Australian Export Industry: The Top 10 Australian Businesses
The government of Australia has, for decades, put in place policies that will stimulate its economy and ensure growth for businesses. The open market has ensured that trading of products, services and other goods will be flexible. Apart from the United States and Britain, Australia now puts emphasis in other countries in Asia. The business landscape in Australia has also encouraged up-and-coming entrepreneurs to come up with ideas that will help the economy further. The products and services that have been developed or are naturally grown in Australia are very competitive that they have become top contributors to the country’s economic growth. Because of these resources, Australia has become a global leader in providing products and services across different industries. Here we will see the top Australian businesses that excel in the export industry.
1. Iron Ore
Australia is very rich in iron ore. One of the natural resources that are abundant in the country, its quality is very high that plants were put up in Australia to manufacture steel. During the 1930s, an export ban was placed on iron ore to conserve its stocks. Mining companies lobbied for years to lift the ban and were successful in the 1960s. The developments in transportation such as in shipping and use of railways ensured that the movement of big quantities of the raw materials will be more economical, making the export more manageable and profitable for Australian mining companies. Decades after the lifting of the ban, iron ore still plays a big role in Australian economy. With the never-ending demand for this material used in making furniture, automobiles, household items and thousands of other materials, iron ore will remain to be one of the top businesses in Australia.
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2. Coal
Coal is another natural resource that is very rich in Australia. Coal is primarily used in the production of steel, manufacturing of cement and in generating electricity. The global demand for coal as well as its abundance in Australia has made the country one of the world’s top exporters of the product. Asian countries such as Japan, South Korea and China have all been top importers of Australian coal due to their manufacturing needs. The coal industry accounts for hundreds of thousands of jobs across the country, contributing to millions of dollars in tax and billions in royalties. These have all contributed to the budget used by the government to fund infrastructure and other social services.
3. Gold
The discovery of gold in the mid-1800s started an industry that will make it one of the top export products of Australia. The development of technology replaced the digger with machines that made harvesting of gold easier and more economical. The gold rush that started in the mid-1970s and continued for the next decade has seen the price of gold increase, proof that demand for it soars throughout the world. Gold is needed for many purposes. One of the main uses of gold is for jewellery and the demand for this is high in some Asian countries such as India. Gold is also used in the financial world as an investment component while other countries demand gold to be used for industrial applications. This includes usage for coins, dentistry and electronics. Because of the worldwide demand for gold, it has led Australia to become not only one of the top mining countries but also in the refinery. This industry is now the third top export business in the country, making it one of the top Australian businesses today.
4. Wheat
The natural conditions combined with the development in technology in the last century has made Australia one of the world’s top producers of wheat. Wheat is the largest component that makes up the grain industry of Australia. Because wheat is used in a variety of products such as noodles, pasta, pastries and bread, the demand for it is continuous worldwide. The wheat from Australia is valued highly in the world market because it performs well across a wide variety of uses. Although there are many countries now that are improving their own production and export share of wheat that has led to a decline in global trade, the industry is still export-driven that more than 60% of Australia’s wheat production is exported to more than 50 countries. The country is still seen as one of the best producers of high quality and food-grade wheat.
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5. Beef
The agriculture industry in Australia has become a world leader in meat production not just because of the quantity of beef it can produce but because of the revolutionary way the whole meat industry was made. The quality of the beef starts with the quality of the cattle. The country prides itself for the high animal welfare standards that it adheres to. Following the best practices known for preparing cattle for the beef market, scientific knowledge and what the community expects from its produce, Australia has become one of the world’s top exporters of beef. The government has also placed many policies that will ensure that food safety is always the top priority in the industry. Whether the cattle is grass- or grain-fed, the country’s beef continues to be one of the top business in Australia.
6. Sheep and Goat Meat
The livestock industry in Australia has diversified in the last decades. The government, general public, animal welfare groups and industry stakeholders all have their eyes on the industry as global demand for sheep and goat meat continues to rise. The improvements made in the freezing and transport of meat has made Australia a top exporter of these products. Trade relations in many countries, notably the United States, China, Japan and the Middle East, account for majority of lamb meat export. Improvements in the transportation of live goats continue to be studied by industry experts to ensure lower mortality rates of the livestock.
7. Wool
A by-product of the livestock industry, wool has become an important factor of the Australian economy in the last century. Wool is used in a variety of products, from underwear to luxury clothing to bedding and carpets. The quality of the wool starts with the quality of the sheep. Because of the high standards of the animal welfare of the country, coupled with its strict production requirements has made Australia one of the world’s top producers of wool.
The harvesting of wool is a whole process in itself. Shearers and qualified wool classers come together during the harvesting season. Depending on the line and breed that it came from, wool will be classified by registered wool classers to ensure that it can be sold according to its suitability. Wool will then be sold in open auctions operated by brokers, where it can be transferred to manufacturers, where it will be traded for use in the fashion and textile industries, making it one of the top Australian products sold to other countries.
8. Wine
The last twenty years has Australia seeing significant growth in its wine industry. From a value of over $200 million, it has become a business worth over $3 billion. With trade relations in Asia, America and Europe, Australia exports over 60% of its wine production. The perception of Australian wine has increased in the last years because of it being food-friendly. Consumers now see the value of the wine especially for special occasions although Australia still competes with France and Italy for market dominance of expensive wines. The industry is focused on making wine production and exportation sustainable, following clean and greenways in manufacturing the products. The variety of grapes grown in different regions are well-liked by consumers, resulting in high global demand for Australian wine.
9. Education Services
Education services have now become Australia’s top export product in terms of services. This includes not just the tuition fees but also the living expenses of foreign students either living in Australia or availing of the service by Australian professionals who are travelling abroad. The last decade has seen significant growth in students getting their higher education in Australia. It has now become a billion-dollar industry that also includes vocational courses, English language courses, scholarships and foundations. China continues to be the top consumer of this service, while students from India and South Korea account for the top enrollees in Australian educational programs.
10. Mineral Fuels
The country is abundant in mineral resources, making it one of the world’s top producers of fuels. The mining industry has seen products such as petroleum and oil contributing more than $100 billion to the economy. Although Australia holds only about 0.3% of the world’s oil reserves, the entire industry, from mining to infrastructure to production, accounts for around 34% of the total exports. This was helped mainly by the international sales of the country’s petroleum gases.
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Conclusion
The environment of Australia has contributed greatly to the products that it exports to different countries. The government has, for decades, placed policies that will ensure that highest standards are met when it comes to the production and refining of its natural resources. The open market policy has improved its trade relations in other countries, expanding from the United States and Britain to include Asian countries such as China, Japan, India, South Korea and other Southeast Asian nations. The attitude of its citizens, mainly its willingness to cooperate in ensuring the sustainability of its resources and production, has helped in making Australia one of the world’s top exporters of different products and services.
References
- https://dfat.gov.au/about-australia/australia-world/Pages/trade.aspx
- https://www.nma.gov.au/defining-moments/resources/iron-ore-exports
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- https://www.worldcoal.org/coal/uses-coal
- https://commodity.com/australia/
- https://collection.maas.museum/set/1786
- https://dfat.gov.au/about-us/publications/Documents/australias-gold-industry-trade-production-and-outlook.pdf
- https://www.mla.com.au/research-and-development/search-rd-reports/final-report-details/National-livestock-export-industry-sheep-cattle-and-goat-transport-performance-report-2017/3852#
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- https://www.wineaustralia.com/market-insights/australian-wine-exports
- https://www.wineaustralia.com/news/market-bulletin/issue-114
- https://www.rba.gov.au/publications/bulletin/2008/jun/pdf/bu-0608-2.pdf
- https://dfat.gov.au/about-us/publications/Documents/analysis-of-australias-education-exports.pdf
- http://www.ga.gov.au/scientific-topics/energy/resources/petroleum-resources/oil
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