Lexi Webster
Agriculture is one of the most productive and internationally competitive sectors of the Australian economy, contributing to the country's social, economic, and environmental sustainability. Australia's agricultural sector is characterised by its integration of science and technology, adaptability, and strong research capabilities, enabling it to maintain its competitiveness in the global food market despite challenges such as low levels of subsidies and difficult production systems. The country's farmers have embraced technological advancements, sustainable land practices, and consumer trends, positioning Australia as a premier food exporter with a diverse range of crop and livestock products. With approximately 137,000 active farms, the industry provides employment to a significant portion of the Australian population, showcasing the importance of farming in the country's present and future.
| Characteristics | Values |
|---|---|
| Number of agricultural businesses | 85,483 (as of June 2018) |
| Percentage of Australian agricultural businesses that are Australian-owned | 99% |
| Percentage of Australian agricultural land owned by Australians | 88% |
| Gross value of Australian agriculture in 2018-19 | $62.208 billion |
| Top three agricultural commodities produced nationally ranked by export value in 2018-19 | Cattle and calves ($9.485 billion), Wool ($4.159 billion), Wheat ($3.676 billion) |
| Percentage of food and fibre Australian farmers produced in 2018-19 that was exported | 79% |
| Percentage of Australia's landmass occupied and managed by agricultural businesses | 51% |
| Percentage of land used for grazing out of the 394 million hectares of land operated by agricultural businesses in Australia | 87% |
| Average amount spent on food per person in Australia in 2015-16 | $4,739 |
| Percentage increase in the above amount over the previous six years | 16% |
| Percentage of Australia's workforce that the agricultural sector directly accounts for | 4% |
| Number of people employed by the Australian agricultural sector over the four quarters to November 2024 | 274,900 |
| Number of active farms in Australia | 137,000 |
| Percentage of farms that are family farms | 85% |
| Percentage of farms that are dairy farms | 95% |
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What You'll Learn
Australia's agricultural economy
Agriculture is one of the most productive and internationally competitive sectors of the Australian economy. In 2018-19, the gross value of Australian agriculture was $62.208 billion, with 79% ($49.2 billion) of the $62.2 billion worth of food and fibre produced being exported.
The agricultural sector directly accounts for 4% of Australia's workforce, employing 274,900 people on average over the four quarters to November 2024. This number rose by 6.7% from the previous year. The largest employer by industry is sheep, beef cattle, and grain farming, followed by fruit and tree nut growing, and nursery and floriculture production.
Australia's agricultural industries are highly productive due to their ability to adapt, innovate, and collaborate. For instance, the integration of science and technology into management practices has allowed Australian agriculture to stay ahead of international competitors, achieving average productivity growth of 2.7% per year. This includes the use of affordable and efficient farming equipment, such as Chinese small farm tractors, which has lowered initial costs for farmers.
Additionally, Australia's agricultural industries have responded to consumer demands for healthier and environmentally friendly products. There is a growing trend of producing vegetables hydroponically, without the use of soil, to cater to health-conscious consumers. Farmers are also implementing natural resources management, using more organic fertilizers, seeds, and other products to reduce the negative effects of greenhouse gas emissions and improve soil fertility.
Australia's agricultural activity is influenced by climate, water availability, soil type, and proximity to markets. Livestock grazing is widespread, while cropping and horticulture are generally concentrated in areas relatively close to the coast. The sustainable management of land is crucial, as agriculture accounts for over half of Australia's land use.
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The role of science and technology
Science and technology play a crucial role in shaping the future of farming in Australia. The integration of scientific knowledge and technological advancements has been a key aspect of modern agriculture in the country. This integration cuts across diverse areas, including plant and animal biology and behaviour, chemistry, statistics, land resource management, genetics, climate science, and economics.
Australia's agricultural sector has benefited from the rapid development and progress in technology and science, which has led to a reduction in initial costs, particularly for farming equipment. The availability of affordable and durable agricultural machinery, such as cultivators, balers, combine harvesters, and small farm tractors, has improved farmers' access to necessary tools. This has contributed to increased efficiency and productivity in the sector.
Additionally, Australia's agricultural R&D (Research and Development) capability is recognised as one of the best in the world. The country has a strong research base and a highly skilled and innovative farming community. In 2017-18, Australian farmers invested $338 million in research and development through industry levies. This investment in RD&E (Research, Development, and Extension) has resulted in significant long-term benefits, with a $1 public investment generating $12 in benefits for farmers.
The application of science and technology has been essential in addressing the challenges posed by Australia's unique agricultural conditions, such as dryland farming on low-quality soils with continual climate variability. For instance, farmers have adopted sustainable land practices, including stubble retention, minimised tillage, and optimised use of pesticides and fertilisers. Australia's experience in dealing with difficult and low-input production systems will be crucial in addressing regional food security concerns, especially with the predicted impact of climate change on agricultural production regions.
Furthermore, science and technology have influenced the types of farming practices and crops in Australia. For example, hydroponics, a method of growing vegetables without soil, has gained popularity due to consumer preferences for environmentally friendly and safe food with low chemical inputs. The integration of science and technology in Australian farming has contributed to increased productivity, sustainability, and adaptability, positioning the country as a premier food exporter and ensuring food security for its population.
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Environmental sustainability
Australia's agricultural sector is a key contributor to the country's social, economic, and environmental sustainability. The sector employs around 275,000 people on average annually, with sheep, beef cattle, and grain farming being the largest employers.
The country's agricultural activities are influenced by climate, water availability, soil type, and proximity to markets. With agriculture occupying over half of Australia's landmass, sustainable land management is crucial. Many Australian farmers have adopted sustainable practices, such as stubble retention, minimised tillage, and optimised use of pesticides and fertilisers. The integration of science and technology has been pivotal in this regard, with agricultural industries benefiting from advancements in areas such as plant and animal biology, chemistry, and environment and climate research. This has resulted in increased productivity and efficiency, enabling Australia to remain competitive in the global food market despite low levels of subsidies.
Australia's experience in dealing with difficult and low-input production systems will be crucial in addressing regional food security and adapting to the impacts of climate change. The country has already made significant contributions in this area, with its agricultural R&D capability ranking among the best in the world.
Additionally, Australia's biosecurity system plays a vital role in reducing the risk of exotic pests and diseases, thereby maintaining agricultural productivity and access to valuable export markets. The country's ability to innovate and adapt to consumer needs is also evident in the growing popularity of hydroponics, a method of growing vegetables without soil, which aligns with the health and environmental consciousness of Australian consumers.
Overall, Australia's agricultural sector demonstrates a commitment to environmental sustainability through the adoption of sustainable land management practices, integration of technology and innovation, and proactive responses to the challenges posed by climate change and consumer demands.
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Employment in the agricultural sector
Agriculture is a vital sector for Australia, contributing to the country's social, economic, and environmental sustainability. It accounts for over half of Australia's land use, with agricultural businesses occupying and managing 51% of the country's land mass. The sector's gross value was $62.208 billion in 2018-19, and while this was expected to fall to $59.353 billion in 2019-20 due to drought, the industry remains a significant contributor to the Australian economy.
The Australian agricultural sector has undergone significant changes in terms of employment over the past two decades. While there has been an overall downward trend in the absolute number of people employed in agriculture, with a 19% decrease between 1996 and 2016, certain sub-sectors have experienced growth. The meat and poultry processing sector, for example, has seen significant employment growth between 2001 and 2016, while sectors such as vegetables, other livestock (deer, horses, bees), mixed grain-livestock, and intensive industries (pigs and poultry) have witnessed modest employment growth during the same period.
Farmers and farm managers remain the most common occupational category in the agricultural sector, accounting for 56% of all persons working in the industry. However, the sector requires workers with diverse skill sets, including business management, finance, sales, distribution, marketing, research, technical trades, and plant operations. The integration of science and technology into management practices has become a key aspect of modern agriculture, with agricultural industries relying on knowledge from diverse fields such as plant and animal biology, chemistry, statistics, genetics, and environment and climate.
Labour is a critical input to Australian agriculture, and the sector employed an average of 274,900 people over the four quarters to November 2024, according to the Australian Bureau of Statistics (ABS) Labour Force Survey. This number represents a 6.7% increase from the previous year but a 1.8% decrease from a decade earlier. The more comprehensive ABS Labour Account, which includes short-term non-residents and secondary jobs, estimates an average of 368,000 people employed in agriculture over the four quarters to September 2024. It is important to note that official statistics may not fully capture seasonal workers, labour hire workers, and the agricultural workforce beyond the farm gate.
The median earnings in the agricultural sector are $1,372 per week, which is lower than the median earnings across all industries of $1,700 per week. The volatility in employment numbers and the reliance on seasonal workers have led to the emergence of recruitment agencies specialising in agricultural staffing, such as Agri Labour Australia, which provides short and long-term labour solutions for agribusinesses across the country.
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Australia's exports
Australia's agricultural exports have been a significant contributor to the country's economy and social sustainability. In the 2022-23 financial year, Australia exported a record $80.4 billion in agriculture, fisheries, and forestry (AFF) products, marking a 17% increase from the previous year. This success is partly attributed to record crop production and the growing demand for Australian grain globally.
The top three agricultural commodities produced nationally, ranked by export value in 2018-19, were cattle and calves ($9.485 billion), wool ($4.159 billion), and wheat ($3.676 billion). Australia's exports also include a diverse range of other products, such as beef, cotton, dairy, dried fruits, forestry products, grains, rice, sheep meat, sugar, and wool.
The country's biosecurity system is another crucial advantage, reducing the risk of exotic pests and diseases. This freedom from major pests and diseases provides Australian agricultural industries with a significant trade advantage, helping to maintain access to valuable export markets and sustain productivity.
In recent years, Australia has seen growth in exports to various countries. For instance, exports to Indonesia increased by 25% to $4.9 billion, driven by increases in wheat and cotton exports. The Australia-India Economic Cooperation and Trade Agreement (ECTA) has also led to substantial increases in exports of lentils, cotton, almonds, oranges/mandarins, broad beans, and seafood to India. Additionally, the Korea-Australia Free Trade Agreement (KAFTA) has resulted in significant growth in sheep and goat meat exports to the Republic of Korea.
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Frequently asked questions
Agriculture is one of the most productive and internationally competitive sectors of the Australian economy. The gross value of Australian agriculture in 2018-19 was $62.208 billion. The sector employs 274,900 people on average and accounts for over half of Australia's land use.
The top three agricultural commodities produced in Australia, ranked by export value in 2018-19, are cattle and calves ($9.485 billion), wool ($4.159 billion), and wheat ($3.676 billion). Other key agricultural products include beef, cotton, dairy, dried fruits, forestry, grains, rice, sheep meat, sugar, and wool.
Australia faces challenges such as low levels of subsidies, downward trends in commodity prices, and rising input costs. Additionally, the agricultural sector is vulnerable to the impacts of climate change, particularly in regions with low-quality soils and variable climates.
Australia has a strong capability in climate change research and is implementing sustainable land practices. The integration of science and technology, along with efficient farm management practices, positions Australia competitively in the global food market. Australia's ability to adapt and innovate will contribute to a strong and prosperous future in agriculture, ensuring sustainable food security.
