EXPLANATORY NOTES

INTRODUCTION

1 This publication contains final estimates from the 2014–15 Value of Agricultural Commodities Produced (VACP) collection including gross and local values of crops, livestock disposals and livestock products.

2 Data at sub-state levels including Australian Statistical Geography Standards (ASGS) Statistical Area 4 (SA4) and Natural Resource Management (NRM) regions will be released as data cubes (Excel (xls), zipped Excel files and comma separated values (csv) files) attached to the publication located on the downloads tab.

CALCULATING VACP

3 VACP has three major categories:

• The value of crop production
• The value of livestock disposals (including domestic slaughtering and export of live animals)
• The value of livestock products (including wool, eggs and whole milk)

4 The value estimates (gross value) in this publication are derived by the multiplication of price and quantity estimates of agricultural commodities.

5 Quantity data for most crops have been collected from the 2014–15 Rural Environment and Agricultural Commodity Survey (REACS) and relate to the year ended 30 June 2015. Remaining commodity data (livestock disposals and livestock products excluding eggs) are obtained from other Australian Bureau of Statistics (ABS) collections, with some information from non-ABS sources. A copy of the 2014–15 REACS survey form can be found in Agricultural Commodities, Australia (cat. no. 7121.0), under the Downloads tab.

6 Price data refers to the average market price of a given commodity realised in the market place (market value).

7 Gross value is the value placed on recorded production at wholesale price(s) realised in the market place. The market place is defined, in general, as the point(s) of valuation of a commodity where ownership of the commodity is relinquished by the agricultural sector. For example, fruit can be sold into the fresh fruit market, to factories for processing and/or export.

8 Local value is the value placed on recorded production at the place of production, including indirect taxes. The local value of a commodity is calculated by subtracting total marketing costs from gross value.

9 Marketing costs are the costs of moving the agricultural product from the place of production (i.e. farm) to the market place. These include freight, cost of containers, commission, insurance, storage, handling and other charges necessarily incurred by the producer in delivering commodities to the market place.

Example: Calculating gross value for Banana production in Australia

Market	Production quantity (tonnes)	Average market price ($)	Market value ($)
Fresh fruit	5	1,000	5,000
Factory input	30	200	6,000
Overseas exports	15	1200	18,000
Total (all markets)	50	derived price 580	Gross value 29,000

Each market value is calculated by multiplying the production quantity data by the average market price. The gross value of bananas is $29,000, the sum of the market values for fresh, factory input and exports.

COLLECTION METHOD

10 Price information is obtained from other ABS collections, as well as from non-ABS sources, including marketing authorities and industry sources.

11 The method of collection of relevant prices and the costs of marketing for agricultural commodities varies considerably between states and territories 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 estimates are made from the best available information and, in general, are calculated on a local value basis.

RELIABILITY OF ESTIMATES (SAMPLE ERROR)

12 The estimates in this publication are based on information obtained from respondents to the REACS for the year ended 30 June 2015. The sample population for the REACS is 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 survey.

13 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 approximately 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 responded or been reported for, and approximately nineteen chances in twenty that the difference will be less than two SEs.

14 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 and territories with limited production of certain commodities, RSEs are greater than 10%. Estimates that have an estimated RSE between 10% and 25% 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% should also be used with caution as they are subject to sampling variability too high for most practical purposes. Estimates with an RSE greater than 50% are considered too unreliable for general use.

RSEs for all estimates are available on request.

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

RELATIVE STANDARD ERRORS, GROSS VALUES OF SELECTED COMMODITIES - Year ended 30 June 2015
	Aust.	NSW	Vic.	Qld	SA	WA	Tas.	NT	ACT
	%	%	%	%	%	%	%	%	%
Barley for grain	2.4	4.0	5.0	7.4	5.7	4.3	8.0	-	-
Wheat for grain	1.5	2.6	4.3	4.3	4.0	3.1	4.0	-	-
Canola	2.3	4.8	6.4	25.2	9.8	3.2	12.4	-	-
Total crops	0.9	1.8	2.1	1.6	2.6	2.2	2.9	2.5	1.4
Total livestock slaughterings	1.1	2.2	2.4	2.0	2.7	2.4	2.8	2.2	1.9
Total livestock products	2.0	2.7	3.7	9.7	5.3	3.8	2.8	16.0	0.8
Total agriculture	0.1	1.4	1.9	1.4	2.0	1.8	1.9	2.0	1.1
- nil or rounded to zero (including null cells)

ROUNDING AND CONFIDENTIALITY

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

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

RELATED PUBLICATIONS

18 Final estimates of agricultural commodity data are available at the same time as the final 2014–15 VACP estimates. These estimates are located in Agricultural Commodities, Australia (cat. no. 7121.0).

19 Current publications and other products released by the ABS are listed under the Statistics page on the ABS website. The ABS also issues a daily Release Advice on the website which details products to be released in the week ahead.

ABS DATA AVAILABLE ON REQUEST

20 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 ACKNOWLEDGEMENT

21 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.

PRIVACY

22 The ABS Privacy Policy outlines how the ABS will handle any personal information that you provide to the ABS.