Primary industries are collectively one of Western Australia’s largest industries and offers exceptional investment potential.
The United Nations has anticipated global population to increase by 1.2 billion persons in the next 30 years, before peaking at around 10.4b in the 2080s. If humans continue to populate the globe, there will always be demand for food, and this is only set to increase.
According to the WA Economic Profile – December 2022, agriculture, forestry and fisheries contributed $10.8b to WA’s economy (gross state product (GSP)) in 2021-22. The industry also accounted for 30.3% of WA’s GSP growth in 2021-22. Primary industries were also one of the few industries to have experienced growth since the start of the COVID-19 pandemic.
One of the main attractions of investing in WA primary industries is the strong economic growth potential. The sector is expected to continue to grow in the coming years, and there is high demand for agricultural products in the domestic and international markets, driven by population growth and the continuing trend towards healthy eating and sustainable agriculture practices.
WA also offers a variety of incentives to encourage investment in agriculture. These include grants, concessional loans and tax benefits, as well as access to research and development facilities. This provides investors with the opportunity to capitalise on the latest advances in agriculture technology.
Investment opportunities range from investing in land to lease out or start an agricultural enterprise or investing in existing businesses or projects. Investment options also vary between sectors or speciality, including in production, supply chains, innovation, research and development, marketing, public sector capacity building, education and support.
The WA Government is also investing heavily into primary industries, with a focus on sustainability, innovation and economic growth. This includes initiatives such as the Sustainable Agriculture Initiative, which seeks to promote sustainable practices and the development of new technologies and products.
WA is a diverse food bowl
WA is a world-class producer of quality agrifood products. A diversity of landscapes and climatic zones, and safe, clean location, enable the production of a wide range of products – including seafood, meat, livestock, gains, fruit, vegetables, dairy, pulses, oilseeds, honey, aquaculture, processed foods, wines and beverages.
The industry comprises a diverse and skilled workforce in the primary, fisheries, value add and agtech sectors that meets strict national biosecurity and global consumer demands for healthy, clean, sustainable and ethically-grown produce. Additionally, WA has some of the highest animal welfare standards in the world, which the industry takes pride in upholding and adds to its global reputation of producing premium quality food and beverages.
WA’s primary industries have been seen as a valuable asset for international investors and agricultural operators for decades. Throughout the supply chain is a strong group of thriving companies, including in farming operations, collection, storage and logistics, trading and exporting, primary and secondary processing and value-added processing.
Growing export markets
There is increasing global demand for high-quality, safe and healthy food for the rapidly growing Asian middle class. WA’s proximity to Asia, along with its strong reputation for quality, sustainability and biosecurity, means it is well-positioned to capitalise on export opportunities. WA’s
Industry Snapshots on Arable Crops and Meat (agriculture’s two largest sectors) both indicated strong export growth over 20 years of 4% and 5%, respectively.
WA’s has well established export relationships particularly with Asia, Europe and the Middle East where it is renowned for producing premium quality, sustainable and ethically-grown produce. Exports are well supported by extensive transport infrastructure, including ports at Port Hedland (the largest bulk export facility in the world), Fremantle, Dampier, Albany and Geraldton – of which three are the among Australia’s 10 largest ports.
Hive of innovation
WA growers are at the forefront of innovation and continually work towards being more efficient, producing more with less inputs, increasing sustainability and reducing environmental impact. Much of WA’s farmland is less fertile compared to other agricultural regions around the world, yet the Western Australian growers are among the most productive globally.
WA is a leading State in Australia’s grains sector, being the nation’s largest producer of barley and canola, producing 4.6 million tonnes and 1.7mt respectively in 2020-21. In January 2023, the Grains Industry Association of WA reported 2022 was record harvest for the State, eclipsing the previous year’s record. The Arable Crops Industry Snapshot recorded an increase in productivity by 4.5% across 59 years to 2015. The exceptional productivity of WA’s grain industry makes it an attractive area of investment, where long-term demand is expected.
Primary industries offer a diverse range of investment opportunities, bolstered by a strong economic outlook and incentives, making it an industry well worth considering for investors. Increasing demand for quality produce, as well as WA’s ideal diverse growing conditions and access to export markets make the State primed to deliver strong investment returns.