The Food, Wine and Agribusiness Sector Plan has set an ambitious target – to grow industry revenue to $23 billion by 2030.
Across 2019–20 and 2020–21 a downturn in revenue compared with previous growth trends is expected due to the impacts of drought, bushfires and COVID-19. This stretch target represents optimism in the significant sector growth opportunities in the medium and longer term.
This is based on existing industry sub-sector plans and blueprints and is in line with the National Farmers Federation growth target of $100 billion in farm gate production by 2030.
The plan will contribute to the South Australian Government’s Growth State plan to achieve an increase in Gross State Product (GSP) to an average annual rate of 3% per annum.
The growth target and trend projection are both represented as a band of potential outcomes based on historical year to year volatility. Source: PIRSA Industry Scorecard, Primary Industries and Agribusiness Revenue until 2018/19.
Impacts on growth
Across 2019–20 and 2020–21 a downturn in revenue compared with previous growth trends is expected due to the impacts of drought, bushfires and COVID-19. The known and likely future impacts vary across the industry sub-sectors and there is a strong possibility markets could remain volatile for some time.
A few examples of the industry impacts include:
Drought has had a widespread impact across agriculture with reduced field crop and wine grape production and as well as reduced livestock numbers, ongoing medium term impacts on sheep and beef production in the State.
Bushfires have had significant regional impacts, particularly on the livestock, forestry, wine and horticulture industries – again with immediate production losses (including from smoke-taint) and medium to long term impacts until animal and plants are replaced and back in full production.
COVID-19 has had widespread market impacts across most areas of the economy including across the food, wine and agribusiness sector. While domestic retail demand for staple products has generally been strong, closures and reduced demand from domestic and international food service, tourism and other premium outlets have resulted in reduced sales and prices, including significant reduction in demand for whole categories such as seafood.
Similarly, reduced global economic activity has also seen reduced demand for other products such as wool and wood products.
You can track the advances and annual performance in South Australian primary industries, through the PIRSA Industry Scorecard.