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The export market has proved to be a convenient bazaar for many countries in the world to see their products. Australia which has tremendously invested in the agricultural sector is a good example of a country that has embraced the export market by selling its products to foreign countries. An enormous number of laborers have been employed in the agricultural sector thus making the country a major producer and exporter of agricultural products. Statistics show that Australia mostly gets its revenue from agricultural business which results in a more stable economy.

Wheat is a top agricultural export product from Australia. According to Australia Bureau of Agriculture and Resource Economics and Science (ABARES), wheat produces in Australia an average of 12.5% of all other exported agricultural products in Australia (Yasin, 2015, p. 132). Wheat is grown in both small-scale farms and large-scale farms thus making the product more adequate thus boosting this product to be sold in the global market. Depicted below is an analytical study of an agricultural product that is widely exported from Australia.

The diagram below helps us to visualize how the wheat product in Australia has enormously and actively been involved in the export market (Yasin, 2015, p. 162).

As the above table portrays, wheat product is exported mainly from Australia where over 16 million tons were shipped in the year 2016. Wheat is a winter crop with sowing in autumn and then harvested on summer and spring. Some of the primary states that produce wheat are; New South Wales, Western Australia, north Australia, and Victoria.

Western Australia is essentially the major state that exports wheat overseas. Major potential foreign markets for wheat include; Indonesia, South Korea, Japan, Malaysia and Sudan. Australia produces approximately 50% wheat to the export market thus generating $2-3 billion each year. The country is well known to produce high-quality white wheat that is mostly grown in the Western Australia that produces bright white flour with high milling yield. As above indicated Indonesia is the largest market of wheat from Western Australia since the quality of the wheat is high (Malcolm, 2015, p. 143).

Australian wheat quality normally has low discoloration, low content of moisture and high bulk density. Some of the major milling grades produced in Australia are; Australian Hard which is used for breads and contains about 12% of proteins, Australian Standard white (ASW), that is used for steamed breads, flat breads extra, Australian Standard Noodle (ASN) which is mostly exported to Japan to make Japanese noodles (Malcolm, 2015, p. 187).

The demand for wheat farming is tremendously displaying a strong growth in international market. The high demand of Australian wheat export is boosting industrial revenue in the country (Malcolm, 2015, p. 143). With the increasing industry demand for the product, brings about high sale yard prices thus boosting the revenue growth in Australia. It is anticipated for revenue to grow by 2.0% that is making up to $16.7 billion within a timespan of two years with the ongoing increasing sale yard prices.

From Australian wheat news, it was reported that the USDA experience high domestic food price for wheat from Eastern Australia that contributed to wheat exportation from that region to decrease and many export markets opted to export their wheat from Western Australia. This has affected the regional economic stability and the rate at which government revenue was coming from wheat exportation has drastically abridged (Kirkegaard , Christen , & Krupinsky, 2016, p. 195). The Western Australian region has gained an upper hand of exporting up to 90% of its harvest in the international export market. As a result, 40% of Australian wheat is exported from Western Australia thus creating economic catastrophe since there is unbalanced marketing price of the commodity.

Another newspaper article this time from the Arkansas Democratic Gazette indicated a rise in wheat price. The newspaper stated that wheat being a weed that feeds the human race and the fact that it is grown on a large land more than any other crop in the world, it is experiencing price increment (Yasin, 2015, p. 87). After an analytical review of four straight white harvests, the rate at which the price is increasing is alarming to the exporting markets. Kansas and Eastern Australia are raising their wheat products making it difficult for exporters to look for other alternative countries to buy cheap wheat (Kirkegaard , Christen , & Krupinsky, 2016, p. 189).

Recommendations to the Key Player

The government ought to come up with a policy to facilitate an active and stable market for wheat farming and exportation. Some of the policies the government should implement are; the government should demand a quality wheat product. A quality product attracts the buyer. Flour millers not only export wheat from Australia because it generates for the entire world but they are more concerned with the quality of the product (Montfort, 2013, p. 173). Thus the government should foresee that the wheat farmers produce quality product to be exported.

Balance sheet policy is another effective way that the government should implement to ensure that the pricing of the wheat is controlled. Some wheat producing states are increasing their wheat cost which is resulting in some wheat exporter countries to withdraw. Although the Western Australia region has tried to moderate their wheat pricing in the market, other states are triggering major wheat exporters to look for alternative markets (Montfort, 2013, p. 182). The Australian government should control the product pricing to mitigate cases of countries withdrawing from the Australian wheat market (Wood , Lenzen , Dey , & Lundie, 2015, p. 315).

It is anticipated that in future the growth of Australia government revenue will be improved from wheat exportation if only the key plays implement policies to foresee and protect the wheat industry. As depicted above it is clear that despite Australia having majored in many agriculture practices, wheat farming will remain as the most agricultural practice to export and consume its products. The policy that the government will implement will safeguard both the cattle’s and cattle farmers thus creating a conducive environment for cattle farming (Wood , Lenzen , Dey , & Lundie, 2015, p. 326).

Reference list

Einspruch. (2015). More than wheat. Port Melbourne: Barrie Publishers

Kirkegaard , J., Christen , O., & Krupinsky, J. (2016). Break crop benefits in temperate wheat production. Field Crops Research, 107(2), 180-198.

Malcolm, L. R. (2015). Agriculture in Australia. South Melbourne: Oxford university .

Montfort, W. (2013). Agriculture products in Australia (2nd ed.). Datamnitor: University of Western Australia.

Wood , R., Lenzen , M., Dey , C., & Lundie, S. (2015). A comparative study of some environmental impacts of conventional and organic farming in Australia. Agricultural systems, 89(2), 310-330.

Yasin, M. A. (2015). Economics of organic farming syatems and policy options in australia. Kansas: press.



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