EXPLANATORY NOTES
INTRODUCTION
1 This publication contains final estimates for the main commodities collected in the 2006-07 Agricultural Survey and related supplementary collections (i.e. Apples and Pears Collection and Vineyards Collection). It contains detailed statistics on crops, livestock and livestock products, and industry and size characteristics of agricultural businesses.
2 The value estimates in this publication are derived by the multiplication of price and quantity estimates of agricultural commodities.
3 Price data refers to the average unit value of a given commodity realised in the market place. Price information for livestock slaughterings and wool is obtained from Australian Bureau of Statistics (ABS) collections. Price information for other commodities is obtained from non-ABS sources, including marketing authorities and industry sources.
GENERAL
4 Where figures for individual states or territories have been suppressed for reasons of confidentiality, they have been included in relevant totals.
5 Where figures have been rounded, discrepancies may occur between sums of the component items and totals.
6 The method of collection of relevant prices and the costs of marketing for agricultural commodities varies considerably between states and between commodities. Where a statutory authority handles marketing of the whole or a portion of a product, data are usually obtained from this source. Information is also obtained from marketing reports, wholesalers, brokers and auctioneers. For all commodities, values are in respect of production during the year (or season) irrespective of when payments are made. For that portion of production not marketed (e.g. hay grown on farm for own use), estimates are made from the best available information and, in general, are calculated on a local value basis.
STATISTICAL UNITS USED
7 Since 2005-06, the ABS has used an economic statistics units model on the ABS Business Register (ABSBR) to describe the characteristics of businesses and the structural relationships between related businesses. The units model is used within large and diverse business groups to define reporting units that can provide data to the ABS at a suitable level.
8 Respondents to the 2006-07 Agricultural Survey were drawn from the ABS Business Register.
SCOPE AND COVERAGE
9 The scope of the 2006-07 Agricultural Survey was essentially all agricultural businesses above a minimum size cut-off recorded on the Australian Business Register (ABR) maintained by the ATO. This was the same as the scope for the Agricultural Census for 2005-06. Prior to 2005-06, the scope varied and these details are available on request. For the 2006-07 Agricultural Survey, a sample of 36,000 agricultural businesses were selected.
10 For the 2006-07 Agricultural Survey, the measure of size was the ABS's Estimated Value of Agricultural Operations (EVAO) where available; or where it was not available a Business Activity Statement (BAS) turnover size was derived. A minimum size cut-off of $5,000, based on either EVAO or BAS Turnover, was used to determine whether a unit was in-scope for the Survey.
11 While the Agricultural Survey frame does not contain all agricultural businesses in Australia, it is expected to provide better coverage than previous non-ABR-based Agricultural Survey frames, since most businesses and organisations in Australia need to obtain an Australian Business Number (ABN) from the ATO for their business operations. The Agricultural Survey frame is also expected to be more up-to-date than previous frames, as it excludes agricultural businesses with cancelled ABNs and incorporates regularly updated information on agricultural businesses from the ATO.
12 The production statistics used in deriving the final value estimates relate to the years ended 30 June.
DEFINITIONS OF TERMS USED
13 The following are brief definitions of the terms used:
14 Value of agricultural commodities produced (VACP) is the value placed on recorded production at wholesale prices realised in the marketplace. Generally referred to as gross value of production.
15 Estimated value of agricultural operations (EVAO) is an estimation of agricultural activity undertaken by an agricultural establishment. Three-year average weighted prices are applied to livestock sales and livestock numbers on the farm, and to area and production data for crops. The resultant aggregation of these commodity values is the EVAO. It is not an indicator of the value of receipts of individual farms but rather an indicator of the extent of agricultural activity.
16 Gross value of agricultural commodities produced is the value placed on recorded production at the wholesale prices realised in the market place.
17 Local value of commodities produced is the value placed on commodities at the point of production (i.e. farm gate). It is calculated by deducting marketing costs from the gross value of commodities produced. Gross and local value of agricultural commodities produced involve some duplication as they include certain agricultural commodities which are consumed as raw materials to produce other agricultural commodities (e.g. hay consumed by livestock).
18 Market place, in general, is the metropolitan market in each state. In cases where commodities are consumed locally, or where they become raw material for a secondary industry, these points are presumed to be the market place.
19 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.
20 Livestock slaughterings and other disposals values are published as one figure but include two distinct components:
- value of livestock slaughtered; and
- value of net exports, i.e. the total value of livestock intended for slaughter in adjacent state(s) where available (at present these can only be identified between the Northern Territory and adjacent states) and livestock exported overseas whether for slaughter or breeding, minus the value of imports of livestock.
RELIABILITY OF ESTIMATES (SAMPLE ERROR)
21 The estimates in this publication are based on information obtained from a sample drawn from the total agricultural business population in scope of the collection, and are subject to sampling variability; that is, they may differ from the figures that would have been produced if all businesses had been included in the Agricultural Survey. One measure of the likely difference is given by the standard error (SE) which indicates the extent to which an estimate might vary by chance because only a sample was taken. There are about two chances in three that a 'sample' estimate will differ by less than one SE from the figure that would have been obtained if all businesses had responded, and about nineteen chances in twenty that the difference will be less than two SEs.
22 In this publication, 'sampling' variability of the estimates is measured by the relative standard error (RSE) which is obtained by expressing the SE as a percentage of the estimate to which it refers.
23 The estimates of gross value of livestock slaughterings and other disposals, wool and milk are based on data obtained from censuses and are therefore not subject to sampling variability.
24 Most published national estimates have RSEs less than 5%. For some states with limited production of certain commodities, RSEs are greater than 10%. Estimates that have an estimated RSE between 10% and 25% are annotated with the symbol '^'. These estimates should be used with caution as they are subject to sampling variability too high for some purposes. Estimates with an RSE between 25% and 50% are annotated with the symbol '*', indicating that the estimate should be used with caution as it is subject to sampling variability too high for most practical purposes. Estimates with an RSE greater than 50% are annotated with the symbol '**' indicating that the sampling variability causes the estimates to be considered too unreliable for general use. Separate indication of the RSEs of all estimates is available on request.
CROPS, PASTURES AND HORTICULTURE
25 Statistics on area and production of crops relate, in the main, to crops sown during the year ended 30 June. Statistics of perennial crops relate to the position at 30 June and the production during the year ended on that date, or fruit set by that date. Statistics for apples and pears and grapes, which in some states are harvested after 30 June, are collected by supplementary collection forms and are included in this publication.
LIVESTOCK SLAUGHTERING AND LIVESTOCK PRODUCTS
26 The statistics on livestock slaughtering and meat production are based on data collected from abattoirs and other major slaughtering establishments and include estimates of animals slaughtered on farms and by country butchers and other small slaughtering establishments. Care should be taken when using this information as the figures only relate to slaughtering for human consumption and do not include animals condemned or those killed for boiling down. Definitions of livestock categories may differ between states and within states, particularly with regard to calves.
ABS DATA AVAILABLE ON REQUEST
27 As well as the statistics included in this and related publications, the ABS may have other relevant data available on request. Inquiries should be made to either the National Information and Referral Service on 1300 135 070.
GENERAL ACKNOWLEDGMENT
28 ABS publications draw extensively on information provided freely by individuals, businesses, governments and other organisations. Their continued cooperation is very much appreciated: without it, the wide range of statistics published by the ABS would not be available. Information received by the ABS is treated in strict confidence as required by the
Census and Statistics Act 1905.
RELATED PUBLICATIONS
29 A range of agricultural publications is produced by the ABS, including:
Principal Agricultural Commodities, Australia, Preliminary, cat. no. 7111.0
Agricultural Commodities, Australia (cat. no. 7121.0)
Natural Resource Management on Australian Farms, cat. no. 4620.0
Water Use on Australian Farms, cat. no. 4618.0
Livestock and Meat, Australia - Electronic Publication, cat. no. 7218.0.55.001
Livestock Products, Australia, cat. no. 7215.0
Value of Principal Agricultural Commodities Produced, Australia, Preliminary, cat. no. 7501.0
Value of Agricultural Commodities Produced, Australia, cat. no. 7503.0
Farm Management and Climate, cat. no. 4625.0
Vineyards Estimates, Australia, cat. no. 1329.0.55.002
Agricultural Survey, Apples and Pears, Australia, cat. no. 7121.0.55.002
For comparisons of the agriculture industry with other industries, users are referred to:
Australian National Accounts: National Income, Expenditure and Product, cat. no. 5206.0
Australian National Accounts: State Accounts, cat. no. 5220.0
30 Current publications and other products released by the ABS are listed in the Catalogue of Publications and Products (cat. no. 1101.0). The Catalogue is available from any ABS office or the ABS web site <
https://www.abs.gov.au>. The ABS also issues a daily Release Advice on the web site which details products to be released in the week ahead.
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