numeracy abilities or have the skills battered specifically at industrial
processing. Nevertheless, refining business admission to markets and economics, particularly for
minor and medium size enterprises, this will permit them to differentiate with new product
clarifications that offer outstanding value for cash (Aderson, Lloyd, & MacLaren, 2012).

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References
Labonté, R. (2018). From mid-level policy analysis to macro-level political economy: Comment
on “Developing a framework for a program theory-based approach to evaluating policy
processes and outcomes: Health in All Policies in South Australia.”. Int J Health Policy
Manag.
Behlul, T., Panagiotelis, A., Athanasopoulos, G., Hyndman, R. J., & Vahid, F. (2017). The
Australian Macro Database: An online resource for macroeconomic research in Australia.
Leroy, A., & Pop, A. (2018). Macro-Financial Linkages: The Role of the Institutional
Framework.

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