AGRICULTURAL INDUSTRY
At 30 June 2008 there were about 141,000 businesses with an estimated value of agricultural operations of $5,000 or more (table 16.5). For the vast majority of these, their primary activity was agriculture, as defined in the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 (1292.0). While the remainder were undertaking some form of agricultural activity, their main activity was not in agriculture. The majority of agricultural businesses were mainly engaged in either beef cattle farming, grain growing, mixed grain/sheep/beef farming, sheep farming, or dairy cattle farming.
16.5 BUSINESSES UNDERTAKING AGRICULTURAL ACTIVITY - 30 June 2008 |
|
 | | NSW | Vic. | Qld | SA | WA | Tas. | NT | ACT | Australia |
| | no. | no. | no. | no. | no. | no. | no. | no. | no. |
|
| Agricultual industries | | | | | | | | | |
| Nursery Production (Undercover plus Outdoors) | ^260 | ^216 | ^183 | *37 | *49 | *42 | *17 | 1 | 804 |
| Turf growing | ^113 | *37 | ^151 | **13 | ^48 | 1 | *2 | - | ^366 |
| Floriculture Production (Undercover plus Outdoors) | ^211 | ^249 | ^119 | ^83 | *75 | ^29 | ^9 | - | 775 |
| Mushroom Growing | ^37 | **23 | *52 | 3 | *3 | 3 | - | - | ^120 |
| Vegetable Growing (Undercover plus Outdoors) | 1 069 | 927 | 1 082 | 599 | 379 | 324 | ^47 | **2 | 4 429 |
| Grape Growing | 1 134 | 1 859 | *93 | 2 323 | ^538 | ^98 | *15 | **2 | 6 062 |
| Kiwifruit Growing | *43 | *9 | - | - | **13 | - | - | - | *65 |
| Berry Fruit Growing | *74 | ^107 | ^131 | *16 | *29 | *31 | *1 | - | ^390 |
| Apple and Pear Growing | ^186 | ^223 | *48 | *129 | ^176 | ^125 | **7 | **2 | 896 |
| Stone Fruit Growing | ^231 | ^257 | ^157 | ^191 | ^85 | ^58 | *1 | - | 981 |
| Citrus Fruit Growing | ^454 | *221 | ^205 | ^260 | *77 | **13 | - | - | 1 230 |
| Olive Growing | *101 | *47 | **19 | *58 | *34 | - | - | - | ^259 |
| Other Fruit and Tree Nut Growing | 1 423 | ^287 | 1 445 | ^199 | ^259 | ^58 | ^164 | **2 | 3 837 |
| Sheep Farming (Specialised) | 4 068 | 3 549 | ^362 | 1 362 | 1 316 | ^473 | - | 18 | 11 148 |
| Beef Cattle Farming plus Beef Cattle Feedlots (Specialised) | 14 066 | 8 719 | 13 506 | 1 429 | 2 468 | 1 203 | 230 | 19 | 41 640 |
| Sheep-Beef Cattle Farming | 3 635 | 1 651 | ^487 | 816 | ^351 | ^276 | - | ^10 | 7 226 |
| Grain-Sheep or Grain-Beef Cattle Farming | 5 154 | 2 511 | 1 332 | 1 864 | 2 023 | ^163 | **9 | *1 | 13 059 |
| Rice Growing | *43 | 3 | - | - | - | - | - | - | *46 |
| Other Grain Growing | 3 242 | 3 009 | 1 352 | 3 131 | 2 964 | **25 | - | - | 13 723 |
| Sugar Cane Growing | 490 | - | 3 264 | - | ^4 | - | - | - | 3 758 |
| Cotton Growing | ^152 | - | 142 | - | - | - | - | - | 294 |
| Other Crop Growing(a) | ^171 | *194 | ^330 | *50 | *30 | *50 | **10 | - | ^836 |
| Dairy Cattle Farming | 1 223 | 5 538 | 762 | 454 | ^320 | 495 | - | - | 8 792 |
| Poultry Farming (Meat) | 345 | 230 | ^124 | ^75 | 62 | ^26 | - | - | 862 |
| Poultry Farming (Eggs) | *154 | ^105 | *73 | *49 | *28 | ^8 | - | 1 | ^417 |
| Deer Farming | *28 | **42 | **16 | *31 | **18 | ^3 | - | - | *138 |
| Horse Farming | ^565 | ^495 | ^419 | ^81 | ^116 | *18 | - | *4 | 1 697 |
| Pig Farming | ^177 | ^107 | ^170 | 114 | ^55 | *19 | - | - | 642 |
| Beekeeping | *140 | *145 | *52 | ^59 | *62 | **25 | **6 | - | ^488 |
| Other Livestock Farming(a) | ^247 | *171 | *81 | *49 | *45 | *18 | *5 | - | ^616 |
| Total Agriculture Industries | 39 236 | 30 931 | 26 159 | 13 475 | 11 627 | 3 583 | 522 | 62 | 125 594 |
| All Other Industries | 5 203 | 3 246 | 2 962 | 1 522 | 1 457 | ^617 | ^83 | ^19 | 15 110 |
| Total | 44 439 | 34 177 | 29 121 | 14 996 | 13 084 | 4 200 | 605 | 82 | 140 704 |
|
| ^ estimate has a relative standard error of 10% to less than 25% and should be used with caution |
| * estimate has a relative standard error of 25% to 50% and should be used with caution |
| ** estimate has a relative standard error greater than 50% and is considered too unreliable for general use |
| - nil or rounded to zero (including null cells) |
| (a) Not elsewhere classified |
| Source: ABS Agricultural Commodities, Australia, (7121.0). |
Gross value of agricultural commodities produced
The contribution of agriculture to the Australian economy can be measured in a number of ways. The most direct measurement available is the gross value of agricultural production. For the year ending 30 June 2008, the gross value of agricultural production, in current prices, was $43.3b (table 16.6). On a commodity basis, cattle and calves slaughterings contributed most to the gross value of production ($7.4b) followed by wheat ($5.3b), milk ($4.6b), vegetables ($3.4b) and hay ($2.8b).
16.6 VALUE OF COMMODITIES PRODUCED, By Australia - 2005-08 |
|
| | | 2005-06 | 2006-07 | 2007-08 |
Current prices in $m |
|
| Crops | | | |
| Cereals for grain | | | |
| | Wheat | 5 099.2 | 2 618.5 | 5 291.9 |
| | Oats | 248.7 | 180.5 | 422.5 |
| | Barley | 1 417.4 | 1 038.9 | 2 244.0 |
| | Sorghum | 276.0 | 273.7 | 977.4 |
| | Rice | 273.7 | ^55.0 | 7.3 |
| | Other(a) | 279.0 | 241.0 | na |
| Cotton(b) | 933.3 | 506.7 | 227.3 |
| Fruit and nuts (excluding grapes) | 2 626.9 | 3 499.2 | 2 757.5 |
| Grapes | 1 377.5 | 1 137.8 | 1 693.6 |
| Hay(c) | 1 450.7 | 1 618.6 | 2 817.9 |
| Legumes for grain | | | |
| | Lupins | 251.1 | 124.9 | 221.5 |
| | Other(a) | 406.4 | 254.3 | na |
| Nursery production | 1 418.0 | 1 447.9 | 1 432.8 |
| Oilseeds | | | |
| | Canola | 473.4 | 227.2 | 658.6 |
| | Other(a) | 54.7 | ^19.9 | na |
| Sugar cane for crushing | 1 031.8 | 1 221.4 | 861.0 |
| Vegetables | 2 878.1 | 3 164.6 | 3 362.7 |
| All other crops(d) | 300.5 | 247.1 | 842.1 |
| Total crops | 20 796.5 | 17 877.1 | 23 818.2 |
| Livestock slaughterings and other disposals | | | |
| Cattle and calves | 7 684.9 | 7 987.9 | 7 353.3 |
| Sheep and lambs(e) | 2 112.4 | 2 057.1 | 2 167.9 |
| Pigs | 890.1 | 943.6 | 901.7 |
| Poultry | 1 222.7 | 1 294.1 | 1 636.6 |
| Other livestock | 49.5 | 53.3 | 44.2 |
| Total livestock slaughterings and other disposals | 11 959.6 | 12 335.9 | 12 103.6 |
| Livestock products | | | |
| Wool(f) | 2 053.9 | 2 281.6 | 2 309.0 |
| Whole milk | 3 341.3 | 3 177.6 | 4 571.7 |
| Eggs | 375.6 | 387.6 | 467.6 |
| Total livestock products | 5 770.8 | 5 846.8 | 7 348.3 |
| Total | 38 527.0 | 36 059.7 | 43 270.2 |
|
| ^ estimate has a relative standard error of 10% to less than 25% and should be used with caution |
| na not available |
| (a) Component commodity items not collected separately. |
| (b) Includes value of cotton seed. |
| (c) Includes pastures, cereals and other crops cut for hay. |
| (d) Not elsewhere included |
| (e) Excludes value of wool on skins. |
| (f) Includes dead wool and wool on skins. |
| Source: ABS Value of Agricultural Commodities Produced, Australia (7503.0) |
16.7 VALUE OF COMMODITIES PRODUCED, By state and territory-2007-08 |
|
| | | State and Territory
|
| | | NSW | Vic. | Qld | SA | WA | Tas. | NT | ACT |
Current prices in $m |
|
| Crops | | | | | | | | |
| Cereals for grain | | | | | | | | |
| | Wheat | 888.7 | 687.6 | 353.4 | 934.4 | 2 418.0 | 9.8 | na | * - |
| | Oats | 60.8 | 107.3 | ^4.4 | ^38.4 | 208.8 | ^2.8 | - | * - |
| | Barley | 276.7 | 563.6 | 44.0 | 476.9 | 874.6 | ^8.3 | - | - |
| | Sorghum | 339.6 | - | 637.2 | * - | **0.5 | - | - | - |
| | Rice | 7.3 | - | - | - | - | - | - | - |
| | Other(a) | na | na | na | na | na | na | na | na |
| Cotton(b) | 148.0 | - | 79.2 | - | - | - | - | - |
| Fruit and nuts (excluding grapes) | 478.0 | 688.8 | ^1 060.3 | 249.3 | 173.8 | 67.0 | ^40.1 | 0.2 |
| Grapes | 342.1 | 398.1 | 32.8 | 762.8 | 124.1 | 27.7 | 5.4 | 0.7 |
| Hay(c) | 671.9 | 1 327.4 | 201.4 | 187.1 | 353.2 | 62.2 | ^14.7 | ^0.1 |
| Legumes for grain | | | | | | | | |
| | Lupins | ^13.7 | ^14.0 | **0.6 | 23.6 | 169.3 | *0.2 | - | - |
| | Other(a) | na | na | na | na | na | na | na | na |
| Nursery production | 274.2 | ^527.7 | ^342.0 | 68.2 | 166.7 | 41.9 | 9.6 | ^2.6 |
| Oilseeds | | | | | | | | |
| | Canola | 44.4 | 125.9 | **0.2 | 84.3 | 403.2 | 0.7 | - | - |
| | Other(a) | na | na | na | na | na | na | na | na |
| Sugar cane for crushing | ^58.5 | - | 799.0 | - | 3.6 | - | - | - |
| Vegetables | 423.7 | 762.9 | 995.1 | 584.3 | 345.2 | 236.3 | ^15.1 | *0.2 |
| All other crops(d) | 236.6 | 95.9 | 251.0 | 122.2 | 82.8 | 46.1 | **7.3 | *0.2 |
| Total crops | 4 264.3 | 5 299.3 | 4 800.4 | 3 531.5 | 5 323.8 | 502.9 | 92.3 | 3.9 |
| Livestock slaughterings and other disposals | | | | | | | | |
| Cattle and calves | 1 585.0 | 1 231.7 | 3 314.7 | 247.9 | 487.4 | 159.6 | 322.6 | 4.2 |
| Sheep and lambs(e) | 441.9 | 869.3 | 56.9 | 347.3 | 409.5 | 41.7 | - | 1.4 |
| Pigs | 265.8 | 116.2 | 233.8 | np | np | np | - | - |
| Poultry | 568.1 | 452.4 | 315.0 | np | np | np | - | - |
| Other livestock | 8.2 | 11.6 | 14.7 | 1.7 | 3.3 | - | 4.7 | - |
| Total livestock slaughterings and other disposals | 2 869.0 | 2 681.2 | 3 935.1 | 935.0 | 1 121.0 | 229.4 | 327.3 | 5.6 |
| Livestock products | | | | | | | | |
| Wool(f) | 814.2 | 492.1 | 102.9 | 324.2 | 503.1 | 71.2 | - | 1.3 |
| Whole milk | 509.2 | 3 052.0 | 251.6 | 294.8 | 131.8 | 332.4 | - | - |
| Eggs | 133.8 | 133.7 | 105.0 | 21.5 | ^56.1 | 9.8 | ** - | 7.6 |
| Total livestock products | 1 457.2 | 3 677.9 | 459.4 | 640.5 | 691.0 | 413.4 | ** - | 8.9 |
| Total | 8 590.4 | 11 658.4 | 9 195.0 | 5 106.9 | 7 135.8 | 1 145.7 | 419.6 | 18.4 |
|
| ^ estimate has a relative standard error of 10% to less than 25% and should be used with caution |
| * estimate has a relative standard error of 25% to 50% and should be used with caution |
| ** estimate has a relative standard error greater than 50% and is considered too unreliable for general use |
| - nil or rounded to zero (including null cells) |
| na not available |
| np not available for publication but included in totals where applicable, unless otherwise indicated |
| (a) Component commodity items not collected separately. |
| (b) Includes value of cotton seed. |
| (c) Includes pastures, cereals and other crops cut for hay. |
| (d) Not elsewhere included |
| (e) Excludes value of wool on skins. |
| (f) Includes dead wool and wool on skins. |
| Source: ABS Value of Agricultural Commodities Produced, Australia (7503.0). |
Employment
The agriculture sector is an important source of employment in regional and rural Australia. The number of people employed in the Agriculture industries increased marginally in 2008-09 to a yearly average of 318,000 persons (table 16.8). Improved farming conditions in many areas provided the encouragement for employment in the industry to increase by 5.6% with the employment of females increasing by 7.7%.
16.8 AGRICULTURE INDUSTRIES(a), Employment(b)(c) |
|
| Males | Females | Persons |
| '000 | '000 | '000 |
|
| 2005 | 204.4 | 102.6 | 307.0 |
| 2006 | 201.8 | 98.7 | 300.5 |
| 2007 | 206.0 | 100.2 | 306.2 |
| 2008 | 204.9 | 96.0 | 300.9 |
| 2009 | 214.1 | 103.4 | 317.6 |
|
| (a) Excludes Services to Agriculture Industries. |
| (b) Employed persons include persons who worked without pay for at least one hour per week in a family business or on a farm (i.e. unpaid family helpers). Persons who worked in another industry and in agriculture are classified to the industry of predominant activity, according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 edition. |
| (c) Annual average of quarterly data ended May quarter. |
| Source: ABS Labour Force, Australia, Detailed - Electronic Delivery (6291.0.55.003). |
Selected financial performance measures
Statistics of the financial performance of farm businesses provided in this section are based on information collected in the annual Australian Agricultural and Grazing Industries Survey, conducted by the Australian Bureau of Agricultural and Resource Economics (ABARE). This collection covers farm businesses engaged in the 'broadacre' grain, sheep and beef cattle farming industry, as defined in ANZSIC.
Selected financial performance measures (expressed as annual averages per farm) for all broadacre farm businesses for the years 2003-04 to 2007-08 are shown in table 16.9 and for the years 2003-04 to 2007-08 in graphs 16.10, 16.11 and 16.12. They show how the financial performance of Australian broadacre farms rebounded in 2007-08 following the record lows of the drought-stricken 2006-07 year.
16.9 BROADACRE FARM BUSINESSES(a), Selected financial performance measures |
|
| Annual average per farm | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 |
|
| Total cash receipts | $'000 | 295.0 | 381.7 | 336.2 | 359.3 | 415.1 |
| less Total cash costs | $'000 | 230.0 | 308.9 | 266.0 | 329.5 | 352.8 |
| Farm cash income | $'000 | 65.0 | 72.8 | 70.2 | 29.8 | 62.4 |
| Farm business profit | $'000 | 4.5 | 3.7 | -7.7 | -70.2 | -21.3 |
| Profit at full equity(b) | $'000 | 30.4 | 32.4 | 23.3 | -28.5 | 32.3 |
| plus Capital appreciation | $'000 | 213.0 | 193.0 | 190.2 | 273.5 | 78.0 |
| Profit at full equity (incl. capital appreciation) | $'000 | 243.4 | 225.4 | 213.5 | 245.0 | 110.3 |
| Farm capital at 30 June | $'000 | 2 521.1 | 3 131.2 | 3 277.5 | 3 756.8 | 4 207.3 |
| Rate of return (excl. capital appreciation)(c) | % | 1.3 | 1.1 | 0.8 | -0.8 | 0.8 |
| Rate of return (incl. capital appreciation)(c) | % | 10.8 | 7.8 | 7.0 | 7.0 | 2.7 |
| Off-farm income(d) | $'000 | 27.0 | 27.6 | 32.1 | 37.4 | 37.5 |
|
| (a) Businesses classified to Group 014 (except 0143 Beef Cattle Feedlots (Specialised)) in the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 edition. |
| (b) Farm business profit, plus rent, interest and finance lease payments less depreciation on leased items. |
| (c) Derived by expressing profit at full equity as a percentage of total opening capital. |
| (d) Collected for owner-manager and spouse only. Includes income from wages, other businesses, investment and social welfare payments. Average for those responding farms for which details of off-farm income are available for both owner-manager and spouse. |
| Source: Australian Bureau of Agricultural and Resource Economics, 'Australian Farm Surveys Results'. |
Farm cash income is a measure of the cash funds available for farm investment and consumption after paying all costs incurred in production, including interest payments, but excluding capital payments and payments to family workers. It is a short-term measure of farm income because it takes no account of depreciation on assets. Higher grain and sorghum production along with higher grain prices and good prices for wool and lambs helped cash income make a substantial recovery from the poor drought-affected 2006-07 season (graph 16.10). In 2007-08, dairy farms recorded their highest farm cash income for over 20 years.
16.10 BROADACRE FARM BUSINESSES, Farm average cash income
Despite better seasonal conditions and higher prices for grains, wool and lambs, average farm business profit was still a negative amount in 2007-08. However, at -$21,300 this farm average level is an improvement on the -$70,200 suffered in 2006-07 (graph 16.11). Farm business profit is a longer-term measure of the profitability of farms because it takes account of depreciation and inventory changes.
16.11 BROADACRE FARM BUSINESSES, Farm average business profit
For the broadacre industries as a group, rate of return (excluding capital appreciation) averaged 0.8% in 2007-08 (graph 16.12), up from -0.8% in 2006-07.
16.12 BROADACRE FARM BUSINESSES, Rate of return (excluding capital appreciation)(a)
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