Figure 1: Global trade in agricultural products during the Global Financial Crisis
However, with 70% of the nation’s agricultural production presently exported, the sector is heavily reliant on overseas demand. In developing markets and those hit hardest by falling oil prices and wage slumps, orders have already decreased for food products considered discretionary. For seafood alone, the outbreak in China is expected to result in export earnings falling by approximately A$200m2 (US$131m) in 2019–20, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).
In this interview, Paul van Heerwaarden, the chief executive officer of Bega Cheese Limited, answers questions from The Economist Intelligence Unit on how covid-19 is changing Australia’s food and dairy industries and its broader implications for the country’s agriculture sector and export markets.
