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IRIS Tasmania  >  Resource Industry  >  Agriculture  >  Demand and supply

Agriculture demand and supply

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The total land area of Tasmania is around 6.8 million hectares with agriculture utilising around 1.6 million hectares (24 per cent) of this land. Sown pastures make up 50% of the total area of agricultural establishments in the State at 800,000 to 900,000 hectares.

According to the Australian Bureau of Statistics, in 2006-07 the gross value of agricultural commodities produced in Tasmania was $963 million.

Beef cattle farming was the most common agricultural activity, with an estimated 1,136 farms accounting for 29 per cent of farms in the State. Sheep farming was the next most common activity with an estimated 605 farms accounting for 16 per cent of farms in the State. This was followed by dairy cattle farming and vegetable growing.

Impacting on the agricultural industry in Tasmania is the sustainable development and management of Tasmania’s major irrigation schemes and freshwater resources.

Since a large proportion of Tasmania's production is export oriented, the Tasmanian economy can be severely affected by movements in the value of commodity exports, which are susceptible to movements in world commodity prices, and Australian dollar exchange rates.

At a global level, there are several major changes currently occurring that have the potential to markedly affect agricultural trade and price prospects well into the future. The underlying factors affecting demand and supply for agricultural products are:

  • population growth
  • income growth and dietary changes
  • land constraints
  • resource and input price issues affecting growth
  • climate change and adequacy of water supplies
  • advances in technology.                                    [ABARE: Australian commodities, March 2009]

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The agricultural and natural resource industry sectors will need to adapt to new markets, new ideas and challenges for long-term sustainability, particularly in the face of the current recession.

Information is available regarding the following agricultural industry sectors: