Agriculture, Fisheries and Forestry in the Fitzroy region of Queensland, 2014 ABARES
Agriculture, Fisheries and Forestry in the Fitzroy region of Queensland, 2014
Research by the Australian Bureau of Agricultural
and Resource Economics and Sciences
About my region 14.27
December 2014
Agriculture, Fisheries and Forestry in the Fitzroy region of Queensland, 2014 ABARES
© Commonwealth of Australia 2014
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Cataloguing data
ABARES 2014, Agriculture, Fisheries and Forestry in the Fitzroy region of Queensland 2014, ABARES About my region 14.27, Canberra, December. CC BY 3.0.
ISSNTBA
ISBN 978-1-74323-089-3
ABARES project 43009
Internet
Agriculture, Fisheries and Forestry in the Fitzroy region of Queensland 2014is available at agriculture.gov.au/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, Haydn Valle, Mary Stephan 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 Fisheries sector 12
4 Forestry sector 14
References 15
Tables
Table 1 Number of farms, by industry classification, 2012–13 4
Table 2 Financial performance, Queensland broadacre industries, 2011–12to 2013–14, average per farm 6
Table 3 Farm cash income of Queensland broadacre farms, by region, 2012–13to 2013–14, average per farm 7
Table 4 Financial performance, Queensland dairy industry, 2011–12to 2013–14, average per farm 10
Table 5 Physical and financial performance, vegetable growing farm businesses, Queensland, 2012–13and 2013–14 11
Figures
Figure 1 Employment profile, Fitzroy region, August 2014 2
Figure 2 Value of agricultural production, Fitzroy region, Queensland, 2012–13 3
Figure 3 Distribution of farms by estimated value of agricultural operations, Fitzroy region, Queensland, 2012–13 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 Real farm cash income, vegetable growing farm businesses, Queensland, 2005–06to 2013–14 11
Figure 8 Area of native forest, by tenure 14
Maps
Map 1 Fitzroy region of Queensland 1
Map 2 Australian broadacre zones and regions 7
ii
Agriculture, Fisheries and Forestry in the Fitzroy region of Queensland, 2014 ABARES
1 Regional overview
The Fitzroy region of Queensland is located along the east coast of the state (Map 1). The region comprises the five local government areas of Banana, Central Highlands, Gladstone, Rockhampton, and Woorabinda, and the major regional towns of Emerald, Gladstone and Rockhampton. The region covers a total area of around 117500square kilometres or 7per cent of Queensland’s total area and is home to approximately 211300people (ABS 2011).
Agricultural land in the Fitzroy region occupies 88620square kilometres, or 75per cent of the region. Areas classified as conservation and natural environments (nature conservation, protected areas and minimal use) occupy 18950square kilometres, or 16per cent of the region. The most common land use by area is grazing modified pastures which occupies 55760square kilometres or 47per cent of the Fitzroy region.
Map 1 Fitzroy region of Queensland
Employment
Australian Bureau of Statistics (ABS) data from 2014indicate that around 120600people were employed in the Fitzroy region. The Fitzroy region accounts for 5per cent of total employment in Queensland and 10per cent of all people employed in the Queensland agriculture, forestry and fishing sector.
Construction was the largest employment sector with 14400people (Figure 1), followed by with health care and social assistance 12700people and retail trade with 10000people. Other important employment sectors in the region education and training were (8700people) and public administration and safety (8600people). The agriculture, forestry and fishing sector employed 5500people, representing 5per cent of the region’s workforce.
Figure 1 Employment profile, Fitzroy region, August 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 2012–13the gross value of agricultural production (GVAP) in the Fitzroy region was $1billion, which was 10per cent of the total gross value of agricultural production in Queensland ($10billion). This is the most recent year for which ABS data are available.
The Fitzroy region has a diverse agricultural sector. The most important commodity in the Fitzroy region based on the gross value of agricultural production was cattle and calves (Figure 2). In 2012–13, cattle and calves contributed 64per cent ($684million) to the value of agricultural production in the region. Wheat accounted for 8per cent ($76million), cotton contributed 6per cent ($64million) and grapes (excluding wine grapes) contributed 4per cent ($38million) to the region’s total value.
In 2012–13, the Fitzroy region accounted for around 76per cent of the total value of Queensland grape production (excluding wine grapes), 32per cent of the total value of outdoor cut flowers and 19per cent of the total value of cattle and calves.
Figure 2 Value of agricultural production, Fitzroy region, Queensland, 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 3154farms in the Fitzroy region with an estimated value of agricultural operations of more than $5000 (Table 1). The region contains 12per cent of all farm businesses in Queensland.
Table 1 Number of farms, by industry classification, 2012–13
/ Fitzroy region / Queensland // no. / % / no. / % /
Beef Cattle / 2 247 / 71 / 12 741 / 48
Grain growing / 171 / 5 / 1 315 / 5
Mixed grains and livestock / 137 / 4 / 1 060 / 4
Fruit and nuts / 102 / 3 / 1 630 / 6
Other livestock / 64 / 2 / 811 / 3
Other Crop growing / 43 / 1 / 485 / 2
Cotton / 33 / 1 / 270 / 1
Vegetable / 32 / 1 / 932 / 4
Dairy / 21 / 1 / 634 / 2
Other / 304 / 10 / 6 664 / 25
Total Agriculture / 3 154 / 100 / 26 541 / 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 (2247farms) were the most common, accounting for 71per cent of all farms in the Fitzroy region, and 18per cent of all beef cattle farms in Queensland.
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 31per cent of farms in the Fitzroy region had an EVAO of less than $50000 (Figure 3). These farms accounted for only 2per cent of the total value of agricultural operations in 2012–13. In comparison, 24per cent of farms in the region had an EVAO of more than $350000and accounted for an estimated 77per 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, Fitzroy region, Queensland, 2012–13
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 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 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 $91210per farm in 2011–12to an average of $89700per 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.
Source: ABARES Australian Agricultural and Grazing Industries Survey
Receipts from beef cattle typically account for around 70per 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 2013–14reducing crop receipts for Queensland broadacre farms by around 20per cent on average.
Average total cash costs are projected to increase by around 6per cent in 2013–14, mainly as a result of a projected increase of around 90per 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, 2011–12to 2013–14, average per farm
Performance indicator / units / 2011–12 / 2012–13p / RSE / 2013–14yTotal cash receipts / $ / 368520 / 358500 / (4) / 325000
Total cash costs / $ / 277310 / 268800 / (4) / 285000
Farm cash income / $ / 91210 / 89700 / (12) / 39000
Farms with negative farm cash income / % / 30 / 33 / (12) / 33
Farm business profit / $ / 30060 / –4900 / (171) / –77000
Profit at full equity excluding capital appreciation / $ / 77390 / 40000 / (21) / –32000
Farm capital at 30 June a / $ / 4943140 / 4768100 / (3) / na
Farm debt at 30 June b / $ / 576860 / 549900 / (8) / 586000
Equity ratio b / % / 88 / 88 / (1) / na
Rate of return excluding capital appreciation c / % / 1.6 / 0.8 / (21) / –0.7
Off-farm income of owner manager and spouse b / $ / 29740 / 23800 / (12) / na
Note: a Excludes leased plant and equipment. b Average per responding farm. c Rate of return to farm capital at 1 July. pABARES preliminary estimates. yABARES provisional estimates. na Not available. RSE Relative standard errors, expressed as a percentage of the estimate provided.
Source: ABARES Australian Agricultural and Grazing Industries Survey