Economics for Business Assignment Sample

• Subject Code : HI5003
• University : Holmes Institute My Assignment Services is not sponsored or endorsed by this college or university.
• Subject Name : Business Economics

Written report and presentation

Industry Background 

Australia is a key agricultural producer and exporter in the world and it has employed 325,300 people in the industry. This industry earns $155 billion in a year as well as contribute 12 per cent share in GDP growth. Australian agriculture industry cover 61 per cent land farm and Australian farmers own 135,997 farms. In Australia, 64 per cent of farms are owned by the state and 23 per cent are owned by an indigenous group of Australia. In the country mix irrigation and dry land, framing takes place and lead the world with the 35 million hectares which are 8.8 per cent of Australia’s farming land.  In Australia majorly, cereals, grain legumes and oilseeds are produced on large scale. However, wheat is the key cereal which is produced on a large scale as well as provides value to the Australian economy (Arioli, Mattner, and Winberg 2015).

Similarly, sugarcane is also the important crop which produces in tropical Australia.  Moreover, the Australian agriculture industry also includes horticulture, viticulture industry and animal products.  In the context of the horticulture industry, it offers fresh fruits and vegetables such as oranges, apple, bananas, chestnuts, carrots and potatoes etc. Viticulture includes the export of wine as Australia has the largest wine industry. Further, it also includes animal products such as beef product, lamb met industry, dairy and pork products etc. In addition to this, the Australian agriculture industry faces some challenges such as political issues, technical issues and environmental issues. However, the major issues face by Australia's agriculture industry are water security, low soil fertility, weeds, climate change etc. which are caused by global warming (Pagotto and Halog 2016).It has been found that Australian agriculture industry is one of the most significant trade-exposed areas of the economy. Overall, In Australia, agriculture industry plays an important role which contributes towards the social, economic and environmental sustainability. 

Market Structure 

In the world, Australia is the vital producer of the agriculture products which involve wool, wheat and beef.  Though, the key commercial crops of Australia are grains oilseed and legumes.  In 2010-2011, it has been found that $60 billion revenue was generated form farm production and $45 billion was generated from its exports. The agriculture industry in Australia provides vast opportunities because 70 per cent of Australian agriculture production is exported to other countries (ABARES 2019). Further, process food exports have also increased the agriculture market opportunities.  According to the report in 2016-17, 304200 people are employed in Australian agriculture as well as provide 1.6 million jobs to an Australian citizen. Additionally, 85,681 farm businesses are owned and operated in Australia.  Australian Industry contributes 3 per cent to total gross domestic product and the gross value of Australia agriculture industry in 2016 -17 was $ 60 billion. (ABARES 2019). Moreover, Australian farmers earn $44.8 billion profit from the export of agriculture products.

Farmers of Australia are very competitive through their productivity growth at a global level. It has been observed that after 1974-75 the farm sector has developed rapidly and out-performing compare to other sectors.  However, the Australian agriculture industry is operated in an open economy with no support as well as with no domestic price support. Though, the Australian agricultural industry gets influenced by commodity pricing and underlying trends. Overall, the agriculture sector of Australia gets a strong comparative advantage in agriculture production. Moreover, the industry effectively uses the farm size, geographical area, use of technology and employees skills. Apart from this, the Australian agriculture industry is one of the productive and competitive sectors compare to others which effectively contribute towards the economy.  The structure of agricultural industry reflects the market situation.  The farm size has also increased which help to improve the agricultural productivity from a various medium such as technology, flexible labour management etc.  

References

ABARES. 2019. ABARES Snapshot of Australian Agriculture..http://www.agriculture.gov.au/abares/publications/insights/snapshot-of-australian-agriculture

Arioli, T., Mattner, S.W. and Winberg, P.C. 2015. Applications of seaweed extracts in Australian agriculture: past, present and future. Journal of applied phycology, 27.5. 2007-2015. 

Pagotto, M. and Halog, A., 2016. Towards a circular economy in australian agri‐food industry: an application of input‐output oriented approaches for analyzing resource efficiency and competitiveness potential. Journal of Industrial Ecology, 20(5), pp.1176-1186.