Agriculture, Fisheries and Forestry in the Coffs Harbour-Grafton region of New South Wales, 2015 ABARES
Agriculture, Fisheries and Forestry in the Coffs Harbour-Grafton region of New South Wales, 2015
Research by the Australian Bureau of Agricultural
and Resource Economics and Sciences
About my region 15.4
April2015
Agriculture, Fisheries and Forestry in the Coffs Harbour-Grafton region of New South Wales, 2015 ABARES
© Commonwealth of Australia 2015
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Cataloguing data
ABARES 2015, Agriculture, Fisheries and Forestry in the Coffs Harbour-Grafton region of New South Wales, 2015, About my region 15.4, Canberra,April. CC BY 3.0.
ISBN 978-1-74323‒101-2
ABARES project 43009
Internet
Agriculture, Fisheries and Forestry in the Coffs Harbour-Grafton 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 byTherese Thompson, Peter Martin, Haydn Valle, Timothy Connolly, Kasia Mazur, Lucy Randall and Sharan Singh.
Contents
1Regional overview
Employment
2Agriculture sector
Value of agricultural production
Number and type of farms
Farm financial performance—New South Wales
3Fisheries sector
4Forestry sector
References
Tables
Table 1 Number of farms, by industry classification, 2012–13
Table 2 Financial performance, New South Wales broadacre industries, 2012–13to 2014–15, average per farm
Table 3 Farm cash income of New South Wales broadacre farms, by region, 2013–14to 2014–15, average per farm
Table 4 Financial performance, New South Wales dairy industry, 2012–13to 2014–15, average per farm
Table 5 Physical and financial performance, vegetable growing farm businesses, New South Wales, 2012–13and 2013–14
Figures
Figure 1 Employment profile, Coffs Harbour – Grafton region, November 2014
Figure2 Value of agricultural production, Coffs Harbour – Grafton region, New South Wales, 2012–13
Figure 3 Distribution of farms by estimated value of agricultural operations, Coffs Harbour - Grafton region, New South Wales, 2012–13
Figure 4 Real farm cash income, broadacre industries, average per farm
Figure 5 Real farm cash income, grains industry, average per farm
Figure 6 Real farm cash income, sheep industry, average per farm
Figure 7 Real farm cash income, beef industry, average per farm
Figure 8 Real farm cash income, dairy industry, average per farm
Figure 9 Real farm cash income, vegetable growing farm businesses, New South Wales, 2005–06to 2013–14
Figure 10 Area of native forest, by tenure
Maps
Map 1 Broad agricultural land use of the Coffs Harbour – Grafton region of New South Wales
Map 2 Agricultural industries of the Coffs Harbour – Grafton region of New South Wales
Map 3 ABARES Australian broadacre zones and regions
1
Agriculture, Fisheries and Forestry in the Coffs Harbour-Grafton region of New South Wales, 2015 ABARES
1Regional overview
The Coffs Harbour - Grafton region of New South Wales is located on the northern coast of the state, extending inland from the coast to the Great Dividing Range. The region includes the towns of Coffs Harbour, Grafton, Yamba and Sawtell (Map 1) and comprises the three local government areas of Bellingen, Clarence Valley and Coffs Harbour. It also includes small parts of Nambucca and Richmond Valley local government areas. The region covers a total area of around 13200square kilometres or 2per cent of New South Wales and is home to approximately 130600people (ABS 2011).
Agricultural land in the Coffs Harbour - Grafton region occupies6160square kilometres, or 47per cent of the region. Areas classified as conservation and natural environments (nature conservation, protected areas and minimal use) occupy 4000square kilometres, or 30per cent of the region. The most common land use by area is grazing natural vegetation, which occupies 3270square kilometres or 25per cent of the Coffs Harbour - Grafton region.
Map 1Broad agricultural land use of the Coffs Harbour – Grafton region of New South Wales
Source: Catchment scale land use of Australia – update March 2014 (ABARES, 2014)
Map 2 Agricultural industries of the Coffs Harbour – Grafton 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 60900people were employed in the Coffs Harbour - Grafton region. The Coffs Harbour - Grafton region accounts for 2 per cent of total employment in New South Wales and 6per cent of all people employed in the New South Wales agriculture, forestry and fishing sector.
Health care and social assistance was the largest employment sector in the region with 8700people, followed by retail trade with 7900people (Figure 1). Other important employment sectors in 2014were construction (7800people), accommodation and food services (6700people).The agriculture, forestry and fishing sector employed 5300people, representing 8per cent of the region’s workforce.
Figure 1 Employment profile, Coffs Harbour – Grafton region, November 2014
Note: Annual average of the preceding 4quarters.
Source: Australian Bureau of Statistics, cat. no. 6291.0, Labour Force, Australia
2Agriculture sector
Value of agricultural production
In 2012–13, the gross value of agricultural production (GVAP) in the Coffs Harbour - Grafton region was $130million, which was 1per cent of the total gross value of agricultural production in New South Wales ($12.1billion). This is the most recent year for which ABS data are available.
The value of agricultural production in the Coffs Harbour - Grafton region is dominated by livestock products and fruit crops. The most important commodity in the Coffs Harbour – Grafton region based on the gross value of agricultural production were cattle and calves (Figure2), which contributed 34per cent ($44million) to the total value. While fruit and nuts (excluding grapes) accounted for 31per cent ($40million), with the main crops being bananas ($11million), macadamias ($1million), and mangoes ($1million).
In 2012–13, the Coffs Harbour - Grafton region accounted for around 42per cent of the total value of the state’s mango production and 41per cent of the state’s banana production. The region also accounted for 29per cent of the total value of New South Wales sugar cane.
Figure2 Value of agricultural production, Coffs Harbour – Grafton 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 1309farms in the Coffs Harbour - Grafton region with an estimated value of agricultural operations of more than $5000 (Table 1). The region contains 3per cent of all farm businesses in New South Wales.
Table 1 Number of farms, by industry classification, 2012–13
Industry Classification / Coffs Harbour - Grafton region / New South Walesno. / % / no. / %
Beef Cattle / 624 / 48 / 13626 / 32
Fruit and nuts / 154 / 12 / 2577 / 6
Sugar cane / 129 / 10 / 391 / 1
Other livestock / 70 / 5 / 1631 / 4
Vegetable / 51 / 4 / 1062 / 3
Dairy / 37 / 3 / 1115 / 3
Nurseries, Cut Flowers and Turf / 34 / 3 / 527 / 1
Mixed livestock / 10 / 1 / 3502 / 8
Other / 201 / 15 / 17650 / 42
Total Agriculture / 1309 / 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 (624farms) were the most common, accounting for 48per cent of all farms in the Coffs Harbour - Grafton region, and 5per cent of all beef cattle 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 61per cent of farms in the Coffs Harbour - Grafton region had an EVAO of less than $50000 (Figure 3). These farms accounted for only 14per cent of the total value of agricultural operations in 2012–13. In comparison, 6per cent of farms in the region had an EVAO of more than $350000and accounted for an estimated 46per 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, Coffs Harbour - Grafton 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 1Definitions
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
pPreliminary estimate. yProvisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey
Table 2 Financial performance, New South Wales broadacre industries, 2012–13to 2014–15, average per farm
Performance indicator / units / 2012–13 / 2013–14p / RSE / 2014–15yTotal cash receipts / $ / 379950 / 394500 / (5) / 392000
Total cash costs / $ / 284620 / 286500 / (5) / 286000
Farm cash income / $ / 95330 / 108000 / (7) / 106000
Farms with negative farm cash income / % / 23 / 24 / (15) / 23
Farm business profit / $ / 5840 / 7300 / (105) / 10000
Profit at full equity excluding capital appreciation / $ / 40490 / 41600 / (20) / 44000
Farm capital at 30 June a / $ / 3504260 / 3545900 / (4) / na
Farm debt at 30 June b / $ / 428500 / 445300 / (8) / 451000
Equity ratio bd / % / 88 / 87 / (1) / na
Rate of return excluding capital appreciatione / % / 1.2 / 1.2 / (19) / 1.2
Off-farm income of owner manager and spouse b / $ / 39190 / 35300 / (10) / na
aExcludes leased plant and equipment. bAverage per responding farm. cFarm capital minus farm debt. dEquity expressed as a percentage of farm capital. e Rate of return to farm capital at 1 July. p Preliminary estimates. y Provisional estimates. na Not Available. Figures in parentheses are standard errors expressed as a percentage of the estimate provided
Source: ABARES Australian Agricultural and Grazing Industries Survey
Table 3Farm cash income of New South Wales broadacre farms, by region, 2013–14to 2014–15, average per farm
Region / units / 2013–14p / RSE / 2014–15y111: NSW Far West / $ / 121400 / (37) / 107000
121: NSW North West Slopes and Plains / $ / 102300 / (20) / 49000
122: NSW Central West / $ / 115200 / (14) / 130000
123: NSW Riverina / $ / 187400 / (12) / 188000
131: NSW Tablelands / $ / 55600 / (19) / 52000
132: NSW Coastal / $ / 8400 / (97) / 9000
pABARES preliminary estimates. yABARES provisional estimates. na Not available. Figures in parentheses are standard errors, expressed as a percentage of the estimate provided.
Source: ABARES Australian Agricultural and Grazing Industries Survey
Map 3 ABARES Australian broadacre zones and regions
Note: Each region is identified by a unique code of three digits. The first digit identifies the state or territory, the second digit identifies the zone and the third digit identifies the region.
Source: ABARES
Performance of grains industry farms—New South Wales
Average farm cash income for New South Wales grains industry farms increased in 2013–14compared with 2012–13. Despite increased grain crop production in southern regions reductions in crop production as a result of drought conditions in northern regions led to an overall decreased crop receipts for New South Wales grains industry farms. On mixed enterprise farms increased receipts from sheep and lambs as a result of higher prices together with an increase in numbers soldwas more than offset by reduced receipts from crops.
In 2014–15, crop receipts are projected to decline overall for New South Wales grains farms as a result of reduced production of both winter and summer crops. On mixed enterprise farms, lower crop receipts are expected to be partly offset by increased receipts from sheep, lambs and beef as a result of higher prices.
Farm cash income for New South Wales grains industry farms is projected to average $183000a farm in 2014–15, a reduction on the average farm cash income for 2013–14, but still high compared to average farm cash income over the 10 years ending 2013–14 (Figure 5). Farm cash incomes for New South Wales grains industry farms were generally reduced by dry conditions throughout much of this decade.
Figure 5 Real farm cash income, grains industry, average per farm
p Preliminary estimate. y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey
Performance of sheep industry farms—New South Wales
In 2013–14, higher prices received for adult sheep and lambs combined with increased sheep and lamb turn-off more than offset increased expenditure on fodder, sheep purchases, repairs and maintenance and interest payments. Farm cash income for New South Wales sheep industry farms increased slightly to average $72000a farm in 2013–14.
In 2014–15, higherprices for adult sheep and lambs are projected to be more than offset by a reduction in wool receipts as a result of reduction in both the quantity of wool sold and wool prices. However a projected decrease in expenditure on sheep purchases, fuel and repairs and maintenance is expected to result in average farm cash income for sheep industry farms remaining similar to that recorded in 2013–14at an average of $75000a farm. If achieved this would be around 20per cent above the industry average of $62000a farm for the ten-years to 2013–14, in real terms (Figure 6).