Economics for Business: Analysis of Australian Agricultural Sector

Running head: ECONOMICS ASSIGNMENT
Economics assignment
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ECONOMICS ASSIGNMENT
Executive Summary:
This report has intended to analyze the present scenario of Australia’s agricultural sector for
exporting products in other countries. Hence, to provide some recommendations for the
Australian agricultural sector to develop further, the report has analyzed some newspaper
articles and also has discussed this situation in the light of macroeconomic concepts.

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ECONOMICS ASSIGNMENT
Introduction:
Agricultural sector has contributed significant amount to a country’s national income
by producing and exporting primary products and by generating huge employment
opportunities, which in turn can lead the per capita income of the country to increase further.
Australian agricultural sector has also possessed a significant position from its economic
perspective. The country has gained comparative advantage on wheat, barley, cotton and
meat, which has been exported to other countries for earning higher amount of profit (Lyons
and Lawrence 2017). Hence, this report has intended to analyze the present growth of
Australian agricultural sector to understand its contribution on export market. The
policymakers of this concerned country along with farmers may show their interest on this
report as it can help them to understand about the present trend of agricultural sector based on
some newspaper articles. In addition to this, the report has going to provide some
recommendations related to this concerned sector to improve the export of agricultural
products.
Article Review:
According to the Sydney Morning Herald, Australia has experienced unfavorable
weather, for instance, dry winter and spring along with severe frosts, which have adversely
affected crop production of the country and consequently has forced to reduce the income of
farmers and amount of net export in 2018 (Gray 2018). It has been predicted that the
concerned country is going to produce wheat around 20 million tons, the lowest amount of
production during this decade. This dry weather has affected farmers all over the country
while this condition has become worsen for farmers of Queensland and New South Wales
due to higher temperature. Based on the report of The Australian Bureau of Agricultural and
Resource Economics and Sciences (ABARES), it can be stated that the gross value of entire
farm production is going to decrease by 7% in 2018 compare to the last year’s record, that is,