Australian agricultural exports to the Association of Southeast Asian Nations (ASEAN) region will grow significantly as the consumption of soft commodities in the region rises to 285million tonnes by 2024-25, an increase of more than 60million tonnes.
That is according to ANZ’s latest Agri InFocus commodity report, which found that in addition to rising consumption and populations, Australian exports to the region will be aided by increasing urbanisation in Southeast Asian nations which is reducing the amount of land available for agricultural production.
While China is often touted as Australian agriculture’s major export market, the report highlights ASEAN is a larger agricultural trade partner for Australia, with exports to the ASEAN region estimated to have reached close to $8.8billion compared to almost $5.5billion to China in 2016.
Australia’s grain sector has been a significant beneficiary of the trade increase to ASEAN countries, with Australian grain exports rising from $27million in 2000 to almost $2.3billion in 2016.
‘‘There’s more to Asia than China when considering ASEAN is home to nine per cent of the world’s population and emerging economic powerhouses Indonesia and Vietnam,’’ ANZ agribusiness head Mark Bennett said.
‘‘Given the scarcity of agricultural land and rising meat consumption in ASEAN, we expect continued and growing demand for Australian grains and protein, assisted further by rising incomes in ASEAN which are projected to increase by around seven per cent on average per capita by 2025.’’