Productivity movements in Australian agriculture

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Productivity movements in Australian
agriculture

• Dr Don Gunasekera
• Chief Economist

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Overview

• trends in productivity growth
• regional productivity trends
• lifting productivity growth

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Long term growth in broadacre TFP
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Total factor productivity by industry
2000-01
2006-07
1977-78
1994-95
1983-84
1989-90
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Cropping sector

• TFP growth 2.1

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Beef sector

• TFP growth 1.5

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Sheep sector

• TFP growth 0.3

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Crop productivity by region
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Beef productivity by region
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Sheep productivity by region
1994-95
2006-07
1977-78
1983-84
1989-90
2000-01
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Is productivity growth slowing down?
1994-95
2006-07
1977-78
1983-84
1989-90
2000-01
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Industry TFP trends
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How do we lift productivity growth?

• measure productivity and understand its drivers
• improve RD efficiency
• remove impediments to productivity growth

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ABARE productivity research 2009

• RD
• relationship to productivity growth
• Scale impacts
• larger farms generally able to achieve greater
  productivity gains. What are the factors behind
  this?
• Productivity determinants
• including the impact of climate change
• International comparison
• comparing agricultural productivity between
  Australia and competitors

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