Volatility in Australian Agricultural Export Market: An Economic Analysis

ECONOMIC ASSIGNMENT

Table of contents
Introduction................................................................................................................................3
Evaluation of the topic...............................................................................................................3
The essence of the topic.............................................................................................................3
The economic analysis...............................................................................................................3
Views and recommendation.......................................................................................................5
Conclusion..................................................................................................................................5
Reference....................................................................................................................................6

Introduction
Agriculture and farming have been the backbone of any economy in the world. This
has also been the case with Australian economy as well. The country introduced the first
green revolution in the year 1960 and since then it has experienced high growth and returns
from this sector. The innovation in technology also has given the sector the boost to be one of
the most important agricultural exporters in the world. Notably, the production of the
agricultural sector of the country has increased from 1.84 billion tonnes in the year 1975 to
4.89 billion tonnes in the year 2007. Despite the growth and the sophistication of the industry,
the external changes in the market of export have created a problem for the Australian
agricultural sector from time and again.
Evaluation of the topic
The essence of the topic
This issue of volatility in the export market of agricultural goods had impacted the
local agricultural companies of Australia. According to Hunt et al. (2014), the changes in the
technology and systems are very dynamic in the export market which created a problem for
the exporters in the initial years. The absence of quick adaptation and modification following
the market trends often reduced the credibility of the agricultural firms of the country.
However, over the time the agriculture industry of the country has become more flexible.
Kirkegaard et al. (2014) noted that the workers working at any stage and any role in the
industry are more flexible than before. Technological advancement and changes are accepted
skilfully modifying the internal systems adroitly. Therefore the issue is related to the workers
and the owners of firm in agriculture industry of Australia. This is an issue for them as due to
the increase in competitiveness of the export market, lack of adaptation to changes may harm
the market performance of the exporters and hence the agriculture industry of Australia as a
whole.
The economic analysis
The agricultural sector has come up with new production apart from the niche
products which has given the industry further competitiveness in order to combat other
agricultural forces of the world such as the USA. Lyons and Lawrence (2017) highlighted
that the huge growth of the agricultural sector in the country and in the export market, is the
result of increased adaptability of the sector along with the introduction of new products in
the market.
In addition to that, another factor that hindered the growth of the Australian
agricultural market is the high labour cost and the low innovation from the industry of the