Agriculture and Fisheries in the Southern Highlands and Shoalhaven region of New South Wales, 2015 ABARES
Agriculture and Fisheries in the Southern Highlands and Shoalhaven region of New South Wales, 2015
Research by the Australian Bureau of Agricultural
and Resource Economics and Sciences
About my region 15.14
April 2015
Agriculture and Fisheries in the Southern Highlands and Shoalhaven region of New South Wales, 2015 ABARES
© Commonwealth of Australia 2015
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Cataloguing data
ABARES 2015, Agriculture and Fisheries in the Southern Highlands and Shoalhaven region of New South Wales, 2015, About my region 15.14, Canberra, April. CC BY 3.0.
ISBN 978-1-74323-115-9
ABARES project 43009
Internet
Agriculture and Fisheries in the Southern Highlands and Shoalhaven region of New South Wales 2015is available at agriculture.gov.au/abares.
Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)
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The Australian Government acting through the Department of Agriculture, represented by the Australian Bureau of Agricultural and Resource Economics and Sciences, has exercised due care and skill in preparing and compiling the information and data in this publication. Notwithstanding, the Department of Agriculture, ABARES, its employees and advisers disclaim all liability, including for negligence and for any loss, damage, injury, expense or cost incurred by any person as a result of accessing, using or relying upon information or data in this publication to the maximum extent permitted by law.
Acknowledgements
ABARES relies on the voluntary cooperation of farmers participating in the annual Australian Agricultural and Grazing Industries Survey, Australian Dairy Industry Survey, and Australian Vegetable Growing Farms Survey to provide data used in the preparation of this report. Without their help, these surveys would not be possible. ABARES farm survey staff collected most of the information presented in this report through on-farm interviews with farmers.
This regional profile was updated by Therese Thompson, Peter Martin, Haydn Valle, Timothy Connolly, Lucy Randall and Kasia Mazur.
Contents
1 Regional overview 1
Employment 2
2 Agriculture sector 4
Value of agricultural production 4
Number and type of farms 4
Farm financial performance—New South Wales 6
3 Fisheries sector 14
References 16
Tables
Table 1 Number of farms, by industry classification, 2012–13 5
Table 2 Financial performance, New South Wales broadacre industries, 2012–13to 2014–15, average per farm 7
Table 3 Farm cash income of New South Wales broadacre farms, by region, 2013–14to 2014–15, average per farm 8
Table 4 Financial performance, New South Wales dairy industry, 2012–13to 2014–15, average per farm 12
Table 5 Physical and financial performance, vegetable growing farm businesses, New South Wales, 2012–13and 2013–14 12
Figures
Figure 1 Employment profile, Southern Highlands and Shoalhaven region, November 2014 3
Figure 2 Value of agricultural production, Southern Highlands and Shoalhaven Region, New South Wales, 2012–13 4
Figure 3 Distribution of farms by estimated value of agricultural operations, Southern Highlands and Shoalhaven region, New South Wales, 2012–13 5
Figure 4 Real farm cash income, broadacre industries, average per farm 7
Figure 5 Real farm cash income, grains industry, average per farm 9
Figure 6 Real farm cash income, sheep industry, average per farm 10
Figure 7 Real farm cash income, beef industry, average per farm 10
Figure 8 Real farm cash income, dairy industry, average per farm 11
Figure 9 Real farm cash income, vegetable growing farm businesses, New South Wales, 2005–06to 2013–14 13
Maps
Map 1 Broad agricultural land use of the Southern Highlands and Shoalhaven region of New South Wales 1
Map 2 Agricultural industries of the Southern Highlands and Shoalhaven region of New South Wales 2
Map 3 ABARES Australian broadacre zones and regions 8
ii
Agriculture and Fisheries in the Southern Highlands and Shoalhaven region of New South Wales, 2015 ABARES
1 Regional overview
The Southern Highlands and Shoalhaven region of New South Wales is located in the south-east of the state, along the coast and the eastern side of the Great Dividing Range (Map 1). The region includes the major regional towns of Bowral and Nowra and encompasses most of the Shoalhaven and Wingecarribee local government areas, and a small part of the Kiama local government area. The region covers a total area of around 6700square kilometres or 0.8per cent of New South Wales and is home to approximately 137000people (ABS 2011).
Agricultural land in the Southern Highlands and Shoalhaven region occupies 1940square kilometres, or 29per cent of the region. Areas classified as conservation and natural environments (nature conservation, protected areas and minimal use) occupy 3720square kilometres, or 56per cent of the region. The most common land use by area is grazing modified pastures, which occupies 2640square kilometres or 39per cent of the Southern Highlands and Shoalhaven region.
Map 1 Broad agricultural land use of the Southern Highlands and Shoalhaven region of New South Wales
Source: Catchment scale land use of Australia – update March 2014 (ABARES, 2014)
Map 2 Agricultural industries of the Southern Highlands and Shoalhaven region of New South Wales
Source: Catchment scale land use of Australia – update March 2014 (ABARES, 2014)
Employment
Australian Bureau of Statistics (ABS) data from the 2014Labour Force Survey indicate that around 58700people were employed in the Southern Highlands and Shoalhaven region. The region accounts for 2per cent of total employment in New South Wales and 1per cent of all people employed in the New South Wales agriculture, forestry and fishing sector.
Retail Trade was the largest employment sector with 8900people (Figure1), followed by construction with 8200people, health care and social assistance with 7500people. Other important employment sectors in the region were accommodation and food services (5300people), transport, postal and warehousing (4500), manufacturing (3700people), education and training (3600people) with other services (3600 people). The agriculture, forestry and fishing sector employed 1200people, representing 1per cent of the region’s workforce.
Figure 1 Employment profile, Southern Highlands and Shoalhaven region, November 2014
Note: Annual average of the preceding 4quarters.
Source: Australian Bureau of Statistics, cat. no. 6291.0, Labour Force, Australia
2 Agriculture sector
Value of agricultural production
In 2012–13, the gross value of agricultural production (GVAP) in the Southern Highlands and Shoalhaven region was $91million, which was around 1per cent of the total gross value of agricultural production in New South Wales ($10.8billion). This is the most recent year for which ABS data are available.
The Southern Highlands and Shoalhaven region agricultural sector is dominated by dairy and cattle production, with some horticultural outputs. The most important commodity in the Southern Highlands and Shoalhaven region based on the gross value of agricultural production was milk (Figure 2). In 2012–13, milk contributed 48per cent ($43million) to the value of agricultural production in the region. Cattle and calves accounted for 25per cent ($22million), nurseries, flowers and turf accounted for 12per cent ($11million) and vegetables 9per cent ($8million). The major vegetable crops were mushrooms ($5million), potatoes ($2million) and tomatoes ($1million).
In 2012–13, the Southern Highlands and Shoalhaven region accounted for around 9per cent of the total value of the state’s milk production and 8per cent of the total value outside cut flower production.
Figure 2 Value of agricultural production, Southern Highlands and Shoalhaven Region, New South Wales, 2012–13
Source: Australian Bureau of Statistics, cat. no. 7503.0, Value of agricultural commodities produced, Australia
Number and type of farms
ABS data indicate that in 2012–13there were 892farms in the Southern Highlands and Shoalhaven region with an estimated value of agricultural operations of more than $5000 (Table 1). The region contains 2per cent of all farm businesses in New South Wales.
Table 1 Number of farms, by industry classification, 2012–13
Industry Classification / Southern Highlands and Shoalhaven region / New South Wales /no. / % / no. / % /
Beef Cattle / 405 / 45 / 13626 / 32
Other livestock / 123 / 14 / 1631 / 4
Dairy / 67 / 8 / 1115 / 3
Mixed livestock / 56 / 6 / 3502 / 8
Nurseries, Cut Flowers and Turf / 32 / 4 / 527 / 1
Vegetable / 11 / 1 / 1062 / 3
Other / 194 / 22 / 17280 / 41
Total Agriculture / 892 / 100 / 42082 / 100
Note: Estimated value of agricultural operations greater than $5000.
Source: Australian Bureau of Statistics
Farms are classified in Table 1 according to the activities that generate most of their value of production. Beef cattle farms (405farms) were the most common, accounting for 45per cent of all farms in the Southern Highlands and Shoalhaven region, and 3per cent of all beef farms in New South Wales.
There is a large percentage of small farms in the region in terms of their value of agricultural output. Estimated value of agricultural operations (EVAO) is a measure of the value of production from farms and a measure of their business size. Around 76per cent of farms in the Southern Highlands and Shoalhaven region had an EVAO of less than $50000 (Figure 3). These farms accounted for only 15per cent of the total value of agricultural operations in 2012–13. In comparison, 7per cent of farms in the region had an EVAO of more than $350000and accounted for an estimated 66per cent of the total value of agricultural operations in the region in 2012–13.
Figure 3 Distribution of farms by estimated value of agricultural operations, Southern Highlands and Shoalhaven region, New South Wales, 2012–13
Source: Australian Bureau of Statistics
Farm financial performance—New South Wales
Each year, ABARES interviews Australian broadacre, dairy and vegetable producers as part of its annual survey program. Broadacre industries covered in this survey include the grains, grains–livestock, sheep, beef and sheep–beef industries. The information collected is a basis for analysing the current financial position of farms in these industries and expected changes in the short term. This paper uses data from the ABARES Australian agricultural and grazing industries survey (AAGIS), Australian dairy industry survey (ADIS), and Australian vegetable growing industry survey to report estimates of financial performance indicators (Box 1) for broadacre, dairy and vegetable farms in New South Wales.
Box 1 Definitions
Major financial performance indicators
· Total cash receipts: total revenues received by the business during the financial year.
· Total cash costs: payments made by the business for materials and services and for permanent and casual hired labour (excluding owner manager, partner and family labour).
· Farm cash income: total cash receipts – total cash costs
· Farm business profit: farm cash income + changes in trading stocks – depreciation – imputed labour costs
· Profit at full equity: return produced by all the resources used in the business, farmbusinessprofit + rent + interest + financeleasepayments – depreciation on leased items
· Rate of return: return to all capital used, profit at full equity * 100 / total opening capital
· Equity ratio: Farm capital minus farm debt expressed as a percentage of farm capital
Industry types
· Grains: farms mainly engaged in producing broadacre crops such as wheat, coarse grains, oilseeds and pulses, and including farms running sheep and/or beef cattle in conjunction with substantial broadacre crop activity.
· Sheep: farms mainly engaged in running sheep.
· Beef: farms mainly engaged in running beef cattle.
· Dairy: farms mainly engaged in milk production.
· Vegetable: farms mainly engaged in growing vegetables.
Performance of broadacre farms—New South Wales
Drought reduced crop production in north western New South Wales and despite increased turnoff of beef cattle and sheep farm cash incomes declined. However, in southern New South Wales grain, oilseed and pulse production increased and with higher sheep and lamb prices resulted in increased farm receipts and much higher farm cash incomes. Overall, the increase in farm cash income in southern regions more than outweighed the reduction in the north to result in the average farm cash income for New South Wales broadacre farms increasing to $106000a farm, in 2013–14.
In 2014–15, further increases in average farm cash income are expected for mixed livestock–crops and sheep farms in southern regions of New South Wales, the Riverina, the Central West and Coastal New South Wales as a result of higher beef, sheep and lamb prices (Table 3). However, in the North West Slopes and Plains and Far Western New South Wales, farm cash incomes are projected to decline as continued dry conditions further reduced crop production. Incomes for beef and sheep farms are projected to decrease as the number of sheep, lambs and beef cattle sold declines. The proportion of farms recording negative farm cash incomes is projected to exceed 30percent in the north-west of the state.
With increased incomes in the southern and central regions and reduced incomes in the north, average farm cash income of New South Wales broadacre farms is projected to decline only slightly in 2014–15compared with 2013–14. Onaverage, farm cash income for broadacre farms in New South Wales is projected to average $106000afarm in 2014–15 (Table 2 and Figure 4), still around 44percent above the 10-year average to2013–14.
Figure 4 Real farm cash income, broadacre industries, average per farm