Central articles

Agribusiness thrives through COVID recession

Written by Central author | Feb 26, 2021 12:13:14 PM

Farming profits through the pandemic year

The Australian agriculture industry defied odds as the world suffered under the consequences of a global pandemic through 2020 and into 2021. For many markets within the farming sector, the pandemic year did not cause any downturn.

Rural job vacancies are increasing as the agricultural economy continues to thrive. There is high demand for permanent staff in the agriculture sector compared with the mainstream employment market. Rural job advertising hit record levels in the last months of 2020.

Defying the odds

Research by the agribusiness recruitment firm Rimfire Resources highlights how agriculture has challenged the current trend of recession, continuing onward and upwards into 2021. Surveys have indicated that most large to mid-sized farm production and related agricultural operations reported a continued profitable revenue outlook despite the pandemic and some were reaping greater earnings. Businesses that were monitored by Rimfire for these studies ranged from animal nutrition, crop protection and farm equipment corporates, to manufacturers and investor-owned farming enterprises.

Changing demands

The favourable seasonal conditions and higher demands for farm inputs and livestock were important factors to improving the farm economy. However, the pandemic brought about changes to food and agricultural supply changes, bringing in new demands and extra local revenue activity.

Businesses in retail distribution, farm machinery and farm merchandise enjoyed notable increase in profitability. However, primary production segments along with  dairy and meat processing operations are more likely to have experienced downturn.

The Australian Government have increased grants for fodder storage assets and continued support packages to assist Australian agri-business and farmers. 

Job Vacancies

Within the agricultural industry there has been a significant increase in job vacancies due to improved seasonal conditions and general confidence in the farm sector across the country. Demand for rural professionals, agricultural managers and skilled farming workers is high and is not expected to decline anytime soon.