2014 Winter - Can agriculture grow if food processing dies?

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FPJ1102B - Potard, G (2014), The Declining Competitiveness of Australian Food Processing

Potard, G (2014), The Declining Competitiveness of Australian Food Processing, in Farm Policy Journal: Vol. 11, No. 2, Winter 2014, pp. 1-13.

The fact that the Australian agribusiness sector exports far more raw commodities and food products than it imports often tends to hide the fact that Australia’s food processing sector is losing competitiveness. Evidence of this loss is provided in this article, which looks at Australia’s recent balance of trade (exports minus imports) for different processed food items. The traditional explanation is that labour costs and exchange rates are the main contributing factors, but they alone do not seem sufficient to explain the recent sharp decline in the net trade balance for Australian processed foods.

 

 

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