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Agribusiness, Type and Statistics

Introduction Agribusiness, Type and Statistics

Agribusiness is a broad term that encompasses all the businesses and activities involved in the production, processing, and distribution of agricultural products. 

This includes everything from farming and ranching to food processing, biofuels, and textiles.


Here’s a closer look at the definition of agribusiness:

1. Scope of agribusiness:

  • Production: This involves the cultivation of crops and raising of livestock. It includes activities like growing grains, vegetables, fruits, raising cattle, poultry, and fish farming.
  • Processing: This involves transforming raw agricultural products into marketable goods. Examples include milling wheat into flour, processing soybeans into oil and meal, and converting grapes into wine.
  • Distribution: This involves getting agricultural products from the farm to the consumer. It includes activities like transportation, storage, marketing, and retailing.

2. Importance of agribusiness:

  • Food security: Agribusiness plays a critical role in feeding the world’s growing population. It ensures a steady supply of food through efficient production and distribution systems.
  • Economic growth: Agribusiness is a major contributor to the global economy. It generates employment, creates wealth, and supports rural communities.
  • Sustainable development: Agribusiness has a significant impact on the environment. It’s crucial to promote sustainable practices like precision agriculture, renewable energy use, and resource conservation to ensure long-term food security and environmental well-being.

3. Examples of agribusiness sectors:

  • Crop production: This includes growing grains, vegetables, fruits, and other crops for food, feed, and industrial uses.
  • Livestock production: This involves raising cattle, poultry, pigs, and other animals for meat, milk, eggs, and other products.
  • Food processing: This sector transforms raw agricultural products into food items like dairy products, baked goods, beverages, and packaged meals.
  • Farm machinery and equipment: This includes businesses that manufacture and distribute tractors, harvesters, irrigation systems, and other equipment used in agricultural production.
  • Agricultural inputs: This sector provides farmers with seeds, fertilizers, pesticides, and other inputs needed for crop and livestock production.
  • Biotechnology: This field develops new technologies for improving agricultural productivity, such as genetically modified crops and disease-resistant livestock breeds.

Agribusiness is a complex and diverse industry that plays a vital role in our world. Understanding its scope, importance, and various sectors is crucial for appreciating its contribution to food security, economic growth, and sustainable development.

Agribusiness, Type and Statistics

History of Agribusiness

The history of agribusiness is a fascinating saga of evolution, revolution, and controversy. Here’s a timeline of key milestones:

Early Seeds (Pre-20th Century):

  • Ancient Civilizations: Trade networks for agricultural products emerged in empires like Mesopotamia and Egypt, laying the foundation for early forms of agribusiness.
  • Medieval Europe: Feudalism established a system of agricultural production for lords and manors, with centralized control and surplus extraction.
  • Colonial Era: European colonization led to large-scale plantations for cash crops like tobacco and cotton, driven by profit and often employing slave labor.

Industrialization and Transformation (20th Century):

  • Late 19th Century: Mechanization began with inventions like the reaper and threshing machine, increasing efficiency but displacing manual labor.
  • 1930s: The Green Revolution introduced high-yielding varieties of crops and increased reliance on chemical fertilizers and pesticides, boosting production but raising environmental concerns.
  • Post-WWII: Large-scale agribusiness corporations emerged, consolidating production and distribution of inputs and outputs.
  • 1957: The term “agribusiness” is formally defined by John Davis and Ray Goldberg, marking a shift in viewing agriculture as a business rather than just a way of life.

Modern Times and Challenges (21st Century):

  • Globalization: Global trade networks connect producers and consumers worldwide, creating complex supply chains and raising concerns about food security and sustainability.
  • Technological Advancements: Precision agriculture, biotechnology, and automation are further transforming the industry, with ethical and environmental considerations arising.
  • Concentration and Consolidation: A few large multinational companies now dominate many aspects of the agribusiness chain, raising concerns about monopolies and farmer dependence.
  • Sustainability Concerns: Climate change, resource depletion, and pollution are pushing the industry towards adopting sustainable practices like organic farming and renewable energy.

The history of agribusiness is marked by continuous advancements and controversies. Understanding its historical trajectory is crucial for comprehending the complex issues it faces today and shaping its future development towards a more sustainable and equitable food system.

Agribusiness, Type and Statistics

Types of agribusiness

Here’s a picture-free exploration of the diverse types of agribusiness:

1. Crop Production:

  • Field Crops: Imagine vast fields swaying with golden wheat, corn, or rice, providing the foundation for food and animal feed.
  • Fruits and Vegetables: Envision vibrant orchards laden with apples and oranges, or sprawling fields bursting with fresh lettuce and tomatoes, nourishing consumers with vitamins and flavor.
  • Specialty Crops: Picture aromatic coffee plantations in Colombia, cocoa groves in Ghana, or spice farms in India, offering unique flavors and aromas to the world.

2. Livestock Production:

  • Meat Production: Think of herds of cattle grazing in lush pastures, flocks of chickens clucking in coops, or rows of turkeys preparing for holiday feasts, supplying the globe with protein.
  • Dairy Production: Imagine the rhythmic clanging of milkshakes on cows in barns, followed by the transformation of that milk into creamy cheeses and refreshing yogurts.
  • Aquaculture: Picture underwater farms teeming with fish and shellfish, offering a sustainable and delicious source of protein for our tables.

3. Food Processing and Distribution:

  • Packaging and Preservation: Visualize factories transforming raw crops into shelf-stable staples like canned vegetables, frozen meals, and juices, extending their reach and accessibility.
  • Beverages: From the rich aroma of freshly brewed coffee to the bubbly excitement of a bottled beverage, imagine the diverse landscapes of taste brought to life by this sector.
  • Supermarkets and Food Retailers: Think of bustling supermarkets and neighborhood shops, connecting consumers with the incredible bounty of agricultural products from around the world.

4. Agricultural Inputs and Services:

  • Farm Machinery and Equipment: Picture rows of gleaming tractors cutting through fields, powerful harvesters gathering grains, and efficient irrigation systems nurturing crops, empowering farmers with the tools they need.
  • Seeds and Fertilizers: Imagine bags of carefully selected seeds and potent fertilizers finding their way to farms, fostering optimal growth and bountiful yields.
  • Veterinary Services: Envision dedicated veterinarians tending to the health of livestock, ensuring the well-being of animals and the quality of the products they provide.

5. Emerging Trends:

  • Organic Farming: Picture verdant fields flourishing without synthetic chemicals, where natural methods nurture healthy crops and protect the environment.
  • Precision Agriculture: Imagine drones buzzing over fields, collecting data, and guiding farmers to optimize resource use and maximize yields with laser precision.
  • Vertical Farming: Envision towering urban farms, stacked with leafy greens and vibrant produce, defying space limitations and bringing agriculture closer to the people who consume it.

These are just a few vignettes from the vast and dynamic world of agribusiness. Each segment plays a critical role in the intricate journey of food, from farm to table, and as the industry continues to evolve, embracing innovation and sustainability will be essential for a nourishing future for all.

Agribusiness, Type and Statistics

The Agribusiness Statistics Data

Global Market Mammoth:

  • The agribusiness beast boasts a colossal US$8.6 trillion valuation, dominating the landscape in 2022. It’s expected to gallop to a staggering US$12.3 trillion by 2027, growing at a steady 5.5% pace. (Source: Grand View Research)
  • This gargantuan size reflects the agribusiness sector’s critical role in feeding our ever-expanding population, currently surpassing 8 billion strong and projected to reach 9.7 billion by 2050.

Production Powerhouse:

  • Crop champions: Cereals like wheat, corn, and rice reign supreme, with global production exceeding 2.7 billion tonnes in 2021, a testament to their vital role in feeding the world. (Source: Food and Agriculture Organization)
  • Livestock leaders: Meat production reached a record high of 347 million tonnes in 2021, with poultry and pork leading the charge, satisfying our carnivorous cravings. (Source: Food and Agriculture Organization)
  • Aquaculture ascends: Farmed fish and shellfish are rising stars, with production exceeding 127 million tonnes in 2021, offering a sustainable and delicious source of protein. (Source: Food and Agriculture Organization)

Trade and Consumption:

  • Food exporters flourish: Global food and agricultural exports hit a record US$1.3 trillion in 2021, with developing countries playing a key role, contributing over 40% of the total. (Source: World Trade Organization)
  • Consumption conundrum: While meat consumption continues its upward climb, particularly in developing nations, concerns about sustainability and health are driving increased interest in plant-based alternatives.

Employment and Investment:

  • Job juggernaut: Agribusiness is a major job creator, directly employing over 1 billion people and indirectly supporting many more, a vital contributor to global employment. (Source: International Labour Organization)
  • Investment magnet: The sector attracts significant investments, with venture capital funding in agtech startups reaching US$10.1 billion in 2022 alone, highlighting its potential for growth and innovation. (Source: PitchBook)

Challenges and Opportunities:

  • Climate change conundrum: The industry faces the formidable challenge of adapting to climate change and mitigating its environmental impact, requiring sustainable practices and technological advancements.
  • Technological terrain: Precision agriculture, automation, and biotechnology offer exciting opportunities to improve efficiency, productivity, and resource management, shaping the future of the sector.

By understanding these metrics and trends, we can better appreciate its immense contribution to our world, feeding the planet, boosting economies, and creating jobs. As we move forward, embracing innovation, sustainability, and responsible practices will be crucial for ensuring a thriving agribusiness industry that nourishes both people and planet for generations to come.

Agribusiness, Type and Statistics

Table of agribusiness statistics:

Here’s a table summarizing key agribusiness statistics:

Category Statistic Source
Global market size US$8.6 trillion in 2022, projected to reach US$12.3 trillion by 2027 Grand View Research
Crop production Cereals (wheat, corn, rice) exceed 2.7 billion tonnes annually Food and Agriculture Organization
Livestock production Meat production reached 347 million tonnes in 2021, led by poultry and pork Food and Agriculture Organization
Aquaculture production Farmed fish and shellfish exceeded 127 million tonnes in 2021 Food and Agriculture Organization
Food exports Global food and agricultural exports reached US$1.3 trillion in 2021 World Trade Organization
Employment Agribusiness directly employs over 1 billion people globally International Labour Organization
Investment Venture capital funding in agtech startups reached US$10.1 billion in 2022 PitchBook

Additional insights:

  • Global population is expected to reach 9.7 billion by 2050, increasing demand for food production.
  • Meat consumption is rising globally, but concerns about sustainability and health are driving interest in plant-based alternatives.
  • Climate change and environmental degradation are major challenges for the industry, requiring adaptation and sustainable practices.
  • Precision agriculture, automation, and biotechnology offer opportunities to improve efficiency, productivity, and resource management.
Agribusiness, Type and Statistics
Top Leader Company in Agribusiness Industry

Determining the absolute “top” company in the multifaceted world of agribusiness is a tricky task. The sector encompasses a broad range of activities, and success can be measured in various ways. However, several contenders consistently lead the pack in terms of revenue, market share, and overall impact:

1. Cargill:

This American multinational conglomerate with headquarters in Minnesota, U.S., boasts a significant presence in agricultural commodities trading, food processing, and animal nutrition. It reigns supreme in terms of revenue, raking in an estimated US$134.4 billion in 2022. Its extensive operations cover grain and oilseeds, meat and poultry, food ingredients, and financial services, providing them a strong and flexible position in the market.

2. Archer Daniels Midland (ADM):

Headquartered in Illinois, U.S., ADM is another American agricultural processing giant focusing on food processing, biofuels, and nutrition. They hold a dominant position in soybean processing, boasting the world’s largest network of crushing facilities. ADM actively invests in renewable energy and sustainable agriculture initiatives, gaining recognition for their environmentally conscious approach.

3. Bayer:

This diversified German multinational corporation with headquarters in Leverkusen, Germany, has a significant presence in the agribusiness sector through its Bayer Crop Science division. They are a powerhouse in crop protection chemicals and seeds, including the development of genetically modified organisms (GMOs). Bayer actively invests in research and development, aiming to address global challenges like food security and climate change through agricultural innovation.

4. Tyson Foods:

Headquartered in Arkansas, U.S., Tyson Foods is the world’s largest processor and marketer of chicken, beef, and pork, making it a dominant player in the animal protein segment. Their well-known brands like Tyson, Jimmy Dean, and Hillshire Farm reach millions of consumers worldwide. Tyson controls various aspects of the meat production chain, from feed production to processing and distribution, giving them significant control over the market.

5. Bunge:

Headquartered in White Plains, U.S., Bunge is a leading global agribusiness and food company specializing in agricultural commodity trading, processing, and logistics. They excel in sourcing, storing, and transporting oilseeds and grains like soybeans, corn, and wheat, connecting producers and consumers across the globe. Bunge actively incorporates sustainability into their operations, focusing on responsible sourcing and reducing their environmental footprint.

These are just a few of the major players in the agribusiness landscape, and the top contenders can shift depending on specific criteria and market fluctuations. Remember, the “top” company depends on your chosen metric, whether it’s revenue, market share, social impact, or environmental sustainability. Additionally, focusing on specific sub-sectors within agribusiness may reveal different “top” companies depending on your chosen area of interest.

Agribusiness, Type and Statistics

Future of Agribusiness

The future of agribusiness is brimming with both incredible opportunities and pressing challenges. Here’s a glimpse into what might lie ahead:

Technological Revolution:

  • Precision agriculture: Imagine drones hovering over fields, collecting data to optimize irrigation, fertilization, and pest control, paving the way for hyper-efficient and resource-optimized farming.
  • Robotics and automation: Robots could potentially take over tedious tasks like harvesting and milking, freeing up human labor for more complex aspects of production.
  • Vertical farming: Growing crops in stacked, controlled environments closer to consumers could revolutionize urban agriculture and reduce reliance on traditional farmland.
  • Artificial intelligence (AI): AI-powered algorithms could analyze vast amounts of data to predict weather patterns, optimize crop yields, and personalize recommendations for farmers, all aimed at maximizing success.

Sustainability Imperative:

  • Climate-smart agriculture: Adapting to climate change and mitigating its impact will be crucial. This includes adopting carbon-sequestering practices, using renewable energy sources, and developing drought-resistant crops.
  • Circular economy: Minimizing waste and maximizing resource efficiency will be key. This could involve repurposing agricultural waste as fertilizer or biomass energy, and promoting closed-loop systems for water and nutrient management.
  • Regenerative agriculture: Building healthy soil through organic practices like cover cropping and composting will not only improve soil fertility but also enhance carbon sequestration and biodiversity.
  • Animal welfare: With growing concerns about animal welfare, ethical and sustainable livestock production practices will gain importance, including alternative protein sources like cultured meat and insect protein.

Market Realignments:

  • Direct-to-consumer models: Farmers could connect directly with consumers through online platforms or local farmers’ markets, bypassing traditional supply chains and capturing a larger share of the profits.
  • Personalization and customization: Consumers will likely demand more personalized food options, catering to specific dietary needs and preferences. This could involve on-demand production of customized food products.
  • Changing protein landscape: With concerns about the environmental impact of traditional meat production, alternative protein sources like plant-based meat and insect protein are expected to gain significant market share.
  • Global food security: Ensuring equitable access to safe and nutritious food for all will remain a crucial challenge. Agribusiness will need to collaborate with governments and NGOs to find innovative solutions for feeding the world’s growing population.

The industry will undoubtedly face unprecedented challenges, but through technological innovation, commitment to sustainability, and adapting to evolving consumer demands, it has the potential to create a more efficient, resilient, and equitable food system for generations to come.

The future of agribusiness is dynamic and malleable. As new technologies and consumer preferences emerge, the trajectory will continue to evolve. It’s an exciting time to be involved in this critical sector, shaping a future where food production is not only efficient and plentiful but also sustainable and ethically responsible.

Agribusiness, Type and Statistics

Conclusion for Agribusiness, Type and Statistics

The world of agribusiness is a complex and ever-evolving tapestry, weaving together diverse activities from field cultivation to food processing and distribution. Understanding its types, statistics, and future potential reveals a vast and vital industry feeding our planet.

Types: From the towering fields of grain production to the intricate world of livestock rearing, agribusiness encompasses a range of activities:

  • Crop Production: Providing the foundational carbohydrates for the world, crop production includes grains, fruits, vegetables, and specialty crops like coffee and cocoa.
  • Livestock Production: Nourishing us with protein, livestock production covers meat, dairy, and aquaculture, each requiring specialized expertise and care.
  • Food Processing and Distribution: Transforming raw agricultural products into shelf-stable and accessible goods, food processing and distribution connects farms to consumers through packaging, preservation, and retail networks.
  • Agricultural Inputs and Services: Supporting the entire chain, this sector provides everything from farm machinery and seeds to veterinary services and fertilizers, empowering farmers with the tools they need.

Statistics: These numbers paint a picture of the immense scale and influence of agribusiness:

  • A global market size exceeding US$8 trillion, projected to reach US$12.3 trillion by 2027.
  • Over 2.7 billion tonnes of cereal production annually, highlighting the vital role of crops in feeding the world.
  • Meat production reaching a record high of 347 million tonnes, with poultry and pork leading the charge.
  • Over 1 billion people directly employed in agribusiness, demonstrating its significant contribution to global employment.

Future: As we gaze towards the horizon, the future of agribusiness promises both challenges and opportunities:

  • Technological advancements: Precision agriculture, robotics, and AI offer tremendous potential for optimizing efficiency, sustainability, and resource management.
  • Sustainability imperative: Adapting to climate change, embracing circular economy principles, and exploring ethical protein sources will be crucial for a resilient future.
  • Market realignments: Direct-to-consumer models, personalized food options, and alternative protein sources like plant-based and insect protein are likely to reshape the landscape.
  • Global food security: Equitable access to nutritious food for all remains a critical challenge, demanding innovative solutions and collaborative efforts.

Agribusiness is more than just a sector; it’s the engine powering our global food system. 

By understanding its diverse types, insightful statistics, and promising future, we gain a deeper appreciation for its immense role in nourishing people, boosting economies, and shaping a sustainable future for our planet. Let’s continue to explore, innovate, and adapt, ensuring that agribusiness remains a reliable and responsible steward of our shared table.

https://www.exaputra.com/2024/01/agribusiness-type-and-statistics.html

Renewable Energy

Before Trump, “Contempt of Court” Used to Be a Big Deal

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Most Americans, me included, are puzzled as to how the Trump administration can openly thumb its nose to the findings of our courts. Until recently, behavior like this would have wound you up in jail.

Before Trump, “Contempt of Court” Used to Be a Big Deal

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How Households Saved $1,200 with VEU & Air-Con Upgrade? 

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Over the decades, many households across Victoria have resided in older suburban homes equipped with traditional ducted gas heating and aging split-system air conditioners.

However, today the scenario has changed significantly. As energy prices rise, families are feeling the pinch, with annual heating and cooling costs often rising $2,000.

But what are the main issues?

Gas systems that waste energy heating unused rooms, old non-inverter aircons that struggle to maintain even temperatures, and confusion among residents about how rebates, such as the Victorian Energy Upgrades (VEU) program, actually work.

That’s where trusted providers like Cyanergy Australia step in!

By replacing outdated systems with efficient reverse-cycle multi-split air-conditioning and applying VEU rebates, we help many households to cut energy bills, reduce emissions, and enjoy year-round comfort, all in one smart upgrade.

This air conditioning upgrade can lead to a smoother transition from gas to clean, efficient electric heating and cooling, building a smarter, more sustainable home.

So, let’s break down how the household saved $1,200 with the VEU & Air-Con upgrade, what the program offers, and how you can take advantage of similar rebates to cut costs and enjoy a more energy-efficient home.

Cyanergy’s Energy Assessment: What We Found!

From the beginning, Cyanergy’s focus was to remove or disconnect the old gas ducted heater, install a modern
reverse-cycle multi-split air conditioning system, claim the VEU discount, and significantly reduce your annual
energy bills.

Simply via the effective air-conditioner upgrade, households can “Save
up to $2,000 a year on your energy bill.

Here are the findings after Cyanergy’s initial home energy visit:

  • In many Victorian households, the ducted
    gas heater
    is still in use, with high standing and fuel costs.

  • The older split system had poor efficiency. Some of them were oversized for the room and lacked zoning
    options.

  • The electrical switchboard had spare capacity to support a multi-split installation. For example, one
    outdoor unit
    with multiple indoor units for different zones.

Home Heating & Cooling Upgrade| The Step-by-Step Path

It’s well-known that the upgrade path usually involves replacing old systems with modern, energy-efficient solutions.

So, from gas to an energy-efficient electric system, let’s have a look at the upgrade story:

Choosing the right system

For the households that want to upgrade under the VEU air
conditioner rebate
, we proposed a multi-split reverse-cycle system:

  • One efficient outdoor inverter unit connected to three indoor units

  • One in the main living area, one serving the upstairs bedrooms, and

  • One for the downstairs zone, which had very little heating or cooling.

  • Going multi-split provides flexibility: you only run the zones you need, resulting in lower energy
    consumption.

However, in Victoria, Cyanergy is a renowned company that handles design, quoting, installation, and also guides
families through rebate
eligibility
.

Decommissioning the old gas ducted heater

As part of eligibility for the VEU discount, the existing gas heater needed to be decommissioned in most cases.

This involves removing the system or disconnecting the ducted unit from the gas supply, following proper procedures
and obtaining certification, and utilizing expert installers.

Installation Process & Timing Period

  1. Initially, after checking the eligibility, apply for the quotes.

  2. The quote needs to be accepted and dated.

  3. Then the installers will remove the old ducted heater, seal off the vents, and remove or disconnect the gas
    appliance.

  4. The outdoor inverter unit should be mounted externally in these households. The indoor units need to be
    installed in each zone, minimising the intrusion of ductwork and piping.

  5. The wiring and electrical breaker must be upgraded as needed.

  6. The system will then be commissioned, and the necessary documentation will be submitted to the accredited provider for the VEU scheme.

Choosing efficiency over just cooling

Rather than improving just cooling, the Victorian households treated the upgrade as a heating & cooling renovation, switching to a system that uses electricity rather than gas.

Modern inverter systems are more efficient, as they modulate their output, offer better zoning, and can both heat and cool, allowing you to enjoy both winter comfort and summer cooling in one system.

At Cyanergy, we emphasise this home upgrade path:

“Efficient and Eco-Friendly Electric Multi-Split Air Conditioner. Take advantage of up to $7,200 in Victorian Government Energy Upgrade incentives, save big this winter on your gas bill.”

Out-of-pocket and rebate

Here is recent data from the average estimation for a household from the aircon rebate case study in Victoria.

In the quotation, the family had an installation cost of approximately $8,000 for the new multi-split system, including the decommissioning.

The VEU discount for gas-ducted to multi-split upgrades in Victoria was approximately $2,500.

So, their net out-of-pocket cost was ($8,000 – $2,500), which is approx $5,500.

How to Apply for the VEU Rebate: Are You Eligible?

The Victorian Energy Upgrades (VEU) program provides rebates for eligible energy-efficient upgrades such as
installing a high-efficiency reverse-cycle air conditioner to replace an older heating or cooling system.

Before we discuss how
the rebate works
, here are the eligibility criteria.

So, to qualify under the VEU program:

  • The property must be more than two years old.
  • The existing heating or cooling system must be removed or replaced.
  • The new system must be an eligible high-efficiency reverse-cycle unit installed by an accredited
    provider.

How the Rebate Works

In this case, the quote from Cyanergy already included the VEU discount, meaning the price shown was the net cost
after applying the rebate allocated to the installer.

After installation:

  1. The accredited provider registers the upgrade with the VEU program.
  2. They create and claim Victorian Energy Efficiency Certificates (VEECs) for the upgrade.
  3. The value of those certificates is passed on to the customer as an instant discount on the invoice.

The homeowner simply has to:

  • Signs off that the old system was removed or decommissioned.
  • Provides any required evidence or documentation, like serial numbers or photos.

The Result

The rebate is applied instantly at the point of installation, reducing the upfront cost — no need for the homeowner
to submit a separate claim.

Why is the VEU rebate significant?

Rebates like this make a big difference in the decision-making process. As the website says:

On average, households that upgrade
can save
between $120 and $1,100 per year on their energy bills.

Additionally, the government factsheet notes that households can save between $120 and over $1,000 annually,
depending on the type of system and upgrade.

Thus, the rebate reduces the payback period, making the system more widely available.

Energy Bill Before vs After: See the Savings!

Here’s where the real story says: the household’s actual bills before and after the upgrade.

Before Adding Air Conditioning System

  • Ducted gas heating and an older split system.
  • In Victoria during winter months, the average monthly gas cost is approximately $125, and for electricity,
    and other supplementary costs, an additional $30. So roughly $155 per winter month. Therefore, over the
    course of four months, the price can reach nearly $620.

  • In summer cooling months, if their older split system ran for 2 hours per day, for example, from May to
    October, it would cost around $50 per month. Over the 6 months, it will be, $300.

  • Total annual heating and cooling cost is approximately $920

After Adding the Air Conditioning System

  • Household that installed a Multi-split reverse-cycle system.
  • During the winter months, running the zones efficiently and utilizing the inverter system resulted in a
    decrease in heating electricity costs.
  • Let’s say the average is around $70 per month over four months, totaling approximately $280.

  • In the summer months, efficient cooling costs approximately $30 per month over six months, totaling around
    $180.

  • So, the annual heating
    and cooling
    cost is approximately $460.

Net Savings

Annual savings: $920 (before) – $460 (after) = $460 per year.

At that rate, the upgrade pays for itself in net savings and an upfront rebate.

However, as they also removed gas connection fees and standing charges, improving comfort, therefore, the “effective”
savings were perceived to be higher, around $1,200 in the first year with the air conditioning upgrade.

This figure also includes avoided gas standing charges of $150, lower maintenance costs of the old system, and
improved efficiency.

Maximising Your Savings| Key Insights from the VEU Rebate Program

Based on the case study and Cyanergy’s experience, here are some lessons and actionable tips for homeowners
considering an upgrade.

  • Don’t wait until your system dies.
  • Replace outdated or inefficient gas or electric resistance systems immediately. Once the system starts
    failing, you
    may have fewer options or higher installation disruption.

  • Choose a provider who handles the rebates.
  • Dealing with the rebate or discount component (VEU) on your own adds complexity, like documentation,
    compliance, and
    installation. So look for an accredited provider.

  • Understand the actual savings potential.
  • It’s not just the rebate amount; consider running costs, efficiency improvements, zoning, and the ability to
    heat and
    cool.

  • Ensure proper sizing and zone control.
  • As many families discovered, the benefit came from zoning: you only heat and cool rooms you use. Oversized
    units or
    whole-home heating can reduce savings.

  • Factor in non-energy benefits.
  • Better comfort, for example, quieter systems and more consistent temperatures, as well as the removal of gas
    standing
    charges, less
    maintenance
    , and improved resale appeal for eco-conscious buyers, all benefit you.

  • Check the accreditation and compliance.
  • With rebate programs, there’s always a risk of non-compliant installations or companies that don’t follow
    through.

    So, do your homework: check that the installer is accredited for VEU, ask for references, and ensure that the
    documentation is completed appropriately.

  • Request detailed quotes that include estimates for both “before rebate” and “after rebate”
    costs.
  • This helps you see how much you’re actually paying, the discount you receive, and ensures transparency. The
    rebate is
    not always the full difference; minimum contribution rules apply.

  • Monitor your bills after installation.
  • Keep track of your energy bills (gas & electricity) before and after for at least 12 months. This will
    indicate
    whether the savings are as expected and aid in budgeting.

    Be realistic about pay-back

    Although the rebate helps upfront, large systems still cost thousands of dollars. Don’t expect payback in one
    or two
    years (unless you have extreme usage).

    However, with a well-designed system, rebates, and efficiency gains, a payback of 5-10 years or better is
    possible,
    depending on usage.

Final Notes

This aircon rebate case study illustrates the VEU saving. By working with Cyanergy Australia, households transformed a traditional, inefficient gas-ducted heating and older split cooling system into a modern, efficient, zone-controlled multi-split reverse-cycle air-conditioning system.

This was made more affordable through the VEU scheme discount.

The result? A net cost of around $5,500, improved comfort, and savings of approximately $1,200 in the first year.

This real-world “VEU saving example” shows that:

  1. Rebates matter as they make the upgrade financially viable.
  2. Efficiency matters as modern multi-split reverse-cycle systems deliver lower running costs.

  3. Removing inefficient gas heating can unlock significant savings.
  4. A reliable installer who navigates the rebate process effectively is crucial.

So, if you are looking for an accredited provider in Australia, Cyanergy is here to help!

Contact us today to receive a free solar quote. We will handle all your paperwork to ensure a fast and smooth installation process.

Your Solution Is Just a Click Away

The post How Households Saved $1,200 with VEU & Air-Con Upgrade?  appeared first on Cyanergy.

How Households Saved $1,200 with VEU & Air-Con Upgrade? 

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Air Power

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About 20 years ago, a friend asked me if I was aware that cars could run on air.  I asked, delicately, what she meant, and she explained that cars can run on compressed air.

“Ah,” I replied. “Of course they can. But where does the energy come from that compresses the air?”  End of conversation.

Now, it’s back.  Now there are enormous swaths of the population who know so little about middle school science that they believe we can put cars on the road, in an ocean of air, and extract energy out of that air to power our automobiles.

If you’re among these morons and want to invest with some heavy-duty fraud/charlatans, here’s your opportunity.  They say that it’s “self-sustaining and needs no fuel.” If that makes sense to you, be my guest.

Air Power

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