7503.0 - Value of Agricultural Commodities Produced, Australia, 2006-07 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 31/07/2008   
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EXPLANATORY NOTES


INTRODUCTION

1 The value estimates in this publication are derived by the multiplication of price and quantity estimates of agricultural commodities.

2 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.

3 Quantity data for most crops and for eggs have been collected from the 2006-07 Agricultural Commodities Survey. The basis of the collection of these agricultural commodities was changed with the introduction of a new frame for the 2005-06 Agricultural Census. Remaining commodity data (apples, grapes, livestock disposals and livestock products excluding eggs) are obtained from other ABS collections, with some information from non-ABS sources, and continue to be comparable across time.


GENERAL

4 Where figures for individual states or territories have been suppressed for reasons of confidentiality, they have been included in relevant totals.

5 The estimates for earlier years shown in this publication have been revised where necessary. In this issue revisions include a revision to the 2005-06 price for rice and a reclassification of certain commodities from 'All other crops n.e.i.' to 'Legumes for grain', and inclusion of brussel sprouts in 'All other vegetables n.e.i.'.

6 Where figures have been rounded, discrepancies may occur between sums of the component items and totals.

7 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.


PERIOD COVERED

8 The production statistics used in deriving the final value estimates relate to the years ended 30 June.


DEFINITIONS OF TERMS USED

9 The following are brief definitions of the terms used:

  • Gross value of agricultural commodities produced is the value placed on recorded production at the wholesale prices realised in the market place.
  • 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.
  • 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.
  • 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.


SAMPLE ERROR

10 The estimates for 2006-07 gross value of most crops and for eggs are based on information obtained from respondents to the 2006-07 Agricultural Survey. These estimates are therefore subject to sampling variability; that is, they may differ from the figures that would have been produced if all agricultural businesses had been included in the Agricultural Survey.

11 One measure of the likely difference is given by the standard error (SE) which indicates the extent to which an estimate might have varied by chance because only a sample was taken or received. 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 establishments had been reported for, and about nineteen chances in twenty that the difference will be less than two SEs.

12 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.

13 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. Most published estimates have RSEs less than 10%. For some states with limited production of certain commodities, RSEs are greater than 10%. Estimates that have an estimated relative standard error 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.

14 A table with RSEs for selected estimates of gross values follows:

Relative Standard Errors, Gross Values of Selected Commodities - At 30 June 2007
NSW
Vic.
Qld
SA
WA
Tas.
NT
ACT
Aust.
%
%
%
%
%
%
%
%
%
Barley for grain
4.9
4.2
17.8
2.3
3.0
8.5
-
-
1.8
Canola
9.9
8.8
76.2
5.1
6.1
15.5
-
-
4.2
Lupins for grain
16.7
12.8
48.6
7.6
5.2
44.0
-
-
4.5
Sorghum for grain
7.5
39.6
6.7
-
53.4
-
20.8
-
5.2
Sugar cane for crushing
8.0
-
3.1
-
3.5
-
-
-
2.9
Wheat for grain
3.6
4.2
10.8
2.0
2.4
8.0
-
36.9
1.7
Total crops
1.7
1.6
1.9
1.1
1.4
9.8
5.0
8.1
0.8
Total livestock slaughterings
-
-
-
-
-
-
-
-
-
Total livestock products
0.9
0.4
1.0
0.4
1.2
-
-
-
0.3
Total agriculture
0.8
0.7
1.0
0.7
0.9
4.6
1.7
1.6
0.4
- nil or rounded to zero (including null cells)



CHAIN VOLUME INDEX

15 The chain volume measures appearing in this publication are an annually re-weighted chain Laspeyres index referenced to the current price values in a chosen reference year.

16 Chain Laspeyres volume measures are compiled by linking together (compounding) movements in volumes, calculated using the average prices of the previous financial year, and applying the compounded movements to the current price estimates of the reference year.

17 To obtain a measure of the value of production at 2006-07 prices for a commodity in a table for an earlier period, the reference year (2006-07) value of the commodity is multiplied by the chain volume index of that commodity for the earlier period, and divided by 100.

18 Further information about chain volume measures can be obtained from the Information Paper: Australian National Accounts, Introduction of Chain Volume and Price Indexes (cat. no. 5248.0).


ABS DATA AVAILABLE ON REQUEST

19 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 the National Information and Referral Service on 1300 135 070.


GENERAL ACKNOWLEDGMENT

20 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

21 A range of publications relevant to the Agriculture sector are produced by the ABS, including:
      Agricultural Commodities, Australia (cat. no. 7121.0)
      Livestock and Meat, Australia (cat. no. 7218.0.55.001)
      Livestock Products, Australia (cat. no. 7215.0)
      Natural Resource Management on Australian Farms (cat. no. 4620.0)
      Principal Agricultural Commodities, Australia, Preliminary (cat. no. 7111.0)
      Value of Principal Agricultural Commodities Produced, Australia, Preliminary (cat. no. 7501.0)
      Water Use on Australian Farms, Australia (cat. no. 4618.0)

22 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.