Agriculture and Forestry in the Wide Bay region of Queensland, 2014 ABARES
Agriculture and Forestry in the Wide Bay region of Queensland, 2014
Research by the Australian Bureau of Agricultural
and Resource Economics and Sciences
About my region 14.34
June 2014
Agriculture and Forestry in the Wide Bay region of Queensland, 2014 ABARES
© Commonwealth of Australia 2014
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Cataloguing data
ABARES 2014, Agriculture, Fisheries and Forestry in the Wide Bay region of Queensland 2014, About my region 14.34, Canberra, June.
ISSN TBA
ISBN 978-1-74323-097-8
ABARES project 43009
Internet
Agriculture and Forestry in the Wide Bay region of Queensland 2014 is available at daff.gov.au/abares/publications.
Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)
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The Australian Government acting through the Department of Agriculture, Fisheries and Forestry represented by the Australian Bureau of Agricultural and Resource Economics and Sciences, has exercised due care and skill in the preparation and compilation of the information and data in this publication. Notwithstanding, the Department of Agriculture, Fisheries and Forestry, ABARES, its employees and advisers disclaim all liability, including liability for negligence, for any loss, damage, injury, expense or cost incurred by any person as a result of accessing, using or relying upon any of the information or data in this publication to the maximum extent permitted by law.
Acknowledgements
This regional profile was updated by Tim Caboche, Peter Martin, Therese Thompson, Sonja Nikolova, Johnny Xu and Sharan Singh.
Contents
1 Regional overview 1
Employment 1
2 Agriculture sector 3
Value of agricultural production 3
Number and type of farms 3
Farm financial performance—Queensland 5
3 Forestry sector 12
References 13
Tables
Table 1 Number of farms, by industry classification, 2011–12 4
Table 2 Financial performance, Queensland broadacre industries, 2011–12 to 2013–14, average per farm 6
Table 3 Farm cash income of Queensland broadacre farms, by region, 2012–13 to 2013–14, average per farm 7
Table 4 Financial performance, Queensland dairy industry, 2011–12 to 2013–14, average per farm 10
Table5 Selected estimates, vegetable growers, Queensland 11
Figures
Figure 1 Employment profile, Wide Bay region, August 2011 2
Figure 2 Value of agricultural production, Wide Bay region, Queensland, 2011–12 3
Figure 3 Distribution of farms by estimated value of agricultural operations, Wide Bay, Queensland, 2011–12 4
Figure4 Real farm cash income, broadacre industries, average per farm 6
Figure 5 Real farm cash income, grains industry, average per farm 8
Figure 6 Real farm cash income, beef industry, average per farm 9
Figure 7 Real farm cash income, dairy industry, average per farm 10
Figure 8 Area of native forest, by tenure 12
Maps
Map 1 Wide Bay region of Queensland 1
Map 2 Australian broadacre zones and regions 7
ii
Agriculture and Forestry in the Wide Bay region of Queensland, 2014 ABARES
1 Regional overview
The Wide Bay region of Queensland is located in the south-east of the state (Map 1). The region comprises the five local government areas of Bundaberg, Fraser Coast, Gympie, North Burnett, and South Burnett, and the major regional towns of Bundaberg, Eidsvold, Gympie, Maryborough and Torquay. The region covers a total area of around 48500 square kilometres, or 3 per cent of Queensland’s total area, and is home to approximately 273300 people (ABS 2011).
Agricultural land in the Wide Bay region occupies 33 280 square kilometres, or 69 per cent of the region. Areas classified as conservation and natural environments (nature conservation, protected areas and minimal use) occupy 7710 square kilometres, or 16 per cent of the region. The most common land use by area is grazing modified pastures which occupies 18 340 square kilometres or 38 per cent of the Wide Bay region.
Map 1 Wide Bay region of Queensland
Employment
Australian Bureau of Statistics (ABS) census data from 2011 indicate that around 100200people were employed in the Wide Bay region. The Wide Bay region accounts for 5per cent of total employment in Queensland and 15 per cent of all people employed in the Queensland agriculture, forestry and fishing sector.
Health care and social assistance was the largest employing sector (Figure 1), with 14031people, followed by retail trade with 12335 people. Other important employment sectors were manufacturing (8886 people), and education and training (8364 people).
The agriculture, forestry and fishing sector employed 8317 people, representing 8 per cent of the region’s workforce. Of these, 87 per cent were employed in agriculture, 5 per cent were employed in support services for the agriculture, forestry and fishing sector, and 4 per cent worked in forestry and logging. Fishing, hunting and trapping employed a further 2 per cent, and aquaculture employed 1 per cent. In addition, an estimated 2658 people were employed in food product manufacturing and 1372 people were employed in wood, pulp and paper manufacturing in the region (included in the manufacturing sector employment).
Figure 1 Employment profile, Wide Bay region, August 2011
Source: Australian Bureau of Statistics
2 Agriculture sector
Value of agricultural production
In 2011–12 the gross value of agricultural production (GVAP) in the Wide Bay region was $949million, which was 9 per cent of the total gross value of agricultural production in Queensland ($10.0billion) for 2011–12. This is the most recent year for which data are available from the ABS on GVAP for this region.
The Wide Bay region has a diverse and important agricultural sector. In 2011–12, the Wide Bay region accounted for almost 100 per cent of the total value of Queensland citrus fruit production, 73 per cent of the total value of nut production, 62 per cent of the total value of avocado production, and 46 per cent of the total value of peanut production.
The most important commodity in the Wide Bay region based on the gross value of agricultural production was cattle and calves (Figure 2). In 2011–12, cattle and calves contributed 25 per cent ($235 million) to the value of agricultural production in the region. Fruit contributed 22 per cent ($ 207 million). Vegetables contributed 17 per cent ($ 166 million) with the major crops being tomatoes ($34 million) and capsicums (excluding chillies, $18 million). Sugar cane accounted for 14 per cent ($128 million) of the total value, with milk 6 per cent ($59 million) and pigs 5 per cent ($52 million).
Figure 2 Value of agricultural production, Wide Bay region, Queensland, 2011–12
Source: Australian Bureau of Statistics
Number and type of farms
ABS data indicate that in 2011–12 there were 4622 farms in the Wide Bay region with an estimated value of agricultural operations of more than $5000 (Table 1). The region contains 16per cent of all farm businesses in Queensland.
Table 1 Number of farms, by industry classification, 2011–12
Industry Classification / Wide Bay region / Queensland /no. / % / no. / %
Beef Cattle / 2,402 / 52 / 12,529 / 45
Sugar cane / 460 / 10 / 3,075 / 11
Fruit and nuts / 329 / 7 / 1,617 / 6
Other livestock / 226 / 5 / 1,659 / 6
Vegetable / 200 / 4 / 1,076 / 4
Dairy / 160 / 3 / 771 / 3
Grain growing / 141 / 3 / 1,473 / 5
Mixed grains and livestock / 102 / 2 / 1,025 / 4
Other Crop growing / 92 / 2 / 558 / 2
Nurseries, Cut Flowers and Turf / 91 / 2 / 425 / 2
Other / 421 / 9 / 3,871 / 14
Total Agriculture / 4,624 / 100 / 28,079 / 100
Note: Where the estimated value of agricultural operations is more 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 (2402 farms) were the most common, accounting for 52 per cent of all farms in the Wide Bay region, and 19 per cent of all beef cattle farms in Queensland.
A large proportion of farms in the region are small in terms of their business size. Estimated value of agricultural operations (EVAO) is a measure of the value of production from farms and a measure of their business size, and is somewhat similar to turnover. Around 48 per cent of farms in the Wide Bay region had an EVAO of less than $50 000 (Figure 3). These farms accounted for only 6 per cent of the total value of agricultural operations in 2011–12. In comparison, 11 per cent of farms in the region had an EVAO of more than $350000 and accounted for an estimated 63per cent of the total value of agricultural operations in the region in 2011–12.
Figure 3 Distribution of farms by estimated value of agricultural operations, Wide Bay, Queensland, 2011–12
Source: Australian Bureau of Statistics
Farm financial performance—Queensland
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 agriculture 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 Queensland.
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—Queensland
Farm cash income for Queensland broadacre farms declined from an estimated average of $91210 per farm in 2011–12 to an average of $89700 per farm in 2012–13 (Table 2, Figure4). The decline in average broadacre farm cash income was mainly a consequence of the onset of dry seasonal conditions resulting in reduced crop production, increased turn-off of beef cattle and high expenditure on fodder purchases. Total receipts from sale of beef cattle declined as a result of lower cattle prices, sheep and wool receipts were also lower while crop receipts increased due to large increases in grain prices, relative to prices 2011–12.
Figure4 Real farm cash income, broadacre industries, average per farm
Note: p Preliminary estimate. y Provisional estimate.
Receipts from beef cattle typically account for around 70 per cent of average total cash receipts for Queensland broadacre farms. In 2013–14, receipts from beef cattle are projected to decline slightly due to lower average prices received for cattle sold and despite a further increase in turnoff in most regions resulting from the continuation of drought conditions. In addition, production of both winter and summer crops declined in 2013–14 reducing crop receipts for Queensland broadacre farms by around 20 per cent on average.
Average total cash costs are projected to increase by around 6 per cent in 2013–14, mainly as a result of a projected increase of around 90 per cent in expenditure on fodder and despite a further decline in beef cattle purchase expenditure and lower expenditure on crop production expenses as the area planted to crops was reduced.
Table 2 Financial performance, Queensland broadacre industries, 2011–12 to 2013–14, average per farm