Growth in Australian Agriculture Sectors - MyAssignmenthelp.com

Question: Discuss about the Growth in Australian Agriculture Sectors. Answer: Introduction Australia produces various agricultural products. The major agricultural product in Australia include wheat, beef and wool. The main commercial crops produced in Australia are oilseeds, grains, legumes, and crops like sugar, rice, grapes, potatoes and bananas. The sector has made significant contribution in export. Agriculture in Australia provides employment to large number of people. The large agricultural sector gives the nation a comparative advantage in the international market. Australian agriculture constitute rapid growth because of its ability to adapt technological innovation. Since green revolution, the production of crops increased by more than double (australianimmigrationbook.com.au. 2017). The efficient agriculture industry in Australia keep the farmers globally competitive. Essence of the chosen article The chosen article stresses on the fact that natives in Australia have become unaware of the sources of food and fibre. The economic contribution of farms sector cannot be ignored. Agriculture is an essential component in daily meals. Agriculture has significant contribution in economic property of Australia. The sector alone provide nearly 1.6 million jobs in Australia. In the supply chain of agriculture numerous there are numerous employment opportunities. The valuation of primary sector in Australian economy is increasing beyond its expectation. The approximate value of this sector in 2016 records increase of 2.4 percent. The sector has marked an outstanding performance in the farm production by 27.6% over the years. In the last quarter of 2016, agriculture has accounted 10 times of its average contribution to the Australian economy. Half of the countrys growth is contributed by this sector. The sector helps to maintain a standard growth rate for the economy. Depending on agricultural Australia is successful in maintain a positive-growth rate. The speculative growth of Australian agriculture accelerates the economic growth rate. The positive effect of Australian agriculture is reflected in the region Tasmania. In 2015-16, Tasmania recorded 3 percent value of Australian agriculture, occupying only 1 percent of nations land (themercury.com.au 2017). Despite significant growth and economic contribution of agriculture, there is a general misconception among people regarding this vital sector. It is generally assume that agriculture benefits only people directly related to this sector. The sector provides job supports to sectors including retail, logistics, food service, finance and more. To increase awareness of people regarding the crucial sector, National Agricultural Day is celebrated in Australia. The production growth of Australian agriculture draws support from people for this sector. The increasing productivity of in agriculture attributed from implementation of advanced technology. The innovative nature of Australian farmers helps to overcome challenges faced in production, geographic location and resource constraint (theconversation.com 2017). Application of innovative technology and efficient farm production plays an important role to fight the difficulties arising in the sector and ensure farming to remain as important as it is in the future. Economic theories and concept Productivity growth in Agriculture Productivity growth measures output per unit of input. Given fixed amount of input if output increases then a productivity growth is realized. Demand and supply are mostly discussed microeconomic concepts. Both demand and supply has direct relation with price. With an increase in price supply, increases and a price decline cause a decrease in supply (Mar, Hyslop and Fabling 2017). However, there are factors other than prices that causes a change in supply captured by a shift in the supply curve. Advancement of technology is one factor that causes an increase in supply. The Agricultural sector in Australia is now recognized as an innovative and efficient industry of the nation. Using limited input, the nation can produce a large amount of output (Sheng et al. 2015). The smooth flow of supply helps to keep prices at an affordable level. Figure 1: Productive growth and increased supply (Source: As created by Author) The above figure explains how the productivity growth raises supply and keep the food prices at a low level. The increase in supply is indicated from a rightward shift of the supply curve from SS to S1S1 (Varian 2014). This brings the prices down from P* to P1. Increasing demand for food and growth of food In addition to supply another force affecting agricultural market is the force of demand. Demand changes in response to several factors. Food is fundamental need for human survival and this makes agriculture as the primary sector of the economy. With increasing population, the demand for food is growing rapidly (futuredirections.org.au 2017). Australia is one of the major suppliers of food in world. A significant share of food demand in most of the Asian countries are met by Australia (Chandler 2014). Besides, the export demand increased domestic demand puts heavy pressure on the agricultural demand. Figure 2: Increase in demand and impact on price (Source: As created of Author) As shown in figure 2, the pressure on demand creates an upward pressure on price. To control the price supply must be increased and this is possible only through increasing productivity growth. Recommendation Agriculture is a vital sector in Australia. In addition to fulfilling domestic food demand Australia exports the surplus in different nation across the world. Despite of being an important sector, Agriculture receives lowest amount of subsidy. The government should assist Agriculture in forms of subsidy to help farmers and bears the cost for improving productivity and inputs. People in Australia often gets unware of the importance of this sector. The sector not only meet food demand of the nation but also benefits people outside the primary sector. Therefore, government should increase awareness among people regarding the economic importance of agriculture. Conclusion The report considers the growth of agriculture in Australia. Australia has a strong agricultural sector. This sector not only supplies food to people in the nation but also has a significant contribution in export earnings. The sector is responsible for employing numerous people in its supply chain management and other related industries. However, people often get disconnected from economic importance of the sector. Hence, awareness should be increased. Also, government assistance is minimal for agriculture. Government should help the sector to flourish more and contribute to nations prosperity. References Australianimmigrationbook.com.au. (2017).An Overview of Australian Agriculture | The Australian Immigration Book. [online] Available at: https://www.australianimmigrationbook.com.au/business/overview-australian-agriculture [Accessed 5 Dec. 2017]. Chandler, L., 2014. Australian agricultures role in meeting increased Asian demand.Ethics, efficiency and food security: Feeding the 9 billion, well, pp.32-41. Future Directions International. (2017).Consumption Patterns and Food Demand in Australia to 2050 - Future Directions International. [online] Available at: https://www.futuredirections.org.au/publication/consumption-patterns-and-food-demand-in-australia-to-2050/ [Accessed 5 Dec. 2017]. Mar, D.C., Hyslop, D.R. and Fabling, R., 2017. Firm productivity growth and skill.New Zealand Economic Papers,51(3), pp.302-326. Sheng, Y., Zhao, S., Nossal, K. and Zhang, D., 2015. Productivity and farm size in Australian agriculture: reinvestigating the returns to scale.Australian Journal of Agricultural and Resource Economics,59(1), pp.16-38. The Conversation. (2017).Agriculture in Australia: growing more than our farming future. [online] Available at: https://theconversation.com/agriculture-in-australia-growing-more-than-our-farming-future-22843 [Accessed 5 Dec. 2017]. Themercury.com.au. (2017).Missing the essential ingredient. [online] Available at: https://www.themercury.com.au/news/opinion/talking-point-missing-the-essential-ingredient/news-story/3869366f5bea84da7a35689d6766cff7 [Accessed 5 Dec. 2017]. Varian, H.R., 2014.Intermediate Microeconomics: A Modern Approach: Ninth International Student Edition. WW Norton Company.