Discuss about the Importance of Australian Agri product Trade on the Global Food Security.
The report will discuss in detail about the agriculture trade based performance in Australia and recent loss in the industry in global agricultural market since other markets like Asian, some part of Europe and South American are capturing bigger share of the development in international agriculture based imports (Johnson, 2016). The discussion in the report will be about the performance and the value of international agricultural trade which is developing at an average rate. The report will also highlight the trade policy associated with it and the future of the industry.
How the issue has evolved over the course of time
As per the recent reports, there is a warning about the agriculture based export performance in Australia which says that the performance of the export is going to get affected and face tough competition from the rise in agricultural products. The main issue is that the country always lacks new kind of farm land which has impacted the agriculture production when it is compared with other part of the world like Asian as well as South American countries since the overall production is on the rise in these countries (Banson et al, 2015). As per the review conducted by the Australian Farm Institute there is very little opportunity that helps in expanding the present production and the agriculture of the country needs to renovate the attention on all productivity benefits. This is why; the country is losing on the market share in number of different neighboring and impactful market that can be recognized as their own. It can really be called as a wake u call since the requirement should be competitive and is based on the assumption that such market are there for the taking (Dibden et al, 2013).
The overall growth on international level is slower in comparison of other countries as per the global development details. The report has also found that in addition to total volume based on fall in exports and the overall value. The solution also shows the requirement of agriculture manufacturer and exporters that can easily dispel any kind of complacency that can further be held and related to capacity of agriculture of Australia so that it can automatically gain advantage from the development in the international demand for the products of agriculture as the populations rises and there is change in diet as well. Number of reports also suggests shows the requirement to search about the constant improvement in productivity (Pham et al, 2015). In addition, there is one thing which can be learned from success of neighboring country is that it is not something which is in control of Australia or something which can be stopped by the farmers. Competition and high rate of success in the agriculture sector is a continuous process and it is crucial to understand here that no action can help in boosting the current productivity of agriculture based products. There is all kind of things that are point of discussion and are worth thinking of, specifically when there is a discussion of continuous improvement. The assumption that there is will be a miraculous solution for this is a mistake and successful capture of the diverse market will take time, patience and a lot of hard work (Forsyth et al, 2014).
Trade theory, policy or concepts were invoked
Agriculture plays a very important role and makes a big contribution in the economy of the country. As discussed, the country is very competitive as agricultural exporter and as a matter of fact, more than half of the total production is exported. In the year 2015, the agriculture and food industry, almost forty seven billion dollar which is fourteen percent of total goods and services of Australia exported for that year.
Agriculture and World Trade Organization (WTO)
As per the Uruguay Round associated trade talks known for the creation of WTO and it helps in better situation in agriculture. As per WTO, the agriculture agreement is constantly negotiated and came in discussion in 1995. The agreement also provides the basic level of legal foundation which governs the trade in agriculture (Banson et al, 2016). The main agriculture agreement mostly recalls the members of WTO and their objective of long run to settle a fair as well as market focused agriculture trade based systems. It also aims on three important pillars: –
International food security and trade reform
The country has also been very dedicated and committed to international food security and yet there are millions of farmers worldwide in Australia as well as in many developing nations that are taking unfair benefit by present distortion on world level related to agriculture and food based markets which can later impede the accomplishment of long run security of food.
Production as well as trade distortion based measures usually lead to volatility in prices and can also lead to many disincentives for number of farmers to raise the output as well as productivity and these kinds of measures usually encourages production in surplus and which can be wasted that in turn it further weakens the prices of commodity as well as returns the basic work of farmers (Atkins & Bowler, 2016). In addition, agriculture trade policy changes are crucial for the Australia especially in food and agriculture industry and to make sure that present global food security goal are properly pursued in diverse methods that cannot undermine the lives of the farmers worldwide.
It also plays an important role in varied agriculture trade policy based agenda and the government of the country further continues to deal with so many multilateral trade reforms. The most crucial component in the agreements are based on eliminating all the export based subsidies in agriculture sector. These kinds of subsidies is harmful for the manufacturer or farmers worldwide and also make a negative influence on the prices, investment on agricultural level and rural remuneration (Martin & Clapp, 2015). All such factors also contribute in poverty and further undermine the bill of food security in number of developing nation and specifically less in developed countries. The overall elimination of such subsidies is a crucial step in order to correct as well as save the trade based restrictions along with distortion in the world market of agriculture. The government is continuously working in an active manner to reduce the level of distortion in international agriculture trade and further provide an improved access towards market for exporters of the country.
Lessons learned for better trade policy
Consumers, Farmers and ranchers make a lot of benefits from the free trade in agriculture as well as participation in the international trading system. Instead of such advantages, the government and other protectionism organizations are still important with the help of traditional restrictions like quotas and tariffs along with some non-traditional restriction like regulations and subsidies that help a little for advanced level public health and safety (Heerman et al, 2015). It is crucial to learn here that economic level advantages of Free Trade in Agriculture is an important aspect since productivity in agriculture in this is country is on rise and it is sometime even faster than demand for food. The farmers and agriculture firms depend heavily on export market in order to sustain revenues and prices. Luckily, agriculture product trade has also exploded and the value of export and important has increased a lot over a period of time. It is important to carefully plan the future and create a sustainable industry in order to last in long run.
Conclusion
The report suggests the reinforcement and the need for the agriculture development in the country and aim on increasing the overall value of the agriculture based export along with volume. Rise in value can also create by aiming on the overall quality, safety and security with the country since it is already having the world best system in place to deal with the needs (Heerman et al, 2015). The two crucial conclusions are related to rise in volume and lift the productivity in agriculture and the expanding the base for agriculture in different parts of the country like Northern Australia
References
Atkins, P., & Bowler, I. (2016). Food in society: economy, culture, geography. Routledge.
Banson, K. E., Nguyen, N. C., & Bosch, O. J. (2016). Using system archetypes to identify drivers and barriers for sustainable agriculture in Africa: a case study in Ghana. Systems Research and Behavioral Science, 33(1), 79-99.
Banson, K. E., Nguyen, N. C., Bosch, O. J., & Nguyen, T. V. (2015). A systems thinking approach to address the complexity of agribusiness for sustainable development in Africa: a case study in Ghana. Systems Research and Behavioral Science, 32(6), 672-688.
Bauer, M., Erixon, F., Ferracane, M., & Lee-Makiyama, H. (2014). Trans-Pacific Partnership: A challenge to Europe. Policy Briefs, 9.
Dibden, J., Gibbs, D., & Cocklin, C. (2013). Framing GM crops as a food security solution. Journal of Rural Studies, 29, 59-70.
Forsyth, P., Dwyer, L., & Spurr, R. (2014). Is Australian tourism suffering Dutch disease?. Annals of Tourism Research, 46, 1-15.
Heerman, K. E., Arita, S., & Gopinath, M. (2015). Asia-Pacific integration with China versus the United States: examining trade patterns under heterogeneous agricultural sectors. American Journal of Agricultural Economics, 97(5), 1324-1344.
Johnson, D. G. (2016). World agriculture in disarray. Springer.
Martin, S. J., & Clapp, J. (2015). Finance for agriculture or agriculture for finance?. Journal of agrarian change, 15(4), 549-559.
Pham, T., Jago, L., Spurr, R., & Marshall, J. (2015). The Dutch Disease effects on tourism–The case of Australia. Tourism Management, 46, 610-622.
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