Australian agriculture has the potential to achieve solid growth going forward by catering to this developing region.

Global population is growing and the world will require more food in the future. The Food and Agriculture Organization of the UN (FAO) estimates that the world demand for agricultural output will increase by at least 60 per cent from 2005-07, towards 2050. 

Achieving this output will be challenging, as land and water resources are becoming scarcer. Australia however is among the countries FAO highlights that have a relatively solid access to good agriculture land. Another key input to increase food production is productivity increases from a higher degree of mechanization in the farming sector.

Given that many developing markets in Asia have a relative scarcity of agricultural land and water compared with Australia, Australian agriculture has the potential to achieve solid growth going forward by catering to this developing region. Although being one of the driest continents in the world, with frequent droughts, water management is an increasingly important issue.

Despite the attractive growth opportunity, the sector is currently struggling with a lack of productivity and competitive advantage - and initiatives are required to capitalize the agricultural opportunity. Increased capital investments in advanced technological farming equipment may likely be a step in the right direction.

The gross value of Australian farm crop production has increased after the financial crisis and the sale of agricultural tractors was strong between 2011 and 2013, albeit with a slight decrease in 2013. Australia’s next big thing may well be within the agriculture industry, which is good news for the equipment industry.

WWL in Australia
WWL in Australia can offer full outbound supply chain solutions for agricultural customers; frequent ocean service from Europe, America and Asia; five processing centres in main ocean ports providing all relevant processing services and storage, inland distribution services to dealer networks and supply chain management to optimize and manage your delivery.


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