This is according to a new report by Deloitte, commissioned by the CropLife Australia plant science industry lobby.
It showed that 68% of the total value of Australian crop production, or A$17.6bn of agricultural output, can be attributed to the use of crop chemicals, and that such products are boosting crop yields by 40%.
Better off with chemicals
Without the use of fungicides to control rusts, mould and mildew on vegetables, vines, fruit and nut crops; herbicides to limit weeds in crops such as cotton, wheat and sorghum; and insecticides to combat pests, Deloitte's survey concluded that the national economy would be A$14.8bn worse off.
It also found that, without approved chemical sprays, some crops—including hops for beer, wine grapes, onions, carrots, celery and papaya—would be virtually impossible to grow commercially.
“Our report highlights the multiple contributions the crop protection industry makes to the economy in areas including employment, exports, manufacturing and trade,” said Deloitte partner Steve Brown.
The study comes at a time when the use of pesticides, herbicides and insecticides have come under much debate. In particular, the debate over genetically modified crops is ringing out with South Australia and Tasmania each having a moratorium on GM.
The status of Tasmania’s GM moratorium is currently under review in preparation for when it expires in a year’s time. CropLife Australia is keen for this to be lifted, having stated that the Tasmanian agriculture industry has suffered a net loss of A$4m each year as a result—a claim that the state’s government has been quick to counter, saying that Tasmania can benefit as a known GM-free producer on the world stage.
Heavy lobbying
With the Deloitte report, CropLife is clearly setting out to open consumers’ minds to the technology involved in crop certification.
“Imagine if more than two-thirds of the crops Australian farmers currently harvest were lost every year. Imagine how sparse the local fruit and vegetables would be on our supermarket shelves. How much fresh produce would make it to our plates? How much would we have to pay for it?” posed Matthew Cossey, CEO of CropLife Australia, at the launch of the report.
“Very few consumers understand where their food and drink comes from, or the energy and resources that go into putting a meal on their plates.”
It also backed up the findings of other international studies—one of which that was recently conducted in the US by economist Mark Goodwin indicated that crop protection products provide a 48% saving on grocery bills for a family of four there.
Australia’s federal government has already committed to streamlining agricultural chemical regulations, and is preparing to review changes made by the previous Labor government at the behest of the Australian Greens to add an extra layer of regulation to the use of agriculture chemicals.
The changes, now law, require chemical firms to re-register existing common agricultural chemicals such as Roundup for continuing regulatory approval every five to 10 years.
Cossey said that the government’s plans will “facilitate access to chemicals for uses that would otherwise be commercially unviable in the Australian market.