A study on the Challenges Facing Agribusiness in Australia.
The sector of agribusiness is defined by activities of business that get conducted from the farm to the dining table of the consumers. The sector gets widely considered as a major source of income and employment generator for many families globally. In 2050, it is expected that the population in the world will have experienced a 30 percent increase from 7 billion people in the year 2012 to 9.1 billion individuals in the year 2050 (Mohsin, 2015, p. 1). Such an increase in the global population will thus result in a proportional increase in the demand for agricultural food items as well as employment opportunities in Australia.
There was an increase in food prices internationally towards the end of 2007 and 2008 as well as the resurgence of prices that are high in mid-2010. As a result, the sector of agriculture has received an increasing attention globally as stated by (Mohsin, 2015, p.1). Furthermore, the domestic and foreign industry of agribusiness, as well as its related sectors and policies, are similar in nature as established by various studies. Therefore, if the sector gets disrupted a hunger crisis, malnutrition, and employment gets created. Mohsin (2015, p.1) stated that the world would eventually destabilize as a result of the interaction of limited food and inadequate finances as well as an economic crisis.
Australia is one of the biggest exporters of agricultural products in the globe. To this effect, the nation gets ranked in the fourth position of net exporters after Brazil, Argentina, and the Netherlands. Nevertheless, the sector faces barriers that include taxation, unfavorable government regulation, and issues to do with labor (Williams, McSweeney, and Salmon, 2014, p. 3). Additionally, it got acknowledged by the Australian Senate Inquiry of 2013 that foreign investment offered great solutions to the challenges experienced by the agribusiness sector of the country. (Williams, McSweeney, and Salmon, 2014, p. 3). Foreign investment would improve agricultural productivity and generate numerous opportunities for individuals in the business of agriculture (Williams, McSweeney, and Salmon, 2014, p.3). Furthermore, the weather patterns that are uncertain coupled with the unpredictable market pattern make it difficult to invest in agriculture as a business in the country. Problems related to investments and economic cycles, government fiscal policies that are not certain also pose a challenge to the sector (Mohsin, 2015, p. 2). Investment policies are also widely not favorable to this sector of business in Australia. Studies offer solutions such as diversification, supply chain efficiencies, and practical decision making in farm investment to make agriculture a worthwhile business venture in Australia Penney et al. (2012, p. 155).
The research question is: What are the challenges that face the agribusiness sector in Australia? Evidence suggests that Australia has a huge potential to immensely benefit from investment in the agribusiness sector (Mohsin, 2015, p. 2). However, the country brings forth an indicator that there is an overall decline in the levels of investment in agriculture as compared to countries like the United Kingdom and the United States of America. This research, therefore, aims to identify the existent challenges that make the investment in Australia’s agricultural sector unfavorable to the stakeholders.
To identify the challenges that face the agribusiness sector in Australia.
To identify the main factors that can make agribusiness a good business investment in Australia.
To provide recommendations to the business community in Australia on how agribusiness can get invested in.
Null Hypothesis (H0): There are no challenges facing the agribusiness sector in Australia.
Alternative hypothesis (H1): There are challenges facing the agribusiness sector in Australia.
The sector of business in agriculture plays a major role in the economy of the country and has a great potential of attracting investment that is foreign throughout the supply chain of agriculture. Additionally, the diverse climate in the country makes it possible for the sustenance of a wide range of agricultural practices that can, later on, get converted into business opportunities for the citizens of the nation. If the sector gets well regulated, Australia stands to enjoy several economic gains as a direct consequence of its proximity to Asian economies. Even with the known potential of agricultural activities to contribute to the country’s gross domestic product, the sector is not adequately exploited.
This study will, therefore, be significant in the identification of the barriers that make it impossible to fully integrate agriculture into the business sector of Australia. The identification of such challenges will permit the provision of solutions to the business aspect of agriculture for the promotion of the growth of the economy. Additionally, Penney et al. (2012, p. 154) explained that a range of factors plays a part in the strengthening of the resource sector in the business sector of the country. Thus, this study is significant because it will highlight important steps that the stakeholders may take to ensure an increase in the demand for resources in the sector. With such a highlight, solutions identified will be quite instrumental in increasing business as well as employment opportunities within Australia. Additionally, this study is significant because it will highlight the characteristics that have an influence on farm investment as well as the risks that may come into play to affect both farmers as well as businesses.
This study will adopt a quantitative approach for the collection of data on the most important factors that act as challenges to the agribusiness sector of Australia. This approach is important because the study will use relational questions that aim at seeking the explanations to the topic of study. According to Williams (2007, p. 66), quantitative studies are important because they seek to establish, confirm, or validate relationships that are important for the explanation of the existent phenomena. Also, the quantitative approach is important because it will help the researcher to predict, explain, and confirm the challenges of interest in the study.
The researcher will use a questionnaire to obtain information on the challenges that face the Australian agribusiness sector. The questionnaire will get administered via electronic mail. The questionnaire will contain both open and close ended questions to facilitate the acquisition of in-depth responses. According to Bird (2009, 1307), open-ended questions make it possible for the respondent to provide answers that are spontaneous.
Also, open-ended questions give opportunities to probe so that the hypothesis of the study gets fully tested. Additionally, Close ended questions are easy to administer, code and analyze, and make it easy for the questionnaire to get completed by the respondent. Also, the analysis of findings in a quantitative study is easier with a questionnaire.
The sample for the research will be drawn from Australia top 3 biggest cities. Therefore, the samples will get obtained from Sydney, Melbourne, and Brisbane that account for the largest business as well as agricultural jurisdictions in the country. The researcher will use a total sample of 1000 respondents to ensure that the information collected is as represented as possible. The sample size will get distributed equally across the business and agricultural sectors of the three regions.
The researcher will use both manual and digital approaches to analyze data. According to Matthew and Sunday (2014, Paragraph 1), the use of both approaches is critical for the production of studies that are of high quality. The collected data will thoroughly get checked for completeness and relevance by the researcher. The data will then get organized and quantitatively analyzed before the final presentation to ensure that the intended meaning is extracted. The computer package MS EXCEL [Microsoft EXCEL] will be used for analysis.
Bird, D. 2009. The use of questionnaires for acquiring information on public perception of natural hazards and risk mitigation – a review of current knowledge and practice. Natural Hazards and Earth System Sciences, 9, pp.1307-1325.
Matthew, S. and Sunday, M. 2014. The Role of Statistical Software in Data Analysis. International Journal of Applied Research and Studies, 3(8), p.Paragraph 1.
Mohsin, M. 2015. Agribusiness Financing in Australia: Issues and Research Agenda. International Journal of Economics and Finance, 7(7), pp.1-16.
Penney, K., Melanie, J., Stark, C. and Sheales, T. 2012. Opportunities and challenges facing the Australian resources sector*.Australian Journal of Agricultural and Resource Economics, 56(2), pp.152-170.
Williams, C. 2007. Research Methods. Journal of business and economic research, 5(3), pp.65- 72.
Williams, J., McSweeney, P. and Salmon, R. 2014. Australian farm Investment: Domestic and Overseas issues. Australian Agribusiness Perspectives, 98, pp.1-18.