Growth in Australian Agricultural Sector for Export Market

Running head: ECONOMICS FOR BUSINESS
ECONOMICS FOR BUSINESS
Name of the Student
Name of the University
Author’s Note

1ECONOMICS FOR BUSINESS
Table of contents
Introduction......................................................................................................................................2
Introduction of the issue and Australian government interest in it..................................................2
Economic concepts and theories used for presenting the issue.......................................................3
Recommendations to the policyholders about this issue.................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

2ECONOMICS FOR BUSINESS
Introduction
The present study focuses on the growth in the Australian agricultural sector for the
export market. Historically, the agricultural sector plays a vital role in the growth of the
Australian economy. This sector contributes to near about 12% share of the GDP (Gross
Domestic Product) of this country (Arena 2016). This sector accounts for a quarter of this
nation’s output and also between 70% and 80% of the Australia’s exports. The agricultural
export market of Australia has become diverse in the recent decades with less dependence on the
traditional commodities and more dependence on the processed agricultural commodities. This
role played by the Australian government and the commission in growth of this nation’s
agricultural sector is also discussed in this report. This study is further analyzed with the help of
economic concepts and theories. Furthermore, recommendations to the policymakers on the
actions to be taken for this issue are also explained in this paper.
Introduction of the issue and Australian government interest in it
This nation exports about two-third of its total agricultural production yearly that
accounts for near about 15 per cent of the value of this country’s merchandise exports.
Moreover, agricultural exports generally face tariffs in this nation’s export markets that are
considerably higher than that imposed on the non-agricultural products (Evans and Honkapohja
2012). Australia’s agricultural trade is also affected by huge range of non-technical as well as
technical non-tariff measures (NTMs) including their government policy interventions and
regulations. However, the present issue is that the agriculture exports of this nation are losing its
market share. The Australian government as well as commission takes main interest in the
enhancing the growth of Australian agriculture for the export market (Taussig 2013). The