Austria's Natural Wealth: Exploring The Country's Resources

Austria is a highly developed, prosperous, and stable EU member state. Its economic system is characterised as a free-market economy with a strong social focus. The country has a diverse range of natural resources, including arable land, beautiful scenery, minerals, and forests. In this paragraph, we will explore the natural resources that have contributed to Austria's economic success and their sustainable management practices.

Arable land, scenery, and minerals

Arable Land

Austria's arable land constituted 16.31% of its total land area in 2015, with the highest percentage of arable land in the country recorded in 2005 at 16.72%. The eastern edge of the country is home to the most productive farmlands, as the terrain in this region is relatively flat. Sugar beets, wheat, rye, fruits, and cereal crops are among the crops grown in Austria. In 2016, Austrian farmers produced more than 3.5 million tons of sugar beets and approximately 5.7 million tons of cereals. The country's agricultural sector has seen a strong trend towards organic farming, with an overall share of 22% of organic farms, placing Austria in a leading position among EU member states.

Scenery

Austria is a mountainous country with one of the largest natural land reserves in Central Europe. The country's breathtaking landscapes, including the capital city and ski resorts in the Alps, have made it a premier tourist destination. In 2007, the tourism industry contributed $18.9 billion to the economy.

Minerals

Austria is a leading producer of natural magnesite, a magnesium carbonate used extensively in the chemical industry. Other important mineral resources include iron ore, non-ferrous metals, lignite, anhydrous gypsum, lead, zinc, and antimony. The country also has the largest underground tungsten ore deposit in the western world, the largest talcum deposit in Central Europe, and the largest siderite deposit globally. The mining sector in Austria extracts high-quality raw materials that are processed into sought-after products worldwide.

Forestry and timber

Forestry and the timber industry are important economic factors in Austria. In 2012, the forestry sector accounted for around 1.8% of Austria's GDP, with a gross value added of 5 billion euros. The forestry and timber industry employed approximately 300,000 people in 2018, with an output of about €2.4 billion.

Austria's vast forested areas provide ample timber resources. The country's forest cover has gradually increased over the years, from 46.6% in 2004 to 46.85% in 2016, or approximately 3,878,000 hectares. This is due to centuries of cultivation and careful management by the Austrian people and government. The Austrian Forestry Act, which includes the principle of sustained yields, governs the management and conservation of the country's forests. The Act ensures the preservation of forests, their functions, and social benefits, as well as the productive capacity of the forest soil and the economic and social functions of the forests.

The forestry and timber industry in Austria is closely monitored and managed. The Federal Ministry of Agriculture, Forestry, Regions, and Water Management plays a crucial role in this regard. They are responsible for surveying and collecting data on timber harvesting through the Timber Felling Report. This data is essential for calculating the gross value-added generated in forestry and is included in the country's Gross Domestic Product.

The timber industry in Austria is closely linked to other sectors, such as paper and board industries. In recent years, wood has also been increasingly used for energy generation. The main consumers of timber in Austria are the sawing, paper, and board industries. Additionally, Austria exports a significant amount of its timber, particularly to Italy.

The Austrian government recognises the importance of its forest resources and has implemented various measures to encourage sustainable forest management. These include governmental support, forest grants, and research initiatives to improve forest conditions and address issues such as air pollution.

Oil and natural gas

Austria has a well-developed natural gas sector, with production fields situated mainly north of Vienna, in the provinces of Lower Austria and Upper Austria. The main industries and big cities are supplied with natural gas from these fields. Additionally, a so-called "city gas," produced from coal, was used to supply Viennese households. However, in the late 1960s, the demand for "clean" natural gas rose, leading to the first import contract for Russian gas in 1968 between Gazprom and OMV AG, the main oil and gas exploration company in Austria. This contract and subsequent ones for additional volumes of Russian and Norwegian gas resulted in the development of a substantial distribution network in Austria.

Austria's internal energy supply is based on a balanced mix of energy sources, with one-third of its energy needs supplied by domestic production and the remainder imported from abroad. In 2022, approximately 35% of oil, 21.3% of natural gas, 31.6% of renewable energies, 7.5% of coal, and 2.2% of combustible waste were used to meet the country's energy requirements.

The exploration and production of oil in Austria are conducted by OMV, RAG, and ADX VIE GmbH, with only one oil refinery located in Schwechat near Vienna, operated by OMV. Austria also serves as a transit country for oil through the Transalpine Pipeline (TAL), which runs from Italy across Austria to Germany.

While oil and natural gas deposits in northeastern Austria are exploited, imports are still necessary to meet industrial and consumer needs. The large oil refinery at Schwechat processes crude oil from Austrian sources, as well as oil pumped through the Vienna-Adriatic pipeline from the port of Trieste, Italy.

Hydroelectric power

Austria's alpine topography, myriad rivers, and year-round rainfall have made it a perfect location for the establishment of its world-renowned hydropower sector. Hydropower is the least volatile of all renewable energy sources in Austria, as it operates largely independently of weather conditions and the time of year. Run-of-river power stations produce power around the clock, while pumped storage power stations store energy and supply electricity to consumers as required. This makes pumped storage power stations ideal partners for wind farms.

Hydropower has become popular with the Austrian population, and there is a clear political will to see it and other renewable generation methods proliferated. The Austrian government is planning several new greenfield, expansion, and retrofitting projects in the near future, including the 130MW Tauernmoos project planned for commissioning in 2025.

Austria has set itself the target of meeting 100% of its annual electricity needs from renewable energy sources by 2030. To achieve this, an additional 27 terawatt hours (TWh) of power will have to be generated from renewables, with 5 TWh coming from hydropower.

Organic farming

Austria has been a pioneer in organic farming for almost 100 years. The first organic farm in the world was registered in Austria in 1927, based on the findings of Austrian researcher Rudolf Steiner. Since then, the country has been recognised as a leader in this field, with over 16% of its farmers and almost 20% of its farmland managed under organic principles.

The Austrian government has long promoted environmentally-friendly farming methods, prioritising quality over quantity. This approach has been driven by consumer expectations and the country's unique climatic and topographical conditions. Austria's mountainous terrain means that only about half the land can be cultivated, and even then, farms tend to be small or medium-sized.

The shift towards organic farming has been supported by government subsidies and the broad acceptance of organic products by large food chains and supermarkets. More than 60% of organic farmers are affiliated with associations that provide advisory and marketing services. As a result, more than 10% of supermarket turnover in Austria now comes from fresh organic products.

The benefits of organic farming in Austria are clear. Even without the use of chemical fertilisers and pesticides, Austrian corn yields are higher than in the United States. By increasing the use of organic substances, promoting crop rotation, and improving animal welfare standards, Austrian farmers have achieved excellent results.

Austria's commitment to organic farming is also reflected in its rejection of genetically engineered crops. The country has successfully prevented their production, preserving sustainable production methods and ensuring quality and hygiene throughout the food production process.

The challenges faced by Austrian farmers are similar to those in other European countries and relate to changes in EU agricultural policy and external threats beyond farmers' control. Nevertheless, Austria's success in organic farming is undeniable, and it continues to be a world leader in this field.

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