While global trade tensions are rising and United States protectionism reshapes markets, there are opportunities for the Australian agriculture sector to minimise disruption and maximise benefits if proactive steps are taken by government and industry.
That's according to a new report from AgriFutures Australia and the Australian Farm Institute (AFI), which reveals while tariffs could hurt the Australian economy overall, they might also create opportunities for farmers through currency shifts and changing trade flows.
The report, Navigating the New World Order: Australian agriculture's place in global trade wars , was the topic of conversation at a roundtable meeting of senior industry leaders at Agriculture House in Canberra on Thursday.
With more than 70% of the value of Australian agricultural products exported, General Manager of Rural Futures at AgriFutures Australia, Simon Vincent, said changing global trade dynamics were challenging long-held assumptions about where Australia fits within the international trading system.
"The global trading landscape has fundamentally changed. While long-term investment in research and development has set a great foundation of productivity in our agriculture sector, we need to maintain focus on efficiency and competitiveness to both reduce risk and maximise any opportunities arising from a turbulent trading environment," Mr Vincent said.
"This report highlights how the flexibility of our agriculture sector can help its industries shift between markets and offset the impact of tariffs.
"Importantly, it also sets out how further investment in market intelligence, diversification and shared strategic responses will ensure we are even better placed to navigate future trade shocks."
The report models the impact of US tariffs on Australian agriculture, even if they aren't imposed directly on Australia, and shines a light on opportunities for the sector to leverage any resulting currency depreciation or trade reallocation.
AFI Executive Director, Katie McRobert, said the report charts a path for decision makers and industry to enhance the agriculture sector's resilience to trade disruptions.
"These findings should give Australian farmers confidence that they are well placed to navigate the choppy waters of tariff turmoil," Ms McRobert said.
"The framework put forward in the report to guide government and industry efforts has a focus on further improving what we do well and bolstering investment in trade-related infrastructure. Recommendations also include the establishment of trade disruption loan facilities for farmers, enhanced market intelligence and monitoring tools.
"By combining immediate relief and strategic, long-range investment, we can take decisive action in the short term while building a system that is more agile, informed and globally competitive over time.
"Australian producers are globally competitive for good reason – we need to stay alert, not alarmed, knowing that not all changes to trade will be negative."
The report forms part of a broader program of strategic work by AgriFutures to inform rural industries and government on global market shifts and trade resilience.
