Australia and New Zealand could more than double agricultural exports increasing revenue by A$710 billion and NZ$550 billion respectively by 2050 if targeted actions are taken according to a major ANZ insight report released today.
‘Greener Pastures: The Global Soft Commodity Opportunity for Australia and New Zealand’, a study from Port Jackson Partners commissioned by ANZ, quantifies the size of the opportunity open to Australia and New Zealand agriculture as a result of the shift in global economic growth to Asia.
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.
While the potential for agriculture is clear, one of the report’s conclusions is that becoming a food bowl for Asia will not happen of its own accord. It indicates that in recent years Australian agriculture has increasingly moved into a cycle of low productivity growth and lower profitability, while in New Zealand major success stories are limited outside dairy.