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7503.0 - Value of Agricultural Commodities Produced, Australia, 2002-03  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 03/09/2004   
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ABOUT THIS PUBLICATION

This publication contains information on the value of agricultural commodities produced for all states, territories and Australia for the year ended 30 June 2003. It includes gross and local values of production and gross unit values for all major agricultural commodities. It also provides chain volume indexes from 1997-98 to 2002-03.


SYMBOLS AND OTHER USAGES

ABSAustralian Bureau of Statistics
ASAgricultural Survey
ACTAustralian Capital Territory
Aust.Australia
bbillion
ccents
EVAOestimated value of agricultural operations
GUVgross unit value
mmillion
n.e.i.not elsewhere included
n.p.not available for publication but included in totals where applicable
NSWNew South Wales
NTNorthern Territory
QldQueensland
RSErelative standard error
SASouth Australia
SEstandard error
Tas.Tasmania
Vic.Victoria
WAWestern Australia
$/kgdollars per kilogram
$/tdollars per tonne
$bbillion dollars
$mmillion dollars
-nil or rounded to zero (including null cells)
. .not applicable
^data subject to sampling variability equal to or greater than 10%, but less than 25%
*data subject to sampling variability equal to or greater than 25%, but less than or equal to 50%
**data subject to sampling variability greater than 50%, estimate is not published


SUMMARY OF FINDINGS


OVERVIEW

Severe drought in Australia during 2002-03 resulted in significant falls in production of most agricultural commodities. Although there were compensating increases in average prices for many commodities as a result of the reduced supply, the overall effect was a marked reduction in the gross value of agricultural production.

In 2002-03, the gross value of agricultural commodities produced in Australia decreased by 18% to $32.6b. Decreases were recorded for the gross values of crops, livestock slaughterings and other disposals, and livestock products. The most valuable agricultural commodities in 2002-03 were cattle and calf slaughterings and other disposals (down 10% to $6.4b), wool (up 22% to $3.3b), milk (down 25% to $2.8b), wheat (down 58% to $2.7b) and sheep and lamb slaughterings and other disposals (down 4% to $2.0b).

Graph showing value of production for selected agricultural commodities, 2003



CROPS

In 2002-03, the gross value of all crops decreased by 28% to $15.5b. Decreases were recorded for most of the major broadacre crops while slight increases were recorded for many fruit and vegetable crops.

The gross value of broadacre crops fell by 37% to $9.8b. Despite increases in average prices, large decreases in production saw a decline in the gross values of wheat (down 58% to $2.7b), barley (down 43% to $984m), cotton (down 36% to $853m), canola (down 42% to $389m) and rice (down 53% to $152m). The gross value of sugar cane for crushing was little changed at $1.0b.

The gross value of fruit and nut crops fell by 3% to $3.6b. Decreases were recorded for grapes (down 13% to $1.4b) mainly due to a fall in production, and bananas (down 23% to $322m) due to both lower production and average price. Increases were recorded for apples (up 9% to $381m) and oranges (up 20% to $337m).

The gross value of vegetable crops fell by 6% to $2.1b. Decreased production of many major vegetable crops saw the gross values fall despite generally higher average prices. Potatoes were the highest value vegetable crop in 2002-03 with the gross value remaining steady at $485m. Decreases were recorded for carrots (down by 18% to $162m), onions (down 23% to $126m) and 'other vegetables' (down 22% to $321m). Increases were recorded for broccoli (up 25% to $82m), capsicums, chillies and peppers (up 12% to $72m) and french and runner beans (up 14% to $61m).


LIVESTOCK SLAUGHTERINGS AND OTHER DISPOSALS

The gross value of livestock slaughterings and other disposals fell by 7% to $10.7b in 2002-03, with decreases recorded for all major livestock categories except for poultry which recorded an increase of 9% to $1.3b.

The gross value of cattle and calf slaughterings and other disposals fell by 10% to $6.4b. A 17% decrease in the average price (down from $759 per head in 2001-02 to $628 per head in 2002-03) was only partly offset by an 8% increase in the number of animals slaughtered. The gross value of live cattle exports increased by 3% to $576m in 2002-03.

The gross value of sheep and lamb slaughterings and other disposals fell by 4% to $2.0b, due mainly to a 4% drop in slaughter numbers. The average price remained steady at $56 per head. The value of live sheep exports increased by 4% to $415m.

The gross value of pig slaughterings and other disposals fell by 6% to $911m. A 12% decrease in average price (from $179 per head in 2001-2002 to $158 per head in 2002-2003) was only partly offset by a 6% increase in the number of pigs slaughtered.

The gross value of poultry slaughterings and other disposals rose by 9% to $1.3b, mainly as a result of an 8% increase in the average price, to $2.91 per bird.


LIVESTOCK PRODUCTS

The gross value of livestock products fell by 5% to $6.4b in 2002-03, with decreases in the gross values of milk and eggs in the main producing states partly offset by an increase in the gross value of wool. Wool increased by 22% to $3.3b, with a 30% increase in average price more than offsetting a 6% fall in production. Milk fell by 25% to $2.8b, with production down by 8% and average price down by 18%. Eggs fell by 8% to $294m.


MARKETING COSTS

Total marketing costs comprised $2.4b or 7% of the total gross value of agricultural production in 2002-03.

Marketing costs represent the difference between gross and local values. Although there are difficulties in obtaining complete information on marketing costs (which include freight, cost of containers, commission and other marketing charges) the information provides a perspective on the marketing costs of major commodities. Significant differences in the marketing costs for individual commodities may occur as a result of different marketing arrangements.

Marketing costs for crops were $1.4b, or 9% of the gross value of production for crops. Marketing costs among selected crops were: wheat, $245m (or 9% of gross value); bananas, $91.4m (or 28% of gross value); potatoes, $75.5m (or 16% of gross value); oranges, $63.7m (or 19% of gross value); barley, $61.7m (or 6% of gross value); and fresh tomatoes, $47.6m (or 21% of gross value).

Marketing costs for livestock slaughterings and other disposals were $830m or 8% of the total gross value of these commodities. For cattle and calf slaughterings and other disposals, these costs were estimated at $542m (8% of gross value), and for sheep and lamb slaughterings and other disposals, $203m (10% of gross value).

Marketing costs for livestock products were $177m or 3% of the total gross value of these commodities. For wool, these costs were $136m (4% of gross value) and for eggs, $40.3m (14% of gross value). As milk is collected at the farm gate by the processor, marketing costs are not calculated for this commodity.


STATE AND TERRITORY COMPARISONS

In 2002-03, New South Wales ($8.0b) had the highest value of agricultural production of all the states, followed by Victoria ($7.5b), Queensland ($7.3b), Western Australia ($4.6b), South Australia ($4.1b), Tasmania ($878m), the Northern Territory ($291m) and the Australian Capital Territory ($19.0m).

New South Wales

The gross value of agricultural production in New South Wales decreased by 22% to $8.0b in 2002-03. This represented 25% of the total gross value of Australian agricultural production.

The gross value of crops fell by 39% to $3.5b, with decreases recorded for cotton (down 28% to $665m), wheat (down 67% to $661m), grapes (down 13% to $275m), and rice (down 53% to $151m). The gross value of oranges increased by 36% to $138m.

The gross value of livestock slaughterings and other disposals decreased by 7% to $2.7b. Decreases were reported for almost all major livestock categories, with cattle and calves down by 9% to $1.4b, sheep and lambs down by 4% to $551m, and pigs down by 19% to $276m. Poultry remained steady at $456m.

The gross value of livestock products increased by 16% to $1.8b. Wool production increased in value by 26% to $1.3b however the gross value of milk fell slightly to $427m, and the gross value of eggs fell by 9% to $104m.

Victoria

The gross value of agricultural production in Victoria in 2002-03 decreased by 20% to $7.5b. This represented 23% of the total gross value of Australian agricultural production.

The gross value of crops decreased by 22% to $2.9b. Despite higher average prices, decreased production resulted in a fall in the gross value of the following commodities: grapes (down 16% to $352m), wheat (down 66% to $247m), barley (down 64% to $134m), and canola (down 40% to $79.6m). The gross value of potatoes fell by 12% to $106m, with production and average price both decreasing. The gross value of apples rose by 35% to $156m due to a rise in both production and average price.

The gross value of livestock slaughterings and other disposals decreased by 11% to $2.2b. All categories of livestock recorded a decrease in gross value except for poultry. Cattle and calves decreased by 16% to $1.0b, sheep and lambs decreased by 13% to $611m, and pigs decreased by 18% to $165m. Poultry on the other hand, increased by 17% to $363m.

The gross value of livestock products decreased by 23% to $2.4b due mainly to a decrease in the value of milk (down 34% to $1.6b). The gross value of eggs was little changed at $78.4m. The gross value of wool rose by 19% to $675m with an increase in average price more than offsetting a 9% fall in production.

Queensland

The gross value of agricultural production in Queensland in 2002-03 decreased by 10% to $7.3b. This represented 22% of the total gross value of Australian agricultural production.

The gross value of crops decreased by 11% to $3.5b. A drop in both production and average price saw the gross value of bananas fall by 21% to $285m. The gross value of cotton fell by 53% to $188m, a 59% fall in production was only partly offset by a 14% increase in average price. The gross value of sugar cane for crushing rose by 5% to $944m, with increased production partly offset by falling prices.

The gross value of livestock slaughterings and other disposals decreased by 9% to $3.4b. Cattle and calf slaughterings and other disposals fell by 11% to $2.9b, due mainly to lower average prices. A decrease was also recorded in the value of slaughterings and other disposals of sheep and lambs (down 32% to $53.1m). Increases were recorded for both pigs (up 3% to $213m) and poultry (up 13% to $203m).

The gross value of livestock products decreased by 13% to $438m. The gross value of wool fell by 26% to $139m. The gross value of milk fell by 2% to $251m, while eggs fell by 12% to $48.8m.

South Australia

The gross value of agricultural production in South Australia in 2002-03 decreased by 22% to $4.1b. This represented 13% of the total gross value of Australian agricultural production.

The gross value of crops decreased by 32% to $2.6b. Lower average prices for wine grapes as well as lower levels of production saw the gross value of grapes fall by 14% to $597m. Decreased production also saw falls in the value of wheat (down 58% to $544m) and barley (down 35% to $384m). The gross value of potatoes remained steady at $135m.

The gross value of livestock slaughterings and other disposals rose slightly to $847m. Cattle and calf slaughterings and other disposals fell by 14% to $234m, while sheep and lamb slaughterings and other disposals increased marginally to $334m.

The gross value of livestock products increased by 13% to $643m due mainly to an increase in the gross value of wool, up by 26% to $404m.

Western Australia

The gross value of agricultural production in Western Australia in 2002-03 decreased by 18% to $4.6b. This represented 14% of the total gross value of Australian agricultural production.

The gross value of crops decreased by 32% to $2.6b. A fall in both production and average price saw the gross value of wheat decrease by 49% to $1.1b. The gross value of barley fell by 34% to $309m, lupins for grain fell by 25% to $162m and canola fell by 19% to $132m.

The gross value of livestock slaughterings and other disposals rose by 5% to $1.1b. Cattle and calf slaughterings and other disposals fell by 2% to $467m. Sheep and lamb slaughterings and other disposals rose by 12% to $444m.

The gross value of livestock products increased by 27% to $834m. The gross value of wool increased by 35% to $691m, while the gross value of milk increased marginally to $114m.

Tasmania

The gross value of agricultural production in Tasmania in 2002-03 decreased by 3% to $878m. This represented 3% of the total gross value of Australian agricultural production.

The gross value of crops rose by 2% to $403m. The gross value of grapes increased by 101% to $15.1m. The gross value of potatoes fell by 5% to $74.7m, apples fell by 7% to $43.7m, onions fell by 5% to $25.3m and carrots fell by 12% to $16.1m.

The gross value of livestock slaughterings and other disposals increased by 5% to $203m. Cattle and calf slaughterings and other disposals increased by 4% to $137m; sheep and lamb slaughterings and other disposals increased by 8% to $42.1m.

The gross value of livestock products fell by 14% to $272m. A fall in both production and average price saw a decrease in the gross value of milk (down 31% to $151m). The gross value of wool increased (up 27% to $111m) with an increase in average price more than offsetting a fall in production.

Territories

The gross value of agricultural production in the Northern Territory in 2002-03 fell by 9% to $291m. Livestock slaughterings and other disposals fell by 5% to $233m. The total value of crops fell by 26% to $52.3m.

The gross value of agricultural production in the Australian Capital Territory in 2002-03 fell by 3% to $19.0m. A decrease in the value of livestock products was only partly offset by increases in the value of crops and livestock slaughterings and other disposals.

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