Agricultural exports are set to double by 2050 if the industry seizes on key opportunities, according to a new report released by ANZ.

 

Australian agricultural exports could increase to $710 billion, while New Zealand could grow its sector by as much as NZ$550 billion by 2050 if ‘targeted actions are taken’ according to the ANZ insight report.

 

The Greener Pastures: The Global Soft Commodity Opportunity for Australia and New Zealand shows that demand driven by the Asian markets are set to provide a boom to exporters.

 

Key findings of the report include:

  • Rising incomes and changing diets in developing countries means the world will demand at least 60 per cent more agricultural output by 2050 compared to 2005–07.
  • Australia and New Zealand could stand to gain an additional A$710 billion and NZ$550 billion respectively in agricultural exports between now and 2050. This could increase further to A$1.7 trillion and NZ$1.3 trillion respectively with favourable conditions and targeted actions.
  • A$1 trillion and NZ$340 billion in additional capital needed to drive production growth and support farm turnover in Australia and New Zealand respectively.
  • Intense competition for the opportunity including from new agricultural players such as including Brazil, Malaysia and Indonesia.
  • Agricultural industries in Australia have lost momentum while New Zealand is heavily reliant on its dominant dairy industry.
  • Targeted action by policy makers, industry participants and investors are needed to focus on the growth of volume and value based on building competitive strengths in both Australia and New Zealand.

 

Commenting on the release of the report, ANZ Deputy CEO Graham Hodges said: “ANZ believes that Australia and New Zealand have the resources and the geographic proximity to benefit strongly from Asia’s growing population and expanding middle class.

 

“This report shows that the size of the prize is significant. Agricultural exports in Australia and New Zealand have the potential to increase by A$710 billion and NZ$550 billion respectively to 2050. With favourable conditions and targeted actions the opportunity could be significantly higher,” he said.

 

Recommendations set out in the ‘Greener Pastures’ report include steps to rejuvenate agriculture by:

  • Selectively reinvigorating industries with high potential that have lost momentum, for example Australian grains and oilseeds.
  • Sustaining and strengthening high growth industries, for example dairy in New Zealand.
  • Fostering new agricultural industries around high growth opportunities, for example new varieties of soy, safflower and bio-fuels in Australia.
  • Strengthening the quality and impact of extension services to increase yields and attract further investment into the sector

 

 

The full report is available here

http://www.media.anz.com/phoenix.zhtml?c=248677&p=irol-insight