Australia Agriculture Market Size, Share, Growth Analysis Report and Forecast Trends (2024-2032)

Australia Agriculture Market Trends

Australia agriculture market is embracing sustainability through regenerative practices, leveraging digital technology for efficiency, diversifying crops, and livestock for resilience, and focusing on export markets, to meet rising demand and enhance supply chain capabilities. In December 2023, AgriBusiness Connect partnered with Ericsson to explore 5G applications in agriculture, focusing on supply, operations, production, and distribution. The aim was to boost productivity using Ericsson's 5G capabilities, with a target on agribusiness and related sectors, including assistance for processing, packaging, warehousing, and transportation. This forms new trends in the Australia agriculture market.

Australian agriculture is focusing on climate resilience through sustainable practices, responding to consumer demand for locally sourced, ethical food, and benefiting from government investments in research and infrastructure, fostering innovation and enhancing competitiveness in the sector. The Department of Foreign Affairs and Trade states that Australia's total official development assistance (ODA) budget estimate for 2024-25 is USD 221.8 million. Australia acknowledges the importance of climate-resilient agriculture in tackling the challenges of nutrition improvement and supports investments that enhance nutrition-sensitive agricultural practices driving the Australia agriculture market revenue.

Australia Agriculture Market Growth

One major factor propelling the growth of the Australian agriculture market is technological innovations in precision agriculture and data analytics are boosting productivity for Australian farmers. CSIRO developed the Chameleon soil water sensor system with the Australian Centre for International Agricultural Research (ACIAR) funding. Designed for low-cost manufacturing and easy installation, it visually indicates soil moisture levels with colour-coded lights—blue for excess moisture, red for too little, and green for adequate levels. Additional tools measure salt and nitrate levels, aiding farmers in informed decision-making.

The growth of animal husbandry in Australia is fuelled by rising demand for meat and dairy, technological advancements improving productivity, a focus on sustainable and ethical farming practices, and diversification into high-value products like organic and free-range meats, enhancing profitability and Australia agriculture market opportunities.

Australia Agriculture Market Insights

• In 2022, Australia exported agricultural, fish, and forestry goods valued at nearly USD 49.7 billion, as per the International Trade Administration.
• According to industry reports, agriculture represented 2.7% of Australia's GDP and 2.2% of total employment in 2022–23.
• As of December 2023, the Department of Agriculture, Fisheries, and Forestry reported that 55% of Australia's land was designated for agricultural use.

Industry News

April 2024

Australia seed company expanded access to speciality vegetable varieties for growers by improving online services and offering smaller pack sizes. Fairbanks Seeds, which imports non-GMO seeds, partnered with local farmers to select the best varieties for diverse farming needs.

June 2023

The Clean Energy Finance Corporation (CEFC) and CDPQ announced a strategic partnership focused on Australian agricultural land, beginning with the acquisition of a New South Wales farm for row crops. They planned to invest AUD 200 million over three years, with assets managed by Gunn Agri Partners, becoming minority shareholders.

Australia Agriculture Market Drivers

Sustainable Farming Practices

Sustainability is a major trend in the Australia agriculture market, with farmers increasingly adopting regenerative practices that focus on enhancing soil health, reducing chemical use, and promoting biodiversity. Techniques such as cover cropping, crop rotation, and reduced tillage are being utilised to restore ecosystems and improve resilience against climate variability. The Natural Heritage Trust (NHT) serves as the Australian Government’s main investment platform for natural resource management and environmental protection. It has launched a USD 302.1 million Climate-Smart Agriculture Program for 2023-24, aimed at enhancing agricultural sustainability, productivity, and competitiveness. The program promotes emission reduction, and resilience to climate change, and encourages the adoption of carbon and biodiversity incentives while supporting farmers in implementing sustainable practices to protect natural capital and biodiversity.

Technological Advancements

Technological innovation is transforming Australian animal husbandry through precision livestock farming, utilising sensors and data analytics for real-time health and nutrition monitoring. Advances like automated feeding systems and improved breeding practices enhance productivity, reduce labour costs, and promote animal welfare, offering significant Australia agriculture market opportunities. As reported by Australian Dairy 2023, dairy farmers in Australia are implementing robotic arms that apply disinfectant and emollient to cows’ teats post-milking, in conjunction with their automatic milking systems. These innovations help prevent bacterial infections and maintain the health of the cows.

The Australia agriculture market dynamics and trends are improving as farmers increasingly utilize precision agriculture techniques, incorporating GPS, satellite imagery, and drones to optimize planting and irrigation, thereby boosting efficiency and crop yields. Automation and robotics help lower labour costs, while data analytics offer valuable insights for improved resource management. Additionally, smart irrigation systems encourage water conservation and ensure effective crop hydration. In June 2024, a $4.1 million initiative was introduced to promote advanced mechanization technology in the Australian vegetable sector, targeting high input costs and labour issues affecting grower profitability. This program will be executed by Hort Innovation and the Queensland Department of Agriculture and Fisheries (DAF), in partnership with the Global Organization for Agricultural Robotics (GOFAR), which leads the International Forum of Agricultural Robotics (FIRA).

Opportunities in the Australia Agriculture Market

Diversification of Crops

Diversification is becoming increasingly important in the Australian farming sector as growers seek to mitigate risks associated with market fluctuations and climate change. Farmers are diversifying their crop offerings by incorporating high-value and niche products, including speciality grains, legumes, and exotic fruits. This shift not only improves resilience against crop failures but also meets changing consumer demands for a variety of healthy food options, boosting the Australia agriculture industry revenue. In February 2024, the Grains Research & Development Corporation (GRDC) teamed up with the Australian National University (ANU) and industry stakeholders to invest in research aimed at speeding up the creation of climate-resilient crops. The three-year, USD 1.9 million project will concentrate on developing heat-tolerant wheat genetics and understanding how wheat can thrive and yield in high temperatures.

Market Restraints

The Australia agriculture market faces several significant challenges. Climate change causes unpredictable weather and extreme conditions that adversely impact crop yields and livestock health. Labour shortages further complicate productivity, while complex regulations and limited market access obstruct business operations. Rising input costs strain profit margins, and many farmers find it difficult to adopt new technologies, contributing to Australia agriculture market challenges.

Changes in consumer preferences towards organic options challenge traditional farming methods while rising pest and disease threats demand costly management strategies. Moreover, water scarcity limits supply and fluctuations in global markets can disrupt income stability. Tackling these issues is crucial for improving resilience and sustainability in the industry.

Australia Agriculture Industry Segmentation

Australia Agriculture Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Farming
  • Vegetables
  • Fruits
  • Oil Crops Cereals
  • Others
• Animal Husbandry
  • Dairy
  • Meat
  • Eggs
  • Honey
  • Others

 Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Agriculture Market Share

By Type Analysis

Australia's farming sector offers numerous advantages, significantly enhancing public health and economic growth. Vegetables and fruits provide essential nutrients and high demand in the Australia agriculture market, leading to profitable sales and export opportunities. Oil crops contribute to biodiesel production and economic development, while cereals serve as staple foods and animal feed. Additionally, diverse crops like legumes and herbs promote sustainable practices, tapping into niche markets and improving soil health. Overall, these benefits underscore the importance of farming in bolstering food security and sustainability within the Australia agriculture market.

Animal husbandry in Australia is essential for both nutrition and economic stability, significantly contributing to the Australia agriculture industry revenue. The dairy sector provides essential milk products, creating jobs and opportunities for value-added goods like cheese and yoghurt. The meat industry meets strong consumer demand while offering significant export potential. Eggs serve as an affordable and nutrient-rich protein source, with consistent production ensuring availability. Honey not only acts as a natural sweetener but also supports crop pollination. Overall, these diverse practices contribute to job creation, sustainability, and a robust agricultural economy in Australia.

Australia Agriculture Market Regional Insights

New South Wales Agriculture Market Regional Insights

The agriculture industry in New South Wales is witnessing strong growth, largely due to its varied climate and rich soils, which allow farmers to maximise yields and quality. Winter crop production in Queensland is projected to increase by 94%, reaching 3.3 million tonnes in 2024–25, making it the third-highest output ever recorded. This rise is largely attributed to above-average sub-soil moisture in various regions. The area designated for winter crops is expected to reach 1.5 million hectares, a 34% increase from the previous year and 29% above the 10-year average for 2023–24. This year-on-year growth in the area is due to favourable conditions at the start of the cropping season, including sufficient rainfall and high soil moisture during planting.

Queensland Agriculture Market Trends

Queensland plays a vital role in Australia’s livestock sector, with around 13.2 million beef cattle, making it the largest herd in the nation, as reported by the Australian Bureau of Statistics for 2023. The state significantly contributes to beef production, providing high-quality beef for both domestic and export markets, aided by varied climates and grazing practices driving the Australia agriculture industry revenue.

Western Australia Agriculture Market Dynamics

The growth of Australia agriculture industry is significantly driven by Western Australia, which plays an essential role in the state's economy through its substantial production of grains, fruits, vegetables, and livestock. The region is a leading producer of wheat, barley, and canola, while also focusing on wool and beef. Government initiatives support sustainability and boost productivity. In 2024–25, winter crop production is projected to rise by 24% to 18.4 million tonnes, benefiting from improved seasonal conditions and expected to exceed the 10-year average of 17.2 million tonnes, according to the Australian Government.

Competitive Landscape

Australia agriculture market key players include companies focused on sustainable cattle farming for high-quality beef, grain handling and marketing, egg production, diverse agricultural sectors like grain trading and food processing, and agricultural chemicals for pest management, all contributing significantly to the industry’s efficiency and sustainability.

Key Industry Players

Favco Queensland Pty Ltd: Founded in 1994 and based in Queensland, Favco Queensland Pty Ltd specializes in delivering high-quality agricultural products and services, with a strong emphasis on cultivating and distributing a variety of crops. The company prioritizes sustainable farming practices and innovation to effectively respond to market needs.

Mason Bros Vegetable Farms: Established in 1985 in Queensland, Mason Bros Vegetable Farms is a family-owned enterprise focused on growing a wide range of fresh vegetables. The business prioritizes quality and sustainability, supporting local farming practices and ensuring a consistent supply of fresh produce for consumers.

Mildura Fruit Company: Founded in 1947 and situated in Victoria, Mildura Fruit Company specializes in the cultivation and distribution of high-quality fruits, particularly citrus and grapes. The company emphasizes innovation and sustainable methods, making it a key player in the Australian horticulture sector.

Australian Agricultural Company Limited: Established in 1824 and headquartered in Brisbane, is one of the largest beef producers in Australia. The company is dedicated to sustainable cattle farming and manages extensive grazing lands, focusing on producing high-quality beef and driving innovation in the agricultural industry.

Other key players in the global Australia agriculture market report include Lactalis Australia Pty Ltd, Fleurieu Milk Company, Hampson Honey, Sunny Queen Farms Pty Ltd., Egg Farmers Australia, and Pace Farm among others.

Recent Developments

September 2024

SmartSat Cooperative Research Centre, Australia’s leading space research organization, has entered a Memorandum of Understanding with Elders to implement satellite-enabled earth observation technologies in the agricultural sector. This collaboration seeks to enhance emissions monitoring, pest control, and crop productivity, representing a major step forward in incorporating space technology for improved environmental and operational results in Australian agriculture.

September 2024

Rio Tinto is setting up Pongamia seed farms in Australia to test biofuels, focusing on using Pongamia seed oil as a source of renewable diesel. This initiative seeks to promote cleaner fuel options while evaluating growth conditions and oil yields. In collaboration with Midway Limited, Rio Tinto emphasises engagement with local communities and aims to achieve net-zero carbon emissions by 2050.