Doing Business in Austria 239visitors by far, and an overwhelming majority of tourists
are European.
Agriculture
Agricultural production is an important part of the Austrian
identity. A drive through low-lying areas reveals farms,
orchards, vineyards, grazing and pastureland. In fact, roughly
18 per cent of the country is farmland. Practically all farms
are family operated, and over half are small-scale enterprises.
In spite of EU subsidies, only about a third of farmers earn
enough from farming to cover living expenses; the rest must
seek additional sources of income.
About two-thirds of agricultural products are derived from
animals, with an emphasis on dairy yield. The main crops
cultivated are corn, barley, wheat, rye, potatoes and sugar
beets. In the east, there are a significant number of vineyards
and orchards where apples, plums, apricots, peaches and
pears are grown. Austria is nearly self-sufficient in food
production. Together with forestry, agriculture accounts for
about 3 per cent of GDP.
Forestry
Almost half of Austria’s surface is covered with forests and
woods, and about 12 per cent of its exports are timber, timber
products and paper products. After years of exploitation,
reforestation efforts are being made, and new techniques
such as controlled thinning have been introduced.
International Trade
Austria’s main trading partners are its fellow countries in
the EU. Over 60 per cent of exports are to EU members,
with Germany receiving the lion’s share and Italy coming in
second. Important non-EU trading partners are Switzerland
and eastern European countries, with Hungary topping
the list. Outside of Europe, a significant amount of trade is
conducted with the United States and Japan. Almost half of
all exports consist of machines and transport equipment;
manufactured goods make up another quarter; and consumer
goods, chemicals, foodstuffs, tobacco, raw materials and