Agriculture, Fisheries and Forestry in Tasmania, 2016

Agriculture, Fisheries and Forestry in Tasmania, 2016 ABARES

Agriculture, Fisheries and Forestry in Tasmania, 2016

Research by the Australian Bureau of Agricultural
and Resource Economics and Sciences

About my region

April 2016

Agriculture, Fisheries and Forestry in Tasmania, 2016 ABARES

© Commonwealth of Australia 2016

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Cataloguing data

ABARES 2016, Agriculture, Fisheries and Forestry in Tasmania, 2016, About my region, Canberra, April. CC BY 3.0.

ABARES project 43009

Internet

Agriculture, Fisheries and Forestry in Tasmania 2016is available at agriculture.gov.au/abares.

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The Australian Government acting through the Department of Agriculture and Water Resources, 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 and Water Resources, 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 Clay Mifsud, Milly Lubulwa, Peter Martin, Robert Curtotti, AruniWeragoda ,Beau Hug, Lucy Randall, Geoff Dunn and Evert Bleys.

Contents

1Regional overview

Employment

2Agriculture sector

Value of agricultural production

Number and type of farms

Farm financial performance—Tasmania

3Fisheries sector

4Forestry sector

References

Tables

Table 1 Value of agricultural production2014–15

Table 2 Number of farms, by industry classification, 2013–14

Table 3 Financial performance, Tasmania broadacre industries, 2013–14to 2015–16, average per farm

Table 4 Financial performance, Tasmania dairy industry, 2013–14to 2015–16, average per farm

Table 5 Physical and financial performance, vegetable growing farm businesses, Tasmania, 2012–13 to 2014–15, average per farm

Figures

Figure 1 Employment profile, Tasmania, November 2015

Figure 2 Distribution of farms by estimated value of agricultural operations, Tasmania, 2013–14

Figure 3 Real farm cash income, broadacre industries, average per farm

Figure 4 Real farm cash income, beef industry, averageper farm

Figure 5 Real farm cash income, sheep industry, average per farm

Figure 6 Real farm cash income, dairy industry, average per farm

Figure 7 Farm cash income, vegetable growing farm businesses, Tasmania

Figure 8 Area of native forest, by tenure

Maps

Map 1 Broad land use of Tasmania

1

Agriculture, Fisheries and Forestry in Tasmania, 2016 ABARES

1Regional overview

Tasmania covers an area of around 68401square kilometres and is home to approximately 495354people (ABS 2011). Agricultural land in Tasmania occupies 18901square kilometres, or around 28per cent, mostly in the north and east of the state (Map 1). Areas classified as conservation and natural environments (nature conservation, protected areas and minimal use) occupy 32643square kilometres, or 48per cent of the state. The most common land use by area is nature conservation, which occupies 19371square kilometres or 29per cent, mostly in the west and south-west of the state (Map 1).

Map 1 Broad land use of Tasmania

Source: Catchment scale land use of Australia – update April 2015 (ABARES, 2015)

Employment

Australian Bureau of Statistics (ABS) data from the November 2015 Labour Force Survey indicate that around 240810people were employed in Tasmania.

Health Care and Social Assistance was the largest employment sector with 34500people, followed by Retail Trade with 27400people and Education and Training with 19700people (Figure 1). The agriculture, forestry and fishing sector employed 14300people, representing 5.9percent of the state's workforce.

Figure 1 Employment profile, Tasmania, November 2015

Note: Annual average of the preceding 4quarters.
Source: Australian Bureau of Statistics, cat. no. 6291.0, Labour Force, Australia (ABS, 2015)

2Agriculture sector

Value of agricultural production

In 2014-15, the gross value of agricultural production (GVAP) in Tasmania was $1.44 billion, which was about 3percent of the total gross value of agricultural production in Australia ($53.62billion).

The most important individual commodities in Tasmania based on the gross value of agricultural production were milk production ($442.38million), followed by cattle and calves ($247.2million) and potato growing ($160.81million) (Table 1). These commodities together contributed 59percent of the total value of agricultural production in the state.

Table 1 Value of agricultural production2014–15

Note: Confidential data (and their aggregations) managed as null values.

a Total crops is the aggregation of total broadacre crops, total hay (cut), total grapes, total fruit and nuts and total vegetables

b Total agriculture is the aggregation of total crops, total livestock products and total livestock for meat
Source: Australian Bureau of Statistics, cat. no. 7503.0, Value of agricultural commodities produced, Australia (ABS, 2016b)

Number and type of farms

ABS data indicate that in 2013-14 there were 3341 farms in Tasmania with an estimated value of agricultural operations of more than $5000(Table 2). The state contains about 3percent of all farm businesses in Australia.

Farms in Table 2 are classified according to the activities that generate most of their value of production. Beef cattle farms (1026) were the most common, accounting for 30.7percent of all farms in Tasmania.

Table 2 Number of farms, by industry classification, 2013–14

Note: Where the estimated value of agricultural operations is more than $5000, nec not elsewhere classified.
Source: Australian Bureau of Statistics, Value of Agricultural Commodities Produced, Australia, Industry classification, 2014–15 (ABS 2016c)

Estimated value of agricultural operations (EVAO) is a measure of the value of production from farms and a measure of the business size. Around 40per cent of farms in Tasmania had an EVAO of less than $50000 (Figure 2). These farms accounted for only 3per cent of the total value of agricultural operations in 2013–14. In comparison, 24per cent of farms in the region had an EVAO of more than $350000and accounted for an estimated 81per cent of the total value of agricultural operations in the region.

Figure 2 Distribution of farms by estimated value of agricultural operations, Tasmania, 2013–14

Source: Australian Bureau of Statistics, Value of Agricultural Commodities Produced, Australia, Industry classification, 2014–15 (ABS 2016c)

Farm financial performance—Tasmania

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 Tasmania.

Box 1 Definitions

Major financial performance indicators

• Total cash receipts: total revenue 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—Tasmania

Farm cash income of broadacre farms in Tasmania is projected to decline by 25 per cent in 2015–16 to an average of $96000 a farm. This would be lower than the relatively high farm cash income recorded in 2014–15 of $128500 but still around 36 per cent above the10-year average to 2014–15.

Tasmanian broadacre cash receipts are projected to decline by 8 per cent in 2015–16 because of reduced production resulting from dry seasonal conditions. Receipts from beef cattle are projected to decrease from the historical high recorded in 2014–15. Receipts from sheep, lambs and wool are projected to decrease despite increased prices for wool, because of reduced livestock turn-off and lower wool production.

Figure 3Real farm cash income, broadacre industries, average per farm

Note: y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey

Table 3 Financial performance, Tasmania broadacre industries, 2013–14to 2015–16, average per farm

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

Total cash costs are expected to increase by 1 per cent in 2015–16. This is driven by higher expenditure on fodder resulting from dry seasonal conditions and small increases in most other farm costs except livestock purchases.

Performance of beef industry farms—Tasmania

Average farm cash incomesof beef industry farms nearly doubled in 2014–15 to average $106000a farm. Higher beef cattle turn-off in combination with an increase in average sale prices received, resulted in beef cattle receipts increasing on Tasmanian beef industry farms. In addition, reduction in expenditure on purchases of beef cattle together with lower interest rates reduced farm cash costs.

In 2015–16, farm cash income of Tasmanian beef industry farms is projected to remain largely unchanged, averaging $105000 a farm and well above the 10-year average. Beef cattle receipts are projected to decline with reduced cattle turn-off and sale of lighter weight cattle as a result of dry seasonal conditions.

This decline contrasts with the increase in beef cattle receipts expected nationally (Figure 4).

Figure 4Real farm cash income, beef industry, averageper farm

Note: y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey

Performance of sheep industry farms—Tasmania

In 2014–15, farm cash income of Tasmanian sheep industry farms is estimated to have increased to average $149000a farm. Farm cash income increased as a result of higher sheep and lamb turn-off together with an increase in the quantity of wool sold and higher prices received for sheep and wool.

In 2015–16, farm cash income of Tasmanian sheep industry farms is projected to decline by 47 per cent to an average of $79000 a farm, around 13 per cent below the 10-year average to 2015–16. Dry seasonal conditions are expected to result in lower farm receipts as a result of reduced prices for sheep and lambs sold, reduced turnoff of sheep following light turn-off in 2014–15 and lower wool production. In addition, farm cash costs are projected to rise as a result of increased expenditure on fodder purchases.

Figure 5Real farm cash income, sheep industry, average per farm

Note: y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey

Performance of dairy industry farms— Tasmania

Average farm cash income of Tasmanian dairy farms decreased from an average of $238130 a farm in 2013–14 to $221800 in 2014–15. An increase of 11 per cent in average milk production per farm was not sufficient to offset lower prices received for milk and increased farm cash costs, particularly expenditure on fodder.

In 2015–16, farm cash income of Tasmanian dairy industry farms is projected to decline further to an average of $132000 a farm, around 5 per cent below the 10-year average to 2015–16. This reflects the effects of lower forecast milk prices and a further increase in expenditure on fodder purchases as a result of drier seasonal conditions and increased fodder prices in 2015–16.

Figure 6Real farm cash income, dairy industry, average per farm

Note: y Provisional estimate.
Source: ABARES Australian Dairy Industry Survey

Table 4 Financial performance, Tasmania dairy industry, 2013–14to 2015–16, average per farm

Note: a Excludes leased plant and equipment. bAverage 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 Dairy Survey

Performance of vegetable growing farms— Tasmania

There were an estimated 231 vegetable growing farms in Tasmania in 2014–15. Most of these farms were located in the north of the state along the coastal fringe and through the northern midlands. Average farm cash income of vegetable growing farms in Tasmania is estimated to have remained largely unchanged in 2013–14 compared with 2012–13at around $137 000 a farm. This was 24 per cent higher than the nine-year average to 2013–14. The average area planted decreased across all vegetable commodities, although yields were marginally higher for potatoes, reflecting the better than average seasonal conditions for most farms.

Table 5 Physical and financial performance, vegetable growing farm businesses, Tasmania, 2012–13 to 2014–15, average per farm

Note: p Preliminary estimate. y Provisional estimate. RSE Relative standard errors, expressed as a percentage of the estimate.

Source: ABARES Australian Vegetable Growing Farms Survey

Farm cash income is estimated to have increased in 2014–15 to average $164 000 a farm. Lower overall vegetable receipts, mostly as a result of lower prices for potatoes, green peas and green beans, were more than offset by a reduction in estimated average total cash costs. Cash costs declined in 2014–15 relative to 2013–14, including hired labour, fertiliser, contracts paid, and fuel.

Figure 7Farm cash income, vegetable growing farm businesses, Tasmania

Note:y Provisional estimate.

Source: ABARES Australian Vegetable Growing Farms Survey

3Fisheries sector

Tasmania has a range of wild-catch finfish, crustacean, mollusc and aquaculture fisheries production. Hobart is the main fishing port in Tasmania servicing fishers across a range of commercial fishing activities. The Greater Hobart region is also renowned for its significant Atlantic salmon aquaculture sector.In the region, the Derwent River, Frederick Henry Bay and Norfolk Bay estuaries are popular sites for both recreational and commercial fishing. The rest of Tasmania is predominantly a wild-catch production area for shellfish, in particular Southern rocklobster, abalone and scallop, and finfish occurring mostly along the south west coast of Tasmania and at King Island. The Tasmanian greenlip abalone population is abundant along the north coast and around the Bass Strait islands. King Island is a large centre for giant crab production. Georges Bay and Ansons Bay are key shellfish producing areas, including cockles, clams and some aquaculture oysters. The ports of Bridport and St. Helens are important landing sites for scallop fishers operating in both Commonwealth and Tasmanian fisheries.Atlantic salmon and rainbow trout aquaculture also occurs in Macquarie Harbour.