SA Agriculture, punching well above it's weight to the tune of $20 billion plus

By: "Farm Tender" News
Hay & Fodder News
Feb 07, 2019
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By Tim Burrows

South Australia’s food and wine industries have been acknowledged for their outstanding contribution to the state’s economy as revenue reaches record levels, according to the State Government’s 2017-18 Primary Industries Scorecard released last week.

Figures from the Scorecard show the combined gross food and wine revenue increased by two per cent compared to the previous year, to reach an historic high of $20.3 billion.

The Scorecard reveals the annual performance of South Australia’s grains, livestock, horticulture, wine, seafood, forestry and dairy sectors and was this year expanded to include forestry, wool, skins, seeds and animal feed.

It confirms that South Australia’s farming and agribusiness sectors are a vital part of the state’s economy. Spread across the state, our grains, livestock, horticulture, wine, seafood, forests and dairy sectors are significant contributors to our state economy and our exports.

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The Scorecard is based on the national figures compiled by ABARES which presents the most accurate picture of the state of primary production in the state, so it is a snapshot of the past rather than an indicator of what is happening now.

Nevertheless, the story it tells is certainly an interesting one.

Primary industries and agribusiness revenue totalled $14.8 billion in 2017–18. Direct international exports grew 3.4% to reach $6.7 billion, led by an increase in the value of wine exports. The wool industry saw the strongest growth due to record prices this year. The dairy and forestry sectors also showed increases in production value.

The value the industry contributes to the state includes:

· the direct economic contribution of primary industries and processing

· the economic contribution of supply chain inputs to these sectors (examples include transport, fertiliser, packaging)

· the economic contribution of the employees of the direct industries and the supply chain.

These measures show that primary industries and agribusiness contribute $19.7 billion to Gross State Product. The sector is also a major employer, particularly in regional South Australia, accounting for 152,000 jobs.

Following the record field crop harvest in 2016-17, seasonal conditions impacted the overall 2017-18 result, with primary production value down 7%, and total primary industries and agribusiness revenue down 3%.

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Results for the full food and wine industry supply chain were up overall. Combined gross food and wine revenue was up 2% to reach $20.3 billion, with increases in wine exports and local food and wine retail and food service sales. The biggest decreases across the chain were reduced interstate and international food commodity exports, reflecting the poor season for grain production.

Our primary industries are the state’s largest export sector, accounting for over half of the state’s merchandise exports.

Direct international exports grew by 3.4% overall to $6.7 billion, led by an increase in the value of wine exports by 26%, with most of the growth in exports to China reflecting increased export volumes and higher prices overall. Overall, the share of primary industry exports fell marginally, from 56% to 55% of the state’s total merchandise exports.

These figures show that South Australian farmers and agribusinesses have clearly demonstrated their efficiency and reliability as suppliers of quality foods and other agricultural products.

The data also confirms the strength of the sector in underpinning the state economy. The gross value of food and wine production has almost doubled since 2000.

No other industry sector can match this performance.

In releasing the Scorecard Minister for Primary Industries and Regional Development, Tim Whetstone, said that “while many of our agricultural industries have faced continued challenges in recent years, it’s important we acknowledge and applaud the outstanding contribution our food and beverage sectors make to South Australia’s economy”.

And never a truer word has been spoken.

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