Introduction
1 This publication contains final estimates from the 2019–20 Value of Agricultural Commodities Produced (VACP) collection. Included are statistics on gross and local values of crops, livestock disposals and livestock products.
2 National and state/territory level estimates are presented in this release. Data at sub-state levels including Australian Statistical Geography Standard (ASGS) (2016 edition) Statistical Area Level 4 (SA4), and Natural Resource Management (NRM) regions will be released as data cubes (Excel xlsx) and comma separated value (csv) files attached to the publication.
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 gross value estimates in this publication are derived by the multiplication of price and quantity estimates of agricultural commodities.
5 Quantity data for most crops have been sourced from the 2019–20 Rural Environment and Agricultural Commodities Survey (REACS) and relate to the year ended 30 June 2020. 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.
6 Gross prices are those realised at the point(s) of valuation where ownership of the commodity is relinquished by the agricultural industry. For example, fruit can be sold into the fresh fruit market, to factories for processing and/or exported.
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.
7 The Local value estimates in this publication are derived by subtracting transport and marketing costs from gross value. They are the value placed on recorded production at the place of production, including indirect taxes.
8 Transport and 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.
Collection method
9 Price information is obtained from other ABS collections, as well as from non-ABS sources, including marketing authorities and industry sources. Price information is collected at a state and territory level and applied to substate levels which may not be reflective of prices in regional Australia.
10 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)
11 The estimates in this publication are based on information obtained from agricultural businesses that responded to the survey inputs for VACP. However, since not all of the businesses that were selected provided data, the estimates are subject to sampling variability; that is, they may differ from the figures that would have been produced if information had been collected from all businesses.
12 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 19 chances in 20 that the difference will be less than two SEs.
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 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.
14 Estimates in this publication also use price information from non-ABS sources, including marketing authorities and industry sources, for which RSEs are not calculated. The RSEs in this publication refer only to the production component of the estimates. RSEs for all published estimates are available on request.
Rounding and confidentiality
15 Where figures for individual states or territories have been suppressed for reasons of confidentiality, they have been included in relevant totals.
16 Where figures have been rounded, discrepancies may occur between sums of the component items and totals.
Related publications
17 Final estimates for agricultural land use, crop and horticultural area and production and livestock numbers are available in Agricultural Commodities, Australia, 2019-20 (cat. no. 7121.0) from May 2021.
18 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
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 acknowledgement
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.
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