The Economics of Wheat in Australia Essay Example | Topics and Well Written Essays - 1000 words

The Economics of Wheat in Australia - Essay Example The essay "The Economics of Wheat in Australia" discusses the macroeconomic aspects of wheat production and consumption in Australia. The crop is grown on a large scale basis and accounts for a significant percentage of the global wheat exports. About 25,000 out of the 121,000 farms in Australia have wheat as one of the major crops planted by farmers. Crop land devoted to wheat in the country averages 2,250 acres. Domestic demand and consumption of wheat in Australia is much less than the country’s production. While the country accounts for only 3% of the global wheat production by volume, it meets 18% of the global export value. Clearly, the country exports a larger percentage of the cereal than the fraction of world’s wheat it produces. The Australian Bureau of Statistics noted that the country produced wheat worth $5.6 billion in the financial year 2003-2004, which made up 15% of all farm production in value. Over 60% of this was sold in overseas markets, underscorin g the significance of the country as a major player in the global wheat market. According to the Australian Bureau of Statistics, wheat accounted for 22% of the total crop production for the country in 2010. The volume of wheat produced in the country has been rising over the last four decades. Australia has a GDP ($ 999.6 billion; the equivalent of USD 1454 billion) and a GDP growth rate of 2.4%. Inflation (CPI) stands at 2.5% while unemployment is at 5.6%. Â  Statistics show that the GDP growth rate fell by a small margin towards 2015.