Australia, one of the world's largest agricultural nations, faces serious climate challenges that are challenging its ambitions to increase the value of its agricultural sector to A$100 billion by the end of the decade.
The fall of 2023 recorded the driest September ever, causing concern among farmers and the government. This drought seriously threatens wheat crops and forces farmers to sell their livestock. As a result, the prices of food and agricultural commodities may increase and agriculture will face financial difficulties.
The Australian government forecasts that the value of Australian agricultural output will fall by 14% to A$80 billion in the year to June 2024. This decline is associated with dry weather and falling prices for agricultural commodities.
Amid long-term climate change caused by global warming, Australia's average rainfall has fallen by at least 15% over the past half century. In addition, wildfire seasons are becoming longer and more extreme.
The government's target of A$100 billion in agricultural sales in 2018 may be out of reach due to the impact of climate factors and fluctuations in commodity prices. Michael Whitehead, executive director of agricultural analytics at ANZ Group, notes that last year's convergence with that target was the result of ideal circumstances and it will likely take years, if not decades, to repeat such success.
In 2021-2022, agriculture accounted for 2.4% of Australia's GDP, and the country remains one of the world's leading exporters of meat and grain. However, climate challenges emphasize the need to take measures to adapt the agricultural sector to new realities and mitigate the consequences of climate change.
