Leslie Massey
Australia's agricultural sector is a significant contributor to the country's GDP, with a farm output of $100 billion in 2023, accounting for 5.7% of the GDP. The country's agriculture sector is export-oriented, with 79% of its produce being exported. The beef industry is the largest agricultural enterprise in Australia, with cattle production covering over 200 million hectares. Other major farming industries include sheep, wheat, sugarcane, cotton, and dairy.
| Characteristics | Values |
|---|---|
| Farm gate output | $100 billion a year for a 5.7% share of GDP in 2023 |
| Farmed land | 61% of Australia's landmass |
| Farm businesses | 85,483 (as of June 2018) |
| Farm exports | 79% of total production |
| Farm workforce | 274,900 people (as of November 2024) |
| Major agricultural commodities | Beef, cotton, dairy, dried fruits, forestry, grains, rice, sheep meat, sugar, wool |
| Major crops | Wheat, sugarcane, cotton, rice, tobacco, fruits, corn, sorghum, oilseeds, canola |
| Major livestock | Sheep, beef cattle, dairy cattle |
| Fisheries | Very large-scale industry |
| Environmental impact | 63% reduction in emissions intensity between 1996 and 2013 |
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The beef industry
Beef production covers almost half of Australia, with around 47,000 cattle producers. The industry had 25 million head of cattle in 2016-17, with a national beef breeding herd of 11.5 million head. Cattle production covers an area of over 200 million hectares, and all states and territories support cattle breeding in a wide range of climates. Most of Australia's beef cattle are raised in Queensland, the Northern Territory, and New South Wales. In southern Australia (NSW, Victoria, Tasmania, South Australia, and southwestern Western Australia), beef cattle are often reared on smaller properties as part of a mixed farming or grazing operation. The southern calves are typically reared on pasture and sold at around two years old.
The Australian beef industry includes pasture-based cow-calf systems, a backgrounding or grow-out period on pasture, and feedlot or pasture finishing. Feedlot finishing has become more important in recent years to ensure the eating quality of beef for the relatively small Australian domestic market, and to enhance the supply of higher-value beef for export markets. Australia's beef industry is dependent on exports, with over 60% of production exported, mainly to the United States, Korea, and Japan.
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Sheep farming
The production of sheep requires seasonal labour, and skilled labour shortages have been an issue in recent years. Sheep farming in Australia involves various husbandry practices, such as crutching, drenching, jetting, vaccinating, and lamb marking. The industry benefits from strict animal welfare practices and control and traceability protocols on export livestock.
Australian sheep farms have lower weaning rates than other countries, and farmers face high capital costs for fencing, sheep yards, shearing sheds, and water storage. However, they maintain profitability through direct-to-consumer sales and additional income streams. Sheep farming in Australia has faced challenges, including drought and inventory surplus, high transport fees to market, and competition from lower-cost producers.
The success of Australian sheep farming is facilitated by policies promoting long-term visions and agricultural reforms. Australia's freedom from significant animal diseases, such as foot and mouth disease, contributes to its ability to access export markets and achieve favourable terms. The country's strong animal health and world-leading animal traceability systems are advantageous for the sheep industry.
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Horticulture
The industry is adapting to new challenges, such as increased competition from imported produce, changing produce prices, and climate variability. To maintain success, growers are experimenting with new production methods and focusing on natural resource management. Australia continues to produce high-quality horticultural products that meet the preferences of buyers.
Hort Innovation, a grower-owned, not-for-profit organization, supports the industry by creating value for growers and those across the horticulture supply chain. They invest in research and development, matching government contributions, to help growers become more productive, competitive, profitable, and sustainable.
The Australian Institute of Horticulture (AIH) also plays a crucial role in promoting sustainable horticultural practices, advocating for professional and student horticulturists, and facilitating the exchange of horticultural knowledge worldwide. AIH offers scholarships and initiatives like the Horticultural Netting Program, which assists growers in purchasing and installing protective netting.
The success of Australia's horticulture industry is underpinned by its ability to innovate, adapt to challenges, and maintain the quality of its produce. With the support of organizations like Hort Innovation and AIH, the industry is well-positioned to remain competitive and address the issues it faces.
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Dairy industry
Dairy is one of Australia's most important rural industries, contributing $13 billion to the country's economy. It is the third-largest rural industry in Australia, employing approximately 33,500 people. The majority of milk production occurs in Victoria, New South Wales, and Tasmania, with Australia exporting approximately 30% of its milk production, valued at $3.3 billion in 2022-23.
The history of the Australian dairy industry dates back to 1788 when dairy cows first arrived in Australia with the First Fleet that landed in New South Wales. Two bulls and seven cows made the journey from England and quickly adapted to their new environment, with the first herd growing to 61 cows within six years. By 1800, Australia's dairy population had expanded to 322 bulls and 712 cows, and the country's first commercial dairy was established in Sydney in 1805.
The Australian dairy industry continued to grow and spread, with many small family farms producing milk for their own communities. Over time, these small farms were replaced by larger commercial farms, and the industry saw significant growth following the deregulation of the market in the 1980s. The Kerin Plan, implemented in 1986, began the process of deregulation, and by 2000, the final price supports were removed. This resulted in a significant increase in milk production, with 13,000 dairy farmers producing 10 billion litres of milk compared to the 5 billion litres produced by 23,000 farmers before deregulation.
Today, the Australian dairy industry is committed to sustainability and innovation, with feedlot systems becoming increasingly popular. The industry is governed by the Dairy Code of Conduct, which outlines mandatory requirements for business relationships between farmers and processors. Dairy Australia, the industry-owned national service organization, also plays a crucial role in supporting local dairy farmer needs and promoting the industry's sustainability and profitability.
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Sugarcane farming
Australia is the world's second-largest exporter of raw sugar, with over 80% of its sugar produced being exported in bulk. The industry generates over $2 billion in export earnings, with key markets including South Korea, Indonesia, Japan, and Malaysia. Sugarcane farming in Australia is highly mechanized, with efficient production operations in place for planting, harvesting, and milling.
The crop is well-suited to the tropical climate of northern Australia, and the industry has established sophisticated practices to optimize growth. However, it faces competition from heavily subsidized producers in Europe and America, as well as the highly efficient sugarcane industry in Brazil.
The sustainability of sugarcane farming in Australia is a key concern, particularly due to its impact on the Great Barrier Reef. The industry has been working to reduce the amount of nitrogen and herbicide runoff from farms, which can encourage algae growth and negatively impact marine life in the Reef. The Game Changer program, funded by the Australian Government's Reef Programme, supports sustainable farming practices that benefit both farmers and the health of the Reef.
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Frequently asked questions
The beef industry is the largest agricultural enterprise in Australia, and it is the second-largest exporter of beef in the world.
Major agricultural export commodities include beef, wheat, wine, wool, lamb, cotton, rice, sugar, and sheep meat.
Australian agriculture is characterised by a mix of irrigation and dry-land farming, with livestock grazing being widespread. It contributes significantly to the country's GDP and plays a vital role in social, economic, and environmental sustainability.
The Australian agricultural sector employed 274,900 people on average over the four quarters to November 2024. Sheep, beef cattle, and grain farming is the largest employer, followed by fruit and tree nut growing, and nursery and floriculture production.
