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Australian agribusiness gets a helping hand with exports

9 October 2015

Australia's agribusiness sector is one that's diverse and important to wider economic conditions in equal measure. While many of the businesses within it find success on these shores, the size of certain markets around the world - and the potential for increased profitability - cannot be overlooked.

Exporting, produce and goods may seem like an out there concept for small business owners in the agriculture sector, but the government is looking to lend a helping hand.

The government plans to get more of Australia's agribusiness sector using technology.

Assistance through funding

The coalition's Package Assisting Small Exporters totals $5.3 million to date, with close to $10 million more on the way in the not too distant future.

"Access to premium overseas markets is an important element of driving profits back through the farmgate for our nation's farmers - assisting Australia's smaller exporters in particular demonstrates the [government's] commitment to looking after all of our producers," explained Barnaby Joyce, Minister for Agriculture and Water Resources.

One of the main aims of the stimulus package is to get more of Australia's agribusiness sector interested in technology, shining a light on how they can market products across the globe in the digital space.

"[The funds will help with] new technologies, with a mobile app for kangaroo products, online systems making it easier and quicker for table grape and citrus growers to get export accreditation and one-stop-shop databases helping grain growers negotiating prices," Mr Joyce surmised.

Employing any new systems and ways of doing business is critical to growth, but farm owners and other agriculture producers need to ensure that their assets are covered. Consequently, effective business insurance is a must for any entity looking to take on new technologies and expand its reach across borders.

Investment from further afield

While the government has clearly identified the need to better support Australian agribusinesses and allow them to flourish, there is interest in the sector from other parties as well. Exports and imports can be reciprocal by nature, meaning that there are plenty of foreign investors that have identified the growth potential across Australian agriculture.

In fact, The Wall Street Journal reported that Chinese entities had poured over US$630 million into the agriculture sector across the year to the end of June 2014. Today, Australian agribusinesses account for around $1.5 billion of China's overseas agricultural portfolio.

What could this mean for local producers and farm owners? Well, it goes to show that there is a huge amount of confidence in the agriculture sector at large, and high-growth could be on the horizon. Ultimately, agribusinesses are being backed both at home and abroad, and it's now their task to try and meet expectations.

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