THE CHANGING ROLE OF RURAL INDUSTRIES IN THE AUSTRALIAN ECONOMY: A GEOGRAPHIC ASSESSMENT Craig Duncan* University of Queensland, Brisbane The rural industries have long been accorded a favored place in the Australian economy. Today, several factors threaten the accepted role of these industries. It is the purpose, in this paper, to examine this role, and to seek a reappraisal in terms of the changes which are taking place. Throughout the paper, the expression "rural industries" is used to designate the industries which are essentially a part of the rural landscape. The agricultural, pastoral, and dairying industries are listed in official statistics as the three main rural industries. In the statistical year 1958-59, for example , they accounted for 97 per cent of the total net value of rural production , contributing 12 per cent, 15 per cent and 0.5 per cent, respectively, to the net value of all production within Australia.1 In terms of the implications of the word "rural," trapping and forestry should also be included among the rural industries; but in the official statistics , these are classified as non-rural primary. Because they account for only 2 per cent of the net value of all production, it is expedient to exclude them from consideration here. Australia has an area of 2,971,000 square miles, about that of the mainland United States. Approximately 15 per cent of the population is classed as rural. This is the basic setting for the rural industries, which effectively occupy only about 64 per cent of the total land area. Most of the occupied land area, in turn, is described as "rural holding," with 95 per cent being "used for grazing, lying idle, etc."2 Intensive forms of occupance, including urban, are to be found on only 5 per cent of the occupied land area. As a consequence, intensive and therefore more remunerative uses of the land are extremely limited in location. They are to be found in remarkably contrasting juxtaposition to the extensive forms which surround them. One locational characteristic of intensive use which results from this, is a high degree of selectivity of soil and situation; another is the development, in many cases with but little zonal grading, in the midst of elemental forms of rural activity. Such selectivity and lack of grading are features of immaturity in rural occupancy. Yet the very nature of this immaturity belies the true economic significance of the rural industries to Australia. Rural productivity, for the most part, capitalizes on the extensiveness of land areas rather than * Visiting Associate Professor, Oregon State University, 1961-62. 1 Commonwealth Statistician, Canberra, 1960. The net value of production is the value at place of production, less the value of materials used in the process of production. The use of official statistics throughout this paper is here acknowledged. 2 Year Book of the Commonwealth of Australia No. 46, 1960, Commonwealth Bureau of Census and Statistics, Canberra, p. 948. 21 TABLE 1 Net Value of Rural and Total Production for Selected Statistical Years 1892-1960* (£1000) Year Rural Production Total, All Industries Rural Production as % of Total 1892 1902 1912 1922 1932 1942 1952 1955 1956 1957 1958 1959 I960" 56,300 60,700 111,700 201,400 121,100 190,600 783,282 872,366 913,076 1,023,990 848,293 943,474 1,014,273 96,100 114,600 188,400 344,400 252,400 557,500 1,954,804 2,413,670 2,611,290 2,854,710 2,771,553 2,972,289 3,289,561 59 53 59 59 48 34 40 36 35 36 31 32 31 * Gross value from 1891 to 1921-22. Prior to 1922, figures are for years ending previous December. ** Subject to revision. on the intensiveness of production, and provides a more than adequate volume of commodities for a population which has only recently reached ten millions. In Table 1, the relation between the value of rural and total industrial production is tabulated. Rural industries, although increasing in both value (and volume) are contributing a decreasing amount relative to the net value of Australian production.3 Regionally the disparity between rural production and total industrial production is greatest...