Growth of Export Market in Australian Agricultural Sector
Added on - 16 Jun 2021
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Growth in Australian Agricultural sector for Export market1NameProfessorInstitutionCourseDate
Growth in Australian Agricultural sector for Export market2In the recent past, the size of the agricultural sector has been going down when comparedto the other sectors in the economy in Australia. The sector is however known to have muchinfluence in the economic growth and its exports too. The composition of the farms’ output hasshifted from livestock production towards crop production[CITATION Loc13 \p 143 \l 1033 ]. Thelatter has shown an effect on how drought impacts the farm output inAustralia. The agriculturalsector is of great concern to both the policy holders and farmers since they are directly affectedby any swings in the sector.The firm sector has been having much influence in the economy, particularly the macroeconomy although it only accounts for about 2.5% of the nominal DGP as recorded in over thelast 10 years. The variation in the weather conditions causes a volatility in the outputs of firmswhich to a greater extend causes noticeable effects on the aggregate GDP.A good example canbe deduced from the last 20 years whereby it has not been uncommon for the farm the alterationsin the production of the firm to minus almost half a point from the per year gross domesticproduct (GDP)[CITATION Mat12 \p 343 \l 1033 ].Rainfall in this current year has been aboveaverage I the eastern region and hence there is a likelihood that the output of the firm will have ahigh contribution in the growth of the GDP. The flooding that occurred recently in the easternparts of Australia causes a downside risk to the outlook of the agricultural products.
Growth in Australian Agricultural sector for Export market3[CITATION And14 \p 143 \l 1033 ].
Growth in Australian Agricultural sector for Export market4Trends in the productionAs of 2010, the farm production estimate was approximately $ 23 billion and thisrepresented a 2% of the nominal GDP. The agricultural industry has been declining in Australiain the last 50 years. The sectors share fell from 15.5% in 1960 to 2.5% in the last 10 years. Therehas been a decline in the rate of employment as compared to the rest of the economy[CITATIONPri13 \p 134 \l 1033 ]. Research shows that 10% of the workforcein Australia was employed inthe agricultural sector in early 1960s as compared to 3% that is employed in the same sector inthe last 10 years. Firm production can be divided into crops and livestock related goods. Therehas been an increase of the share accounted for by farm output coming from crops in the recentpast. The rise as in agricultural output has been attributed to the increase in the importance ofcrops other than grains. The table below shows the farm output in percentage form in the recentpast.[CITATION Fri14 \p 114 \l 1033 ]