Australia’s agricultural output is expected to reach $100 billion ahead of schedule, but the target’s relevance has been questioned against the backdrop of global and domestic challenges.
The target was set in 2020 and the nation has just over four years to hit it, but Agriculture Minister Julie Collins says it is already within reach.
“With Australia exporting now around 80 per cent of our agriculture, fisheries and forestry production to more than 169 markets globally, this is the most diversified our agriculture trade has ever been,” Ms Collins told the AgXchange conference on the Gold Coast on Wednesday.
The $100 billion mark was expected to be exceeded in the current financial year, figures from federal agriculture forecaster ABARES show.
But the target measures value and does not account for costs to farmers.
Asked whether a net value target would be more appropriate, albeit “less sexy”, Ms Collins said the government’s focus was ensuring access to diversified global markets.
“Whether it’s $100 billion or $150 billion or whatever it might be, what we need to do is make sure we have markets for that great produce and that farmers and their regional communities can continue to thrive.”
The US and China are the two biggest markets and while trade relations with China have stabilised, exports to the US face potentially damaging tariffs.
Beef exports are breaking records and were worth $16 billion in the last financial year, while the government is continuing to strengthen access to markets like the European Union, South America and Southeast Asia.
“The world wants our produce and our government is laser-focused on ensuring that we can take advantage of these opportunities,” Ms Collins said.
But exports have always been on track to meet that target and it is probably the wrong indicator to pursue, Australian Conservation Foundation business and nature lead Nathaniel Pelle told AAP.
“It’s a target that’s all about volume and revenue and not really around measuring, for example, how many healthy meals does the agriculture industry provide,” he said.
“These kind of revenue figures based on the price of commodities changing don’t tell you much about whether the actual farmers are doing well.”
The AgXchange conference is held by the National Farmers Federation, whose chief executive Su McCluskey said agriculture was “about the only sector” maintaining productivity growth.
“It’s under one per cent but we are still positive,” she said.
“That’s despite all of the headwinds and droughts and floods that we’ve seen, particularly over the last 12 months, with the challenges around tariffs … despite all of that.”
This AAP article was made possible by support from Landcare Australia and the National Farmers’ Federation.
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