Baw Baw Shire is a predominantly rural-based municipality, which includes rich horticultural, dairying and forestry areas. It is also a major exurban growth area for the south-eastern suburbs of Melbourne, the focus of which is on Drouin and Warragul. Primary industry is a major employer and industry sector within Baw Baw and includes dairy and beef cattle, pome fruits (apples), vegetables, potatoes, cool climate grapes, maize, soft fruits (berries and currants), fresh flowers, seedlings and plants, hydroponic tomatoes and timber. There is also a significant and growing value-adding sector taking advantage of the primary produce grown in the area. Organic production is also increasing significantly.