Abstract
This study aims to provide an in-depth analysis and assessment of Australian wheat products' export market and product structure. Multiple indicators, including the HHI index, Lawrence index, Spearman rank coefficient, and BSCI index, are used to comprehensively understand the market concentration, the extent of change, and the matching degree between products and markets and global demand.
The study used data from the World Bank database from 2009 to 2021, covering 18 types of wheat export products, including wheat cereals, flours, and bread (according to HS 2002 code). We compared four other major wheat exporters: the United States, Russia, Canada, and France. Research results show that the export structure of Australian wheat products has the highest concentration among the five countries, with an average value of about 0.80. In comparison, the product concentration ratios of the other four countries are 0.48, 0.77, 0.37, and 0.37, respectively, implying that the types of wheat products exported by Australia are relatively single.
In addition, Australia's wheat product structure changed relatively little in the years investigated, with an average of 0.03. However, the trend showed signs of a gradual increase, which may signal that Australia is actively adjusting its wheat product structure to adapt to changes in market demand. However, it is worth noting that the matching degree between Australia's wheat product structure and global demand is relatively low, about 0.64; the other four major wheat exporters are 0.91, 0.74, 0.86, and 0.90, respectively, and the trend is downward, suggesting that the current structure of Australian wheat exports is deviating from world demand and the situation is further deteriorating.
In terms of market structure, compared with other types of products, by-products (bran HS 230230) have the highest market concentration for Australia with an average of 0.80 (which is 0.80, 0.78, 0.96 and 0.293 for others). This may be due to the lower trade value of such products and the transport cost. Unprocessed wheat cereals have the lowest market concentration because they have multiple uses and meet various consumer needs. The export market for Australian wheat products is relatively concentrated compared to the other four countries. However, the market structure has changed significantly, which shows that Australia is actively adjusting the market structure to adapt to different needs.
Comprehensive indicator analysis shows a diversified product structure may be crucial to Australia. Australia could consider investing in research and development of new wheat varieties better suited to the needs of different markets or improving wheat processing technology to create more value-added wheat products. Second, market diversification is critical to reducing risk. Reducing reliance on a few significant markets, actively seeking emerging markets, and strengthening partnerships with existing markets can help the Australian wheat industry better respond to market fluctuations. Additionally, it is crucial to monitor and study market dynamics continuously.
The Australian government and agricultural departments should continue to pay attention to changes in global market demand and flexibly adjust strategies according to market trends to ensure that the wheat export industry remains consistent with market demand.
The study used data from the World Bank database from 2009 to 2021, covering 18 types of wheat export products, including wheat cereals, flours, and bread (according to HS 2002 code). We compared four other major wheat exporters: the United States, Russia, Canada, and France. Research results show that the export structure of Australian wheat products has the highest concentration among the five countries, with an average value of about 0.80. In comparison, the product concentration ratios of the other four countries are 0.48, 0.77, 0.37, and 0.37, respectively, implying that the types of wheat products exported by Australia are relatively single.
In addition, Australia's wheat product structure changed relatively little in the years investigated, with an average of 0.03. However, the trend showed signs of a gradual increase, which may signal that Australia is actively adjusting its wheat product structure to adapt to changes in market demand. However, it is worth noting that the matching degree between Australia's wheat product structure and global demand is relatively low, about 0.64; the other four major wheat exporters are 0.91, 0.74, 0.86, and 0.90, respectively, and the trend is downward, suggesting that the current structure of Australian wheat exports is deviating from world demand and the situation is further deteriorating.
In terms of market structure, compared with other types of products, by-products (bran HS 230230) have the highest market concentration for Australia with an average of 0.80 (which is 0.80, 0.78, 0.96 and 0.293 for others). This may be due to the lower trade value of such products and the transport cost. Unprocessed wheat cereals have the lowest market concentration because they have multiple uses and meet various consumer needs. The export market for Australian wheat products is relatively concentrated compared to the other four countries. However, the market structure has changed significantly, which shows that Australia is actively adjusting the market structure to adapt to different needs.
Comprehensive indicator analysis shows a diversified product structure may be crucial to Australia. Australia could consider investing in research and development of new wheat varieties better suited to the needs of different markets or improving wheat processing technology to create more value-added wheat products. Second, market diversification is critical to reducing risk. Reducing reliance on a few significant markets, actively seeking emerging markets, and strengthening partnerships with existing markets can help the Australian wheat industry better respond to market fluctuations. Additionally, it is crucial to monitor and study market dynamics continuously.
The Australian government and agricultural departments should continue to pay attention to changes in global market demand and flexibly adjust strategies according to market trends to ensure that the wheat export industry remains consistent with market demand.
| Original language | English |
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| Number of pages | 2 |
| Publication status | Published - 07 Feb 2024 |
| Event | 68th Annual Conference of the Australasian Agricultural and Resource Economic Society 2024: AARES 2024 - Australian National University, Canberra, Australia Duration: 06 Feb 2024 → 09 Feb 2024 https://www.aares.org.au/AARES2024 (Conference website) https://www.aares.org.au/Events/AARES-2024/program/ (Program) https://www.aares.org.au/files/aares_conference_2024/Abstract_book_2024_01_31.pdf (Abstract book) |
Conference
| Conference | 68th Annual Conference of the Australasian Agricultural and Resource Economic Society 2024 |
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| Country/Territory | Australia |
| City | Canberra |
| Period | 06/02/24 → 09/02/24 |
| Other | The AARES 2024 Annual Conference will explore the grand challenges that are facing the Australasian region and beyond, such as biosecurity, climate change, environmental degradation, energy system transitions, and food security. The conference will provide a forum for our Society to explore new opportunities for research and development, and policy practice that can address these grand challenges in securing efficient, effective, and equitable outcomes. Distinguished researchers and professionals will present keynote presentations to inspire and stimulate discussion. The conference will bring together applied and theoretical economists, industry professionals, and policymakers to share their experience and exchange insights. Whether you are an expert in academia, industry, or the public sector, we welcome your valuable contributions. After three years of online and hybrid conferences, we are returning to the usual in-person interactive format for our 2024 conference. The 2024 conference will be our 68th annual AARES conference. |
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