Value of Agricultural Commodities Produced

NAME OF ORGANISATION
Australian Bureau of Statistics (ABS)

OVERVIEW
The objective of the Value of Agricultural Commodities Produced (VACP) series is to value (gross and local), in accordance with defined principles, the recorded annual production of agricultural commodities.

These valuations are to estimate, in a comparable fashion between States and Territories, the annual value of agricultural commodities deemed to be produced.

Gross value is the value of production at the point of sale, i.e. where it passes out of the Agriculture sector of the economy. Local (basic) value is the value of agricultural commodities at the point of production.

Marketing costs are defined as the costs of moving agricultural commodities from the point of production (farm) to the point of sale. Local value is derived by subtracting the marketing costs from Gross value.

The publications contain information on the VACP compiled annually for all States and Australia. They include Gross and Local values of production for all agricultural commodities: unit gross values of selected commodities; gross value of production of selected commodities classified by industry of the producing establishment; and indexed (Chain Volume Measures) of production.

PURPOSE
Value of Agricultural Commodities Produced (VACP) estimates are used by the National Income and Expenditure Section of National Accounts Branch in the estimation of the gross farm product component of the Gross Domestic Product and in the estimation of the farm unincorporated income component of the Total Unincorporated Income. The Input Output section relies on the VACP series to provide information about the supply of agricultural commodities at approximate basic values and at "purchasers prices" for incorporation in the input output tables. There is no alternative source currently available for use in the above estimates.

Data is also used by the State Departments of Agriculture in policy formulation, by the Bureau of Agricultural Economics for benchmarking purposes for the production of trends and forecasts for the Agricultural sector and by the Department of Agriculture, Fisheries and Forestry (AFFA) as input for the estimation of the AFFA Balance of Payments statistical series. AFFA also use the estimates as input to the formulation of policies regarding the level of funding for Research and Development grants to industry bodies.

Other users include the Industries Assistance Commission, Treasurer, farmers organisations and rural analysts.

The Agriculture Statistics program uses the VACP series in the calculation of the current year weighted average of unit values for individual commodities. This is essential to the calculation of the Estimated Value of Agricultural Operations (EVAO) for each unit to obtain a measure of the size and type of activity undertaken by each establishment.

Following Australian and New Zealand Standard Industrial Classification (ANZSIC) coding and sizing, the units file is fed back to the Business Register for updating the agriculture related units at both establishment and management unit levels.

SCOPE
The statistics are derived by multiplying quantity data by price (or unit value) data. The quantity data are collected in Agricultural Census/Surveys and other ABS collections with some information from external sources. Prices for whole milk are obtained from non-ABS sources. Price information for livestock slaughterings and wool are obtained from ABS collections.

For 1989-90 and 1990-91 crop estimates are based on production from farms having a minimum Estimated Value of Agricultural Operations (EVAO) of $20,000. For 1991-92 and 1992-93 crop estimates in previous publications were based on productions from farms expected to have an EVAO of $22,500 or more and from 1993-94 the estimates are based on EVAO of $5,000 or more. Estimates from 1993-94 onwards, are therefore not strictly comparable with data in previous publications.

DATA DETAIL

Conceptual framework
The Value of Agricultural Commodities Produced (VACP) series is a derived series whereby weighted average market values (unit prices) are applied to the production of commodities as recorded in ABS statistical collections, e.g. the Agricultural Census/Survey, the Wool Brokers and Dealers collection, the Livestock Slaughtering collection and Overseas Trade statistics. Exceptions include the production of milk, as recorded by the Australian Dairy Corporation and until recent years State Egg marketing boards recorded egg production. Egg production is now also collected in the Agricultural Census following deregulation of the egg industry in all States.

Initially value of production estimates were derived in order to provide estimates of what now approximates to Value Added. Value added was calculated by deducting a given range of expenses from the value of production to derive an estimate of an industry's contribution to GDP. Today, however, value of production estimates are presented in absolute terms and the National Accounts branch of the ABS is responsible for the derivation of Value Added.

Main outputs
Gross and Local values of production for all agricultural commodities: gross unit values of selected commodities; gross value of production of selected commodities classified by industry of the producing establishment; and indexed (Chain Volume Measures) of production.

Classifications

The broad commodity classification are as follows:

Crops

Cereals for Grain
Legumes
Oilseeds
Crops for Hay
Other Crops

Pastures and Grasses

Cut for Hay
Harvested for Seed

Fruit (excluding grapes)

Orchard Fruit
Citrus
Pome
Stone
Nuts
Berry and small fruit
Other fruit

Grapes

Table
Wine
Dried

Vegetables for Human Consumption

Various vegetables

Livestock Slaughterings and Other Disposals

Cattle & calves
Sheep & lambs
Pigs
Goats
Poultry

Livestock Products

Wool
Liquid Whole Milk
Eggs

Other concepts (summary)
Agricultural commodity - a product produced by the agricultural sector (including livestock and livestock products).

Agricultural Sector - includes all "commercially" producing establishments with an Estimated Value of Agricultural Operations (EVAO) of $5,000 or more from production of commodities designated as primary to Australian and New Zealand Standard Industrial Classification (ANZSIC) Sub-division 01 "Agriculture".

The Estimated Value of Agricultural Operations (EVAO), is an aggregation of commodity values which takes into account (without double counting) the area of crops sown and numbers of livestock on holdings at a point in time as well as the crops produced and livestock turn-off during the year. It should be noted that EVAO is applicable only for industry coding and size valuation purposes. It is not an indicator of receipts obtained by units or of the value of agricultural commodities produced by these units.

Establishment - unit covering all operations carried out by the one management unit at a single physical location. For agriculture, a location is defined as a contiguous parcel of land or a number of non-contiguous parcels of land operated under the one management as one unit and contained within the one local government area.

Gross Value - the value placed on recorded production at wholesale prices, realised in the market place.

Local Value - the value placed on recorded production at the place of production, and is ascertained by deducting marketing costs from the gross value.

Gross and Local values of agricultural commodities produced involve some duplication, as they include certain agricultural commodities which are consumed as raw materials to produce other agricultural commodities (eg hay consumed by livestock).

Average Gross Unit Values - are calculated by dividing the gross value of each commodity produced by the total production of each corresponding commodity.

Livestock slaughterings and other disposals - includes two components

Marketing Costs - the cost of moving the product from the place of production to the market place, including freight, cost of containers, commission, insurance, storage, handling and other charges necessarily incurred by the producer in delivering commodities to the market place. Marketing costs are not on a completely comparable basis between states and in addition, accurate information is difficult to obtain for many items. As a consequence, differences between states in the relationship of local to gross value should be regarded with some caution.

Market Place - the point(s) of valuation of a commodity where ownership of the commodity is relinquished by the agricultural sector as defined for Value of Agricultural Commodities Produced (VACP) purposes. In general this is the metropolitan market in each state. Where commodities are consumed locally, or where they become raw material for a secondary industry, these points are presumed to be the market place.

Recorded Production - production as recorded in ABS statistical collection, e.g. the Agricultural Census, the Wool Brokers and Dealers collection and Overseas Trade and Manufacturing Sections statistics. Exceptions include the production of Milk as recorded by the Australian Dairy Corporation.

Reference Period - for most crops this refers to the season ended 30 June. However, production is valued for those summer crops, orchard fruit and vegetable crops where the harvesting period extends beyond 30 June. Livestock slaughterings and other disposals relate to 30 June. For all commodities, values are in respect of production during the financial year irrespective of when payments are actually made.

GEOGRAPHIC DETAIL
Australia
New South Wales
Victoria
Queensland
South Australia
Western Australia
Tasmania
Northern Territory
ACT
Statistical Division
Statistical Subdivision
Statistical Local Area

Comments and/or Other Regions
Data is available at SD level in years when an Agricultural Commodity Survey is conducted. It is available at lower levels down to Statistical Local Area In years when an Agricultural Census has been conducted,

COLLECTION FREQUENCY
Annually

Frequency comments
Estimates are calculated three times per year, but only the first and final estimates are published.

COLLECTION HISTORY
For 1989-90 and 1990-91 crop estimates are based on production from farms having a minimum Estimated Value of Agricultural Operations (EVAO) of $20,000.
For 1991-92 and 1992-93 crop estimates in previous publications were based on productions from farms expected to have an EVAO of $22,500 or more and from 1993-94 the estimates are based on EVAO of $5,000 or more. Estimates from 1993-94 onwards, are therefore not strictly comparable with data in previous publications.

Processing of the data was centralised in the Hobart office in October 1997.

DATA AVAILABILITY
Yes

Data availability comments
Data is released annually.
Collection is a continual process.
Preliminary figures released in the January/February following the reference period.
Final figures released in the following June/July.

DATE OF LAST UPDATE FOR THIS DOCUMENT
03/02/2011 01:44 PM

This page last updated 18 September 2012

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NAME OF ORGANISATION Australian Bureau of Statistics (ABS) OVERVIEW The objective of the Value of Agricultural Commodities Produced (VACP) series is to value (gross and local), in accordance with defined principles, the recorded annual production of agricultural commodities. These valuations are to estimate, in a comparable fashion between States and Territories, the annual value of agricultural commodities deemed to be produced. Gross value is the value of production at the point of sale, i.e. where it passes out of the Agriculture sector of the economy. Local (basic) value is the value of agricultural commodities at the point of production. Marketing costs are defined as the costs of moving agricultural commodities from the point of production (farm) to the point of sale. Local value is derived by subtracting the marketing costs from Gross value. The publications contain information on the VACP compiled annually for all States and Australia. They include Gross and Local values of production for all agricultural commodities: unit gross values of selected commodities; gross value of production of selected commodities classified by industry of the producing establishment; and indexed (Chain Volume Measures) of production. PURPOSE Value of Agricultural Commodities Produced (VACP) estimates are used by the National Income and Expenditure Section of National Accounts Branch in the estimation of the gross farm product component of the Gross Domestic Product and in the estimation of the farm unincorporated income component of the Total Unincorporated Income. The Input Output section relies on the VACP series to provide information about the supply of agricultural commodities at approximate basic values and at "purchasers prices" for incorporation in the input output tables. There is no alternative source currently available for use in the above estimates. Data is also used by the State Departments of Agriculture in policy formulation, by the Bureau of Agricultural Economics for benchmarking purposes for the production of trends and forecasts for the Agricultural sector and by the Department of Agriculture, Fisheries and Forestry (AFFA) as input for the estimation of the AFFA Balance of Payments statistical series. AFFA also use the estimates as input to the formulation of policies regarding the level of funding for Research and Development grants to industry bodies. Other users include the Industries Assistance Commission, Treasurer, farmers organisations and rural analysts. The Agriculture Statistics program uses the VACP series in the calculation of the current year weighted average of unit values for individual commodities. This is essential to the calculation of the Estimated Value of Agricultural Operations (EVAO) for each unit to obtain a measure of the size and type of activity undertaken by each establishment. Following Australian and New Zealand Standard Industrial Classification (ANZSIC) coding and sizing, the units file is fed back to the Business Register for updating the agriculture related units at both establishment and management unit levels. SCOPE The statistics are derived by multiplying quantity data by price (or unit value) data. The quantity data are collected in Agricultural Census/Surveys and other ABS collections with some information from external sources. Prices for whole milk are obtained from non-ABS sources. Price information for livestock slaughterings and wool are obtained from ABS collections. For 1989-90 and 1990-91 crop estimates are based on production from farms having a minimum Estimated Value of Agricultural Operations (EVAO) of $20,000. For 1991-92 and 1992-93 crop estimates in previous publications were based on productions from farms expected to have an EVAO of $22,500 or more and from 1993-94 the estimates are based on EVAO of $5,000 or more. Estimates from 1993-94 onwards, are therefore not strictly comparable with data in previous publications. DATA DETAIL Conceptual framework The Value of Agricultural Commodities Produced (VACP) series is a derived series whereby weighted average market values (unit prices) are applied to the production of commodities as recorded in ABS statistical collections, e.g. the Agricultural Census/Survey, the Wool Brokers and Dealers collection, the Livestock Slaughtering collection and Overseas Trade statistics. Exceptions include the production of milk, as recorded by the Australian Dairy Corporation and until recent years State Egg marketing boards recorded egg production. Egg production is now also collected in the Agricultural Census following deregulation of the egg industry in all States. Initially value of production estimates were derived in order to provide estimates of what now approximates to Value Added. Value added was calculated by deducting a given range of expenses from the value of production to derive an estimate of an industry's contribution to GDP. Today, however, value of production estimates are presented in absolute terms and the National Accounts branch of the ABS is responsible for the derivation of Value Added. Main outputs Gross and Local values of production for all agricultural commodities: gross unit values of selected commodities; gross value of production of selected commodities classified by industry of the producing establishment; and indexed (Chain Volume Measures) of production. Classifications The broad commodity classification are as follows: Crops Cereals for Grain Legumes Oilseeds Crops for Hay Other Crops Pastures and Grasses Cut for Hay Harvested for Seed Fruit (excluding grapes) Orchard Fruit Citrus Pome Stone Nuts Berry and small fruit Other fruit Grapes Table Wine Dried Vegetables for Human Consumption Various vegetables Livestock Slaughterings and Other Disposals Cattle & calves Sheep & lambs Pigs Goats Poultry Livestock Products Wool Liquid Whole Milk Eggs Other concepts (summary) Agricultural commodity - a product produced by the agricultural sector (including livestock and livestock products). Agricultural Sector - includes all "commercially" producing establishments with an Estimated Value of Agricultural Operations (EVAO) of $5,000 or more from production of commodities designated as primary to Australian and New Zealand Standard Industrial Classification (ANZSIC) Sub-division 01 "Agriculture". The Estimated Value of Agricultural Operations (EVAO), is an aggregation of commodity values which takes into account (without double counting) the area of crops sown and numbers of livestock on holdings at a point in time as well as the crops produced and livestock turn-off during the year. It should be noted that EVAO is applicable only for industry coding and size valuation purposes. It is not an indicator of receipts obtained by units or of the value of agricultural commodities produced by these units. Establishment - unit covering all operations carried out by the one management unit at a single physical location. For agriculture, a location is defined as a contiguous parcel of land or a number of non-contiguous parcels of land operated under the one management as one unit and contained within the one local government area. Gross Value - the value placed on recorded production at wholesale prices, realised in the market place. Local Value - the value placed on recorded production at the place of production, and is ascertained by deducting marketing costs from the gross value. Gross and Local values of agricultural commodities produced involve some duplication, as they include certain agricultural commodities which are consumed as raw materials to produce other agricultural commodities (eg hay consumed by livestock). Average Gross Unit Values - are calculated by dividing the gross value of each commodity produced by the total production of each corresponding commodity. Livestock slaughterings and other disposals - includes two components - Value of livestock slaughtered - Other disposals is the sum of the value of livestock exported overseas whether for slaughter or breeding, minus the value of imports of livestock, plus net interstate transfers (exports from State less imports into State) of animals intended for slaughter where available (now only between NT and adjacent states). Marketing Costs - the cost of moving the product from the place of production to the market place, including freight, cost of containers, commission, insurance, storage, handling and other charges necessarily incurred by the producer in delivering commodities to the market place. Marketing costs are not on a completely comparable basis between states and in addition, accurate information is difficult to obtain for many items. As a consequence, differences between states in the relationship of local to gross value should be regarded with some caution. Market Place - the point(s) of valuation of a commodity where ownership of the commodity is relinquished by the agricultural sector as defined for Value of Agricultural Commodities Produced (VACP) purposes. In general this is the metropolitan market in each state. Where commodities are consumed locally, or where they become raw material for a secondary industry, these points are presumed to be the market place. Recorded Production - production as recorded in ABS statistical collection, e.g. the Agricultural Census, the Wool Brokers and Dealers collection and Overseas Trade and Manufacturing Sections statistics. Exceptions include the production of Milk as recorded by the Australian Dairy Corporation. Reference Period - for most crops this refers to the season ended 30 June. However, production is valued for those summer crops, orchard fruit and vegetable crops where the harvesting period extends beyond 30 June. Livestock slaughterings and other disposals relate to 30 June. For all commodities, values are in respect of production during the financial year irrespective of when payments are actually made. GEOGRAPHIC DETAIL Australia New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory ACT Statistical Division Statistical Subdivision Statistical Local Area Comments and/or Other Regions Data is available at SD level in years when an Agricultural Commodity Survey is conducted. It is available at lower levels down to Statistical Local Area In years when an Agricultural Census has been conducted, COLLECTION FREQUENCY Annually Frequency comments Estimates are calculated three times per year, but only the first and final estimates are published. COLLECTION HISTORY For 1989-90 and 1990-91 crop estimates are based on production from farms having a minimum Estimated Value of Agricultural Operations (EVAO) of $20,000. For 1991-92 and 1992-93 crop estimates in previous publications were based on productions from farms expected to have an EVAO of $22,500 or more and from 1993-94 the estimates are based on EVAO of $5,000 or more. Estimates from 1993-94 onwards, are therefore not strictly comparable with data in previous publications. Processing of the data was centralised in the Hobart office in October 1997. DATA AVAILABILITY Yes Data availability comments Data is released annually. Collection is a continual process. Preliminary figures released in the January/February following the reference period. Final figures released in the following June/July. DATE OF LAST UPDATE FOR THIS DOCUMENT 03/02/2011 01:44 PM Document Selection These documents will be presented in a new window. This page last updated 18 September 2012

Australian Bureau of StatisticsCelebrating the International Year of Statistics 2013

Australian Bureau of Statistics
Celebrating the International Year of Statistics 2013