Do primary industries matter?

Could we do without primary industries? What would happen if we stopped them?

Primary industries are vitally important to Australia, as they are the building blocks of our way of life. If Australia had no primary industries, then all of our basic needs (including food and timber) would need to be imported from other countries. Not only would this be incredibly expensive, but it would impact on our economy which relies on money and jobs created by our local primary industries.

Essentially, everyone is linked to primary industries, either directly or indirectly, including you! Every single product you buy or sell has been affected by primary industry products and often it is completely made out of resources utilised by a primary industry.

What do primary industries involve?

In general terms primary industries (also called the primary sector) extract and/or harvest products from the earth - this means the extraction of raw materials like minerals, and the production of basic foods like fruit, vegetables and meat.

The areas that these products come from, namely the areas that make up the primary sector, are agriculture, horticulture, forestry, commercial fishing, aquaculture, mining and quarrying.

If any of the materials coming from these industries need to be processed or packaged for shipping, sale or further processing, this is also done within the primary sector.

Primary industries, secondary industries and the service (third) sector

How and where does the primary sector fit in the economy? Well, simply put, it is the foundation of our economy.

Primary industries collect raw materials. Then secondary industries use these materials to manufacture things that are used by people, like furniture, clothes and food. And the third sector, called the service industry, is involved in distributing and providing the final products to the people, called consumers, in shops and restaurants.

Primary industries provide the resources and materials necessary for almost everything involved in the economy.

How do we use primary industries?

Agriculture, horticulture, commercial fishing and aquaculture

These industries provide us with the bulk of the food needed for us to get by from day to day. From the eggs you ate for breakfast to the sandwich you might get for lunch, it is all part and parcel of the primary industry sector. Today’s farmers and fishers continue to work hard to ensure our food production is sustainable, with minimal environmental impact.

Forestry

The forestry industry provides us with much that we use in our daily lives, not least is the roof over your head every night! Timber products are an absolute necessity in the construction industry - not only does timber hold your house together, it also provides the furniture we all sit and sleep on, the power poles for our electricity lines, and the pylons and planks for our wharves. Today’s sustainable forest practices will mean we have all these resources available to us for a very long time to come.

Mining and quarrying

Every time you turn a light on, you are making use of primary industry. Each time you have a shower, that water will most likely have been heated by either electricity generated with coal, or heated by gas from Australian mines and wells. Anything you use that needs electricity or gas owes its existence to energy generated through the use of primary industry resources. But it’s not just coal - Australia has a wealth of metal and mineral resources including uranium, iron ore, bauxite, gold, silver, copper and many more.

Supporting Australian jobs

Primary industries are a significant employer in many parts of Australia, particularly in regional and rural areas.

Many parts of the country are strongly associated with their local primary industries. In Western Australia, there’s Kalgoolie and gold mining; in Queensland, there's Rockhampton and bananas, and Bundaberg and sugar; in South Australia, the Barossa Valley and wine; in Tasmania, King Island and cheese; in Victoria, the Dandenong Ranges and mountain ash timber. And then there's the nation’s ‘food bowl’, the Murrumbidgee Irrigation Area in southern NSW with its fruit, vegetables, cereals, rice and wine grapes.

The employment and economies of each of these towns, cities and states depends upon these local primary industries.

In agriculture alone, as of November 2008 there were an estimated 317 730 people directly employed in the Australian farm sector. There are 140 704 farms in Australia. (Source: ABS/NFF/ABARE)

Did you know that most of the farm businesses in Australia are family owned and operated? (Source: NSW Farmers)

What do we import (bring in) from other countries?

Even though Australia has so many natural resources, there are still some things that cannot be found here and need to be bought from other countries.

Most of Australia’s big imports are not primary industry products, simply because we can produce so many of those ourselves. Manufactured products like cars or computer parts are usually bought from overseas because it’s often cheaper to make them elsewhere.

However, one primary industry product that we do have to import is crude oil for petrol and diesel. Petrol and diesel are very important to the economy, because without it the trucks and cars in Australia would cease to move. This would stop the transport of food from farms to cities, and anything else that involved transport by a motor vehicle.

Oil and gas deposits won't last forever. For long-term sustainability, petrol alternatives such as biofuels and new methods of powering vehicles are under development.

How you feel about importing primary industry products is very much a personal view. Some people believe we should import more of our food and fibres; while others feel Australia should be self-sufficient. Whatever your view, it’s important to consider the impact the industry has on its local environment, economy and people.

What do we export (sell) to other countries?

Australia produces and exports an extremely large amount of resources for the number of people that live in this country.

Most of Australia’s largest exports come from the mining sector of primary industries, and include coal and iron ore. In fact, some of the largest coal and iron ore mines in the world are located in Australia, producing huge amounts of these valuable resources for the world.

Other large exports are gold, crude petroleum, aluminium ores and various food resources such as beef and wheat.

Did you know?

Australia is a competitive net agricultural exporter, with around two-thirds of total production being exported.
In 2006-07, agricultural products, including processed food and beverages, accounted for around one-fifth of Australian merchandise exports.
Australia's top four agricultural exports nationally are bovine meat, alcoholic beverages, wool and wheat.

(Source: Australian Government, Department of Foreign Affairs and Trade)

It’s funny to think that you could travel all the way across the world to Japan, sit down in a restaurant and find yourself eating a steak from an Australian farm!

Australia’s native forests and plantations are also highly productive. The total value of wood product exports in 2007-08 was $2.5 billion. The main export from Australia is woodchip with 6.2 million tonnes exported in 2007-08 valued at more than $1 billion. This represents 43% of Australia's wood product exports. Of Australia's total woodchip exports 87% was to Japan. After woodchip, paper and paper products, sawnwood and wood based panels are our top three exports. (Source: Australian Government, Department of Agriculture, Fisheries and Forestry)

And let’s not forget about seafood. More than 800 seafood species are commercially harvested and sold in Australia, under about 300 marketing names, for local and overseas consumption. The commercial harvest, though low in volume, has high value. Australia has an excellent international reputation for the quality of its exports of abalone, rock lobster, prawn, scallop, tuna and coral trout. (Source: Australian Government, Fisheries Research and Development Corporation)

In 2008-09 New South Wales exported $60.4 billion worth of goods and services accounting for 21.3% of Australia's total exports. Our top three export products were coal, aluminium and copper ores and concentrates. For up to date export information visit the Department of Foreign Affairs and Trade website.

The dollars and cents

Australia has a healthy economy, and the primary industry sectors agriculture, fishing, forestry and mining account for around 8-10% of Australia’s gross domestic product. When you consider that Australia’s GDP was close to 1 trillion dollars in 2007, you can see just how significant the primary industry sector actually is! (Source: Australian Bureau of Statistics)

Did you know?
In NSW, the top three agricultural commodities produced are cattle and calves ($1.6 billion); wheat ($889 million); and wool ($814 million). (Source: ABARE/ABS, 2007/08)

Products such as wool, meat, grains and coal all contribute to the large amount of resources Australia delivers to the global market. Having these products to sell is one of the reasons why Australia’s standard of living is one of the highest in the world.

Despite high global demand for Australian mineral commodities, export growth has remained flat in comparison to strong import growth. Economists suggest in the long term we need to increase our ability to take our natural resources from the primary industry sector and turn them into products here, rather than sending the resource to another country and buying back the finished product.

With low unemployment and a great GDP per capita, the Australian economy is in great shape as it starts the new millennium, and you can bet that primary industries will continue to play a significant role in the country's growth.

Looking after our environment

What are some of the ways that Australians are trying to preserve Australia’s unique environment?

Even though Australia is a very dry continent, it still contains a large variety of habitats. For this reason, Australia is known as a mega diverse country. It has habitats ranging from deserts to tropical rainforests all in the one country.

This diversity in habitats means that Australia is home to many unique plants and animals, all of which need protection from the various changes that people can bring to the environment.

Across Australia, individuals and businesses in the primary industries sector are working hard to minimise their impact on the environment, aiming for sustainability.

To find out more about biodiversity and primary industries, see: http://www.dpi.nsw.gov.au/agriculture/resources/biodiversity2/nsw-dpi-biodiversity

Case study: Dingoes tracked by satellite

Dingoes in the Crescent Head and Maria River areas have been wired with satellite-tracking collars to help improve wildlife management.

Industry and Investment NSW researcher, Dr Guy Ballard, said dingoes were being tracked to provide important information about their behaviour and interactions with threatened species.

"GPS collars are used to constantly monitor the dogs via satellite," Dr Ballard said.

"After a set period of time the collars automatically drop off.

"Satellite tracking continues so we can recover the collars, even if other animals or people move them."

According to Dr Ballard, this monitoring is vital to the management of wildlife.

"Maintaining local populations of animals such as quolls, koalas and squirrel gliders requires active research to complement the efforts of the many local landholders who are working with the Northern Rivers Catchment Management Authority to enhance wildlife habitat," he said.

"As top predator, the dingoes’ movements, behaviour and diet are likely to have an impact on a range of species that are important to local landholders and the environment." (Source: I&I NSW website)

Managing our forests

For such a dry country, Australia has been blessed with some magnificent forests which we want to ensure remain for future generations to utilise and enjoy. But if the forestry industry cuts down trees, can these two things work together? How can we protect our native trees, enjoy visiting forests and using Australian timber while still making sure our economy is as healthy as possible?

To this aim, Australia’s forest policy is directly targeted at making sure our forests are both profitable and protected at the same time. In simple terms, forestry is the science and practice of planting and taking care of forests. Forests are made up of complex, dynamic ecosystems that provide a range of environmental, social, cultural and economic services. Forestry, therefore, requires the application of scientific knowledge and research from a broad field of physical, biological and social sciences. (Source: http://www.australianforests.org.au/managingforests/index.htm)

Timber production is one aspect of forest management. Timber is very useful in many ways, especially environmentally, as it is a naturally occurring resource which is renewable and biodegradable. One of the best things you can do when buying wood is to purchase products from sustainably managed forests. Timber from NSW state forests is international certified as sustainable.

Managing our fisheries

Australia has to take care of its natural resources, because those resources help us into the future. This is why the Australian Government ensures all fisheries are independently assessed, to make sure they are operating in an ecologically sustainable way.

These checks are done so that Australian fisheries are protected, stocks do not die out and an important part of Australia’s culture and economy is maintained.

So when you buy fish raised or caught in Australia, you know that behind the scenes Australia is doing its best to keep our fish stocks as healthy and plentiful as possible.

To read more about Austrlian fisheries management see: http://www.afma.gov.au/management/default.htm

Managing our land

Land management is about looking after land resources in a sustainable way. Land management is undertaken in both urban and regional/rural areas. It’s important to maintain a view of the whole landscape and take a balanced sustainable approach in decision making, as land can be used for a range of activities: from housing to agriculture, mining, parkland and much more. These activities interact and may compete with one another.

Governments around Australia have established rules and regulations for land use, and Australia’s farmers play an integral role in land management. Around 60 per cent of the Australian land mass is devoted to agriculture in one form or another, with the types of agricultural pursuit being dictated largely by climate, soil types and water availability. (Source: ABARE)

Managing our water

Water is a basic necessity for life. Without water, none of us would exist. Water is all the more precious here, in the driest inhabited country in the world.

Water is even more important to Australia because agricultural industries, in particular irrigators, rely on it to produce the products we consume each and every day. More than 60 per cent of water used in Australia is used in agriculture to grow crops like green vegetables, a range of fruits, cotton, rice and pastures. (Source: Australian Bureau of Statistics)

All aspects of primary industries are critically dependent on access to, and use of, water:

Production levels from both rainfed and irrigated agricultural and forestry enterprises are directly correlated to the volume of water available to the crops and how efficiently it is used.
The health and productivity of aquatic ecosystems, including fish, are dependent on total river flows, flow variability and water quality. The health of the catchment environment can be affected by the volume and pattern of overbank flows as well as rainfall and evaporation.
The coastal marine environment and therefore our coastal fisheries are affected by the quality and volumes of water arising from catchment flows.
Water is essential to maintain mining operations, and waste water from mining operations must be handled in a way which minimises impacts on the environment.

While people in the cities now accept water restrictions, the idea of actually turning on the tap and having no water does not really seem possible. But to those working in primary industries, especially irrigated agriculture, water shortages are very real and are a threat to production and the social fabric of many towns.

For this reason, governments and communities across Australia are taking an active role in making sure that our water resources are protected and managed to make sure there is always water when it is needed.

So what does this all add up to for Australia’s economy, culture and society?

Primary industry, the production of products from natural resources, has played a huge part in Australia’s growth and development. The industries started with the arrival of Europeans and the raising of sheep for their wool, so much so that it has been said that Australia’s early economic development was largely due to the success of those first wool ventures.

Then farming for wheat became more viable in Australia and soon turned into one of the major exports of the country. Although Australia does not export as much wheat as it used to, farming still takes place on over 60 per cent of the land in Australia.

Also, although there are far fewer farmers around today, farming and agriculture are still very important culturally to Australians, demonstrated by our literature, movies, art, TV shows and events like the Sydney Royal Easter show attended by around a million people every year.

Each and every day we are reminded just how important primary industries are to us and to everyone else in Australia. Without them we would have none of the things we take for granted every day. From the food we eat to the house we live in, everything is built through the resources made available by primary industry. Without primary industry, Australia could never have become the prosperous country that it is today.