What Does Asia’s Growth mean for Australian Industry

The exponential economic growth of Asia over the past two decades has reshaped how the world does business. With most Asian countries experiencing inflows of foreign investments, it is no wonder that Asia is currently regarded as a global economic powerhouse.

Accompanying Asia’s massive economic growth is the inevitable population spurt. In China, a country with a current total population of 1.3 billion, it is expected that the population will increase over the next few years due to the government’s decision to relax their one-child policy.

This rapid population growth puts a strain on the continent’s food production. According to the Asian Development Bank (ADB), Asia’s demand for food increased from 2,379 calories per capita, per day in 1990 to 2,665 calories in 2009. Also, the United Nations Food and Agriculture Organization (FAO) estimates that global food production will increase by 70 percent in the year 2050.

This presents a golden opportunity for Australia to step in as Asia’s primary provider of agricultural produce. Australia is a global leader in the implementation of quality assurance systems for food production. Making use of advanced technology and efficient farming techniques, the country is well on its way to filling the food availability gap that has been predicted for Asia.

In fact, Australia continues to be a net exporter of food products. In the years 2010 to 2011 alone, Australia exported much of its national produce. About 70 percent of total sugar production was exported, as well as 67 percent of locally produced wheat and 57 percent of barley.

The whole of Australia could soon see an agricultural boom and an increased for its food products. This in turn will increase the demand for transportation services required to move product throughout the country.

Farmers currently face challenges in moving their produce to and from their farms and to where the food is needed: sorting facilities, ports and markets. Heavy vehicles will play a major role in supporting the growth of the farming and food production industry. 

Contact us for great deals on farm machinery and truck finance, across all forms of agriculture and transport. We can provide expert advice on asset finance and facilitate fast and hassle-free equipment and truck financing. You’ll also have access to our consultants, who have relevant, real-world knowledge of farming. We’re excited about these new opportunities for Australian Industries.