Australian Agriculture

1. Australian Agriculture ‘Gotta see it - to believe it

4. GEOGRAPHY • Originally part of Gondwanaland • “Old”, relatively flat island continent • Highest point Mt Kosciusko – less than 2300 meters altitude. • Large areas do not drain to the seas, but internally. • Bit smaller than USA, China, Brazil • Good comparison location Brazil and Australia via “Tropico de Capricornio”

5. CLIMATES: • Temperate, sub-tropical, tropical, semi deserts, deserts • (South) western winds as well as tropical cyclones • Large part of continent under influence of “El Niño, La Niña” = reverse naming from SAM • Winter dominated rain in the south, summer dominated rainfall in the north. • Rainfall very variable and very unpredictable. Particularly important issue in the regions between 400 and 700mm • Central and western part of the continent (semi) deserts.

6. Australia At A Glance – Climate & Rainfall The island continent of Australia features a wide range of climatic zones, from the tropical regions of the north, through the arid expanses of the interior, to the temperate regions of the south. Australia is the world’s second-driest continent (after Antarctica), with average (mean) annual rainfall below 600 millimetres (mm) per year over 80% of the continent, and below 300 mm over 50%. Summers are hot through most of the country, with average January maximum temperatures exceeding 30 degrees Celsius (°C) over most of the mainland except for the southern coastal fringe between Perth and Brisbane, and areas at high elevations. Winters are warm in the north and cooler in the south, with overnight frosts common in inland areas south of the Tropic of Capricorn; only at higher elevations do wintertime temperatures approach those found in much of northern Europe or North America.

7. AGRICULTURAL PRODUCTION: • Export is 3 to 4 x domestic consumption = 70 million people equivalent • Comparing with most of the world this is low on an area equivalent basis • 40% area of continent no economic use plus 40% only extensive grazing = 80%. 90% production on 10% of the landmass • Agricultural exports in order of value: red meat (beef, lamb), grains (especially wheat, barley), wool, dairy, wine, cotton, sugar cane, rice. • Export of products mentioned above is at least 65% and for some is 99% • From east to centre: Coastal, mountains, tablelands, slopes, plains, semi-desert, desert.

8. Australian Agricultural Commodities – Crop Value Click to open ABS Source Document (Ref Page 11)

9. Australian Agricultural Commodities – Livestock Click to open ABS Source Document (Ref Page 11)

10. Australian Agricultural Commodities – Livestock Products Click to open ABS Source Document (Ref Page 11)

11. Family enterprises = 80% production • Owner is usually also the manager. • Live on farm – not in town/city • Women often involved with the farm (accounting, general support as well as working/managing). • Average age farmers is around 57 years and rising • About 110.000 professional farming enterprises (not including “hobby farmers”. • Steady decrease in number of farming enterprises • Especially for smaller farmers, off farm income is becoming more and more important. Farmers

12. Images of Australia NEW SOUTH WALES NORTHERN TERRITORY WESTERN AUSTRALIA SOUTH AUSTRALIA TASMANIA VICTORIA QUEENSLAND

13. ORGANISATION • Development sequence: Colony - States - Commonwealth. • Power of Commonwealth has been defined by the States. • States do most of the practical services. • The British Crown is represented both on State as well as Federal Level. • Democracy = voting on 3 government levels.

14. Imports: services (incl. tourism), manufactured goods. • exports: services (incl. tourism), minerals, agricultural. • High labour cost. • High add-on labour cost (super annuation, accident insurance, often 4 weeks annual holidays, holiday loading. • Generally employers will state that scarity of GOOD labour is a major business expansion limitation. • Untill 1980s the Australian economy was characterized by “boom / bust” cycles. Less so since the economy is more diversified now. ECONOMY FEATURES:

15. FEDERAL GOVERNMENT FOCUS Quarantine – AQIS Customs Defense (huge distances, 3 oceans = transport & communications high cost for infrastructure Air / sea transport legislation Collecting of personal, company taxes (partially on behalf of State governments) GST (=IVA) on nearly all goods/services.

16. STATE GOVERNMENT FOCUS • Health – medicare – contribution taxes – private– pay extra • Education • Police • Roads, licences (drivers, vehicles, most permits all type of life • Agriculture practical services + research, extension services (but less and less).

17. ISSUES: • Soils have limited fertility • Limiting factor is water that is why Australia has natural production limits • The ancient inland sea in combination with land clearing means salination issues • Global warming will probably have impacts: temperature / rainfall.

18. Australia At A Glance - Population

19. POPULATION: • Concentrated in the 5 State Capital Cities (60%) or in S E corner of continent (also 60%). • Nearly 90% of population lives within 50kms from the seaboard. • 2 % indigenous population. • 27 % of population born overseas • Religion : Anglican, catholic • Minorities: arrived in waves. No one is dominating • Indigenous population arrived during ice ages (low ocean levels), they had no permanent agriculture and no livestock (hunters and gatherers).

20. Australia At A Glance - Land Mass Australia comprises a land area of almost 7.7 million square kilometres. This land area is almost as great as that of the United States of America (excluding Alaska), about 50% greater than Europe (excluding the former USSR) and 32 times greater than the United Kingdom.

21. FINANCIAL SITUATION • Sharemarket from 7100 to 4000 points • High personal debts (mortgages, credit cards) • Not greatly exposed to sub prime loans • No oversupply of houses • Little federal government debts • Debts with State government “qangos” • Aus. seen as commodity producer, so dollar has dropped

22. GOVERNMENT MEASURES • Guaranteed savings at Aussie banks • No guarantee to non banking investment schemes (but is trying to soften the blow by allowing limited redemptions ) • Lowered formal interest rates • Package to stimulate spending in the economy (via increased pensions for example, but not via increasing unemployment benefits) • Planning to increase spending on infra-structure projects