About the research and acknowledgementsagriculture.vic.gov.au/__data/assets/word_doc/0003/... · Web viewTowns / CitiesGippsland Livestock Farm Monitor Project Site Northern Livestock

2017-18

1 Livestock Farm Monitor Project | Victoria 2017

AcknowledgementsParticipant farmers are gratefully acknowledged for their cooperation, patience and goodwill to willingly supply their farm information, for either the first time or over consecutive years.The diligent work of Agriculture Victoria staff who gathered the final performance data deserve particular thanks, especially Claire Waterman, Olive Montecillo, Natalie Nelson, Meat and Wool Services Staff, who continued to be actively involved in the report through to its publication.The project was also made possible this year through the contributions of Lee Beattie, Graham Lean, Norm Tozer and Paul Blackshaw who collected farm data, in addition to data collected by Agriculture Victoria staff, and provided feedback and validation to ensure its accuracy.

Further information regarding the Livestock Farm Monitor Project may be obtained from:Georgie ThomsonDepartment of Economic Development, Jobs, Transport and Resources Harrison Place267 Ryrie Street Geelong Vic 32200436 681 [email protected]

To find out the latest information on the project visit the project website at: www.agriculture.vic.gov.au/ livestockfarmmonitor

Authorised and published by the Victorian Government, Department of Economic Development, Jobs, Transport and Resources 2018.© The State of Victoria Department of Economic Development, Jobs, Transport and Resources 2018.This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.For more information contact the DEDJTR Customer Service Centre 136 186

DisclaimerThis publication may be of assistance to you but the State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication.

AccessibilityIf you would like to receive this publication in an accessible format, such as large print or audio, please telephone136 186.Deaf, hearing impaired or speech impaired? Call us via the National Relay Service on 133 677 or visit www. relayservice.com.auThis document is also available in PDF format on the internet at: http://agriculture.vic.gov.au/ livestockfarmmonitor

http://agriculture.vic.gov.au/livestockfarmmonitor

http://www.agriculture.vic.gov.au/livestockfarmmonitor


ContentsAbout the Research and Acknowledgements 3

State summary 5Commodity Price Overview 7Weather Overview 9

South West 11

Northern Victoria 14

Gippsland 17

Appendices 20South West Victoria appendix tables 21Northern Victoria appendix tables 37Gippsland appendix tables 51

Glossary 63

List of abbreviations 64

Standard values 64


About the research and acknowledgementsThis report has been funded by the Department of Economic Development, Jobs, Transport and Resources (DEDJTR). The DEDJTR staff are grateful for the cooperation of Victoria’s livestock producers who have contributed their data to this project.The Livestock Farm Monitor Project (LFMP) surveys participant farmers to collect physical and financial information. Participant farms are selected according to farm size, location and enterprise mix. Results published in this report should not be taken to represent the average of the population because the farms are not selected for statistical significance.This year, 77 livestock farms participated. There were 13 new farms this year and care is needed when comparing results between years. The distribution of cattle and sheep numbers by farm are shown in Figures 1 and 2.

FIGURE 1. DISTRIBUTION OF CATTLE NUMBERS40%

30%

20%

10%

0%

Earnings before interest and tax (EBIT)EBIT is the profit or loss from all capital used in the business. Prior to 2013-14, EBIT was referred as ‘Operating Profit’ in LFMP reports.

Return on assetsRoA indicates the overall earning of the total farm assets, irrespective of the capital structure of the business. It is EBIT expressed as a percentage of the total assets under management in the farm business, including the valueof leased assets. This is the return from farming and indicates how efficiently the business is using total farm resources. Additional returns to the asset from increases in the value of the assets over the year, such as land value, are excluded in this report. Any reference in the reportto RoA relates to operating return and excludes capital returns (appreciation).

Net farm incomeNet farm income is the final measure of profit for the farm business and is what remains after all costs, including interest and lease costs, have been accounted for. Net farm income is used to pay for tax and consumption.What remains is surplus, and therefore growth, which can be invested back into the business to increase equity, either by direct reinvestment or the repayment of debt.

Return on equityRoE measures the owners’ rate of return on their own capital investment in the business. It is net farm income

<250 250-500 500-750 750-1000 >1000

Cattle Numbersexpressed as a percentage of equity. Descriptions of the other financial indicators highlighted in the ‘Profit Map’ are provided in the Glossary.

The method employed to generate the production and profitability data in this report was adapted from The Farming Game (Malcolm et. al. 2005), and is consistent with previous Farm Monitor Project reports. However, methods can vary and key differences might include the allocation of overhead costs, owner operator allowances, livestock trading profits, and standard dollar values for stock on hand and dry sheep equivalent (DSE) ratings of livestock.The LFMP measures the performance of livestock farm businesses using four key farm business performance indicators: Earnings Before Interest and Tax (EBIT), Net Farm Income, Return on Equity (RoE) and Return on

FIGURE 2. DISTRIBUTION OF SHEEP NUMBERS25%

20%

15%

10%

5%

0%

Assets (RoA). These indicators provide information aboutthe operational efficiency of the farming business.To calculate these performance indicators, the LFMP collects data about farm income, costs, assets and liabilities for the financial year. The ‘Profit Map’ on the following page illustrates the framework of the method.

<2000 2000-4000 4000-6000 6000-8000 8000-10000 >10000

Sheep Numbers

Shar

e of

Far

ms

Shar

e of

Far

ms

Total livestock income

Other farm income


Wool sales, sheep and lamb sales Wool and livestock inventory change

Lamb sales, wool and sheep sales Wool and livestock inventory change

Cattle sales Cattle inventory change

Crop salesGrain inventory change

Feed inventory change

All other farm income

Gross farm income

Interest and lease costs

Supplementary feed

Gross margin

All other variable costs

Cash overheads

Imputed operators' allowance for labour and management

Earnings before interest and tax (EBIT)

Depreciation

Assets leased Net farm income

Assets owned Equity

Liabilities

Profit Map

Wool income

Lamb income

Cattle income

Crop income

Hay income

Other farm income

Variable CostsAnimal health

Overheads


Assets managed

Return on assets managed Return on equity

1 Profit map adapted from Queensland Dairy Accounting Scheme - 2010, with permission from Ray Murphy, Department of Agriculture, Forestry and Fisheries, Queensland.


Towns / CitiesGippsland Livestock Farm Monitor Project Site Northern Livestock Farm Monitor Project Site South West Livestock Farm Monitor Project Site

Source: Agriculture Victoria

State summaryEconomic performance for many sheep and cattle producers capitalised on previous year records with strong commodity prices leading to solid profits, despite dry seasonal conditions. Based on data collected by the LFMP, average farm profits (in real terms) were the second highest in over a decade. High and/or rising prices boosted grossfarm incomes in what would otherwise have been a difficult season. Sheep producers experienced the greatest improvement in economic performance, with merino wool and prime lamb price gains outperforming beef prices.

Fast FactsData from 77 sheep and cattle farms across Victoria were analysed for economic and financial farm performance in 2017-18 (Figure 3). To help mitigate regional influences, this report grouped participant farms into three regions– South West, Northern and Gippsland for the 2017-18 financial year.

TABLE 1. STATE SUMMARY

2015-16 2016-17

2017-18

Gross farm income ($/ha) 711 993 892EBIT ($/ha) 163 375 251

Return on assets 2.4% 5.2% 3.5% Return on equity 1.7% 5.9% 3.8%

FIGURE 3. LIVESTOCK FARM MONITOR PROJECT LOCATIONS 2017-18 The strong economic performance for sheep and

cattle producers is shown in Figure 4, where RoA and RoE in 2017-18 were the second highest over the last seven years. RoA and RoE were highest in 2016-17 at 5.2% and 5.9%, respectively. At an individual farm level, a range of returns was observed in 2017-18, with RoA greater than 10% in some instances. A small proportion of farms in all regions recorded zero or slightly negative RoA. Similarly, EBIT remained at elevated levels in 2017-18 despite a 35% decrease from the previous year to $242/ha (Figure 5).

FIGURE 4. STATE AVERAGE LFMP ECONOMIC RETURNS

8%

6%

Across Victoria, the economic performance of sheep and cattle producers in 2017-18 was one third lower in terms of EBIT than the previous year, however it remained elevated compared to the long term average. The combinationof below average rainfall, reduced pasture growth and increased supplementary feeding costs, led to a decrease

4%

2%

0%

-2%

in profits compared with 2016-17 (Table 1). However, record

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

high wool prices, consistent lamb prices and reasonable beef prices, relative to the long-term average, helped maintain strong profit performance.

Return on Assets (RoA) Return on Equity (RoE)

Ret

urn

(%)


FIGURE 5. STATE AVERAGE EARNINGS BEFORE INTEREST AND TAX ($/HA)

TABLE 3. STATE FARM FINANCIAL SUMMARY

$50

$0

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Return on equity (%) 3.8% 10.7%

Equity 80% 82%

# Statewide Top 20% ranked by Return on Assets (RoA)

Pasture growth was poor across Northern Victoria and Gippsland for the 2017-18 season. The South West had a good spring, but a long, dry and hot summer hampered pasture growth. Some parts of the state received up to 100mm of rain in December but it was too late to have any benefit on the growing season. Therefore, the first significant rain since September arrived in late May before cool temperatures arrived heading into winter.All regions had below average rainfall for spring 2017, except for the South West and a small pocket in the North East, and below average rainfall in autumn 2018. Seasonal conditions across Victoria resulted in reduced pasture growth and increased supplementary feeding, this was heightened in Gippsland on the back of a dry 2016-17 season. As a result, farms with the highest profitability as recorded by RoA in 2017-18 were more likely to be from the South West and Northern regions.At an enterprise level, wool and lamb producers recorded the greatest improvement in economic performance.Year-on-year (y/y) price gains were larger for wool and

Participant farms were selected according to farm size, location and enterprise mix. The distribution of farm size is shown in Figure 6. Most farms surveyed in 2017-18were between 500 – 1,000 (ha). Average farm size across the three regions ranged from 1,099 ha in Gippsland, 784 ha in Northern Victoria to 977 ha in the South West. Average land values for participants were similar in theNorthern and South West regions, however the Gippsland average was 40% higher ($9,700/ha) than the value of the other regions.

FIGURE 6. DISTRIBUTION OF FARM SIZE50%

40%

30%

20%

10%

0%

lamb than beef in 2017-18 (Table 2).

<500 500-1000 1000-1500 1500-2000 >2000

Farm Size (HA)

TABLE 2. STATE ENTERPRISE EBIT2015-16 2016-

172017-18

Wool EBIT ($/ha) 74 255 361Lamb EBIT ($/ha) 119 277 272Beef EBIT ($/ha) 265 287 341

Overhead costs and owner operator allowance also increased slightly in 2017-18, by $7/ha and $26/ha respectively. This, combined with a lower gross farm income of $892/ha compared to $973/ha last year, led to a decrease in EBIT and net farm income (Table 3).For the state’s Top 20% (15 farms) ranked according to RoA in 2017-18, costs were lower, especially overheads and owner operator allowance (Table 3). Gross farm income was higher for the Top 20% compared to the average.In 2017-18, the state’s Top 20% consisted of nine farms from the South West, four from the North, and

EBIT

($/h

a)

Shar

e of

Far

ms

Average Top 20%#$400 Gross farm income ($/ha) 892 1,120$350 Variable costs ($/ha) 297 299$300 Overhead costs ($/ha) 206 147$250 Owner operator allowance ($/ha) 138 88

$200 EBIT ($/ha) 251 586

$150 Net farm income ($/ha) 184 527$100 Return on assets (%) 3.5% 9.4%


two from Gippsland.


Time of Sale: increasing importance on individual LFMP results

Commodity Price OverviewPrices for wool and lamb remained buoyant whereas beef experienced a downturn of around 17% in 2017-18 due to poor seasonal conditions in NSW and southern Queensland (MLA 2018) (Figures 7 and 9). Prices for 19 micron wool in the southern region averaged 20% higher in 2017-18 compared with 2016-17, while lamb prices decreased slightly by 1%.

FIGURE 7. SEASON AVERAGE VICTORIAN CATTLE AND LAMB PRICES

Wool PricesMerino wool prices increased in 2017-18, on the back of low inventory and increased demand from China, to prices not seen since the crash of the reserve price schemein the early 1990’s. Sheep producer profits (EBIT and RoA) increased, rewarding producers who had stayed committed to wool over the longer period. Prices for 19 micron wool averaged $20/kg clean in 2017-18, up 20% y/y and a rise of $7/kg clean over a 5 year period (Figure 9). Price increases were strongest for Australian merino wool in the second half of season.

700

600

Source: MLA FIGURE 9. SOUTHERN REGION WOOL

MARKET INDICATORS

500

400

300

180

Heavy Trade Lamb Price Trade Steer Cattle Price

Within the year, intra-season price variability decreased for merino wool from the previous year, but was still the most volatile commodity when compared to cattle and lamb enterprises. Intra-season price volatility (Figure 8) demonstrates the importance of time of sale on livestock enterprise economic performance for the year. For cattle producers, price volatility remained low in the 2017-18 season, decreasing the impact of timing of cattle sales on individual farm performance relative to farm systems with a high proportion of wool income (Figure 8).When intra-season price volatility is high, using a one- year timeframe to compare farm performance can be misleading. High or low economic returns for one year may be due to ‘luck’ of the market and price trends in that particular year suiting the timing of product availability for a farm. Taking a longer term perspective is preferable, where a range of market characteristics, price trends and seasonal conditions can be accounted for.

Source: AWEX22

19

16

13

10

7

4

19 Micron Wool 21 Micron Wool

Similar to 2016-17, there was a difference in prices received for selling 19 micron merino wool in spring compared with the following autumn (Figure 10). Wool prices averaged$19.60/kg clean from October to December 2017, but by autumn 2018, 19 micron wool prices were averaging $22/ kg clean. This is likely to have favoured autumn shearing businesses in 2017-18. In other years, when prices are falling, the opposite effect can occur.

FIGURE 10. QUARTERLY SOUTHERN 19 MICRON WOOL PRICES

Source: AWEX25

FIGURE 8. INTRA-SEASONAL PRICE VARIABILITYSource: Agriculture Victoria

22

19 +11% y/y

14

+24% y/y+17% y/y

+19% y/y

+20% y/y

15.0

12.0

9.0Wool Auction

Lamb-Saleyard

13

10Jul-Sep Oct-Dec Jan-Mar Apr-Jun Full Yr

2013-14 2014-15 2015-16 2016-17 2017-18

6.0

3.0

0.02014-15 2015-16 2016-17 2017-18

Lamb-OTH

Beef-Saleyard

Beef-OTH

Stronger wool types of 28 micron also experienced price gains in 2017-18, increasing wool prices and achieving the second highest price average in the last decade. However, producers of 32 micron wool experienced a slight fall in wool prices and were down 35% from 2015-16 levels to$4.23/kg clean – the lowest level since 2010.

Ac/

kg c

wt

Pric

e Vo

latil

ity

(Coe

ffici

ent V

aria

tion)

%

1999

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lean

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lean

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10 Livestock Farm Monitor Project | Victoria

FIGURE 11. SOUTHERN 28 & 32 MICRON WOOL PRICES

Source: AWEX9.50

8.50

7.50

6.50

5.50

4.50

3.50

2.50

28 Micron Wool 32 Micron Wool

Lamb Prices

Beef PricesVictorian saleyard cattle prices fell 17% in 2017-18, although still favourable when compared to prices between 2013 and 2015 (Figure 13). Victorian cattle prices decreasedin July through to September 2017 when compared to the same period in 2016, and prices were consistentthroughout the financial year, trading at 549 - 602c/kg cwt (Figure 14).

FIGURE 13. VICTORIAN TRADE STEER PRICESSource: MLA

700

620

540

In 2017-18, sheep and lamb prices in Australia and Victoria were consistently high. Victorian lamb prices remained firm and averaged 1% lower compared with the previous financial year (Figure 12). The small drop in price in 2017-18 together with price rises in the previous four years made it the fifth consecutive year of higher prices for lamb producers.

460

380

300

Trade Steer Cattle Price OTH Trade Steer Cattle Price Saleyard

FIGURE 12. VICTORIAN HEAVY TRADE LAMB PRICES

Source: MLA

The influence of time of sale within the year on individual beef producer performance was less important than for the sheep industry. Based on Victorian trade steer prices, saleyard prices returned 51c/kg cwt higher than the top average processor price (Figure 13). However, selling

700

625

550

450

400

325

-4% y/y +15% y/y -4% y/y-9% y/y

-0.98% y/y

consignments direct to processors continues to prove less volatile than via the saleyards.

FIGURE 14. VICTORIAN SALEYARD TRADE STEER PRICES

Source: MLA

250Jul-Sep Oct-Dec Jan-Mar Apr-Jun Full

Yr

750

650

-17% y/y -17%

y/y -16% y/y

-16% y/y -17% y/y

2013-14 2014-15 2015-16 2016-17 2017-18

550

Victorian lamb prices were consistent throughout the financial year with a narrow range of 22c/kg carcass weight (cwt) between the minimum and maximum prices (Figure 12). Heavy trade lambs averaged 15% higher in

450

350

250Jul-Sep Oct-Dec Jan-Mar Apr-Jun Full Yr

spring 2017-18 compared with 2016-17, while producers selling in autumn received a 9% price decrease on the previous year (Figure 12).

2013-14 2014-15 2015-16 2016-17 2017-18

Ac/

kg c

wt

Ac/

kg c

lean

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Weather OverviewRainfall was below average in Victoria in 2017-18 and the timing of rainfall impacted on pasture growth across the state. Spring rainfall across most of Victoria in 2017 (Figure15) was variable impacting on pasture production and feed on offer over much of the state and leading into a dry, hot summer. This increased supplementary feeding costs and decreased farm profit.

FIGURE 15. VICTORIAN SPRING 2017 RAINFALL (% OF AVERAGE)

Pasture hay production was down on the previous year due to high inventory levels carried over from the previous year and dry spring conditions. Pasture hay prices in Victoria fell by 3.5% to $161/tonne in 2017-18.Gippsland experienced a repeat of 2016 with below average rainfall in spring 2017 (Figure 15). Similarly, autumn was drier than long term averages in the eastern half of the state (Figure 17) – in central and coastal Gippsland, while the western half of the state experienced similar below average rainfall.

Source: BOM

Percentage of Mean

FIGURE 17. VICTORIAN AUTUMN 2018 RAINFALL (% OF AVERAGE)

On the whole, all agricultural regions were affected by below average rainfall apart from small pockets in the South West. Crop yields were reduced on the back of

400%

300%

200%

150%

125%

100%

80%

60%

40%

20%

0%

Source: BOM

Percentage of Mean

400%

300%

200%

150%

125%

100%

80%

60%

40%

20%

0%

below average rainfall and wide spread frost heading into harvest. Not surprisingly, Victorian crop yields decreased significantly from the previous year’s record highs(Figure 16).

FIGURE 16. VICTORIAN WHEAT YIELDS3.50

Source: ABARES

3.00

2.50

2.00

1.50

1.00

0.50

0.00

Tonn

es/h

a

10 Livestock Farm Monitor Project | Victoria 2017 -18


WoolAverageTop 20%

South West

South WestSheep and cattle producers reported a 20% decrease in profits in 2017-18 due to increased supplementary feeding costs on the back of a long, dry and hot summer (Figures 18 to 23). Fortunately, livestock commodity prices held firm with wool, lamb and beef cattle prices increasing for South West farmers. While farm economic performance was lower than the previous year, one third of the farms surveyed (9 of the 29 farms) achieved RoA of more than 7%. Three farms achieved RoA of greater than 10% (Figure 20). The average RoE was also lower than the previous year with an average of 5.8% and the Top 20% of farms achieved an average of 12.3% (Figure 21).

Fast FactsIn 2017-18, the 29 livestock farms surveyed in the South West averaged 977 ha, running an average of 6,909 sheep and 294 cattle (Table 4). Prime lamb production remained the dominant enterprise in the sample (Table 5).

TABLE 4. SOUTH WEST WHOLE FARM PHYSICAL SUMMARY

Average Top 20% #Sheep (head) 6,909 8,565

Cattle (head) 294 298Labour efficiency (ha/person) 449 488Labour efficiency (DSE/person) 7,680 8,847Effective area (ha) 977 1,132

# Top 20% ranked by RoA

TABLE 5. SOUTH WEST WHOLE FARM ENTERPRISE MIX

TABLE 6. SOUTH WEST ENTERPRISE SUMMARY

Stocking rate (DSE/ha) 14 17Average micron 17.4 16.8Average yield (%) 67% 69%Lamb marking (%) 79% 82%

Wool price received ($/kg clean) 21.8622.77

Clean wool cut (kg/ha) 33 40 Clean wool cut (kg/dse) 2.3 2.4 Gross margin ($/dse) 47 57

Average Top 20% #Wool 29% 30%

Lamb 41% 55%Beef 26% 15%Hay/Cropping 3% 1%


For South West producers in 2017-18, average rainfall was 4% lower than the long term average, although the timing of rainfall together with the long, dry and hot summer and delayed autumn break placed pressure on pasture availability increasing supplementary feeding costs.Wool enterprises recorded improved physical and economic performance compared to the previous year with greater clean wool cut (33 kg/ha compared to 29 kg/ ha in 2016-17), and a rise in wool price compensated the increase in costs (Table 6).

*Top 20% ranked according to gross margin per 100mm of rainfall

Prime lamb enterprises also enjoyed higher profits. While South West farms produced more liveweight of lamb (154 kg lwt/ha compared to 139 kg lwt/ha in 2016-17) atincreased costs, gross margins improved ($102/ha/100mm compared to $78/ha/100mm in

Gross margin ($/ha/100mm) 109 150EBIT ($/kg clean) 12.60 18.22EBIT ($/ha) 434 733Lamb Average Top 20%Stocking rate (DSE/ha) 18.8 27.5Lamb marking (%) 114% 120%Average lamb weight (kg cwt) 20.1 19.9Average lamb price ($/kg cwt) 6.34 6.05Lamb produced (kg cwt /ha) 154 226Gross margin ($/dse) 37 35Gross margin ($/ha/100mm) 102 139EBIT ($/kg cwt) 2.38 2.65EBIT ($/ha) 304 398Beef Average Top 20%Stocking rate (DSE/ha) 17 19.2Calving (%) 91% 87%Average weight sold (kg lwt) 461 413Average beef price ($/kg lwt) 3.01 3.43Beef produced (kg lwt /ha) 351 481Gross margin ($/dse) 70 196Gross margin ($/ha/100mm) 193 568EBIT ($/kg lwt) 2.37 7.59EBIT ($/ha) 900 2,966


2016-17) (Table 6).


The importance of rainfall in farm economicperformance in the South West:Despite the region achieving around average rainfall, the timing of rainfall and adverse seasonal conditions in summer impacted on pasture growth. Ultimately, individual farm economic performance continued to be influenced by rainfall in the South West. However, this premise was skewed somewhat in 2017-18 with the average and Top 20% of participant farms in the South West receiving 4-5 mm less in 2017-18 than long term averages.

The farm that achieved the highest RoA of 13.1% (Figure20) had an additional 75 mm rainfall than their long-term average of 581 mm. However, the farm that achieved the highest EBIT (Figure 18) had an additional 95 mm rainfall than their long-term farm average of 652 mm.On the whole, the Top 20% of farms were able to produce more per hectare per 100 mm rainfall due to business efficiency and management decisions.

Beef cattle enterprises also had higher production with beef produced increasing from 325 kg lwt/ha to 351 kg lwt/ha (Table 6). South West participants recorded higher average beef prices despite the lower prices in other regions. The gross margin performance is skewed by a cattle trading operation, however even when this farm is removed the average is still higher than the previous year.

FIGURE 18. EARNINGS BEFORE INTEREST AND TAX ($/HA)

$1,000

$1,000

$800

$600

$400

TABLE 7. SOUTH WEST WHOLE FARM FINANCIAL SUMMARY

$200

$0

-$200

Farm No.EBIT Average EBIT

Net farm income ($/ha) 302 559

Return on assets (%) 5.5% 10.5%


Equity (%) 78% 79%


In the South West, there was greater expenditure in overhead costs. The main increases related to paid labour and depreciation as the requirement for supplementary feeding increased. Owner operator allowance also increased from $96/ha to $120/ha partly due to an increase in the standard value to align with market rates. The strong enterprise performances with higher costs resulted in a 20% decrease in the South West profit performance in 2017-18.

The Top 20% of farms ranked by RoA were characterised by higher gross farm income and variable costs, while overhead costs and owner operator allowance was lower (Table 7). The more profitable farms in 2017-18 tended to be more focused on prime lamb production (Table 5) while achieving higher stocking rates (Table 6).

FIGURE 19. NET FARM INCOME ($/HA)$1,000

$800

$600

$400

$200

$0

-$200

Farm No.

Net Farm Income ($/HA) Average NFI

EBIT

($/h

a)N

et F

arm

Inco

me

($/h

a)

14 39 43 55 58 66 87 88 114

512

522

623

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14 39 43 55 58 66 87 88 114

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1016Average Top 20%

#Gross income ($/ha) 1046 1236Variable costs ($/ha) 345 352Overhead costs($/ha) 191 149Owner operator allowance ($/ha) 120 92EBIT($/ha) 389 643


South West

FIGURE 20. RETURN ON ASSETS FIGURE 22. EBIT HISTORY

15%

12%

9%

6%

3%

0%

-3%

$500

$400

$300

$200

$100

$0

Farm No.Return on Assets Average RoA

FIGURE 21. RETURN ON EQUITY

16%

12%

8%

4%

0%

-4%

FIGURE 23. ROA AND ROE HISTORY10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

-2.0%

-4.0%

Farm No.

Return on Equity Average RoE

RoA RoE

Ret

urn

on E

quity

Ret

urn

on A

sset

s

14 39 43 55 58 66 87 88 114

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14 39 43 55 58 66 87 88 114

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EBIT

($/h

a)R

oA &

RoE

Northern Victoria


Northern VictoriaFarm profits in 2017-18 decreased 37% compared to 2016-17, as measured by RoA, and were ranked fourth over the 14 year history of the project in Northern Victoria (Figure 29). Rainfall in 2017-18 was patchy with a dry spring and a long, hot and dry summer, apart from a significant rainfall event in December. Commodity prices remained generally strong with wool prices up by 20% and lamb prices relatively steady, however beef prices were down 17%. Return on assets for some farms reached as high as 10%, with average of 2.9% for the 29 farms surveyed in Northern Victoria (Figure 26).

Fast FactsIn 2017-18, the average effective area of the 29 Northern Victorian participant farms was 784 ha, running on average 2,754 sheep and 369 head of cattle (Table 8). Average labour use efficiency was 5,522 DSE per person (including contractor labour). The main enterprises in the sample were beef and wool (Table 9).

TABLE 8. NORTHERN WHOLE FARM PHYSICAL SUMMARY

Autumn was tough with below average rainfall, recorded later than normal. Some farms with water rights (high reliability water share) sold some of their water allocation (temporary water trading) as part of their income strategy. Water was worth more than the income they would have received from producing lamb or beef. The price of water increased considerably towards the endof the season with a median price of $80/ML in February going as high as $170/ML in June.

Average gross farm income in 2017-18 was $720/ha, slightly lower than $752/ha posted in 2016-17. Variable costs this year remained steady, but overhead costs increased by 4%. RoA averaged 2.7% with two farms achieving higher than 10% and six farms having negative RoA. Average RoE was 2.7%, indicating that the return on the additional asset was the same as the cost of accessing it (Figure 27).

TABLE 10. NORTHERN WHOLE FARM FINANCIAL SUMMARY

TABLE 9. NORTHERN WHOLE FARMENTERPRISE MIX

Average Top 20%#Gross income ($/ha) $720 $994

Average Top 20%# Variable costs ($/ha) $222 $223Wool 36% 46% Overhead costs($/ha) $188 $135Lamb 17% 21% Owner operator allowance ($/ha) $128 $66Beef 44% 33% EBIT($/ha) $183 $571Hay/Cropping 3% 0% Net farm income ($/ha) $125 $499


Average rainfall on participant farms this year was 96% of long-term average. Spring was dry and apart fromsignificant rainfall in December, summer was long, hot and dry. The timing of the rainfall events was skewed when approximately 107 mm of rain fell in December, which was not useful for pasture growth.

Return on assets (%) 2.7% 8.3% Return on equity (%) 2.7% 11.1%Equity (%) 76% 68%


The Top 20% of farms in Northern Victoria (ranked by RoA) in 2017-18 were similarly focussed on wool and beef production (Table 9). These farms had higher gross farm income and lower costs, giving them almost three times more EBIT than the average of all participant farms (Table 10).

Average Top 20%#Sheep (head) 2,754 8,822Cattle (head) 369 666Labour efficiency (ha/person) 517 624Labour efficiency (DSE/person) 5,522 8,580Farm area (ha) 784 1,457



Northern Victoria

TABLE 11. NORTHERN ENTERPRISE SUMMARY

Net farm income for producers in Northern Victoria decreased by 25% from the previous year and were ranked third in real terms over the 14-year history of LFMP in this region (Figure 28). Although the seasonal conditions in 2017-18 were less than ideal, participant farmers managed their variable and overhead costs and were able to post positive returns (Figures 24 and 25).

The RoA was fourth highest and RoE was third highest in the history of the LFMP (Figure 29). Seasonal and market conditions for meat and wool were favourable in the years (2010-11 and 2016-17) when EBIT, RoA and RoE were highest.

FIGURE 24. EARNINGS BEFORE INTEREST AND TAX ($/HA)

$800

$700

$600

$500

$400

$300

$200

$100

$0

-$100

-$200

-$300

Farm No.

EBIT Average EBIT


At an enterprise level Northern Victorian wool producers had higher profit performance. They produced similar clean wool (22 kg/ha in 2017-18 compared to 21 kg/ha in 2016-17) at higher commodity prices ($21/kg compared to$17/kg). Higher income with similar variable costs resulted in a gross margin of $92/ha/100mm, compared with $51/ ha/100mm in 2016-17. (Table 11).Prime lamb enterprises also recorded higher profits in 2017-18, with gross margin increasing from $64/ha/100mm to $90/ha/100mm. Beef enterprise gross margin improved slightly to $66/ha/100mm in 2017-18, up from$61/ha/100mm in 2016-17.

The importance of scale in farm economic performance in Northern Victoria:Farms more likely to achieve higher economic returns had economies of scale based on labour efficiency (owner-operator, family, employee and contractors) and stocking rate (dse/ha). LFMP data indicatedthat the average asset base for a farm in Northern Victoria was $5.7 million with a range of between$650,000 and $29 million. The Top 20% of farms ranked by RoA and EBIT had an average asset base of $10.7 million and $11.4 million, respectively. However, not all farms needed a large asset base to perform well in 2017-18. One of the farms in the Northern Top 20% (by RoA) was less than 350 ha compared to the state average of 792 ha.The Top 20% of farms ranked by RoA and EBIT were 50% more labour efficient and had 30% more stock (dse/ha) than the average of all participant farms. These farms had similar variable costs per ha in comparison with the

EBIT

($/h

a)

584

585

586

588

589

599

616

630

678

683

688

706

707

709

711

712

744

745

756

757

800

802

803

1009

1011

1012

1013

1015

Wool Average Top 20% *Stocking rate (DSE/ha) 8.8 6.7

Average micron 18.0 19.3Average yield (%) 69% 67%Lamb marking (%) 89% 103%Wool price received ($/kg clean) $21.15 $18.10Clean wool cut (kg/ha) 22 25Clean wool cut (kg/dse) 2.6 4.0Gross margin ($/dse) $62 $101Gross margin ($/ha/100mm) $92 $148EBIT ($/kg clean) $8.17 $9.13EBIT ($/ha) $233 $203Lamb Average Top 20%Stocking rate (DSE/ha) 10.3 7.6Lamb marking (%) 118% 106%Average lamb weight (kg cwt) 21 20Average lamb price ($/kg cwt) $6.68 $7.30Lamb produced (kg cwt /ha) 91 65Gross margin ($/dse) $53 $81Gross margin ($/ha/100mm) $90 $130EBIT ($/kg cwt) $3.05 $6.77EBIT ($/ha) $203 $427Beef Average Top 20%Stocking rate (DSE/ha) 11.5 17.5Calving (%) 89% 88%Average weight sold (kg lwt) 468 543Average beef price ($/kg lwt) $2.76 $3.19Beef produced (kg lwt /ha) 251 496Gross margin ($/dse) $41 $80Gross margin ($/ha/100mm) $66 $143EBIT ($/kg lwt) -$0.01 $0.63EBIT ($/ha) $138 $328

584

585

586

588

589

599

616

630

678

683

688

706

707

708

709

711

712

744

745

756

757

762

800

802

803

1009

1011

1012

1013

1015


FIGURE 25. NET FARM INCOME ($/HA) FIGURE 28. EBIT HISTORY

$800

$600

$400

$200

$0

-$200

-$400

$300

$250

$200

$150

$100

$50

$0

Farm No.


FIGURE 26. RETURN ON ASSETS

12%

10%

8%

6%

4%

2%

0%

-2%

FIGURE 29. ROA AND ROE HISTORY6%

5%

5%

3%

2%

1%

0%

-1%

-2%

-4%

-6%

RoA RoE

Farm No.

Return on Assets Average RoA

FIGURE 27. RETURN ON EQUITY15%

10%

5%

0%

-5%

-10%

Farm No.Return on Equity Average RoE

Ret

urn

on E

quity

Ret

urn

on A

sset

sN

et F

arm

Inco

me

($/h

a)

584

585

586

588

589

599

616

630

678

683

688

706

707

708

709

711

712

744

745

756

757

800

802

803

1009

1011

1012

1013

1015

584

585

586

588

589

599

616

630

678

683

688

706

707

708

709

711

712

744

745

756

757

800

802

803

009

011

012

013

015

Reu

turn

(%)

EBIT

($/h

a)


AverageTop 20%#

AverageTop 20%#

Gippsland

GippslandGippsland had the lowest profitability of the three regions in 2017-18. The greater proportion of beef enterprises in the Gippsland sample with reduced beef prices impacted the profitability both per ha and RoA (Figure 32). Seasonal conditions in much of West and South Gippsland were challenging with lower pasture availability. East Gippsland continued to experience poor growing conditions as per the previous year, with an increased reliance on supplementary feed for livestock.

Fast FactsIn 2017-18, the 19 Gippsland farms surveyed averaged 1,099 ha in size, and on average ran 489 head of cattle and 3,482 sheep (Table 12). Similar to 2016-17, beef remained the dominant enterprise for the average, but wool was the dominant contributor to the performance of the Top 20% of participant farms in Gippsland (Table 13).

TABLE 12. GIPPSLAND WHOLE FARM PHYSICAL SUMMARY

Sheep (head) 3,482 6,939Cattle (head) 489 263

Labour efficiency (ha/person) 428 378

TABLE 14. GIPPSLAND WHOLE FARM FINANCIAL SUMMARY

Gross income ($/ha) 920 1,035Variable costs ($/ha) 339 299Overhead costs($/ha) 256 215Owner operator allowance ($/ha) 182 99EBIT($/ha) 143 423Net farm income ($/ha) 95 342

Return on assets (%) 1.8% 6.9%


Equity (%) 87% 68%



TABLE 13. GIPPSLAND WHOLE FARM ENTERPRISE MIX

Wool 30% 62%Lamb 10% 21%


The Gippsland region reported the lowest returns in terms of EBIT/ha (Figure 30) as well as RoA (Figure 32). Earnings before interest and tax decreased by $264/ha or 71% this year compared to 2016-17 (Figure 34). Average RoE also decreased by 2.4% as a result of beef prices and increased supplementary feeding costs (Figures 33 and 35).In comparison to the other regions, the participants in Gippsland have a greater proportion of beef, and coupled with an overall decline in beef market prices,resulted in a more prominent reduction in income. The seasonal conditions were not favourable with 85% oflong-term rainfall, only boosted by a large rainfall event in December 2017. This resulted in challenges to finish stock in an environment with reduced fodder

availability at higher prices.


AverageTop 20%#

Net farm income declined for Gippsland producers in 2017-18, mainly impacted by lower cattle prices (Figure 31). Return on assets averaged 1.6% for Gippsland participants, with the Top 20% achieving 6.9% RoA (Table 14).The Top 20% consisted of operators with a firm control on expenditure in 2017-18. This was challenging for many with adverse seasonal conditions, poor pasture growth and high purchased fodder costs. The conditions favoured those who had spread their exposure to risk across more than one enterprise.Profits of wool producers outperformed lamb and beef producers. They produced similar amounts of clean wool (30 kg/ha in 2017-18 compared to 31 kg/ha in 2016-17) which was sold at higher prices ($20/kg compared to $16/ kg). The resulting higher income with similar variable costs resulted in a gross margin of $139/ha/100mm, compared with $84/ha/100mm in 2016-17 (Table 15).Prime lamb enterprises also recorded higher profits, with gross margin increasing from $90/ha/100mm to $104/ ha/100mm. However, beef gross margins were lower at$83/ha/100/mm compared to $114/ha/100mm last year (Table 15).

Labour efficiency (DSE/person) 5,897 6,988Effective area (ha) 1,099 851

Beef 58% 14%Hay/Cropping 2% 3%


WoolAverageTop 20%*

Lamb Average Top 20%*

TABLE 15. GIPPSLAND ENTERPRISE SUMMARY FIGURE 30. EARNINGS BEFORE INTEREST

AND TAX ($/HA)Stocking rate (DSE/ha) 12.0 15 $1,200

$1,000

$800

$600

$400

$200

$0

-$200

-$600-$400

-$800

EBIT ($/ha) 426 1040 Farm No.EBIT Average EBIT

Stocking rate (DSE/ha) 17.5 22.9

FIGURE 31. NET FARM INCOME ($/HA)

Average weight sold (kg lwt) 437 455Average beef price ($/kg lwt) 2.43 2.32Beef produced (kg lwt /ha) 336 466Gross margin ($/dse) 28 45

Farm No.


FIGURE 32. RETURN ON ASSETS10%

8%

6%


4%

2%

0%

-2%

-4%

-6%

Farm No.Return on Assets Average RoA

The importance of spreading risk whilst being mindful of RoA:Land values in Gippsland are the highest of all three regions. The influence of urban encroachment, proximity to Melbourne, historically higher rainfall and competition for high value land use all contribute to the higher land prices for agricultural land.Farms in Gippsland tend to be heavier stocked than in other regions, not only with a higher DSE/ha, but with heavier animals, with a greater proportion of beef. With a high reliance on one market performing well, there is a greater risk of reduced income when returns from that enterprise decrease. Some farms that performed well in 2017-18 had spread their risk over more than one enterprise, offsetting the decline in cattle markets with improved wool income.

Ret

urn

on A

sset

sN

et F

arm

Inco

me

($/h

a)EB

IT ($

/ha)

553

553

553

555

555

555

556

556

574

556

636

574

638

653

574

636

663

664

636

638

667

638

668

653

694

653

698

700

663

663

755

742

664

804

014

664

017

667

667

668

668

694

694

698

698

700

700

742

742

755

755

804

804

1014

1014

1017

1017

Average micron 18 18.1Average yield (%) 71% 71%Lamb marking (%) 67% 87%Wool price received ($/kg clean) 19.2 20.04Clean wool cut (kg/ha) 30 33Clean wool cut (kg/dse) 3.00 2.20Gross margin ($/dse) 52 87Gross margin ($/ha/100mm) 139 273EBIT ($/kg clean) 12.31 28.93

Gross margin ($/ha/100mm) 83 161EBIT ($/kg lwt) -0.38 0.89EBIT ($/ha) 66 473

Lamb marking (%) 102% 103%$1,200

$1,000Average lamb weight (kg cwt) 21 21Average lamb price ($/kg cwt) 6.15 7.11

$800

Lamb produced (kg cwt /ha) 162 152 $600

Gross margin ($/dse) 38 51 $400

Gross margin ($/ha/100mm) 104 174 $200

$0

EBIT ($/kg cwt) 2.53 5.20 -$200

EBIT ($/ha) 276 568 -$400

Beef Average Top 20%* -$600

-$800

Stocking rate (DSE/ha) 18.7 21.9Calving (%) 90% 85%


Gippsland

FIGURE 33. RETURN ON EQUITY FIGURE 35. ROA AND ROE HISTORY25%

20%

15%

10%

5%

0%

-5%

-10%

6.0%

4.0%

2.0%

0.0%

-2.0%

-4.0%

-6.0%

-15%

Farm No.Return on Equity Average RoE

RoA

RoE

FIGURE 34. EBIT HISTORY$400

$350

$300

$250

$200

$150

$100

$50

$0

($50)

($100)

EBIT

($/h

a)R

etur

n on

Equ

ity

553

555

556

574

636

638

653

663

664

667

668

694

698

700

742

755

804

1014

1017

RoA

& R

oE


Appendices


Appendices : South West

TABLE A1Main Financial Indicators 2017–18 South West

Gross Farm

Income Variable Costs Overhead Costs Cost Structure O/O Allowance

Earnings before Interest & Tax

- EBIT

Net Farm Income

Return on

Assets Debt Ratio

Return on Equity

$/HA $/HA $/HA $/HA $/HA $/HA

14 $1,059 $362 $112 45% $109 $477 $450 8.5% 3% 8.6%

39 $1,554 $384 $114 32% $53 $1,003 $852 12.1% 10% 15.7%

43 $1,142 $292 $153 39% $70 $627 $487 10.6% 12% 14.7%

55 $1,021 $397 $347 73% $17 $260 $260 3.2% 0% 3.2%

58 $1,458 $401 $350 51% $147 $560 $395 5.9% 11% 8.3%

66 $744 $261 $292 74% $61 $130 $130 2.7% 0% 2.7%

87 $742 $247 $155 54% $46 $293 $283 4.5% 1% 4.3%

88 $1,265 $379 $237 49% $97 $551 $442 9.2% 9% 10.1%

114 $778 $181 $131 40% $81 $384 $375 8.6% 1% 8.7%

512 $1,373 $404 $108 37% $183 $678 $653 13.1% 2% 13.9%

522 $903 $316 $144 51% $27 $415 $327 5.8% 10% 8.4%

623 $1,207 $377 $281 55% $167 $382 $132 4.8% 21% 4.8%

627 $615 $166 $128 48% $48 $274 $198 5.2% 12% 5.9%

628 $1,868 $570 $341 49% $75 $882 $829 8.4% 3% 8.4%

659 $985 $310 $77 39% $135 $463 $463 8.1% 0% 8.1%

693 $1,055 $485 $144 60% $31 $396 $286 5.5% 10% 5.6%

715 $1,221 $349 $417 63% $183 $272 $223 3.0% 4% 2.5%

719 $869 $426 $500 107% $102 -$159 -$204 -2.4% 5% -3.5%

720 $857 $220 $200 49% $187 $249 $124 2.5% 15% 1.8%

751 $1,301 $471 $149 48% $68 $613 $546 9.6% 5% 10.5%

754 $567 $108 $88 35% $152 $219 $188 2.3% 5% 2.2%

758 $1,235 $323 $123 36% $187 $603 $422 6.5% 15% 10.0%

759 $697 $256 $67 46% $77 $297 $213 4.9% 12% 4.7%

767 $714 $276 $71 49% $144 $223 $93 3.2% 18% 2.2%

807 $652 $351 $122 73% $128 $50 $34 0.6% 3% 0.4%

809 $1,248 $494 $280 62% $343 $131 $67 1.8% 5% 1.3%

1004 $809 $278 $138 51% $184 $210 -$111 2.6% 40% -2.9%

1006 $1,283 $546 $209 59% $205 $322 $138 3.3% 14% 2.9%

1016 $1,125 $384 $72 41% $179 $490 $459 5.0% 3% 4.9%

# South West Top 20% ranked by RoA.* South West Top 20% ranked by EBIT/ha.

Farm

Average $1,046 $345 $191 52% $120 $389 $302 5.5% 9% 5.8%

Top 20% # $1,236 $352 $149 41% $92 $643 $559 10.5% 6% 12.3%

Top 20%* $1,412 $407 $165 40% $106 $734 $632 10.1% 8% 12.2%


MM MMDSE/HADSE/HA/ 100MM

DSE/HA/25MM OVER

250MM

KG P/GRAZED HA

KG P/GRAZED HA/100MMKG/HA KG/HA KG/HA

TABLE A2Key Physical Data 2017–18 South West

Average

Rainfall Actual Rainfall Stocking Rate S.R. - Rf S.R. - Rf

July Stocking

Rate P Applied P Applied

P Nutrient Change

K Nutrient Change

S Nutrient Change

14 687 727 16 2.3 0.9 13 7 0.9 6 7 5

39 673 672 20 2.9 1.2 19 13 2.0 12 39 16

43 600 627 17 8.8 -6.9 19 13 6.8 12 8 12

55 624 549 12 2.2 1.0 17 9 1.6 5 -5 1

58 701 737 27 3.6 1.4 17 19 2.6 16 5 4

66 557 492 12 2.4 1.2 10 0 0.0 2 11 0

87 626 600 12 1.9 0.8 13 8 1.3 6 -1 4

88 654 747 17 2.3 0.9 13 22 3.0 20 27 22

114 721 490 11 2.2 1.1 9 8 1.6 7 -1 6

512 581 656 18 2.8 1.1 13 12 1.8 10 21 13

522 691 600 15 2.5 1.1 19 23 3.9 22 -1 6

623 681 704 24 3.3 1.3 15 7 1.0 4 19 11

627 610 603 11 1.8 0.8 15 0 0.0 0 5 -1

628 652 747 31 4.1 1.6 20 16 2.1 15 36 7

659 631 554 15 2.7 1.2 15 9 1.6 7 3 8

693 570 520 15 2.9 1.4 14 17 3.2 17 17 19

715 744 771 27 3.5 1.3 29 17 2.2 14 23 14

719 632 625 13 2.0 0.8 11 12 1.9 10 7 6

720 719 701 23 3.2 1.3 17 16 2.2 15 21 4

751 658 628 22 3.6 1.5 25 12 1.9 11 5 8

754 572 568 13 2.4 1.1 11 4 0.8 3 0 4

758 750 760 19 2.5 0.9 17 21 2.8 20 9 26

759 664 560 13 2.2 1.0 12 78 13.9 76 -3 6

767 734 791 13 1.6 0.6 23 5 0.6 4 37 5

807 611 601 19 3.1 1.3 15 14 2.3 13 6 10

809 630 794 14 1.8 0.7 20 10 1.2 7 20 9

1004 744 841 15 1.8 0.6 20 7 0.8 6 7 6

1006 692 582 30 5.1 2.2 22 14 2.4 12 4 11

1016 719 737 19 2.6 1.0 15 16 2.2 14 10 4

Farm


DSE/HAKG/HDKG/HAKG/DSEKG/

HA/100MM $/KG $/HD $/HA$/

HA/100MM $/DSE %

Average 660 655 18 2.9 0.8 16 14 2.4 13 12 8

Top 20% # 648 637 17 3.8 -0.2 16 13 2.8 12 17 13

Top 20%* 652 682 21 4.1 -0.1 19 15 2.9 13 20 14


TABLE A3Wool Sheep Production 2017–18 South West

Farm No Stocking Adult Clean Wool Clean Wool Clean Wool Clean Wool

Net Clean

Average Wool Average Ave

SaleGross Gross Gross Lamb

Rate Cut Cut Cut Cut Wool Price Micron Wool Yield Price Margin Margin Margin Marking

14 16 3.7 35 2.1 4.8 $24.00 17.2 67% $87 $719 $99 $44 78%

39 20 3.7 50 2.5 7.5 $21.98 17.0 70% $90 $1,090 $162 $55 68%

55 12 3.4 27 2.3 5.0 $22.32 17.5 62% $110 $593 $108 $49 83%

66 12 3.0 23 2.0 4.7 $25.32 17.7 67% $67 $480 $97 $41 77%

114 11 3.5 25 2.4 5.2 $18.37 17.9 69% $76 $397 $81 $37 89%

512 18 4.1 41 2.3 6.2 $22.21 17.0 69% $133 $1,038 $158 $57 87%

522 15 5.3 38 2.5 6.3 $20.47 17.4 61% $82 $693 $116 $46 74%

627 11 3.2 29 2.7 4.9 $18.73 17.5 71% $99 $483 $80 $45 68%

659 15 3.7 36 2.4 6.5 $20.46 17.8 69% $97 $654 $118 $43 82%

719 13 3.2 30 2.4 4.8 $22.26 18.5 63% $80 $598 $96 $48 90%

759 13 3.3 29 2.4 5.3 $24.11 16.3 67% $64 $726 $130 $58 90%

1004 15 2.8 29 1.9 3.4 $22.05 17.0 74% $44 $566 $67 $37 64%Average 14 3.6 33 2.3 5.4 $21.86 17.4 67% $86 $670 $109 $47 79%

Top 20%* 17 3.7 40 2.4 6.3 $22.77 16.8 69% $96 $951 $150 $57 82%

* Top 20% ranked according to gross margin per hectare per 100mm of rainfall.

DSE/HAKG LWT/HA KG CWT/HAKG CWT /HA/100MM KG CWT$/KG CWT $/HD KG/HD KG/HA



TABLE A4Prime Lamb Production 2017–18 South West

Farm No. Stocking Rate

43 16.7 260 116 61 17 $7.57 $126 3.3 14 33

58 26.7 496 223 30 19 $5.46 $103 4.5 44 33

87 11.6 218 98 16 20 $6.55 $134 4.7 26 28

88 17.1 295 133 18 23 $6.41 $144 5.3 42 23

512 18.1 457 206 31 15 $8.19 $126 4.9 48 18

522 15.2 245 110 18 21 $6.00 $126 4.3 21 28

623 23.5 444 200 28 20 $5.93 $119 4.8 38 30

627 10.8 107 48 8 20 $6.69 $135 3.1 24 29

628 31.0 582 262 35 22 $6.59 $144 3.6 45 33

659 15.0 229 103 19 23 $5.84 $131 4.2 23 30

715 26.7 440 198 26 19 $6.04 $115 2.8 40 32

751 22.3 385 173 28 22 $6.38 $140 4.3 30 33

754 13.4 223 100 18 18 $5.57 $102 4.4 32 30

758 18.8 159 72 9 24 $6.71 $162 3.7 26 28

759 12.5 569 256 46 19 $4.87 $92 221 22

807 18.8 203 91 15 17 $6.29 $105 2.5 21 28

809 14.2 585 263 33 27 $5.89 $161 4.3 28 30

1004 15.1 159 72 9 19 $7.90 $149 3.4 38 24

1006 29.8 544 245 42 17 $5.78 $98 0 0

1016 18.9 264 119 16 20 $6.24 $124 3.7 45 28

Average 18.8 343 154 25 20 $6.34 $127 4.0 40 27

Top 20%* 27.5 502 226 34 19.9 $6.05 121.3 4.1 30 25

Farm No Ewe Breed Net Greasy Wool Price Gross Margin Gross Margin Gross Margin Lamb Marking Ewe

$/KG $/HA $/HA/100MM $/DSE % % OF DSE

43 Xbred $2.55 $749 $119 $45 135% 51%58 Xbred $2.71 $964 $131 $36 119% 48%

87 Xbred $6.26 $531 $88 $46 97% 72%

88 Xbred $10.00 $757 $101 $44 108% 68%

512 Merino $13.69 $856 $131 $47 92% 65%

522 Xbred $4.35 $561 $93 $37 115% 68%

623 Xbred $2.99 $805 $114 $34 134% 59%

627 Xbred $6.20 $428 $71 $40 100% 91%

628 Xbred $2.64 $1,201 $161 $39 109% 67%

659 Xbred $4.03 $571 $103 $38 127% 61%

715 Xbred $2.27 $883 $114 $33 124% 69%

751 Xbred $2.22 $825 $131 $37 131% 64%

754 Xbred $4.24 $376 $66 $28 122% 69%

758 Xbred $3.15 $706 $93 $37 86% 58%

759 Xbred $1.15

807 Xbred $7.06 $165 $28 $9 125% 94%

809 Xbred $5.00 $851 $107 $60 119% 98%

1004 Xbred $5.82 $595 $71 $39 110% 97%

1006 Xbred $782 $134 $26 120% 65%

1016 Xbred $5.64 $635 $86 $34 90% 76%


Average $4.84 $697 $102 $37 114% 71%

Top 20%* $2.52 $943 $139 $35 120% 61%

Lamb Lamb Lamb Av Lamb Av Lamb Av Lamb Adult Gr. Greasy Wool Average WoolProduced Produced Produced Weight Price Price Wool Cut Cut Micron


TABLE A5Beef Cattle Production 2017–18 South West

Farm No Stocking Rate Beef Produced Beef Produced Beef Sold Average Sale

Price

Average Wt Sales Average Sale

Price

39 19.7 724 107.8 762 1,057 528 $2.00

87 11.6 218 36.3 177 1,093 373 $2.93

627 10.8 205 34.1 180 944 354 $2.66

751 22.3 358 57.1 247 906 396 $2.29

809 14.2 319 40.2 296 2,745 652 $4.21

1004 15.1 159 18.9 239 1,489 458 $3.25

1016 18.9 398 53.9 386 1,452 505 $2.88

39 19.7 728 108.3 1,640 1,323 431 $3.07

58 26.7 596 80.9 1,284 1,230 419 $2.94

114 10.7 207 42.3 222 1,249 280 $4.46

39 19.7 392 58.4 10,199 1,697 520 $3.26

522 15.2 183 30.4 326 1,559 593 $2.63

693 15.2 327 63.0 353 1,721 550 $3.13

720 22.5 289 41.2 251 1,379 432 $3.19

754 13.4 208 36.7 157 1,190 460 $2.59

758 18.8 424 55.9 341 1,546 495 $3.12

767 12.8 309 39.1 279 1,132 569 $2.00

807 18.8 267 44.3 278 1,004 285 $3.52

Farm No Gross Margin Gross Margin Gross Margin Time of Calving Calving Cow Beef Enterprise

$/HA $/HA/100MM $/DSE % %

39 $1,084 $161 $54.98 Apr 28% Autumn

87 $392 $65 $33.84 Feb 90% 25% Autumn

627 $348 $58 $32.20 Apr 96% 30% Autumn

751 $760 $121 $34.09 Jul 95% 9% Autumn

809 $505 $64 $35.65 Mar 95% 50% Autumn

1004 $130 $15 $8.59 Mar 88% 25% Autumn

1016 $727 $99 $38.51 Apr 89% 26% Autumn

39 $2,182 $325 $110.70 Oct 9% Other

58 $1,195 $162 $44.80 Oct 87% 25% Other

114 $831 $170 $77.55 Oct 42% Other

39 $10,868 $1,617 $551.44 Aug 0% Spring

522 $305 $51 $20.09 Aug 93% 23% Spring

693 $517 $99 $34.01 Aug 94% 100% Spring

720 $608 $87 $27.02 Sep 96% 100% Spring

754 $510 $90 $38.04 aug 89% 65% Spring

758 $898 $118 $47.73 Aug 85% 83% Spring

767 $440 $56 $34.45 Aug 89% 100% Spring

807 $725 $121 $38.55 Aug 94% 18% Spring

Average $1,279 $193 $70.12 91% 42%

Top 20%* $3,769 $568 $196.12 87% 19%

*Top 20% ranked according to gross margin per hectare per 100mm of rainfall.

DSE/HA KG LWT/HA KG LWT/HA/100MM KG LWT/HA $/HD KG LWT $/KG LWT

Average 17.0 351 52.7 979 1,373 461 $3.01

Top 20%* 19.2 481 72.5 3,336 1,375 413 $3.43



TABLE A6Wool Sheep Variable Costs 2017–18 South West

Farm No Animal Health Contract

Services Supp Feed & Agistmt

Pasture Casual Labour Freight/

CartageShearing Supplies

Other Selling Costs Total Ent.

Costs

$/DSE $/DSE $/DSE $/DSE $/DSE $/DSE $/DSE $/DSE $/DSE $/DSE

14 $3.86 $9.17 $4.56 $3.27 $0.00 $0.73 $0.22 $0.67 $3.38 $25.85

39 $3.93 $7.53 $3.68 $5.72 $0.00 $0.41 $0.10 $0.47 $2.72 $24.55

55 $2.78 $9.62 $6.98 $4.65 $1.05 $0.81 $0.24 $0.00 $3.41 $29.54

66 $2.00 $5.56 $12.90 $1.11 $0.05 $0.04 $0.36 $0.16 $2.92 $25.09

114 $1.24 $6.87 $7.04 $4.91 $0.10 $0.00 $0.51 $0.17 $1.82 $22.66

512 $3.39 $5.30 $9.01 $4.33 $0.22 $0.28 $0.39 $0.84 $2.24 $25.99

522 $4.29 $6.75 $6.59 $5.14 $0.00 $0.59 $0.04 $0.15 $2.56 $26.10

627 $3.44 $10.54 $0.00 $0.26 $0.00 $0.28 $0.14 $0.28 $2.69 $17.62

659 $2.60 $6.75 $9.16 $4.05 $0.61 $0.40 $0.28 $0.28 $4.33 $28.46

719 $4.70 $8.79 $5.70 $7.12 $0.10 $0.45 $0.19 $0.44 $2.34 $29.84

759 $5.42 $4.65 $6.32 $14.81 $0.23 $0.64 $0.45 $1.72 $3.30 $37.53

1004 $2.41 $5.19 $1.08 $4.25 $0.00 $0.00 $0.44 $0.78 $3.78 $17.94

Farm No Animal Health ContractServices Supp Feed

& AgistmtPasture Casual Labour Freight/


Other Selling Costs Total Ent.Costs

$/HA $/HA $/HA $/HA $/HA $/HA $/HA $/HA $/HA $/HA

14 $63 $150 $75 $54 $0 $12 $4 $11 $55 $423

39 $77 $148 $72 $113 $0 $8 $2 $9 $54 $484

55 $33 $115 $84 $56 $13 $10 $3 $0 $41 $355

66 $24 $66 $152 $13 $1 $0 $4 $2 $34 $296

114 $13 $74 $75 $53 $1 $0 $6 $2 $19 $243

512 $61 $96 $163 $78 $4 $5 $7 $15 $40 $469

522 $65 $103 $100 $78 $0 $9 $1 $2 $39 $397

627 $37 $114 $0 $3 $0 $3 $1 $3 $29 $190

659 $39 $102 $138 $61 $9 $6 $4 $4 $65 $428

719 $59 $110 $72 $89 $1 $6 $2 $6 $29 $375

759 $68 $58 $79 $185 $3 $8 $6 $21 $41 $469

1004 $36 $78 $16 $64 $0 $0 $7 $12 $57 $271


Average $3.34 $7.23 $6.08 $4.97 $0.20 $0.39 $0.28 $0.50 $2.96 $25.93

Top 20%* $4.25 $5.83 $6.34 $8.29 $0.15 $0.44 $0.31 $1.01 $2.75 $29.36

Average $48 $101 $86 $71 $3 $6 $4 $7 $42 $367

Top 20%* $69 $101 $105 $125 $2 $7 $5 $15 $45 $474


TABLE A7Prime Lamb Variable Costs 2017–18 South West






43 $1.61 $2.17 $4.95 $6.99 $0.30 $0.19 $0.03 $0.76 $0.27 $17.2658 $2.97 $1.21 $3.27 $4.54 $0.00 $0.66 $0.14 $0.33 $3.54 $16.65

87 $1.03 $6.28 $5.14 $6.16 $0.00 $0.85 $0.21 $0.20 $0.58 $20.46

88 $3.08 $6.13 $3.67 $7.02 $0.00 $0.91 $0.29 $0.30 $1.91 $23.31

512 $1.43 $4.75 $4.59 $4.33 $0.12 $1.06 $0.21 $0.48 $5.35 $22.30

522 $2.23 $3.38 $1.90 $5.14 $0.00 $0.35 $0.00 $0.12 $1.72 $14.84

623 $2.88 $3.78 $4.14 $4.05 $0.09 $0.71 $0.12 $0.27 $3.54 $19.58

627 $2.67 $3.97 $0.00 $0.26 $0.00 $0.22 $0.11 $0.22 $1.40 $8.84

628 $1.28 $3.09 $7.97 $5.55 $0.09 $0.18 $0.10 $0.06 $0.83 $19.15

659 $1.37 $3.50 $7.73 $4.05 $0.32 $0.51 $0.16 $0.15 $3.21 $21.00

715 $1.32 $0.58 $2.75 $6.96 $0.00 $0.00 $0.30 $1.16 $3.08 $16.15

751 $1.63 $3.58 $8.70 $4.48 $0.00 $0.94 $0.00 $0.75 $2.41 $22.49

754 $1.57 $4.87 $3.08 $1.34 $0.84 $0.79 $0.42 $1.37 $4.70 $18.98

758 $1.08 $3.22 $3.54 $4.39 $0.00 $0.44 $0.13 $0.61 $2.53 $15.94

759 $0.00 $64.21 $0.00 $14.81 $0.00 $13.01 $0.70 $0.21 $59.20 $152.15

807 $2.77 $1.61 $8.71 $4.51 $0.00 $0.50 $0.00 $0.92 $1.91 $20.93

809 $5.58 $4.92 $4.44 $5.36 $0.00 $0.28 $0.34 $0.00 $7.64 $28.57

1004 $2.33 $5.03 $3.15 $4.25 $0.00 $0.00 $0.42 $0.75 $8.80 $24.74

1006 $3.27 $1.93 $4.61 $4.95 $0.00 $1.46 $0.00 $2.09 $0.18 $18.48

1016 $1.91 $2.26 $8.42 $4.41 $0.45 $0.22 $0.18 $0.55 $1.01 $19.40






43 $27 $36 $82 $116 $5 $3 $1 $13 $5 $28758 $79 $32 $87 $121 $0 $18 $4 $9 $94 $444

87 $12 $73 $60 $71 $0 $10 $2 $2 $7 $237

88 $53 $105 $63 $120 $0 $16 $5 $5 $33 $399

512 $26 $86 $83 $78 $2 $19 $4 $9 $97 $403

522 $34 $51 $29 $78 $0 $5 $0 $2 $26 $225

623 $68 $89 $97 $95 $2 $17 $3 $6 $83 $460

627 $29 $43 $0 $3 $0 $2 $1 $2 $15 $95

628 $40 $96 $247 $172 $3 $6 $3 $2 $26 $593

659 $21 $53 $116 $61 $5 $8 $2 $2 $48 $316

715 $35 $16 $74 $186 $0 $0 $8 $31 $82 $432

751 $36 $80 $194 $100 $0 $21 $0 $17 $54 $502

754 $21 $65 $41 $18 $11 $11 $6 $18 $63 $255758 $20 $61 $67 $83 $0 $8 $2 $12 $48 $300

759 $0 $803 $0 $185 $0 $163 $9 $3 $740 $1,903

807 $52 $30 $164 $85 $0 $9 $0 $17 $36 $394

809 $79 $70 $63 $76 $0 $4 $5 $0 $108 $405

1004 $35 $76 $48 $64 $0 $0 $6 $11 $133 $374

1006 $98 $57 $138 $148 $0 $43 $0 $62 $5 $552

1016 $36 $43 $159 $83 $8 $4 $3 $10 $19 $366


Average $2.10 $6.52 $4.54 $5.18 $0.11 $1.16 $0.19 $0.57 $5.69 $26.06

Top 20% $2.29 $2.45 $6.14 $4.88 $0.02 $0.81 $0.06 $0.81 $1.74 $19.19

Average $40 $98 $91 $97 $2 $18 $3 $12 $86 $447

Top 20% $63 $66 $166 $135 $1 $22 $2 $22 $45 $523



TABLE A8Beef Cattle Variable Costs 2017–18 South West

Farm No Enterprise Animal Health ContractServices

Supp Feed & Agistmt Pasture Casual Labour Freight/ Cartage Other Selling Costs Total Var. Costs

$/DSE $/DSE $/DSE $/DSE $/DSE $/DSE $/DSE $/DSE $/DSE

39 Autumn $0.60 $0.00 $10.84 $5.72 $0.00 $0.00 $0.00 $0.00 $17.15

87 Autumn $2.27 $0.00 $6.85 $6.16 $0.28 $0.49 $0.19 $0.05 $16.28

627 Autumn $0.00 $0.00 $17.33 $0.26 $0.00 $0.00 $0.00 $3.26 $20.84

751 Autumn $0.42 $0.27 $0.00 $4.48 $0.00 $0.28 $0.77 $1.54 $7.76

809 Autumn $1.70 $3.91 $29.01 $5.36 $0.00 $0.00 $4.32 $1.58 $45.89

1004 Autumn $1.81 $0.00 $17.86 $4.25 $0.00 $0.00 $4.27 $0.39 $28.60

1016 Autumn $1.17 $0.00 $12.17 $4.41 $1.42 $0.65 $0.80 $0.65 $21.26

39 Other $0.77 $0.00 $0.00 $5.72 $0.00 $10.72 $0.00 $1.01 $18.21

58 Other $0.70 $0.00 $10.55 $4.54 $0.00 $3.20 $0.19 $5.07 $24.25

114 Other $0.71 $0.00 $0.00 $4.91 $0.00 $2.29 $2.58 $0.46 $10.95

39 Spring $0.00 $0.00 $0.00 $5.72 $0.00 $0.00 $0.00 $6.32 $12.04

522 Spring $0.88 $0.00 $2.70 $5.14 $0.00 $1.61 $0.70 $0.44 $11.48

693 Spring $1.86 $1.80 $13.36 $12.44 $1.91 $0.07 $0.97 $0.12 $32.53

720 Spring $0.88 $0.00 $3.48 $4.09 $0.00 $0.33 $0.88 $0.71 $10.37

754 Spring $0.72 $0.00 $0.99 $1.34 $0.00 $0.11 $1.04 $2.23 $6.44

758 Spring $1.55 $0.87 $10.46 $4.39 $0.00 $0.16 $0.14 $1.41 $18.97

767 Spring $0.66 $0.19 $13.10 $4.28 $0.00 $0.00 $1.02 $3.83 $23.08

807 Spring $0.93 $0.00 $6.77 $4.51 $0.00 $0.00 $1.33 $0.19 $13.73

Farm No Animal Health Contract Services Supp Feed &

AgistmtPasture Casual Labour Freight/ Cartage Other Selling Costs Total Var. Costs

39 $12 $0 $214 $113 $0 $0 $0 $0 $338

87 $26 $0 $79 $71 $3 $6 $2 $1 $189

627 $0 $0 $187 $3 $0 $0 $0 $35 $225

751 $9 $6 $0 $100 $0 $6 $17 $34 $173

809 $24 $55 $411 $76 $0 $0 $61 $22 $650

1004 $27 $0 $270 $64 $0 $0 $65 $6 $432

1016 $22 $0 $230 $83 $27 $12 $15 $12 $401

39 $15 $0 $0 $113 $0 $211 $0 $20 $359

58 $19 $0 $281 $121 $0 $85 $5 $135 $647

114 $8 $0 $0 $53 $0 $24 $28 $5 $117

39 $0 $0 $0 $113 $0 $0 $0 $125 $237

522 $13 $0 $41 $78 $0 $24 $11 $7 $174

693 $28 $27 $203 $189 $29 $1 $15 $2 $494

720 $20 $0 $78 $92 $0 $7 $20 $16 $233

754 $10 $0 $13 $18 $0 $2 $14 $30 $86

758 $29 $16 $197 $83 $0 $3 $3 $26 $357

767 $8 $2 $168 $55 $0 $0 $13 $49 $295

807 $18 $0 $127 $85 $0 $0 $25 $4 $258


Average $0.98 $0.39 $8.64 $4.87 $0.20 $1.11 $1.07 $1.63 $18.88

Top 20% $0.54 $0.00 $2.64 $5.22 $0.00 $4.05 $0.69 $3.21 $16.36

$/HA $/HA $/HA $/HA $/HA $/HA $/HA $/HA $/HA

Average $16 $6 $139 $84 $3 $21 $16 $29 $315

Top 20% $10 $0 $70 $100 $0 $80 $8 $71 $340


TABLE A9Pasture Costs Per Grazed Hectare 2017–18 South West

Farm No Seed Chemicals Contract Services Fert & Soil Conditioners Other Total Pasture Cost

$/GRAZED HA $/GRAZED HA $/GRAZED HA $/GRAZED HA $/GRAZED HA $/GRAZED HA

14 $6 $3 $7 $38 $2 $5539 $1 $3 $2 $101 $0 $113

43 $6 $12 $7 $87 $0 $118

55 $10 $4 $5 $26 $3 $48

58 $6 $10 $24 $85 $0 $125

66 $7 $2 $2 $3 $0 $13

87 $11 $15 $4 $38 $3 $71

88 $0 $6 $0 $111 $11 $128

114 $3 $4 $0 $36 $0 $54

512 $2 $6 $0 $74 $5 $87

522 $7 $0 $0 $65 $0 $82

623 $6 $2 $5 $79 $5 $98

627 $0 $3 $0 $0 $0 $3

628 $36 $10 $0 $124 $13 $183

659 $0 $6 $0 $61 $0 $66

693 $19 $7 $63 $95 $2 $195

715 $18 $6 $7 $154 $1 $186

719 $13 $4 $1 $62 $1 $80

720 $6 $3 $2 $81 $2 $95

751 $19 $9 $0 $80 $0 $107

754 $0 $0 $0 $18 $0 $18

758 $0 $0 $0 $87 $0 $87

759 $20 $10 $28 $34 $0 $108

767 $0 $0 $0 $60 $0 $60

807 $5 $6 $0 $82 $0 $92

809 $0 $9 $4 $79 $0 $93

1004 $18 $5 $0 $43 $4 $70

1006 $41 $11 $46 $49 $0 $148

1016 $23 $0 $2 $64 $3 $92

# South West Top 20% ranked RoA.* South West Top 20% ranked EBIT/ha.

Average $10 $5 $7 $66 $2 $92

Top 20%# $5 $7 $1 $81 $3 $101

Top 20%* $11 $7 $1 $92 $3 $116



TABLE A10Overhead Costs Per Hectare 2017–18 South West

Farm No Paid Labour Fuel & Vehicle Insurance R&M - Plant & Equip.

R&M - Land & Improv.

Admin Rates & Rents Sundries Depreciation Total Overheads


14 $0 $7 $11 $14 $22 $27 $16 $0 $15 $112

39 $30 $13 $5 $0 $2 $23 $16 $0 $25 $114

43 $50 $8 $5 $9 $31 $16 $14 $1 $19 $153

55 $173 $10 $11 $28 $20 $16 $27 $6 $55 $347

58 $172 $23 $8 $27 $25 $67 $16 $4 $8 $350

66 $127 $20 $10 $17 $27 $26 $16 $3 $46 $292

87 $63 $12 $9 $10 $26 $16 $12 $0 $6 $155

88 $43 $14 $31 $24 $20 $43 $20 $0 $42 $237

114 $31 $20 $14 $10 $13 $15 $11 $1 $17 $131

512 $9 $9 $16 $5 $12 $16 $15 $1 $24 $108

522 $59 $9 $4 $12 $22 $13 $10 $2 $13 $144

623 $63 $9 $12 $12 $13 $34 $11 $0 $128 $281

627 $0 $21 $14 $35 $3 $14 $23 $0 $17 $128

628 $171 $33 $16 $20 $8 $30 $27 $0 $35 $341

659 $0 $14 $7 $8 $1 $9 $17 $2 $21 $77

693 $1 $17 $11 $6 $20 $26 $21 $1 $42 $144

715 $117 $10 $16 $25 $79 $55 $96 $2 $17 $417

719 $0 $10 $14 $8 $46 $37 $19 $2 $364 $500

720 $2 $13 $13 $17 $13 $56 $17 $0 $68 $200

751 $44 $0 $20 $0 $16 $25 $15 $0 $29 $149

754 $0 $9 $8 $1 $11 $11 $25 $2 $21 $88

758 $4 $15 $12 $8 $42 $19 $11 $1 $12 $123

759 $1 $4 $9 $3 $17 $13 $9 $0 $11 $67

767 $0 $1 $9 $15 $23 $8 $14 $1 $0 $71

807 $20 $2 $18 $25 $4 $22 $18 $0 $13 $122

809 $0 $43 $43 $59 $16 $51 $26 $1 $41 $280

1004 $0 $5 $21 $9 $23 $28 $16 $0 $36 $138

1006 $0 $28 $21 $0 $57 $69 $19 $0 $14 $209

1016 $23 $3 $15 $0 $0 $12 $18 $0 $0 $72


Average $41 $13 $14 $14 $21 $27 $20 $1 $39 $191

Top 20%# $34 $11 $15 $8 $16 $23 $15 $0 $26 $149

Top 20%* $51 $13 $12 $7 $18 $22 $16 $0 $24 $165

$/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT$/HA$/HA


TABLE A11Wool Sheep Profitability Per Kilogram of Clean Wool Produced 2017–18 South West

Farm No

14 $25.12 $7.33 $12.08 $3.30 $3.26 $0.79 $18.63 $13.82 $13.02 $484 $457

39 $22.84 $8.36 $9.64 $2.39 $0.88 $3.12 $12.91 $18.29 $15.17 $919 $762

55 $23.23 $11.55 $13.02 $10.16 $0.63 $0.00 $23.81 $10.97 $10.97 $299 $299

66 $26.67 $7.01 $12.85 $11.32 $2.64 $0.00 $26.80 $6.88 $6.88 $158 $158

114 $19.12 $6.23 $9.62 $4.86 $3.02 $0.35 $17.50 $7.86 $7.51 $198 $190

512 $23.18 $13.37 $11.46 $2.65 $4.27 $0.62 $18.39 $18.17 $17.55 $744 $719

522 $21.30 $7.61 $10.53 $4.14 $0.80 $2.35 $15.48 $13.43 $11.08 $506 $417

627 $19.57 $3.44 $6.50 $4.42 $2.11 $2.59 $13.03 $9.98 $7.39 $292 $216

659 $21.54 $8.51 $11.89 $1.48 $3.16 $0.00 $16.54 $13.52 $13.52 $487 $487

719 $23.25 $9.11 $12.53 $6.81 $2.52 $1.52 $21.86 $10.50 $8.98 $314 $269

759 $25.10 $15.56 $15.97 $2.98 $3.50 $2.88 $22.44 $18.21 $15.34 $535 $451

1004 $23.84 $5.02 $9.45 $4.77 $5.08 $11.17 $19.30 $9.56 -$1.61 $274 -$46

* Top 20% ranked according to gross margin per hectare per 100mm of rainfall** Interest and lease costs are excluded from the cost of production.

TABLE A12Prime Lamb Profitability Per Kilogram Carcass Weight Produced 2017–18 South West

Farm No

43 $0.32 $4.21 $2.40 $1.30 $0.59 $1.20 $4.30 $4.52 $4.76 $3.55 $331 $247

58 $0.55 $1.20 $1.62 $1.53 $0.63 $0.74 $3.78 $4.32 $2.29 $1.55 $403 $273

87 $1.68 $2.86 $2.34 $1.76 $0.57 $0.10 $4.67 $3.22 $3.08 $2.98 $149 $144

88 $3.19 -$0.03 $2.75 $1.65 $0.63 $0.82 $5.04 $5.30 $3.42 $2.59 $375 $285

512 $3.16 -$0.25 $1.46 $0.50 $0.85 $0.12 $2.81 $2.70 $2.81 $2.69 $191 $183

522 $0.84 $2.24 $1.79 $1.37 $0.27 $0.80 $3.44 $3.79 $3.43 $2.63 $240 $184

623 $0.57 $1.21 $1.87 $1.37 $0.73 $1.25 $3.96 $4.12 $1.94 $0.69 $269 $95

627 $3.15 $3.46 $1.67 $2.61 $1.28 $1.58 $5.56 $3.97 $5.01 $3.44 $143 $98

628 $0.46 $2.10 $2.17 $1.13 $0.14 $0.20 $3.44 $4.19 $3.31 $3.11 $553 $519

659 $0.88 $2.44 $2.60 $0.50 $1.11 $0.00 $4.20 $4.81 $3.94 $3.94 $334 $334

715 $0.46 $0.79 $1.65 $2.10 $0.92 $0.25 $4.68 $4.86 $1.43 $1.19 $228 $189

751 $0.38 $2.12 $2.51 $0.87 $0.38 $0.39 $3.76 $4.77 $3.51 $3.12 $455 $405

754 $1.33 $1.17 $1.77 $0.84 $0.97 $0.31 $3.59 $3.01 $1.93 $1.63 $105 $88

758 $1.15 $0.14 $3.46 $1.77 $3.09 $2.53 $8.32 $12.02 $4.99 $2.46 $640 $316

759 $0.99 -$32.34 $4.54 $0.13 $0.40 $0.33 $5.07 $27.85 -$8.57 -$8.90

$/KG CLEAN $/KG CLEAN $/KG CLEAN $/KG CLEAN $/KG CLEAN $/KG CLEAN $/KG CLEAN $/KG CLEAN $/KG CLEAN $/HA $/HA

Average $22.90 $8.59 $11.29 $4.94 $2.66 $2.12 $18.89 $12.60 $10.48 $434 $365

Top 20% $23.71 $12.43 $12.36 $2.67 $2.88 $2.21 $17.91 $18.22 $16.02 $733 $644

Net Wool She ep Variable Overhead O/O Interest & **Cost of Earnings Net Farm Earn ings Net Income Profit Costs Costs Allowance Lease Production Tax - EBIT Income Tax - EBIT Income

Net Wool Non-Lamb Variable Overhead O/O Interest & **Cost of Lamb Price Earnings Net Farm Earni ngs Net Farm Income Trading Costs Costs Allowance Lease Production Received Tax -EBIT Income Tax -EBIT Income


807 $1.62 -$0.79 $3.73 $1.16 $1.09 $0.18 $5.97 $4.71 -$0.44 -$0.62 -$30 -$42

809 $0.54 -$1.01 $1.13 $1.02 $0.86 $0.24 $3.02 $4.83 $1.35 $1.11 $291 $239

1004 $3.08 -$8.06 $3.23 $1.95 $2.03 $4.47 $7.21 $16.51 $4.33 -$0.14 $649 -$21

1006 $0.00 $2.41 $2.08 $0.86 $0.84 $0.75 $3.77 $2.86 $1.50 $0.75 $181 $91

1016 $2.11 $2.13 $2.88 $0.55 $1.24 $0.26 $4.67 $3.98 $3.55 $3.29 $269 $249

Average $1.32 -$0.70 $2.38 $1.25 $0.93 $0.83 $4.56 $6.32 $2.38 $1.55 $304 $204

Top 20% $0.35 $1.96 $2.10 $1.10 $0.50 $0.52 $3.69 $4.04 $2.65 $2.13 $398 $322



$/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT$/HA $/HA


TABLE A13Beef Cattle Profitability Per Kilogram Liveweight Produced 2017–18 South West

Farm No Trading Profit

Variable Costs

Overhead Costs

O/O Allowance

Interest & Lease

**Cost of Production

**Breakeven Beef Price

Beef Price Received

Earnings Before Int/ Tax - EBIT

Net Farm Income


Net Farm Income

Beef Enterprise

39 -$0.12 $0.45 $0.15 $0.10 $0.21 $0.70 $1.02 $2.00 $1.18 $0.98 $858 $707 Autumn

87 -$0.27 $0.86 $0.46 $0.07 $0.05 $1.39 $1.71 $2.93 $1.27 $1.22 $277 $266 Autumn

627 -$0.05 $0.92 $0.50 $0.07 $0.37 $1.49 $1.91 $2.66 $1.13 $0.76 $231 $156 Autumn

751 $0.20 $0.39 $0.25 $0.14 $0.19 $0.78 $0.76 $2.29 $1.71 $1.52 $613 $546 Autumn

809 -$0.66 $1.97 $0.88 $1.35 $0.20 $4.19 $5.05 $4.21 -$0.64 -$0.84 -$205 -$268 Autumn

1004 $0.06 $2.67 $0.78 $1.36 $2.01 $4.82 $6.76 $3.25 -$1.51 -$3.52 -$240 -$560 Autumn

1016 -$0.11 $0.98 $0.15 $0.30 $0.08 $1.43 $1.62 $2.88 $1.34 $1.26 $534 $502 Autumn

39 -$1.59 $0.20 $0.08 $0.04 $0.09 $0.32 $2.00 $3.07 $1.15 $1.06 $841 $774 Other

58 -$1.57 $0.41 $0.30 $0.13 $0.13 $0.84 $2.53 $2.94 $0.53 $0.40 $317 $241 Other

114 -$0.22 $0.51 $0.46 $0.30 $0.04 $1.27 $1.53 $4.46 $2.97 $2.93 $616 $608 Other

39 $23.57 $0.28 $0.65 $0.18 $0.38 $1.11 -$22.08 $3.26 $25.72 $25.34 $10,091 $9,941 Spring

522 -$0.08 $0.92 $0.55 $0.09 $0.49 $1.56 $2.12 $2.63 $0.99 $0.51 $181 $92 Spring

693 -$0.05 $1.50 $0.44 $0.10 $0.34 $2.04 $2.42 $3.13 $1.04 $0.71 $341 $231 Spring

720 -$0.36 $0.75 $0.68 $0.65 $0.43 $2.09 $2.89 $3.19 $0.74 $0.31 $214 $89 Spring

754 $0.08 $0.27 $0.43 $0.87 $0.15 $1.57 $1.64 $2.59 $1.10 $0.95 $229 $198 Spring

758 -$0.23 $0.78 $0.28 $0.42 $0.43 $1.48 $2.14 $3.12 $1.41 $0.98 $599 $418 Spring

767 $0.02 $0.73 $0.18 $0.47 $0.42 $1.38 $1.79 $2.00 $0.63 $0.21 $195 $65 Spring

807 $0.06 $0.96 $0.42 $0.29 $0.06 $1.66 $1.66 $3.52 $1.92 $1.86 $512 $495 Spring

Average $1.04 $0.86 $0.42 $0.39 $0.34 $1.67 $0.97 $3.01 $2.37 $2.04 $900 $806

Top 20% $5.05 $0.35 $0.37 $0.16 $0.16 $0.88 -$4.00 $3.43 $7.59 $7.43 $2,966 $2,891


TABLE A14Capital Structure 2017–18 South West

Average Top 20% Av # Top 20% Av *

FARM AREAS (HA)

Freehold Area 968 1,325 1,097

Area Leased In 115 14 43

Area Leased Out 7 34 0

Effective Area 977 1,132 991

LAND VALUES

Total Land Value per Effective Hectare $5,836 $4,583 $5,736

Total Land Value per DSE $350 $267 $275

Owned Land Value per Hectare $5,551 $3,867 $5,185

Leased Land Value per Hectare $3,667 $1,082 $2,269


OTHER ASSETS (per Effective Hectare)

Plant & Vehicles $308 $279 $319

Livestock $1,361 $1,265 $1,580

Hay & Grain on Hand $44 $52 $44

Other Assets $162 $176 $310

Total Assets $7,710 $6,356 $7,989

LIABILITIES

Liabilities per Effective Hectare $1,123 $1,399 $1,565

EQUITY

Equity per Effective Hectare $5,949 $4,906 $5,899

Average Equity % 78% 79% 74%

RATIOS

Debt Ratio 9% 6% 8%

Plant & Equipment Ratio 4.5 5.0 6.1



TABLE A15Farm Labour Efficiency and Enterprise Mix 2017–18 South West

Average Top 20% Av # Top 20% Av *

SHEEP ENTERPRISES

Average Sheep Number 6,909 8,565 8,717

Sheep Labour Efficiency (ha/person) 471 529 490

Sheep Labour Efficiency (DSE/person) 7,678 9,345 9,951

BEEF ENTERPRISES

Average Cattle Number 294 298 382

Cattle Labour Efficiency (ha/person) 619 758 673

Cattle Labour Efficiency (DSE/person) 9,214 14,399 13,954

TOTAL LABOUR EFFICIENCY

Hectares per person 449 488 446

DSE per person 7,680 8,847 9,547

ENTERPRISE MIX

Wool Sheep (%) 29% 30% 21%

Prime Lambs (%) 41% 55% 57%

Beef (%) 26% 15% 21%

Hay/Cropping (%) 3% 1% 1%


TABLE A16Supplementary Feed Data 2017–18 South West

Yield(wet tonnes per ha)

Amount Fed to Sheep (average wet kgs per DSE)

Amount Fed to Cattle (average wet kgs per DSE)

Gross Margins ($ per ha)

Area Cut (ha)

Farm No Pasture Hay Silage Pasture Hay Silage Grain Pasture Hay Silage Grain Pasture Hay Silage Pasture Hay Silage

14 2.4 4.8 0 14.6 $178 $0 37 0

39 0.0 12.1 0.0 0.0 32.6 $0 $0 0 0

43 4.0 11.6 0 12.7 $832 $0 28 0

55 2.3 4.9 7.4 0 21.7 $329 $98 57 80

58 3.0 2.4 0 10.5 32.3 2.2 0.0 $366 $0 24 0

66 60 0 11.5 $0 $0 0 0

87 3.5 0 0 22.4 0.9 35.6 0.0 $0 -$108 0 52

88 6.5 6.5 0 19.5 9.2 $968 $159 31 35

114 3.9 5.0 0 9.7 26.1 0.0 0.0 0.0 $517 $245 18 15

512 3.4 4.1 3.6 13.3 21.9 $390 -$11 33 34

522 4.2 7.2 0 18.6 15.2 6.3 9.3 0.0 $356 -$40 40 107

623 5.6 8 0 6.5 $847 $0 16 0

627 0 0 0 107.6 0.0 0.0 $0 $0 0 0

628 3.4 8.4 6.8 9.3 30.9 $326 $672 27 25

659 2.8 27 0 18 $457 $0 88 0

693 7.8 83.0 0.0 0.0 $1,310 $0 18 0

715 0 0 7.5 $0 $0 0 0

719 0 0 20.9 $0 $0 0 0

720 15.4 8.2 0.0 $0 $0 0 0

751 11.1 0 61.1 15.6 0.0 0.0 0.0 $0 $190 0 90

754 3.4 0 0 8 1.4 2.7 0.0 $0 $43 0 8

758 4.0 5.9 0 0 37.7 0.0 0.0 $422 $0 36 0

759 0 0 26.3 $0 $0 0 0

767 1.5 9.5 43.9 70.7 0.0 $22 $107 14 32

807 3.1 17.3 0 25.1 42.0 0.0 0.0 $418 $0 58 0

809 4.5 7.7 8.2 0 20.1 76.7 111.3 7.3 $543 $364 29 26

1004 5.3 6.7 8.1 0 0 96.0 30.0 0.0 $777 $212 75 15

1006 1.2 6 15.6 $0 $0 0 0

1016 8.3 45.8 0 0 75.6 0.0 0.0 $1,149 $0 182 0

Average 4.2 6.5 8.7 5.3 14.3 38.7 16.9 2.5 $352 $67 28 18



TABLE A17Average Whole Farm Economic Peformance – South West

Year Gross Income Variable Costs Overhead Costs Net Income EBIT(Operating Profit)

Return on Assets

Return on Equity

NOMI- NAL

($/HA)

REAL($/HA)

NOMI- NAL

($/HA)

REAL($/HA)

NOMI- NAL

($/HA)

REAL($/HA)

NOMI- NAL

($/HA)

REAL($/HA)

NOMI- NAL

($/HA)

REAL($/HA) % %

1970-71 $46 $508 $15 $166 $10 $110 $20 $221 2.9% 3.3%

1971-72 $46 $477 $12 $125 $11 $114 $22 $228 3.8% 3.2%

1972-73 $86 $825 $14 $134 $12 $115 $60 $575 12.6% 14.4%

1973-74 $111 $929 $20 $167 $18 $151 $73 $611 12.6% 15.3%

1974-75 $66 $472 $16 $115 $17 $122 $33 $236 3.1% 4.8%

1975-76 $68 $435 $21 $134 $19 $121 $27 $173 2.7% 3.1%

1976-77 $90 $507 $23 $130 $21 $118 $46 $259 6.6% 6.8%

1977-78 $94 $490 $30 $156 $23 $120 $40 $209 4.7% 4.6%

1978-79 $137 $657 $32 $153 $31 $149 $74 $355 6.3% 6.4%

1979-80 $167 $723 $40 $173 $30 $130 $97 $420 6.7% 6.9%

1980-81 $156 $621 $58 $231 $33 $131 $65 $259 2.9% 3.7%

1981-82 $130 $467 $49 $176 $38 $137 $42 $151 1.0% 0.4%

1982-83 $122 $395 $53 $171 $39 $126 $30 $97 -0.1% -0.2%

1983-84 $188 $585 $48 $149 $43 $134 $97 $302 5.1% 4.0%

1984-85 $191 $557 $54 $158 $46 $134 $91 $266 4.4% 3.5%

1985-86 $197 $530 $51 $137 $45 $121 $101 $272 3.8% 3.3%

1986-87 $235 $578 $53 $130 $49 $121 $133 $327 6.1% 5.4%

1987-88 $335 $770 $75 $172 $59 $136 $200 $459 9.5% 9.3%

1988-89 $343 $732 $80 $171 $61 $130 $202 $431 7.7% 7.2%

1989-90 $326 $646 $90 $178 $66 $131 $170 $337 5.8% 4.6%

1990-91 $221 $424 $73 $140 $57 $109 $91 $174 2.1% -0.5%

1991-92 $190 $360 $68 $129 $55 $105 $67 $127 1.0% -2.2%

1992-93 $198 $368 $67 $125 $54 $100 $77 $143 1.5% -1.1%

1993-94 $220 $402 $85 $155 $54 $98 $82 $149 1.8% 0.1%

1994-95 $278 $486 $104 $181 $84 $147 $91 $159 2.5% 0.9%

1995-96 $273 $464 $98 $167 $82 $139 $93 $158 2.6% 0.8%

1996-97 $287 $485 $113 $191 $76 $129 $97 $164 2.7% 1.1%

1997-98 $302 $507 $117 $197 $80 $135 $104 $175 2.6% 1.3%

1998-99 $285 $473 $116 $193 $79 $131 $90 $149 1.8% 0.3%

1999-00 $308 $496 $126 $203 $80 $129 $102 $164 2.1% 0.8%

2000-01 $418 $635 $125 $190 $95 $144 $198 $301 5.4% 5.2%

2001-02 $536 $792 $150 $221 $102 $151 $284 $420 7.6% 8.7%

2002-03 $515 $740 $200 $288 $106 $152 $209 $301 4.7% 4.9%

2003-04 $519 $729 $183 $256 $85 $120 $251 $352 5.0% 5.7%

2004-05 $501 $686 $206 $282 $92 $126 $203 $278 $137 $188 3.0% 2.3%

2005-06 $453 $597 $202 $266 $91 $120 $160 $211 $80 $105 1.6% 1.2%

2006-07 $429 $553 $239 $308 $103 $133 $87 $112 $27 $35 0.0% -2.9%

2007-08 $636 $785 $260 $321 $122 $151 $255 $315 $189 $233 3.1% 2.4%

2008-09 $602 $732 $274 $333 $130 $158 $199 $242 $82 $100 2.2% 1.0%

2009-10 $658 $776 $259 $305 $121 $143 $278 $328 $210 $248 3.2% 2.5%

2010-11 $793 $903 $214 $244 $137 $156 $442 $503 $366 $417 5.7% 5.7%

2011-12 $696 $783 $341 $383 $137 $154 $293 $329 $225 $253 3.7% 3.3%

2012-13 $547 $601 $285 $313 $141 $155 $121 $133 $60 $66 1.0% -1.2%

2013-14 $608 $648 $252 $269 $150 $160 $206 $220 $142 $151 2.2% 0.8%

2014-15 $698 $733 $319 $335 $158 $166 $221 $232 $153 $161 2.3% 1.8%

2015-16 $764 $795 $306 $318 $159 $165 $299 $311 $228 $228 3.4% 2.9%

2016-17 $987 $1,008 $272 $278 $163 $166 $372 $380 $457 $466 6.9% 8.0%

2017-18 $1,046 $1,046 $345 $345 $191 $191 $302 $302 $389 $389 5.5% 5.8%

Long Term Avg $623 $210 $135 $271 $217 4.1% 3.5%

2017-18 vs LT Avg +$423 +$136 +$56 +$31 +$172 +2.8% +4.5%

Note: ‘Real’ dollar values are the nominal values converted to 2017-18 dollar equivalents by the C.P.I. to allow for inflation. The data in the above table from 1970-71 to 2008-09 has been obtained from the South West Farm Monitor Project. Data from 2009-10 onwards has been obtained from the Livestock Farm Monitor Project.


TABLE A18Historical Gross Margins For Livestock Enterprises – South West

Year Wool Sheep Prime Lambs Beef Cattle

NOMINAL REAL NOMINAL ($/DSE) ($/DSE) ($/HA)

REAL($/HA)


REAL($/HA)


REAL($/HA)

1970-71 $2 $17 $18 $199 $2 $25 $31 $343 $3 $31 $40 $442

1971-72 $2 $23 $27 $280 $3 $27 $31 $322 $3 $30 $35 $363

1972-73 $8 $81 $96 $921 $8 $76 $96 $921 $3 $29 $34 $326

1973-74 $9 $73 $105 $879 $9 $78 $108 $904 $5 $43 $60 $502

1974-75 $5 $36 $53 $379 $6 $41 $67 $480 $1 $10 $16 $115

1975-76 $5 $32 $63 $403 $7 $46 $98 $626 -$0 -$2 -$3 -$19

1976-77 $7 $40 $85 $479 $9 $53 $115 $648 $1 $6 $12 $68

1977-78 $7 $35 $83 $433 $8 $42 $100 $521 -$1 -$5 -$12 -$63

1978-79 $9 $44 $114 $547 $9 $42 $98 $470 $8 $38 $100 $480

1979-80 $10 $44 $122 $528 $10 $43 $128 $554 $8 $36 $91 $394

1980-81 $8 $30 $86 $342 $8 $32 $116 $462 $3 $13 $41 $163

1981-82 $7 $26 $78 $280 $6 $20 $69 $248 $2 $7 $21 $75

1982-83 $6 $19 $64 $207 $7 $24 $96 $311 -$3 -$9 -$27 -$87

1983-84 $12 $36 $121 $376 $9 $27 $99 $308 $9 $27 $79 $246

1984-85 $12 $34 $129 $376 $9 $26 $118 $344 $10 $30 $110 $321

1985-86 $12 $32 $131 $352 $13 $35 $159 $428 $10 $27 $107 $288

1986-87 $15 $36 $157 $386 $20 $50 $255 $627 $11 $28 $125 $308

1987-88 $25 $58 $262 $602 $21 $48 $251 $577 $10 $22 $112 $257

1988-89 $24 $50 $249 $532 $23 $48 $264 $564 $10 $22 $110 $235

1989-90 $19 $37 $196 $389 $17 $33 $212 $420 $9 $17 $100 $198

1990-91 $10 $20 $106 $203 $12 $23 $139 $267 $11 $22 $147 $282

1991-92 $8 $16 $85 $161 $11 $21 $110 $208 $10 $20 $110 $208

1992-93 $9 $16 $86 $160 $13 $25 $174 $324 $13 $24 $142 $264

1993-94 $9 $16 $85 $156 $13 $24 $158 $290 $13 $23 $133 $243

1994-95 $14 $25 $139 $243 $14 $25 $201 $351 $7 $13 $83 $146

1995-96 $12 $20 $118 $200 $20 $34 $250 $425 $6 $11 $77 $131

1996-97 $12 $21 $143 $241 $17 $29 $282 $478 $3 $5 $42 $70

1997-98 $12 $20 $139 $233 $17 $29 $228 $384 $7 $11 $91 $153

1998-99 $9 $14 $108 $179 $15 $25 $204 $339 $11 $18 $140 $232

1999-00 $12 $20 $144 $233 $12 $19 $173 $278 $10 $17 $131 $212

2000-01 $17 $26 $221 $336 $17 $26 $251 $382 $21 $31 $292 $443

2001-02 $23 $34 $284 $420 $28 $41 $421 $622 $23 $34 $335 $494

2002-03 $16 $23 $232 $333 $20 $29 $346 $498 $11 $16 $190 $273

2003-04 $16 $22 $243 $342 $25 $35 $380 $533 $21 $30 $339 $476

2004-05 $13 $18 $201 $275 $20 $27 $314 $429 $20 $27 $309 $423

2005-06 $8 $10 $119 $157 $15 $20 $247 $325 $11 $15 $179 $236

2006-07 $8 $10 $112 $144 $11 $14 $139 $179 $9 $12 $177 $228

2007-08 $14 $18 $236 $291 $13 $16 $257 $317 $14 $17 $268 $331

2008-09 $12 $15 $179 $218 $18 $22 $271 $329 $20 $24 $312 $379

2009-10 $17 $20 $267 $315 $30 $36 $459 $541 $16 $19 $243 $287

2010-11 $37 $42 $550 $626 $41 $46 $628 $715 $32 $36 $538 $612

2011-12 $28 $31 $382 $430 $28 $32 $453 $509 $22 $24 $322 $363

2012-13 $12 $14 $166 $182 $15 $16 $232 $255 $16 $17 $237 $260

2013-14 $12 $12 $158 $169 $27 $29 $428 $456 $19 $20 $287 $306

2014-15 $14 $14 $188 $198 $25 $26 $394 $414 $30 $32 $414 $435

2015-16 $18 $19 $210 $218 $32 $33 $497 $517 $42 $43 $618 $643

2016-17 $38 $39 $502 $512 $40 $40 $651 $664 $43 $44 $646 $659

2017-18 $47 $47 $670 $670 $37 $37 $697 $697 $42 $42 $715 $715

Long Term Avg $29 $349 $33 $454 $22 $294

2017-18 vs LT Avg +$18 +$321 +$4 +$243 +$20 +$421




TABLE A19Historical Data For Selected Average Profitability Indicators- South West

Years Stocking Rate Wool Sheep

Micron Wool Cut (Gr.)

Net Wool Price Average Sale Price Lamb

DSE/HA (KG/HA) NOMINAL($/HD)

REAL($/HD)

NOMINAL($/HD)

REAL($/HD) %

1970-71 15.3 42.0 $0.71 $7.85 $3 $30 78%

1971-72 14.0 43.0 $0.83 $8.61 $3 $26 66%

1972-73 12.2 42.0 $2.25 $21.57 $7 $64 64%

1973-74 12.5 47.0 $1.84 $15.40 $12 $101 81%

1974-75 12.1 51.0 $1.30 $9.30 $4 $31 81%

1975-76 13.6 51.0 $1.43 $9.14 $4 $25 84%

1976-77 12.9 47.0 $1.88 $10.59 $9 $48 77%

1977-78 14.0 46.0 $1.96 $10.22 $10 $52 79%

1978-79 12.7 48.0 $2.05 $9.83 $16 $77 80%

1979-80 13.0 42.0 $2.58 $11.17 $18 $79 85%

1980-81 12.8 40.0 $2.60 $10.35 $17 $67 77%

1981-82 12.0 36.0 $2.71 $9.36 $12 $41 72%

1982-83 11.7 38.0 $2.66 $8.27 $8 $25 79%

1983-84 11.7 42.0 $2.84 $8.49 $16 $48 83%

1984-85 13.1 45.0 $3.17 $8.89 $14 $39 83%

1985-86 12.0 44.0 $3.48 $9.00 $12 $31 84%

1986-87 12.2 43.0 $4.02 $9.89 $17 $41 79%

1987-88 11.8 43.0 $7.03 $16.15 $17 $40 82%

1988-89 12.1 43.0 $6.84 $14.60 $19 $40 82%

1989-90 12.4 45.0 $5.99 $11.88 $11 $22 77%

1990-91 11.8 21.3 41.0 $4.30 $8.24 $5 $10 75%

1991-92 11.4 21.3 37.9 $3.67 $6.95 $8 $16 71%

1992-93 11.6 21.7 44.0 $2.95 $5.48 $13 $24 71%

1993-94 11.3 21.3 36.9 $3.59 $6.56 $13 $24 72%

1994-95 11.1 21.2 38.1 $5.60 $9.80 $15 $26 76%

1995-96 12.4 21.3 44.6 $3.70 $6.28 $21 $35 77%

1996-97 13.9 20.9 46.1 $4.50 $7.61 $19 $32 77%

1997-98 13.3 20.7 41.7 $4.63 $7.78 $20 $34 75%

1998-99 14.2 20.8 51.5 $3.45 $5.73 $17 $28 81%

1999-00 14.4 20.4 51.8 $4.44 $7.14 $13 $21 84%

2000-01 14.9 20.2 51.7 $5.57 $8.46 $26 $39 77%

2001-02 15.2 20.1 55.0 $5.78 $8.55 $43 $64 77%

2002-03 15.6 19.5 50.5 $6.90 $9.93 $35 $50 73%

2003-04 16.0 19.4 54.1 $5.73 $8.04 $43 $61 72%

2004-05 15.8 19.2 55.0 $5.32 $7.29 $41 $56 78%

2005-06 15.5 18.9 43.0 $5.45 $7.18 $35 $47 76%

2006-07 14.6 18.7 51.0 $6.40 $8.25 $30 $39 74%

2007-08 17.5 18.4 52.0 $6.26 $7.73 $40 $49 79%

2008-09 16.2 18.3 49.0 $6.28 $7.64 $44 $53 75%

2009-10 16.0 18.2 48.0 $6.53 $7.70 $69 $82 73%

2010-11 15.8 18.6 48.0 $9.51 $10.83 $104 $118 72%

2011-12 15.3 18.4 44.2 $8.81 $9.91 $69 $78 84%

2012-13 15.4 17.7 45.0 $7.85 $8.62 $42 $46 76%

2013-14 15.0 17.5 44.0 $7.54 $8.04 $48 $51 67%

2014-15 14.8 17.7 45.0 $7.60 $7.99 $64 $67 76%

2015-16 14.0 17.8 38.0 $8.58 $8.93 $66 $69 81%

2016-17 15.5 17.4 41.7 $11.75 $12.00 $79 $81 82%

2017-18 17.6 17.4 48.6 $14.72 $14.72 $86 $86 79%

Long Term Avg 13.7 45.3 $9.46 $48 77%

2017-18 vs LT Avg +3.8 +3.3 $2.54 +$38 +2%



TABLE A19 [CONTD.]Historical Data For Selected Average Profitability Indicators- South West

Years Prime Lambs Beef Cattle

Wool Cut (Gr.) Net Wool Price Average Sale Price Lamb Calving Average Sale Price

KG/HA NOMINAL ($/KG) GR.

REAL ($/KG) GR.

NOMINAL($/HD)

REAL($/HD) % % NOMINAL

($/HD)REAL($/HD)

1970-71 28 $0.68 $7.51 $4 $45 100% 93% $93 $1,028

1971-72 46 $0.74 $7.68 $4 $39 87% 89% $90 $934

1972-73 35 $1.95 $18.70 $7 $65 90% 89% $97 $930

1973-74 39 $1.23 $10.29 $14 $120 88% 92% $134 $1,121

1974-75 43 $0.94 $6.73 $6 $44 99% 92% $56 $401

1975-76 45 $1.33 $8.50 $7 $42 105% 91% $40 $256

1976-77 42 $1.66 $9.35 $10 $57 101% 87% $55 $310

1977-78 45 $1.66 $8.65 $13 $65 104% 84% $69 $360

1978-79 32 $1.89 $9.06 $17 $80 96% 91% $188 $902

1979-80 31 $2.07 $8.96 $21 $90 96% 90% $263 $1,138

1980-81 32 $1.90 $7.57 $19 $76 94% 90% $235 $936

1981-82 30 $2.39 $8.26 $13 $46 69% 90% $172 $594

1982-83 40 $1.99 $6.19 $11 $34 94% 93% $180 $560

1983-84 41 $1.93 $5.77 $19 $56 97% 95% $332 $993

1984-85 40 $2.20 $6.17 $15 $42 102% 88% $322 $903

1985-86 36 $2.30 $5.95 $18 $46 103% 87% $362 $936

1986-87 44 $2.92 $7.18 $25 $62 104% 89% $363 $893

1987-88 37 $4.79 $11.00 $25 $56 108% 90% $371 $852

1988-89 41 $4.24 $9.05 $26 $55 101% 86% $389 $831

1989-90 43 $3.39 $6.72 $24 $47 106% 89% $406 $805

1990-91 41 $1.79 $3.43 $21 $40 115% 89% $381 $730

1991-92 26 $2.82 $5.34 $19 $36 95% 88% $352 $667

1992-93 43 $2.53 $4.70 $33 $61 97% 88% $416 $773

1993-94 41 $2.64 $4.84 $37 $68 100% 84% $454 $829

1994-95 43 $3.67 $6.41 $32 $56 96% 88% $390 $682

1995-96 38 $3.23 $5.49 $48 $81 92% 88% $421 $714

1996-97 38 $3.84 $6.50 $39 $66 98% 89% $311 $526

1997-98 34 $3.49 $5.86 $38 $63 95% 90% $330 $554

1998-99 36 $2.48 $4.12 $33 $55 98% 91% $411 $683

1999-00 36 $2.85 $4.60 $30 $48 101% 91% $461 $743

2000-01 41 $3.32 $5.05 $38 $57 100% 92% $616 $936

2001-02 41 $4.25 $6.28 $61 $91 102% 89% $729 $1,077

2002-03 36 $5.28 $7.60 $62 $89 98% 90% $546 $786

2003-04 35 $3.95 $5.55 $71 $100 97% 88% $661 $927

2004-05 33 $3.62 $4.96 $67 $92 99% 88% $715 $979

2005-06 32 $2.96 $3.90 $56 $74 107% 86% $655 $863

2006-07 32 $3.94 $5.08 $56 $72 98% 89% $502 $647

2007-08 33 $3.57 $4.41 $62 $77 101% 85% $586 $723

2008-09 34 $3.13 $3.81 $74 $90 110% 88% $732 $890

2009-10 36 $4.10 $4.84 $91 $107 104% 90% $702 $828

2010-11 34 $5.74 $6.53 $123 $140 101% 87% $853 $971

2011-12 32 $4.49 $5.06 $95 $107 112% 84% $774 $871

2012-13 30 $4.19 $4.60 $70 $77 108% 85% $666 $731

2013-14 28 $5.15 $5.49 $95 $101 102% 88% $732 $781

2014-15 31 $4.81 $5.05 $95 $100 116% 87% $794 $834

2015-16 32 $5.15 $5.36 $101 $105 117% 93% $1,126 $1,171

2016-17 29 $5.65 $5.77 $123 $126 112% 90% $1,456 $1,487

2017-18 30.8 $5.05 $5.05 $129 $129 114% 91% $1,373 $1,373

Long Term Avg 36.4 $6.56 $72 101% 89% $822

2017-18 vs LT Avg -5.6 -$1.52 +$56 +13% +2% +$551



Appendices : Northern Victoria

TABLE B1Main Financial Indicators 2017–18 Northern Victoria

Farm No Debt Ratio Return on Equity

584 $1,317 $373 $199 43% $24 $721 $516 6.5% 16.0% 10.2%

585 $382 $51 $60 29% $94 $177 $174 3.8% 1.0% 3.9%

586 $725 $171 $248 58% $111 $194 $194 3.1% 3.1%

588 $742 $115 $40 21% $71 $517 $464 10.4% 7.0% 12.6%

589 $540 $153 $185 63% $75 $127 $27 1.9% 19.0% 0.6%

599 $932 $269 $91 39% $101 $470 $396 7.8% 8.0% 12.6%

616 $439 $162 $51 48% $83 $143 $92 3.7% 12.0% 3.8%

630 $530 $108 $156 50% $218 $49 $32 0.7% 3.0% 0.5%

678 $508 $231 $122 70% $228 -$74 -$160 -1.0% 17.0% -3.5%

683 $597 $75 $309 64% $31 $182 $180 1.6% 1.6%

688 $774 $107 $133 31% $77 $458 $448 10.1% 1.0% 10.6%

706 $385 $203 $291 128% $178 -$286 -$389 -4.6% 27.0% -9.1%

707 $971 $122 $79 21% $43 $728 $672 7.7% 6.0% 9.3%

708 $747 $92 $122 29% $63 $470 $470 4.6% 4.6%

709 $254 $92 $74 65% $132 -$44 -$80 -0.8% 14.0% -1.8%

711 $849 $258 $245 59% $206 $140 $116 2.2% 3.0% 2.2%

712 $901 $380 $216 66% $229 $76 $76 1.7% 1.7%

744 $782 $296 $211 65% $112 $163 $76 4.3% 11.0% 8.2%

745 $1,229 $349 $269 50% $82 $529 $499 7.4% 2.0% 11.4%

756 $621 $180 $86 43% $115 $241 $17 3.5% 36.0% 0.7%

757 $1,053 $446 $557 95% $50 $24 0.4% 2.0% 0.2%

800 $649 $262 $332 92% $55 $53 0.5% 0.4%

802 $1,422 $1,040 $330 96% $162 -$110 -$293 -1.0% 13.0% -7.9%

803 $602 $150 $143 49% $114 $196 $184 3.3% 2.0% 3.6%

1009 $414 $79 $158 57% $141 $37 $26 1.9% 3.0% 1.6%

1011 $267 $74 $67 53% $65 $60 $50 1.0% 4.0% 1.3%

1012 $343 $123 $94 63% $213 -$88 -$88 -1.5% -1.5%

1013 $1,265 $224 $439 52% $232 $370 $162 3.6% 16.0% 3.0%

1015 $644 $260 $131 61% $508 -$256 -$319 -4.0% 10.0% -6.9%

# Northern Top 20% by RoA.* Northern Top 20% by EBIT/ha.


Average $720 $222 $188 57% $128 $183 $125 2.7% 8% 2.7%

Top 20% # $994 $223 $135 34% $66 $571 $499 8.3% 7% 11.1%

Top 20% * $990 $220 $133 34% $64 $573 $503 7.4% 7% 10.1%

Gross Farm Variable Overhead Cost O/O Earnings before Net Farm Interest & Tax Return onIncome Costs Costs Structure Allowance - EBIT Income Assets


MM MMDSE/HADSE/HA/ 100MM

DSE/HA/25MM OVER

250MM

DSE/HAKG P/ GRAZED HAKG P/GRAZED HA/100MMKG/HA KG/HA KG/HA

TABLE B2Key Physical Data 2017–18 Northern Victoria

Farm No LT Average Rainfall (mm)

2017-18

Rainfall (mm) Stocking Rate S.R. - Rf S.R. - Rf

July Stocking

Rate "P Applied P Applied

P Nutrient Change

K Nutrient Change

S Nutrient Change

584 705 855 19 2.2 0.8 15 15 1.8 14 1 5

585 775 733 7 1.0 0.4 5 9 1.2 8 -1 -1

586 518 490 8 1.5 0.8 6 24 5.0 24 19 5

588 570 523 9 1.7 0.8 3 5 1.0 4 2 4

589 579 511 12 2.4 1.2 11 0 2 -1

599 695 767 13 1.7 0.6 10 8 1.1 8 5 8

616 566 487 5 1.1 0.5 6 5 1.1 5 1 6

630 734 702 11 1.5 0.6 12 4 0.6 2 -1 3

678 521 584 9 1.5 0.7 9 8 1.3 6 -1 4

683 669 523 11 2.0 1.0 12 -1 -1 -1

688 695 766 13 1.8 0.7 10 8 1.1 6 -1 8

706 439 344 7 1.9 1.8 10 1 0.4 2 9 0

707 950 1,055 14 1.3 0.4 14 8 0.8 6 2 9

708 845 830 15 1.8 0.7 15 9 1.1 7 -2 10

709 951 1,190 6 0.5 0.2 5 1 0.1 0 1 -1

711 586 542 6 1.2 0.5 9 3 0.6 -1 -6 -2

712 507 420 10 2.5 1.5 16 6 1.5 7 17 5

744 457 515 6 1.1 0.5 7 25 4.9 21 6 22

745 853 807 17 2.1 0.8 14 13 1.6 12 1 13

756 770 582 9 1.6 0.7 6 4 0.7 3 7 5

757 669 721 15 2.1 0.8 11 13 1.8 8 -11 5

800 707 679 12 1.7 0.7 9 3 0.5 2 6 0

802 547 392 15 3.9 2.7 13 32 8.1 35 80 14

803 519 407 6 1.5 1.0 7 7 1.8 7 1 8

1009 397 318 4 1.1 1.3 6 -2 -1 -1

1011 599 481 3 0.6 0.3 5 0 -1

1012 625 581 6 1.0 0.4 8 1 0.2 0 0 0

1013 797 723 31 4.2 1.6 28 16 2.2 12 -6 16

1015 840 862 15 1.8 0.6 19 1 9 0


Average 658 634 11 1.7 0.8 10 8 1.4 7 5 5

Top 20% # 745 796 14 1.8 0.7 11 10 1.2 8 2 8

Top 20% * 770 806 14 1.8 0.7 12 10 1.2 8 2 8



DSE/HAKG/HDKG/HAKG/DSEKG/HA/100MM $/KG $/HD $/HA

$/HA/100MM $/DSE %

DSE/HAKG LWT/HA KG CWT/HAKG CWT /HA/100MM KG CWT$/KG CWT $/HD KG/HD KG/HA


TABLE B3Wool Sheep Production 2017–18 Northern Victoria

Farm No. Stocking Adult Clean Clean Wool Clean Wool Clean Wool Net Clean Av Wool Av Wool Av Sale Gross Gross Gross LambRate Wool

CutCut Cut Cut Wool

PriceMicron Yield Price Margin Margin Margin Marking

584 18.6 3.8 48.2 2.6 5.6 $20.76 17.2 68% $99 $1,023 $120 $55 82%

586 7.5 4.5 19.0 2.5 3.9 $25.35 18.5 72% $106 $561 $114 $75 99%

588 9.0 3.7 20.1 2.2 3.8 $23.05 18.2 72% $110 $531 $102 $59 85%

589 12.1 2.4 21.1 1.7 4.1 $19.15 17.0 68% $72 $297 $58 $25 76%

599 12.9 3.9 33.0 2.6 4.3 $21.79 17.5 75% $76 $735 $96 $57 88%

616 5.1 4.6 10.9 2.1 2.2 $18.82 18.9 66% $122 $243 $50 $47 97%

711 6.3 4.0 18.6 3.0 3.4 $20.17 18.2 67% $151 $461 $85 $73 80%

712 10.4 4.2 28.6 2.8 6.8 $18.65 16.5 62% $115 $564 $134 $54 111%

744 5.6 3.3 8.8 1.6 1.7 $18.88 19.3 69% $115 $145 $28 $26 92%

745 16.8 2.6 34.2 2.0 4.2 $34.35 15.1 74% $73 $948 $117 $56 72%

803 6.2 6.8 32.6 5.3 8.0 $17.09 20.3 73% $131 $527 $130 $86 86%

1009 3.5 3.7 13.7 3.9 4.3 $18.56 21.0 65% $141 $569 $179 $162 112%

1011 3.0 2.8 6.8 2.2 1.4 $23.65 16.4 68% $97 $184 $38 $61 83%

1012 5.7 3.1 10.0 1.7 1.7 $15.80 17.4 65% $100 $223 $38 $39 84%

Average 8.8 3.8 21.8 2.6 4.0 $21.15 18.0 69% $108 $501 $92 $62 89%

Top 20% ^ 6.7 4.9 25.0 4.0 6.4 $18.10 19.3 67% $129 $553 $148 $101 103%


TABLE B4Prime Lamb Production 2017–18 Northern Victoria

Farm No. Stocking Rate

588 9.0 185 83 16 22 $6.01 $130 5.9 23 21

712 10.4 158 71 17 17 $6.89 $115 6.7 26 17

803 6.2 105 47 12 19 $8.59 $162 9.3 27 20

599 12.9 205 92 12 21 $6.25 $133 4.2 23 28

630 10.7 188 85 12 23 $5.73 $131 4.4 20 29

688 13.4 233 105 14 19 $6.55 $122 4.1 20 27

744 5.6 271 122 24 27 $6.66 $183 4.2 18 29

756 9.0 155 70 12 21 $7.05 $146 4.2 17 20

757 15.1 324 146 20 20 $6.36 $128 3.8 23 27

Average 10.3 203 91 15 21 $6.68 $139 5.2 22 24

Top 20% 7.6 145 65 14 20 $7.30 $146 7.6 25 21

Farm No. Ewe Breed Net Greasy Wool Price Gross Margin Gross Margin Gross Margin Lamb Marking Ewe

$/KG $/HA $/HA/100MM $/DSE % % fo DSE

588 Merino $13.58 $677 $130 $76 115% 77%

712 Merino $11.57 $453 $108 $44 106% 86%

Lamb Lamb Lamb Av Lamb Av Lamb Av Lamb Adult Gr. Greasy Wool Average WoolProduced Produced Produced Weight Price Price Wool Cut Cut Micron


803 Merino $11.54 $531 $131 $86 96% 87%

599 Xbred $6.02 $430 $56 $33 127% 71%

630 Xbred $4.54 $464 $66 $43 121% 76%

688 Xbred $4.51 $734 $96 $55 131% 76%

744 Xbred $5.43 $307 $60 $54 127% 94%

756 Xbred $12.35 $446 $77 $49 108% 62%

757 Xbred $6.86 $612 $85 $40 129% 62%


Average $8.49 $517 $90 $53 118% 77%

Top 20% $12.56 $604 $130 $81 106% 82%

DSE/HA KG LWT/HAKG LWT/HA/100MM KG LWT/HA $/HD KG LWT $/KG LWT


TABLE B5Beef Cattle Production 2017–18 Northern Victoria

Farm No. Stocking Rate Beef Produced Beef Produced Beef Sold Average Sale Price Average Wt Sales Average Sale Price

630 10.7 263 37.5 232 $1,390 604 $2.30

678 8.7 209 35.8 144 $1,034 433 $2.40

709 5.7 53 4.5 44 $742 541 $1.37

757 15.1 280 38.8 283 $1,309 448 $2.92

803 6.2 161 39.6 128 $1,316 478 $2.77

1009 3.5 29 9.0 115 $1,274 463 $2.75

683 10.6 164 31.4 373 $1,330 470 $2.83

706 6.6 201 58.3 641 $927 433 $2.14

744 5.6 825 160.1 2417 $1,334 579 $2.31

800 11.5 232 34.2 163 $834 373 $2.24

1015 15.1 256 29.8 310 $1,516 486 $3.12

584 18.6 432 50.5 459 $1,499 531 $2.83

585 7.2 131 17.9 103 $1,113 348 $3.22

588 9 156 29.8 272 $1,289 492 $2.62

688 13.4 207 27.1 152 $1,170 389 $3.00

707 13.8 347 32.9 442 $1,299 470 $2.77

708 15.1 262 31.5 228 $1,284 472 $2.72

709 5.7 122 10.2 160 $1,034 431 $2.40

745 16.8 290 36.0 237 $1,222 432 $2.83

756 9 176 30.2 124 $1,292 367 $3.52

802 15.4 301 76.7 290 $2,950 613 $4.81

1013 30.5 427 59.1 553 $1,258 448 $2.81

Average 11.5 251 40.0 358 $1,292 468 $2.76

Top 20% 17.5 496 86.6 930 $1,760 543 $3.19

Farm No Gross Margin Gross Margin Gross Margin Time of Calving Calving Cow Beef Enterprise

$/HA $/HA/100MM $/DSE % %

630 $451 $64 $41.98 Apr 89% 24% Autumn

678 $405 $69 $46.43 Apr 91% 100% Autumn

709 $102 $9 $17.88 Apr 78% 13% Autumn

757 $345 $48 $22.81 Mar 92% 44% Autumn

803 $318 $78 $51.69 Feb 95% 53% Autumn

1009 -$9 -$3 -$2.52 May 96% 45% Autumn

683 $388 $74 $36.70 Oct 100% 100% Other

706 -$206 -$60 -$31.06 Oct 95% 26% Other

744 $1,228 $238 $217.86 Oct Other

800 $311 $46 $27.01 Oct 91% 100% Other

1015 $587 $68 $38.91 Oct 96% 100% Other


584 $826 $97 $44.33 Sep 78% 43% Spring

585 $330 $45 $45.78 Aug 90% 100% Spring

588 $318 $61 $35.49 Sep 94% 5% Spring

688 $510 $67 $37.96 Aug 99% 29% Spring

707 $864 $82 $62.83 Aug 69% 100% Spring

708 $599 $72 $39.75 Jul 90% 100% Spring

709 $166 $14 $28.90 Aug 69% 87% Spring

745 $536 $66 $31.91 Sep 90% 22% Spring

756 $412 $71 $45.58 Sep 91% 16% Spring

802 $392 $100 $25.42 Aug 96% 100% Spring

1013 $981 $136 $32.16 Jul 89% 100% Spring


Average $448 $66 $40.81 89% 59%

Top 20% $857 $143 $79.94 88% 61%



TABLE B6Wool Sheep Variable Costs 2017–18 Northern Victoria

Farm No. Animal Health Contract

ServicesSupp Feed &

AgistmtPasture Casual Labour Freight/ Cartage Shearing

SuppliesOther Selling Costs Total Ent. Costs


584 $3.76 $5.46 $2.01 $5.59 $0.89 $0.36 $0.43 $3.33 $21.82

586 $4.57 $4.56 $4.77 $5.51 $0.52 $0.29 $0.48 $2.24 $3.95 $26.88

588 $0.51 $3.92 $3.85 $3.48 $0.54 $0.21 $0.51 $3.95 $16.97

589 $1.05 $3.32 $6.52 $1.25 $0.18 $0.27 $0.21 $2.45 $15.25

599 $4.11 $7.40 $4.51 $3.76 $0.21 $0.43 $0.25 $0.68 $3.38 $24.73

616 $2.38 $5.76 $10.84 $4.75 $1.41 $0.72 $0.33 $0.99 $4.39 $31.57

711 $3.87 $6.11 $7.52 $2.92 $0.35 $0.12 $0.73 $6.62 $28.24

712 $2.05 $4.20 $19.45 $7.56 $0.32 $0.37 $5.58 $3.95 $43.48

744 $2.75 $8.32 $18.26 $7.79 $0.68 $0.43 $1.40 $1.54 $4.38 $45.55

745 $2.68 $7.48 $1.86 $5.85 $2.36 $0.19 $0.23 $0.89 $5.10 $26.65

803 $1.77 $1.91 $16.67 $6.97 $1.39 $4.69 $6.76 $40.15

1009 $5.57 $5.06 $1.71 $1.98 $4.21 $18.54

1011 $3.71 $7.79 $8.23 $0.16 $0.76 $0.42 $3.40 $4.60 $29.08

1012 $2.12 $2.40 $7.40 $7.69 $0.21 $0.56 $1.19 $4.28 $25.85

Farm No. Animal Health Contract

ServicesSupp Feed &

AgistmtPasture Casual Labour Freight/ Cartage Shearing

SuppliesOther Selling Costs Total Ent. Costs


584 $70 $102 $37 $104 $17 $7 $8 $62 $406

586 $34 $34 $36 $41 $4 $2 $4 $17 $29 $201

588 $5 $35 $35 $31 $5 $2 $5 $35 $152

589 $13 $40 $79 $15 $2 $3 $3 $30 $184

599 $53 $95 $58 $48 $3 $6 $3 $9 $43 $318

616 $12 $30 $56 $24 $7 $4 $2 $5 $23 $162

711 $24 $39 $47 $18 $2 $1 $5 $42 $178

712 $21 $44 $202 $79 $3 $4 $58 $41 $451

744 $15 $47 $103 $44 $4 $2 $8 $9 $25 $257

745 $45 $126 $31 $98 $40 $3 $4 $15 $86 $448

803 $11 $12 $103 $43 $9 $29 $42 $247

1009 $20 $18 $6 $7 $15 $65

1011 $11 $24 $25 $0 $2 $1 $10 $14 $88

1012 $12 $14 $42 $44 $1 $3 $7 $25 $148


Average $2.52 $5.30 $8.35 $4.64 $0.37 $0.38 $0.60 $1.95 $4.08 $28.20

Top 20% $1.27 $3.89 $13.73 $5.41 $0.11 $1.25 $4.83 $3.57 $34.06

Average $23 $47 $62 $43 $4 $4 $4 $14 $35 $236

Top 20% $11 $25 $107 $42 $1 $6 $34 $28 $255


TABLE B7Prime Lamb Variable Costs 2017–18 Northern Victoria

Farm No. Animal Health Contract Services

Supp Feed & Agistmt

Pasture Casual Labour Freight/ Cartage

Shearing Supplies


Costs

588 $0.35 $3.72 $1.43 $3.48 $0.94 $0.25 $0.37 $4.95 $15.48

599 $2.97 $4.01 $7.93 $3.76 $0.15 $0.67 $0.15 $0.43 $3.08 $23.15

630 $1.66 $2.02 $0.30 $0.58 $0.12 $1.47 $5.11 $11.26

688 $0.76 $1.75 $1.91 $3.03 $0.49 $0.27 $1.19 $4.71 $14.11

712 $2.14 $3.45 $15.05 $7.56 $0.34 $0.29 $4.48 $2.77 $36.08

744 $4.72 $6.77 $71.72 $7.79 $1.39 $3.34 $1.46 $2.53 $14.26 $113.97

756 $3.70 $5.17 $7.52 $1.88 $0.15 $2.25 $5.18 $25.86

757 $1.63 $4.23 $5.80 $10.82 $4.21 $0.89 $0.15 $2.58 $3.81 $34.11

803 $1.45 $1.57 $11.03 $6.97 $1.14 $3.16 $8.03 $33.35

Farm No. Animal Health Contract Services

Supp Feed & Agistmt

Pasture Casual Labour Freight/ Cartage

Shearing Supplies


Costs

588 $3 $33 $13 $31 $8 $2 $3 $44 $139

599 $38 $52 $102 $48 $2 $9 $2 $6 $40 $298

630 $18 $22 $3 $6 $1 $16 $55 $121

688 $10 $24 $26 $41 $7 $4 $16 $63 $190

712 $22 $36 $156 $79 $3 $3 $47 $29 $375

744 $27 $38 $404 $44 $8 $19 $8 $14 $80 $642

756 $33 $47 $68 $17 $1 $20 $47 $233

757 $25 $64 $88 $164 $64 $14 $2 $39 $58 $516

803 $9 $10 $68 $43 $7 $19 $49 $205



Average $2.15 $3.63 $12.80 $5.66 $0.64 $1.01 $0.44 $2.05 $5.77 $34.15

Top 20% $0.90 $2.65 $6.23 $5.23 $0.47 $0.70 $1.77 $6.49 $24.42


Average $21 $36 $96 $57 $8 $9 $3 $20 $52 $302

Top 20% $6 $21 $40 $37 $4 $5 $11 $47 $172


$/HA $/HA $/HA $/HA $/HA $/HA $/HA


TABLE B8Beef Cattle Variable Costs 2017–18 Northern Victoria

Farm No. Enterprise Animal Health

Contract Services

Supp Feed & Agistmt

Pasture Casual Labour

Freight/ Cartage

Other Selling Costs Total Var.Costs


630 Autumn $1.71 $3.62 $0.36 $2.23 $4.64 $12.55

678 Autumn $2.59 $4.91 $2.30 $1.69 $2.77 $3.26 $17.52

709 Autumn $0.41 $0.35 $0.57 $1.34

757 Autumn $2.09 $1.56 $10.82 $5.40 $0.58 $2.06 $1.06 $23.57

803 Autumn $1.20 $9.66 $6.97 $0.02 $1.06 $0.69 $19.60

1009 Autumn $29.14 $1.71 $4.62 $5.91 $41.39

683 Other $0.87 $4.51 $2.39 $0.40 $12.88 $21.05

706 Other $1.01 $29.96 $6.00 $21.04 $58.01

744 Other $7.79 $73.85 $81.64

800 Other $2.59 $10.26 $5.40 $1.05 $2.54 $2.79 $24.65

1015 Other $0.25 $12.48 $1.15 $0.47 $1.99 $4.07 $20.41

584 Spring $0.86 $0.51 $12.19 $5.59 $0.91 $0.62 $2.49 $23.18

585 Spring $0.29 $0.80 $5.07 $0.26 $0.67 $3.26 $10.35

588 Spring $0.53 $0.92 $3.48 $0.76 $0.21 $7.42 $13.32

688 Spring $0.47 $0.19 $3.03 $0.41 $0.41 $2.46 $6.97

707 Spring $1.31 $1.67 $4.42 $0.91 $0.54 $1.61 $10.46

708 Spring $0.31 $0.07 $1.75 $3.15 $0.06 $0.58 $0.85 $6.77

709 Spring $2.91 $7.36 $4.66 $0.35 $0.67 $0.81 $1.96 $4.52 $23.24

745 Spring $0.63 $8.06 $5.85 $2.07 $0.79 $2.85 $20.25

756 Spring $1.07 $0.71 $4.92 $7.52 $1.51 $3.44 $19.17

802 Spring $3.71 $1.78 $21.24 $27.72 $0.56 $2.82 $1.97 $0.67 $60.47

1013 Spring $0.98 $1.78 $4.52 $0.20 $0.07 $7.55

Average $1.17 $0.77 $7.07 $5.25 $0.40 $0.65 $1.20 $7.29 $23.79

Top 20% ^ $1.39 $0.57 $8.80 $11.41 $0.14 $0.98 $0.67 $19.25 $43.21

Farm No. Enterprise Animal Health ContractServices

Supp Feed & Agistmt

Pasture Casual Labour Freight/Cartage


630 Autumn$18

678 Autumn$23

$4 $24 $50 $135

$15 $24 $28 $153

709 Autumn $2 $2 $3 $8

757 Autumn $32

803 Autumn $7

1009 Autumn

$164 $82 $9 $31 $16 $357

$43 $0 $7 $4 $121

$6 $16 $21 $145

683 Other $9 $48 $25 $4 $136 $223

706 Other$7

$40 $139 $384

744 Other $44 $416 $460

800 Other$30

1015 Other $4

584 Spring $16

585 Spring $2

588 Spring $5

688 Spring $6

707 Spring $18

708 Spring $5

709 Spring $17

745 Spring $11

756 Spring $10

802 Spring $57

1013 Spring $30

$62 $12 $29 $32 $284

$17 $7 $30 $61 $308

$104 $17 $12 $46 $432

$37 $2 $5 $24 $75

$31 $7 $2 $67 $119

$41 $6 $5 $33 $94

$61 $12 $7 $22 $144

$48 $1 $9 $13 $102

$2 $4 $5 $11 $26 $133

$98 $35 $13 $48 $340

$68 $14 $31 $173

$428 $9 $44 $30 $10 $933

$138 $6 $2 $230

Average $14 $7 $73 $67 $6 $8 $12 $56 $243

Top 20% $26 $9 $152 $178 $2 $17 $11 $118 $514


$/HA $/HA

$39

$43 $20

$24

$59

$102

$198

$118

$188

$9 $227

$6

$8

$3

$23

$1 $26

$42 $27

$135

$6 $44

$28 $328

$54


TABLE B9Pasture Costs Per Grazed Hectare 2017–18 Northern Victoria

Farm No. Seed Chemicals Contract Services Fert & Soil Conditioners Other Total Pasture Cost


584 $11 $3 $8 $56 $105

585 $0 $36 $37

586 $41 $41

588 $2 $0 $1 $14 $0 $31

589 $3 $13 $16

599 $2 $2 $0 $33 $1 $48

616 $0 $0 $23 $0 $24

630

678

683 $4 $13 $48

688 $0 $0 $11 $29 $1 $41

706 $12 $28 $40

707 $1 $40 $1 $61

708 $2 $48 $49

709 $2 $2

711 $1 $8 $16

712 $16 $3 $7 $35 $10 $80

744 $6 $3 $8 $1 $25

745 $11 $2 $5 $66 $2 $100

756 $68 $68

757 $24 $14 $148 $7 $192

800 $20 $6 $5 $35 $66

802 $20 $2 $153 $126 $19 $428

803 $1 $4 $33 $6 $43

1009 $2 $3 $5

1011 $0 $0

1012 $0 $44 $44

1013 $27 $6 $123 $156

1015 $12 $6 $17


Average $6 $2 $7 $36 $2 $62

Top 20% # $4 $1 $4 $40 $1 $64

Top 20% * $4 $1 $2 $43 $1 $66



TABLE B10Overhead Costs Per Hectare 2017–18 Northern Victoria

Farm No Paid Labour Fuel & Vehicle Insurance R&M - Plant &

Equip.

R&M - Land & Improv. Admin Rates & Rents Sundries Depreciation Total Overheads

584 $103 $14 $5 $1 $27 $24 $10 $9 $6 $199

585 $3 $6 $2 $3 $16 $12 $18 $60

586 $2 $10 $11 $21 $56 $52 $30 $1 $63 $248

588 $3 $5 $8 $7 $11 $6 $40

589 $1 $33 $7 $9 $37 $51 $11 $8 $29 $185

599 $3 $7 $6 $17 $25 $11 $22 $91

616 $1 $2 $4 $5 $6 $9 $0 $23 $51

630 $48 $6 $15 $1 $29 $25 $15 $1 $17 $156

678 $13 $9 $5 $10 $15 $16 $1 $54 $122

683 $133 $16 $11 $2 $44 $43 $45 $14 $309

688 $31 $6 $7 $0 $32 $21 $29 $1 $5 $133

706 $1 $29 $28 $26 $24 $54 $95 $10 $24 $291

707 $4 $13 $2 $8 $10 $24 $18 $79

708 $34 $17 $5 $4 $15 $12 $31 $0 $4 $122

709 $2 $6 $11 $28 $1 $27 $74

711 $0 $24 $18 $51 $14 $40 $22 $77 $245

712 $3 $17 $15 $23 $31 $23 $18 $6 $80 $216

744 $51 $23 $15 $39 $15 $14 $11 $3 $39 $211

745 $22 $30 $16 $7 $46 $65 $14 $1 $68 $269

756 $10 $30 $9 $4 $2 $19 $5 $8 $86

757 $176 $18 $43 $36 $17 $87 $59 $122 $557

800 $213 $18 $10 $2 $41 $10 $24 $4 $11 $332

802 $20 $30 $26 $151 $39 $22 $43 $330

803 $19 $14 $16 $8 $24 $30 $2 $30 $143

1009 $3 $8 $4 $22 $21 $54 $46 $158

1011 $6 $8 $4 $6 $7 $20 $17 $67

1012 $5 $7 $27 $17 $28 $6 $4 $94

1013 $75 $14 $47 $79 $48 $37 $0 $139 $439

1015 $18 $20 $6 $11 $48 $24 $4 $131



Average $29 $15 $12 $13 $23 $33 $25 $3 $35 $187

Top 20% # $26 $10 $9 $4 $23 $25 $17 $2 $21 $135

Top 20% * $26 $11 $8 $4 $20 $24 $17 $2 $21 $133


TABLE B11Wool Sheep Profitability Per Kilogram of Clean Wool Produced 2017–18 Northern Victoria

Farm No. Net Wool Income

Sheep Trading Profit

Variable Costs

Overhead Costs

O/O Allowance

Interest & Lease


Earnings before Int/Tax

EBITNet Farm Earnings Income before Int/Tax

EBIT

Net Farm Income


584 $21.67 $7.88 $8.43 $4.95 $0.44 $4.18 $13.81 $15.74 $11.56 $759 $558

586 $26.26 $13.16 $10.56 $12.93 $5.87 $29.36 $10.06 $10.06 $191 $191

588 $24.00 $9.76 $7.56 $1.81 $3.18 $2.47 $12.55 $21.21 $18.74 $427 $377

589 $20.32 $2.49 $8.74 $8.37 $3.60 $4.73 $20.71 $2.10 -$2.63 $44 -$56

599 $22.75 $8.95 $9.64 $2.86 $2.75 $2.25 $15.24 $16.46 $14.21 $543 $469

616 $19.74 $17.29 $14.91 $4.03 $6.55 $4.09 $25.49 $11.53 $7.44 $125 $81

711 $21.06 $12.99 $9.55 $8.45 $9.10 $1.28 $27.09 $6.96 $5.68 $130 $106

712 $19.97 $14.90 $15.80 $6.97 $7.28 $30.06 $4.81 $4.81 $138 $138

744 $20.41 $24.82 $29.03 $16.32 $12.64 $9.81 $57.99 -$12.76 -$22.57 -$113 -$200

745 $36.01 $4.57 $13.11 $7.76 $2.44 $0.92 $23.31 $17.27 $16.36 $590 $559

803 $18.00 $5.44 $7.58 $4.21 $3.12 $0.37 $14.91 $8.52 $8.16 $278 $266

1009 $18.56 $26.60 $4.74 $13.76 $12.61 $0.78 $31.11 $14.05 $13.27 $193 $182

1011 $24.70 $14.76 $12.97 $9.75 $9.60 $1.50 $32.33 $7.13 $5.63 $48 $38

1012 $16.75 $19.98 $14.78 $9.41 $21.29 $0.01 $45.48 -$8.75 -$8.76 -$88 -$88

Average $22.16 $13.11 $11.96 $7.97 $7.18 $2.31 $27.10 $8.17 $5.85 $233 $187

Top 20% * $18.84 $15.65 $9.37 $8.31 $7.67 $0.38 $25.36 $9.13 $8.75 $203 $195

* Top 20% ranked according to gross margin per hectare per 100mm of rainfall.** Interest and lease costs are excluded from the cost of production.

TABLE B12Prime Lamb Profitability Per Kilogram Carcass Weight Produced 2017–18 Northern Victoria

Farm No. Net Wool Income

Non-Lamb Sheep

Trading

Variable Costs

Overhead Costs

O/O Allowance

Interest & Lease


Lamb Price Received

Earnings before Int/ Tax EBIT

Net Farm Income

Earnings before Int/ Tax EBIT

Net Farm Income

$/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/HA $/HA

588 $3.95 $0.04 $1.15 $0.48 $0.81 $0.63 $2.44 $5.70 $7.26 $6.63 $574 $524

599 $1.51 $1.61 $2.75 $0.90 $0.98 $0.81 $4.64 $4.30 $2.78 $1.98 $177 $125

630 $1.07 -$0.17 $0.71 $1.73 $2.38 $0.20 $4.82 $5.30 $1.38 $1.17 $108 $92

688 $0.85 $2.86 $1.16 $1.35 $0.74 $0.09 $3.25 $4.45 $4.92 $4.83 $350 $344

712 $4.23 -$0.33 $4.65 $2.72 $2.93 $10.30 $7.12 $0.72 $0.72 $53 $53

744 $0.82 -$1.53 $4.58 $1.34 $0.92 $0.71 $6.83 $7.79 $0.26 -$0.45 $37 -$64

756 $2.93 $0.59 $2.67 $1.31 $1.85 $3.20 $5.83 $5.54 $3.24 $0.03 $177 $2

757 $1.08 $0.56 $2.91 $3.60 $0.18 $6.51 $5.48 $0.60 $0.42 $75 $53

803 $6.72 -$0.27 $3.24 $2.88 $2.17 $0.26 $8.28 $8.12 $6.28 $6.03 $280 $269


Average $2.57 $0.37 $2.65 $1.81 $1.42 $0.68 $5.88 $5.98 $3.05 $2.37 $203 $155

Top 20%* $5.34 -$0.12 $2.20 $1.68 $1.49 $0.45 $5.36 $6.91 $6.77 $6.33 $427 $396



TABLE B13Beef Cattle Profitability Per Kilogram Liveweight Produced 2017–18 Northern Victoria

Farm No. Trading Profit

630 -$0.33 $0.32 $0.65 $0.88 $0.07 $1.85 $2.30 $0.12 $0.05 $31 $13 Autumn

678 $0.03 $0.60 $0.59 $1.09 $0.41 $2.27 $2.40 $0.16 -$0.26 $33 -$54 Autumn

709 $0.61 $0.08 $1.11 $2.51 $0.68 $3.71 $1.37 -$1.73 -$2.40 -$92 -$127 Autumn

757 -$0.58 $1.22 $1.32 $0.09 $2.54 $2.92 -$0.19 -$0.29 -$54 -$80 Autumn

803 -$0.10 $0.73 $0.68 $0.57 $0.07 $1.97 $2.77 $0.70 $0.62 $113 $101 Autumn

1009 $0.72 $4.35 $4.51 $4.93 $0.38 $13.79 $2.75 -$10.31 -$10.69 -$295 -$306 Autumn

683 -$1.92 $0.17 $0.77 $0.01 $0.94 $2.83 -$0.03 -$0.03 -$4 -$5 Other

706 -$2.08 $0.38 $0.30 $0.23 $0.16 $0.91 $2.14 -$0.85 -$1.01 -$170 -$202 Other

744 -$1.78 $0.02 $0.04 $0.04 $0.06 $2.31 $0.47 $0.43 $388 $358 Other

800 $1.08 $1.54 $1.89 $0.01 $3.43 $2.24 -$0.12 -$0.12 -$27 -$29 Other

1015 -$0.71 $0.73 $0.45 $1.64 $0.20 $2.82 $3.12 -$0.41 -$0.61 -$105 -$157 Other

584 $0.90 $0.33 $0.06 $0.47 $1.30 $2.83 $1.53 $1.06 $660 $456 Spring

585 -$0.35 $0.39 $0.45 $0.72 $0.02 $1.56 $3.22 $1.31 $1.29 $172 $168 Spring

588 -$0.13 $0.36 $0.22 $0.54 $0.34 $1.12 $2.62 $1.37 $1.03 $213 $161 Spring

688 -$0.28 $0.29 $0.55 $0.36 $0.05 $1.20 $3.00 $1.52 $1.48 $316 $306 Spring

707 $0.05 $0.35 $0.22 $0.12 $0.16 $0.69 $2.77 $2.13 $1.97 $741 $685 Spring

708 -$0.09 $0.34 $0.46 $0.23 $1.03 $2.72 $1.60 $1.60 $419 $419 Spring

709 -$0.27 $0.86 $0.62 $1.09 $0.29 $2.58 $2.40 -$0.46 -$0.75 -$56 -$92 Spring

745 -$0.09 $0.98 $0.97 $0.17 $0.11 $2.12 $2.83 $0.62 $0.51 $179 $149 Spring

756 -$0.37 $0.81 $0.32 $0.22 $1.27 $1.35 $3.52 $1.80 $0.53 $316 $93 Spring

802 -$0.49 $3.07 $1.03 $0.54 $0.61 $4.63 $4.81 -$0.31 -$0.92 -$95 -$277 Spring

1013 $0.02 $0.54 $1.01 $0.44 $0.49 $1.99 $2.81 $0.84 $0.35 $359 $151 Spring


TABLE B14Capital Structure 2017–18 Northern Victoria

Average Top 20% # Top 20% *FARM AREAS (HA)

Freehold Area 610 946 905


Area Leased Out

Effective Area 784 1,457 1,325

LAND VALUES




Leased Land Value per Hectare $4,241 $5,235 $6,039



Livestock $911 $1,232 $1,291



Total Assets $7,294 $7,436 $8,399

LIABILITIES

Liabilities per Effective Hectare $672 $280 $280

EQUITY



RATIOS

Debt Ratio 8% 7% 7%



$/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/HA $/HA

Average -$0.32 $0.86 $0.84 $0.74 $0.27 $2.45 $2.76 -$0.01 -$0.28 $138 $79

Top 20%* -$0.56 $1.13 $0.60 $0.26 $0.40 $2.00 $3.19 $0.63 $0.23 $328 $172

Variable Overhead O/O Interest & **Cost of Beef Price Earni before

ngs Net Farm Earn Int/Tax before

ings Net Farm Int/Tax

BeefCosts Costs Allowance Lease Production Received EBIT Income EBIT Income Enterprise


TABLE B15Farm Labour Efficiency and Enterprise Mix 2017–18 Northern Victoria

Average Top 20% # Top 20% *

SHEEP ENTERPRISES




BEEF ENTERPRISES






DSE per person 5,522 8,580 8,804

ENTERPRISE MIX

Wool Sheep (%) 36% 46% 46%

Prime Lambs (%) 17% 21% 9%

Beef (%) 44% 33% 45%



TABLE B16Supplementary Feed Data 2017–18 Northern Victoria

Farm No Yield(wet tonnes per ha)

Amount Fed to Sheep (average)

Amount Fed to Cattle (average)


Area Cut (ha)

Pasture Hay Silage Pasture Hay Silage Grain Pasture Hay Silage Grain Pasture Hay Silage Pasture Hay Silage

584 9.7 8.4 4.9 9.2 $226 31.0

585

586 17.3

588 8.0 3.4 2.9 $2,187 10

589 3.8 29.7 5.9 $604 12

599 17.5

616 33.9

630 5.0 10.7 ($3,299) 4

678

683

688 1.9 0.4 2.5 1.2 $262 30

706 20.2 57.3

707 12.8

708 4.1 9.8 2.4 17.0 $659 $638 22 36.0

709 7.5 8.1 $600 8.0

711 25

712 8.4 34.4

744 92.9

745 6.0 8.0 5.1 1.8 50.0 $359 $640 14 2.5

756 0.7 2.0 3.1

757 4.0 5.0 4.7 1.1 40.6 43.2 $180 $75 45 40.0

800 6.9 12.8 54.9 17.8 $1,063 $464 60 19.0

802 25.3 86.7

803 2.1 10.7 43.8 $345 7

1009 4.9 25.8 168.8 $502 16

1011 2.5 23.5

1012

1013 4.2 8.4 5.4 $645 53

1015 22.2

Average 4.6 8.8 5.4 0.3 16.4 20.5 9.5 1.1 $121 $91 9 4.7



TABLE B17Historical Data For Selected Average Profitability Indicators - Northern Victoria

Year Gross Income Variable Costs Overhead Costs Net Income EBIT (Operating Profit) Return on Assets

Return on Equity

NOMINAL($/HA)

REAL($/HA)

NOMINAL($/HA)

REAL($/HA)

NOMINAL($/HA)

REAL($/HA)

NOMINAL($/HA)

REAL($/HA)

NOMINAL($/HA)

REAL($/HA)

2004-05 $272 $373 $107 $147 $57 $78 $108 $148 $53 $73 1.1% -0.2%

2005-06 $272 $358 $111 $146 $63 $83 $99 $130 $45 $59 1.5% 0.0%

2006-07 $275 $355 $164 $212 $66 $85 $46 $59 $0 $0 0.2% -1.8%

2007-08 $293 $362 $114 $141 $65 $80 $114 $141 $62 $77 2.4% 1.5%

2008-09 $263 $320 $121 $147 $72 $88 $69 $84 $8 $10 0.3% -1.3%

2009-10 $340 $401 $103 $121 $83 $98 $154 $182 $82 $97 2.5% 2.0%

2010-11 $499 $568 $112 $128 $108 $123 $279 $318 $183 $208 4.5% 4.9%

2011-12 $436 $491 $132 $148 $106 $119 $199 $224 $118 $133 2.9% 2.6%

2012-13 $383 $421 $168 $184 $106 $116 $110 $120 $25 $27 0.6% -1.8%

2013-14 $433 $462 $151 $161 $104 $111 $178 $190 $102 $109 2.0% 0.9%

2014-15 $461 $484 $181 $190 $120 $126 $160 $168 $86 $90 1.9% 1.0%

2015-16 $513 $534 $207 $215 $145 $151 $161 $168 $77 $80 1.4% 0.5%

2016-17 $752 $768 $221 $226 $180 $184 $179 $183 $251 $256 4.3% 4.4%

2017-18 $720 $720 $222 $222 $188 $188 $125 $125 $183 $183 2.7% 2.7%

Long Term Average $473 $171 $116 $160 $100 2.0% 1.1%

2017-18 vs LT avg +$248 +$52 +$71 -$35 +$83 +0.7% +1.6%

Note: ‘Real’ dollar values are the nominal values converted to 2017-18 dollar equivalents by the C.P.I. to allow for inflation. The data in the above table from 2004-05 to 2008-09 has been obtained from the Sheep Farm Monitor Project. Data from 2009-10 onwards has been obtained from the Livestock Farm Monitor Project.

TABLE B18Historical Gross Margins For Livestock Enterprises - Northern Victoria

Year Wool Sheep Prime Lambs Beef Cattle

NOMINAL ($/DSE)

REAL ($/DSE)

NOMINAL($/HA)

REAL($/HA)

NOMINAL ($/DSE)

REAL ($/DSE)

NOMINAL($/HA)

REAL($/HA)

NOMINAL ($/DSE)

REAL ($/DSE)

NOMINAL($/HA)

REAL($/HA)

2004-05 $14 $19 $126 $173

2005-06 $11 $15 $107 $141

2006-07 $11 $14 $95 $123

2007-08 $16 $19 $123 $151 $11 $13 $90 $111

2008-09 $13 $16 $106 $129 $16 $20 $137 $167

2009-10 $24 $28 $202 $238 $25 $29 $225 $265 $29 $35 $350 $413

2010-11 $44 $50 $396 $451 $46 $52 $401 $457 $31 $36 $365 $416

2011-12 $33 $37 $332 $373 $28 $32 $250 $281 $25 $28 $285 $321

2012-13 $18 $19 $172 $189 $25 $27 $190 $209 $23 $26 $247 $271

2013-14 $23 $24 $234 $250 $32 $34 $319 $340 $26 $28 $317 $338

2014-15 $26 $28 $279 $293 $28 $30 $291 $306 $25 $26 $282 $296

2015-16 $25 $26 $217 $226 $32 $33 $221 $230 $39 $40 $434 $452

2016-17 $42 $43 $362 $370 $53 $54 $496 $507 $47 $48 $484 $494

2017-18 $62 $62 $501 $501 $53 $53 $517 $517 $41 $41 $448 $448

Long Term Average $29 $258 $34 $308 $34 $357 $383

2017-18 vs LT avg +$34 +$243 +$19 +$209 +$7 +$91 +$65

Note: ‘Real’ dollar values are the nominal values converted to 2017-18 dollar equivalents by the C.P.I. to allow for inflation. The data in the above table from 2004-05 to 2008-09 has been obtained from the Sheep Farm Monitor Project. Data from 2009 -10 onwards has been obtained from the Livestock Farm Monitor Project. Early figures for prime lamb and beef cattle enterprises were not reported in the old Sheep Farm Monitor Projects and are therefore not shown in the above table.


TABLE B19Historical Data For Selected Average Profitability Indicators- Northern Victoria

Year Stocking Rate Wool Sheep

Micron Wool Cut (Gr.) Net Wool Price Ave Sale Price Lamb

DSE/HA KG/HA NOMINAL ($/KG) GR.

REAL ($/KG) GR.

NOMINAL($/HD)

REAL($/HD)

%

2004-05 9.3 19.2 33 $4.9 $6.6 $46 $63 75%

2005-06 9.8 18.8 30 $5.1 $6.7 $41 $54 79%

2006-07 9.7 18.3 30 $6.9 $9.0 $33 $43 69%

2007-08 8.2 18.8 29 $6.1 $7.6 $41 $51 72%

2008-09 8.5 18.4 29 $5.7 $6.9 $45 $54 80%

2009-10 8.8 18.3 27 $6.1 $7.2 $72 $85 77%

2010-11 9.4 18.6 32 $8.8 $10.0 $102 $116 78%

2011-12 9.3 18.5 29 $8.4 $9.5 $80 $90 84%

2012-13 9.4 18.5 30 $7.5 $8.2 $56 $61 80%

2013-14 9.8 18.0 33 $7.3 $7.7 $63 $67 77%

2014-15 10.2 18.1 36 $8.2 $8.6 $76 $80 78%

2015-16 8.8 17.8 28 $8.8 $9.2 $71 $74 85%

2016-17 9.9 17.8 31 $11.7 $12.0 $104 $106 75%

2017-18 10.7 18.0 32 $14.56 $14.56 $108 $108 89%

Long term Average 9.4 18.4 30.6 8.8 $75.1 78%

2017-18 vs LT average +1.3 -0.4 +1.1 +5.7 +$32.6 +11%

Year Prime Lambs Beef Cattle

Wool Cut (Gr.) Net Wool Price Ave Sale Price Lamb Calving Av Sale Price


REAL ($/KG) GR.

NOMINAL($/HD)

REAL($/HD)

% % NOMINAL($/HD)

REAL($/HD)

2004-05

2005-06

2006-07

2007-08 18 $4.4 $5.43 $53 $65 87%

2008-09 16 $3.2 $3.94 $68 $82 98%

2009-10 18 $3.3 $3.86 $95 $112 111% 87% $640 $755

2010-11 20 $4.3 $4.94 $127 $144 105% 87% $847 $964

2011-12 19 $4.8 $5.37 $102 $115 107% 87% $815 $917

2012-13 21 $5.0 $5.49 $78 $86 111% 87% $814 $894

2013-14 23 $5.1 $5.42 $90 $96 109% 93% $698 $744

2014-15 22 $6.3 $6.59 $101 $106 112% 90% $937 $985

2015-16 18 $6.4 $6.61 $102 $106 119% 90% $1,189 $1,237

2016-17 19 $6.6 $6.69 $134 $137 113% 85% $1,576 $1,609

2017-18 22 $8.49 $8.49 $139 $139 118% 89% $1,292 $1,292

Long term Average 19.7 $5.71 $108 108% 88% $1,044

2017-18 vs LT average +2.2 +$2.78 +$31 +10% +1% +$248



Appendices : Gippsland

TABLE C1Main Financial Indicators 2017–18 Gippsland

Farm No Gross Farm Income

Variable Costs

Overhead Costs

Cost Structure

O/O Allowance

Earnings before Interest

& Tax - EBIT

Net Farm Income

Return on Debt Ratio Return on Assets Equity


553 $849 $353 $190 64% $114 $193 $116 2.5% 9% 1.6%

555 $958 $338 $195 56% $109 $316 $289 5.2% 3% 5.8%

556 $1,196 $349 $277 52% $15 $556 $506 9.1% 4% 9.9%

574 $1,125 $334 $220 49% $135 $436 $254 5.5% 16% 22.9%

636 $805 $308 $231 67% $8 $258 $258 4.1% 0% 4.1%

638 $1,795 $323 $339 37% $86 $1,048 $1,048 5.1% 0% 5.1%

653 $861 $173 $167 40% $137 $384 $320 7.7% 7% 7.1%

663 $1,079 $533 $317 79% $553 -$324 -$328 -2.3% 0% -2.3%

664 $1,615 $276 $315 37% $134 $890 $719 4.5% 11% 4.7%

667 $447 $285 $333 138% $147 -$318 -$321 -2.2% 1% -2.2%

668 $1,367 $394 $221 45% $119 $633 $622 4.1% 1% 4.0%

694 $276 $91 $77 61% $8 $99 $70 2.7% 10% 2.3%

698 $1,103 $502 $547 95% $681 -$626 -$626 -2.9% 0% -2.9%

700 $450 $215 $96 69% $3 $137 $126 2.8% 2% 3.1%

742 $156 $233 $104 215% $145 -$325 -$325 -5.2% 0% -5.2%

755 $972 $260 $429 71% $156 $128 -$4 0.8% 14% 0.0%

804 $1,561 $944 $386 85% $611 -$379 -$450 -1.2% 5% -1.6%

1014 $394 $299 $302 152% $144 -$351 -$432 -4.3% 21% -10.6%

1017 $464 $236 $116 76% $152 -$39 -$41 -1.0% 0% -1.1%

# Gippsland Top 20% ranked by RoA.* Gippsland Top 20% ranked by EBIT/ha.

TABLE C2Key Physical Data 2017–18 Gippsland

Farm No Average Rainfall

Actual Rainfall

Stocking

Rate S.R. - Rf S.R. - Rf

July Stocking

RateP Applied P Applied

553 670 498 17 3.3 1.7 20 13 2.5 13 17 12

555 647 495 14 2.7 1.4 12 9 1.9 9 4 9

556 595 486 18 3.8 2.0 14 13 2.6 11 6 13

574 619 537 18 3.3 1.6 14 4 0.8 2 0 -3

636 653 381 10 2.7 2.0 9 7 1.7 6 4 5

638 1,018 953 27 2.9 1.0 20 20 2.1 15 36 21

653 563 414 12 2.9 1.8 14 13 3.0 11 7 2

663 1,044 1,030 26 2.5 0.8 17 31 3.0 30 57 26

664 1,022 1,040 22 2.1 0.7 18 18 1.7 13 25 17

667 1,032 1,125 23 2.1 0.7 20 23 2.0 21 24 27

668 1,000 1,067 25 2.3 0.8 19 38 3.5 34 46 41

694 596 415 4 1.0 0.6 4 0 0.0 -1 -1 -1

698 669 455 24 5.2 2.9 22 23 5.2 23 27 -1

700 655 466 6 1.3 0.7 6 1 0.1 0 1 0

742 652 455 8 1.7 1.0 7 0 0.0 3 18 2

755 1,011 932 22 2.4 0.8 20 13 1.4 12 25 15

804 899 758 24 3.2 1.2 28 4 0.5 0 22 1

1014 796 466 13 2.8 1.5 10 12 2.7 11 27 15

1017 575 424 8 1.8 1.1 12 5 1.1 4 2 4

# Gippsland Top 20% ranked by RoA.* Gippsland Top 20% ranked by EBIT/ha.

Average $920 $339 $256 78% $182 143 95 1.8% 5% 2.4%

Top 20% # $1,035 $299 $215 49% $99 423 342 6.9% 8% 11.4%

Top 20% * $1,493 $336 $288 43% $89 $782 $724 5.7% 4% 5.9%

MM MM DSE/HA DSE/HA/ 100MM

DSE HA/25MM

OVER 250MM

KG P/ GRAZED HA

KG P/ GRAZED

HA/100MMKG/HA KG/HA KG/HA

Average 774 652 17 3 1 15 13 2 11 18 11

Top 20% # 606 483 15 3.2 1.7 13 10 2.1 8 4 5

Top 20% * 909 887 23 2.8 1.1 18 22 2.5 18 28 23

P Nutrient K Nutrient S NutrientChange Change Change


DSE/HA KG LWT/HAKG CWT/HAKG CWT /HA/100MM KG CWT$/KG CWT$/HD KG/HD KG/HA

TABLE C3Wool Sheep Production 2017–18 Gippsland

Farm No.

DSE/HA KG/HD KG/HA KG/DSEKG/HA

/100MM $/KG $/HD $/HA$/HA

/100MM $/DSE %

553 17 3.7 33 2.0 6.6 $22.31 18.5 68% $94 $642 $129 $39 83%

555 14 3.7 42 3.1 8.5 $18.97 18.4 72% $49 $642 $130 $48 72%

556 18 3.5 43 2.4 8.9 $23.49 17.3 68% $99 $795 $164 $43 80%

574 18 4.2 39 2.2 7.3 $21.38 17.6 69% $98 $2,016 $375 $113 107%

636 10 3.8 28 2.7 7.3 $19.06 18.0 73% $88 $478 $125 $46 97%

653 12 3.8 27 2.2 6.4 $18.69 18.5 72% $106 $709 $171 $60 67%

694 4 4.4 17 4.1 4.2 $16.66 18.2 74% $115 $201 $48 $48 0%

700 6 4.4 24 3.9 5.1 $16.66 18.2 74% $101 $278 $60 $46 0%

1017 8 3.5 16 2.1 3.8 $22.05 18.5 71% $71 $215 $51 $28 96%

Average 12 4 30 3 6 20 18 71% 91 664 139 52 67%

Top 20% 15 4.0 33 2.2 6.9 $20.04 18.1 71% $102 $1,363 $273 $87 87%


TABLE C4Prime Lamb Production 2017–18 Gippsland

Farm No. Stocking Rate Lamb

Produced Lamb Produced Lamb Produced

553 16.6 230 103 21 19 $6.05 $113 4.0 27 26

555 13.5 832 375 76 18 $4.31 $78 5.4 43 20

556 18.4 231 104 21 23 $6.36 $149 5.2 54 22

574 17.8 249 112 21 21 $5.64 $119 3.0 18 25

638 27.4 442 199 21 18 $7.86 $142 0.0 0 28

668 24.6 440 198 19 19 $6.57 $127 4.8 54 29

694 4.2 101 45 11 29 $6.26 $180 5.1 8 22

Farm No Ewe Breed

Net Greasy Wool Price

Gross Margin Gross Margin Gross Margin Lamb Marking

Ewe

$/KG $/HA $/HA/100MM $/DSE % % of DSE

553 Xbred $6.11 $307 $62 $19 108% 82%

555 merino $10.33 $573 $116 $43 74% 89%

556 Merino $13.94 $1,116 $230 $61 80% 68%

574 Xbred $6.62 $534 $99 $30 108% 53%

638 Xbred $4.93 $1,121 $118 $41 125% 66%

668 Xbred $4.35 $608 $57 $25 119% 90%

694 Xbred $7.29 $194 $47 $47 99% 63%

Average $7.65 $636 $104 $38 102% 73%

Top 20% $9.44 $1,119 $174 $51 103% 67%


Average 17.5 361 162 27 21 $6.15 $130 3.9 29 25

Top 20% 22.9 337 152 21 21 $7.11 $146 2.6 27 25

Stocking Ad ult Clean Clean Clean Net Clean AverWool Woolage Average Ave SaleWool Gross Gross Gross LambRate Wool Cut Wool Cut Wool Cut Wool Cut Price Micron Yield Price Margin Margin Margin Marking

Av Lamb Av Lamb Av Lamb Adult Gr. Greasy AverageWeight Price Price Wool Cut Wool Cut Wool Micron



TABLE C5Beef Cattle Production 2017–18 Gippsland

Farm No. Stocking Rate Beef Produced Beef Produced Beef Sold Average Sale Price Average Wt Sales Average Sale Price

DSE/HA KG LWT/HA KG LWT/HA/100MM KG LWT/HA $/HD KG LWT $/KG LWT

694 4.2 16 4 178 $1,442 517 $2.79

698 23.9 437 96 709 $1,086 415 $2.62

755 22.3 258 28 106 $1,058 406 $2.60

804 24.3 550 73 552 $1,550 552 $2.81

1014 13.2 226 49 321 $995 439 $2.27

553 16.6 284 57 248 $1,069 414 $2.58

667 23.3 292 26 875 $1,685 627 $2.69

556 18.4 401 83 335 $1,136 447 $2.54

574 17.8 304 57 6 $600 550 $1.09

638 27.4 721 76 423 $1,229 406 $3.03

663 25.6 389 38 351 $992 487 $2.04

664 22.3 602 58 414 $1,349 482 $2.80

668 24.6 610 57 428 $1,038 420 $2.47

698 23.9 425 93 813 $948 370 $2.58

700 6.1 114 24 101 $516 229 $2.25

742 7.9 101 22 162 $754 340 $2.22

755 22.3 159 17 116 $778 344 $2.26

1014 13.2 158 34 117 $903 430 $2.10

Average 18.7 336 49.5 347 $1063 437 $2.43

Top 20% 21.9 466 78 368.25 $1,013 455 $2.32

Farm No Gross Margin Gross Margin Gross Margin Time of Calving Cow BeefCalving Enterprise

694 $31 $8 $7.53 Jun 86% 39% Autumn

698 $657 $145 $27.54 May 86% 33% Autumn

755 $1,007 $108 $45.16 Mar 92% 60% Autumn

804 $736 $97 $30.23 Apr 88% 100% Autumn

1014 $24 $5 $1.80 Apr 96% 33% Autumn

553 $509 $102 $30.76 Oct 88% 27% Other

667 $146 $13 $6.28 Oct 100% Other

556 $812 $167 $44.14 Sep 79% 39% Spring

574 $793 $148 $44.66 Aug 19% Spring

638 $1,757 $184 $64.08 Sep 91% 58% Spring

663 $635 $62 $24.81 Sep 91% 100% Spring

664 $1,353 $130 $60.58 Sep 85% 100% Spring

668 $1,246 $117 $50.74 Oct 92% 58% Spring

698 $634 $139 $26.58 Aug 89% 67% Spring

700 $10 $2 $1.71 Jul 95% 80% Spring

742 -$6 -$1 -$0.79 Aug 95% 100% Spring

755 $442 $47 $19.83 Sep 88% 40% Spring

1014 $127 $27 $9.64 Sep 97% 67% Spring


$/HA $/HA/100MM $/DSE % %

Average $606 $83 $27.5 90% 62%

Top 20% $1,005 $161 $45.11 85% 37%


$/DSE $/DSE $/DSE $/DSE $/DSE $/DSE $/DSE $/DSE

$/HA $/HA $/HA $/HA $/HA $/HA $/HA $/HA

TABLE C6Wool Sheep Variable Costs 2017–18 Gippsland

Farm No. Pasture Other Selling Costs Total Var. Costs

553 $3.38 $4.85 $7.54 $4.19 $0.00 $1.00 $0.21 $0.58 $3.14 $24.88

555 $4.20 $8.92 $5.66 $4.38 $0.07 $1.06 $0.35 $0.81 $3.01 $28.45556 $2.52 $7.11 $8.15 $4.27 $0.00 $0.53 $0.28 $0.07 $2.83 $25.76574 $1.79 $2.59 $0.00 $5.63 $0.00 $0.00 $0.00 $0.62 $8.62 $19.25636 $4.75 $5.68 $4.50 $12.52 $0.00 $1.54 $0.00 $0.42 $3.78 $33.19653 $2.69 $5.39 $3.93 $0.00 $0.23 $0.28 $0.27 $1.87 $3.31 $17.97694 $3.09 $9.04 $1.83 $8.09 $0.00 $0.35 $0.00 $0.26 $4.18 $26.84700 $3.20 $6.84 $2.40 $0.90 $0.00 $1.28 $0.00 $0.26 $4.83 $19.72

1017 $4.12 $5.24 $9.21 $9.50 $0.26 $2.44 $0.00 $0.28 $5.91 $36.95

Farm No. Pasture Other Selling Costs Total Var. Costs

553 $56 $80 $125 $69 $0 $17 $4 $10 $52 $412

555 $57 $120 $76 $59 $1 $14 $5 $11 $41 $384

556 $46 $131 $150 $79 $0 $10 $5 $1 $52 $474

574 $32 $46 $0 $100 $0 $0 $0 $11 $153 $342

636 $49 $59 $47 $129 $0 $16 $0 $4 $39 $343

653 $32 $64 $46 $0 $3 $3 $3 $22 $39 $212

694 $13 $38 $8 $34 $0 $1 $0 $1 $17 $112

700 $19 $42 $15 $5 $0 $8 $0 $2 $29 $120

1017 $31 $40 $70 $72 $2 $19 $0 $2 $45 $281


TABLE C7Prime Lamb Variable Costs 2017–18 Gippsland

Farm No. Animal Health

Contract Services

Supp Feed& Agistmt Pasture Casual

LabourFreight/ Cartage

ShearingSupplies Other

553 $2.80 $4.17 $9.70 $4.19 $0.00 $1.12 $0.19 $1.23

555 $3.31 $7.12 $4.45 $4.38 $0.05 $0.85 $0.28 $0.64

556 $1.69 $4.78 $5.76 $4.27 $0.00 $1.43 $0.19 $0.50

574 $0.48 $2.95 $4.54 $5.63 $0.00 $0.37 $0.00 $0.13

638 $2.14 $4.01 $0.00 $6.19 $0.00 $1.50 $0.20 $1.24

668 $2.38 $4.10 $2.55 $8.31 $0.00 $1.83 $0.00 $0.13

694 $2.39 $7.42 $1.40 $8.09 $0.00 $4.33 $0.00 $0.31Average $2.17 $4.94 $4.06 $5.87 $0.01 $1.63 $0.12 $0.60 Top 20% $1.92 $4.40 $2.88 $5.23 $0.00 $1.47 $0.20 $0.87

Farm No. Animal Health

Contract Services

Supp Feed& Agistmt Pasture Casual

LabourFreight/ Cartage

ShearingSupplies Other

553 $46 $69 $161 $69 $0 $19 $3 $20

555 $45 $96 $60 $59 $1 $11 $4 $9


Average $3.30 $6.18 $4.80 $5.50 $0.06 $0.94 $0.12 $0.57 $4.40 $25.89Top 20% $2.24 $3.99 $1.97 $2.82 $0.12 $0.14 $0.14 $1.25 $5.97 $18.61


Average $37 $69 $60 $61 $1 $10 $2 $7 $52 $298

Top 20% $32 $55 $23 $50 $1 $2 $2 $17 $96 $277

Animal Contract Supp Feed &Health Services Agistmt

Casual Freight/ ShearingLabour Cartage Supplies

Animal Contract Supp Feed &Health Services Agistmt

Casual Freight/ ShearingLabour Cartage Supplies

Selling Costs

Total Var. Costs

$/DSE $/DSE

$4.39 $27.77$5.16 $26.24$2.79 $21.41$2.76 $16.84$0.57 $15.84$4.10 $23.39$5.04 $28.98$3.54 $22.92$1.68 $18.63

Selling Costs

Total Var. Costs

$/HA $/HA

$73 $460$70 $354$51 $394$49 $299$16 $434

$101 $574$21 $121$54 $377


556 $31 $88 $106 $79 $0 $26 $3 $9

574 $8 $52 $81 $100 $0 $7 $0 $2

638 $59 $110 $0 $170 $0 $41 $5 $34

668 $58 $101 $63 $204 $0 $45 $0 $3

694 $10 $31 $6 $34 $0 $18 $0 $1Average $37 $78 $68 $102 $0 $24 $2 $11 Top 20% $45 $99 $53 $124 $0 $34 $4 $22


Selling Costs

Total Var. Costs

$/HA $/HA

$73 $460

$70 $354$51 $394$49 $299$16 $434

$101 $574$21 $121$54 $377



TABLE C8Beef Cattle Variable Costs 2016-17 Gippsland

Farm No. Enterprise Animal Health

Contract Services

Supp Feed & Agistmt

Pasture Casual Labour

Freight/ Cartage



694 Autumn $1.83 $0.00 $0.00 $8.09 $0.00 $5.26 $0.00 $6.09 $21.27

698 Autumn $1.03 $0.00 $5.53 $11.66 $0.52 $0.00 $0.83 $5.59 $25.15

755 Autumn $3.30 $0.00 $5.46 $5.00 $0.00 $0.45 $0.00 $1.82 $16.03

804 Autumn $4.86 $0.00 $16.47 $7.20 $0.19 $0.48 $3.48 $3.39 $36.08

1014 Autumn $1.19 $2.29 $8.90 $9.74 $0.00 $9.88 $5.53 $6.12 $43.64

553 Other $0.44 $0.28 $5.74 $4.19 $0.00 $1.54 $0.97 $2.85 $16.01

667 Other $1.18 $0.00 $1.27 $6.12 $0.07 $3.08 $0.60 $0.38 $12.69

556 Spring $0.51 $0.27 $4.44 $4.27 $0.00 $0.53 $0.00 $2.57 $12.59

574 Spring $1.70 $0.00 $25.92 $5.63 $0.00 $1.31 $0.65 $0.00 $35.21

638 Spring $1.45 $0.00 $0.00 $6.19 $0.00 $0.97 $0.62 $0.00 $9.22

663 Spring $1.87 $0.69 $3.46 $8.22 $0.74 $1.84 $0.44 $2.46 $19.73

664 Spring $1.34 $0.00 $2.79 $6.57 $0.00 $0.50 $0.51 $0.26 $11.96

668 Spring $1.53 $0.00 $1.80 $8.31 $0.00 $0.65 $0.00 $2.37 $14.65

698 Spring $1.33 $0.00 $7.66 $11.66 $0.68 $0.00 $0.41 $7.35 $29.09

700 Spring $1.02 $0.00 $37.63 $0.90 $0.00 $1.46 $0.00 $0.12 $41.14

742 Spring $1.04 $0.00 $23.29 $0.00 $0.00 $3.71 $1.34 $2.65 $32.03

755 Spring $4.90 $0.00 $8.24 $5.00 $0.00 $0.68 $0.00 $2.33 $21.14

1014 Spring $0.00 $0.00 $2.67 $9.74 $0.00 $0.00 $0.00 $2.06 $14.47

Average $1.70 $0.20 $8.96 $6.58 $0.12 $1.80 $0.85 $2.69 $22.89

Top 20% $1.17 $0.07 $8.97 $6.94 $0.13 $0.70 $0.53 $2.04 $20.54

Farm No. Animal Health ContractServices

Supp Feed & Agistmt

Pasture Casual Labour Freight/Cartage

Other Selling Costs Total Var. Costs

694 $8 $0 $0 $34 $0 $22 $0 $25 $89

698 $24 $0 $132 $278 $12 $0 $20 $133 $600

755 $74 $0 $122 $111 $0 $10 $0 $41 $358

804 $118 $0 $401 $175 $5 $12 $85 $83 $878

1014 $16 $30 $118 $129 $0 $131 $73 $81 $577

553 $7 $5 $95 $69 $0 $25 $16 $47 $265

667 $27 $0 $30 $143 $2 $72 $14 $9 $296

556 $9 $5 $82 $79 $0 $10 $0 $47 $232

574 $30 $0 $461 $100 $0 $23 $12 $0 $626

638 $40 $0 $0 $170 $0 $27 $17 $0 $253

663 $48 $18 $89 $210 $19 $47 $11 $63 $505

664 $30 $0 $62 $147 $0 $11 $11 $6 $267

668 $38 $0 $44 $204 $0 $16 $0 $58 $360

698 $32 $0 $183 $278 $16 $0 $10 $175 $694

700 $6 $0 $228 $5 $0 $9 $0 $1 $250

742 $8 $0 $184 $0 $0 $29 $11 $21 $254

755 $109 $0 $184 $111 $0 $15 $0 $52 $471

1014 $0 $0 $35 $129 $0 $0 $0 $27 $191


$/HA $/HA $/HA $/HA $/HA $/HA $/HA $/HA $/HA

Average $35 $3 $136 $131 $3 $26 $16 $48 $398

Top 20% $26 $1 $169 $157 $3 $15 $12 $45 $428


TABLE C9Pasture Costs Per Grazed Hectare 2016–17 Gippsland

Farm No. Seed Chemicals Contract Services Fert & SoilConditioners Other Total Pasture Cost


553 $9 $2 $0 $61 $0 $72

555 $0 $7 $0 $52 $0 $59

556 $3 $3 $3 $57 $14 $80

574 $26 $12 $11 $15 $26 $99

636 $21 $0 $35 $69 $0 $136

638 $0 $1 $0 $160 $9 $170

653 $0 $0 $0 $0 $0 $0

663 $1 $0 $1 $208 $0 $210

664 $11 $0 $0 $132 $7 $150

667 $0 $1 $11 $134 $4 $151

668 $0 $0 $9 $205 $0 $214

694 $14 $0 $0 $3 $0 $33

698 $7 $2 $6 $107 $156 $278

700 $2 $0 $0 $4 $0 $6

742 $0 $0 $0 $0 $0 $0

755 $0 $0 $10 $88 $0 $135

804 $0 $9 $29 $360 $0 $398

1014 $3 $1 $0 $130 $4 $137

1017 $5 $2 $0 $21 $0 $72

Average $5 $2 $6 $95 $12 $126

Top 20% $4 $1 $3 $138 $7 $153


TABLE C10Overhead Costs Per Hectare 2016–17 Gippsland

Farm No Paid Labour Fuel &Vehicle

Insurance R&M - Plant& Equip.

R&M - Land& Improv.

Admin Rates & Rents

Sundries Depreciation TotalOverheads


553 $7 $22 $13 $16 $39 $24 $30 $1 $38 $190

555 $59 $5 $11 $11 $36 $27 $31 $1 $15 $195

556 $96 $12 $18 $5 $52 $50 $18 $0 $26 $277

574 $2 $17 $19 $49 $49 $26 $26 $0 $31 $220

636 $100 $18 $11 $5 $15 $32 $24 $1 $26 $231

638 $163 $5 $26 $5 $50 $34 $47 $0 $7 $339

653 $5 $3 $16 $5 $38 $10 $32 $0 $58 $167

663 $48 $24 $14 $21 $13 $76 $49 $9 $62 $317

664 $71 $31 $27 $19 $43 $38 $55 $11 $21 $315

667 $132 $25 $17 $24 $11 $27 $46 $4 $48 $333

668 $94 $15 $0 $10 $27 $16 $45 $5 $9 $221

694 $29 $0 $8 $0 $16 $4 $8 $0 $12 $77

698 $0 $57 $31 $141 $11 $134 $71 $0 $102 $547

700 $46 $0 $12 $0 $13 $8 $7 $0 $10 $96

742 $0 $10 $13 $0 $27 $16 $22 $1 $16 $104

755 $177 $30 $3 $0 $101 $9 $11 $6 $92 $429

804 $0 $21 $53 $20 $25 $47 $70 $0 $150 $386

1014 $98 $41 $7 $9 $86 $39 $9 $0 $13 $302

1017 $26 $8 $6 $19 $21 $15 $16 $0 $5 $116

# Gippsland Top 20% ranked by RoA.* Gippsland Top 20% ranked by EBIT/ha

Average $61 $18 $16 $19 $35 $33 $32 $2 $39 $256

Top 20% # $41 $9 $16 $17 $44 $28 $27 $0 $33 $215

Top 20% * $106 $16 $18 $10 $43 $35 $41 $4 $16 $288



TABLE C11Wool Sheep Profitability Per Kilogram of Clean Wool Produced 2017–18 Gippsland

Farm No Net Wool Income

Sheep Trading Profit

Variable Co sts

Overhead Costs

O/O Allowance

Interest & Lease

**Cost of Earnings Net Farm Earnings Net Farm Production Before Int/ Income Before Int/ Income

Tax - EBIT Tax - EBIT


553 $23.59 $8.13 $12.47 $5.16 $2.34 $2.32 $19.97 $11.75 $9.43 $388 $311

555 $19.76 $4.37 $9.11 $4.62 $2.60 $0.63 $16.33 $7.79 $7.17 $328 $302

556 $24.40 $4.88 $10.93 $6.46 $0.19 $1.15 $17.58 $11.71 $10.56 $507 $458

574 $22.70 $37.62 $8.75 $5.75 $2.47 $4.74 $16.96 $43.36 $38.61 $1,695 $1,510

636 $19.87 $9.69 $12.40 $7.57 $0.30 $0.00 $20.28 $9.28 $9.28 $257 $257

653 $19.67 $14.32 $8.01 $6.31 $5.16 $2.40 $19.49 $14.50 $12.10 $384 $320

694 $17.56 $0.56 $6.49 $4.18 $0.21 $1.68 $10.88 $7.24 $5.56 $125 $96

700 $17.56 -$0.93 $5.00 $3.26 $0.00 $0.46 $8.26 $8.37 $7.90 $200 $189

1017 $23.31 $7.45 $17.41 $7.10 $9.43 $0.09 $33.95 -$3.19 -$3.27 -$51 -$53

Average $20.94 $9.57 $10.06 $5.60 $2.52 $1.50 $18.19 $12.31 $10.82 $426 $377

Top 20% $21.19 $25.97 $8.38 $6.03 $3.82 $3.57 $18.23 $28.93 $25.36 $1,040 $915


TABLE C12Prime Lamb Profitability Per Kilogram Carcass Weight Produced 2017–18 Gippsland

Farm No Net Wool Income

Non-Lamb Sheep

Trading

Variable Costs

Overhead Costs

O/O Allowance

Interest & Lease


Lamb Price

Received


Net Farm Earnings Net Farm Income Before Int/ Income

Tax - EBIT

$/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/HA $/HA

553 $1.59 -$2.29 $3.59 $1.53 $0.75 $0.74 $5.87 $7.25 $0.69 -$0.05 $85 -$7

555 $1.20 -$0.40 $0.74 $0.51 $0.29 $0.07 $1.54 $1.47 $0.73 $0.66 $93 $84

556 $7.25 $1.31 $3.29 $2.81 $0.08 $0.48 $6.18 $5.46 $7.84 $7.36 $700 $658

574 $1.03 $0.28 $2.20 $1.60 $0.85 $1.63 $4.64 $5.56 $2.24 $0.61 $247 $67

638 $0.94 -$0.03 $1.98 $2.39 $0.68 $0.00 $5.05 $6.71 $2.56 $2.56 $435 $435

668 $1.18 -$2.80 $2.39 $1.30 $0.73 $0.06 $4.42 $7.08 $1.04 $0.98 $222 $209

694 $1.35 -$2.58 $2.21 $1.59 $0.08 $0.64 $3.88 $7.74 $2.62 $1.98 $147 $111


Average $2.08 -$0.93 $2.34 $1.68 $0.49 $0.52 $4.51 $5.90 $2.53 $2.01 $276 $223

Top 20% $4.10 $0.64 $2.64 $2.60 $0.38 $0.24 $5.62 $6.09 $5.20 $4.96 $568 $547


TABLE C13Beef Cattle Profitability Per Kilogram Liveweight Produced 2017–18 Gippsland

Farm No. Trading Profit Variable Costs Overhead Costs O/O Allowance Interest & Lease **Cost of Production

$/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT

553 $0.29 $0.88 $0.64 $0.42 $0.31 $1.94

556 -$0.06 $0.46 $0.42 $0.03 $0.12 $0.91

574 $3.45 $2.02 $0.56 $0.67 $0.60 $3.25

638 -$0.26 $0.35 $0.33 $0.07 $0.00 $0.75

663 $0.70 $1.14 $0.81 $1.42 $0.01 $3.37

664 -$0.13 $0.43 $0.52 $0.21 $0.28 $1.16

667 -$2.19 $0.33 $0.36 $0.15 $0.00 $0.84

668 $0.06 $0.49 $0.31 $0.17 $0.02 $0.98

694 $3.09 $3.93 $3.18 $0.70 $1.79 $7.81

698 -$0.09 $1.07 $1.25 $1.56 $0.00 $3.88

698 $0.11 $1.22 $1.30 $1.60 $0.00 $4.12

700 $0.03 $2.19 $0.78 $0.00 $0.10 $2.97

742 -$0.06 $2.29 $1.17 $1.43 $0.00 $4.89

755 -$0.09 $0.60 $1.59 $0.50 $0.51 $2.69

755 $0.40 $1.29 $2.56 $0.81 $0.83 $4.67

804 -$0.13 $1.45 $0.73 $1.22 $0.13 $3.40

1014 $0.01 $2.19 $1.38 $0.61 $0.36 $4.19

1014 -$0.26 $1.04 $1.82 $0.87 $0.51 $3.73

Farm No. **Breakeven Beef Price

Beef Price Received

Earnings before Int/ Tax EBIT Net Farm Income Earnings before

Int Tax EBIT/ Net Farm Income Beef Enterprise

$/KG LWT $/KG LWT $/KG LWT $/KG LWT $/HA $/HA

553 $1.96 $2.58 $0.93 $0.62 $266 $178 Other

556 $1.09 $2.54 $1.58 $1.45 $632 $583 Spring

574 $0.39 $1.09 $1.30 $0.70 $394 $212 Spring

638 $1.01 $3.03 $2.02 $2.02 $1,456 $1,456 Spring

663 $2.68 $2.04 -$0.63 -$0.64 -$245 -$249 Spring

664 $1.58 $2.80 $1.51 $1.22 $907 $736 Spring

667 $3.04 $2.69 -$0.35 -$0.35 -$102 -$103 Other

668 $0.93 $2.47 $1.56 $1.54 $953 $941 Spring

694 $6.51 $2.79 -$1.93 -$3.73 -$31 -$60 Autumn

698 $3.97 $2.62 -$1.35 -$1.35 -$591 -$591 Autumn

698 $4.01 $2.58 -$1.43 -$1.43 -$608 -$608 Spring

700 $3.04 $2.25 -$0.69 -$0.78 -$78 -$89 Spring

742 $4.94 $2.22 -$2.72 -$2.72 -$276 -$276 Spring

755 $3.29 $2.60 -$0.18 -$0.69 -$46 -$178 Autumn

755 $5.10 $2.26 -$2.00 -$2.84 -$318 -$450 Spring

804 $3.65 $2.81 -$0.71 -$0.84 -$393 -$464 Autumn

1014 $4.54 $2.27 -$1.91 -$2.27 -$433 -$514 Autumn

1014 $4.50 $2.10 -$1.89 -$2.40 -$299 -$380 Spring

Average $3.12 $2.43 -$0.38 -$0.69 $66 $8

Top 20% $1.62 $2.32 $0.89 $0.71 $473 $415


Average $0.27 $1.30 $1.09 $0.69 $0.31 $3.09

Top 20% $0.76 $0.98 $0.64 $0.58 $0.18 $2.20



TABLE C14Capital Structure 2017–18 Gippsland


FARM AREAS (HA)

Freehold Area 1,133 865 901


Area Leased Out 1 3 0

Effective Area 1,099 851 782

LAND VALUES




Leased Land Value per Hectare $7,317 $2,622 $0



Livestock $1,420 $1,222 $2,111



Total Assets $11,873 $6,456 $15,683

LIABILITIES

Liabilities per Effective Hectare $594 $1,080 $1,363

EQUITY



RATIOS

Debt Ratio 5% 8% 4%


# Gippsland Top 20% by RoA.* Gippsland Top 20% by EBIT

TABLE C15Farm Labour Efficiency and Enterprise Mix 2017–18 Gippsland


SHEEP ENTERPRISES




BEEF ENTERPRISES 0






DSE per person 5,897 6,988 7,822

ENTERPRISE MIX

Wool Sheep (%) 30% 62% 11%

Prime Lambs (%) 10% 21% 25%

Beef (%) 58% 14% 64%


# Gippsland Top 20% by RoA.* Gippsland Top 20% by EBIT


TABLE C16Supplementary Feed Data 2017–18 Gippsland

Yield(wet tonnes per ha)

Amount Fed to Sheep (average wet kgs per DSE)

Amount Fed to Cattle (average wet kgs per DSE)


Area Cut (ha)

Farm No Pasture Hay Silage Pasture Hay Silage Grain Pasture Hay Silage Grain Pasture Hay Silage Pasture Hay Silage

553 5.9 0 30.8 20.6 27.0 17.5 0.0 $0 -$251 0 31

555 0.0 0 25.1 $0 $0 0 0

556 0 0 23.6 0.0 0.0 0.0 $0 $0 0 0

574 2.4 2.0 4.3 0 6.4 96.1 39.2 0.0 $144 $127 30 30

636 2.1 2.6 0 13.2 12.9 $1,595 $211 14 38

638 0 0 0 0.0 0.0 0.0 $0 $0 0 0

653 0 0 0 $0 $0 0 0

663 10.9 8.2 0.0 $0 $0 0 0

664 3.3 9.9 0.0 0.0 -$125 $0 12 0

667 1.9 7.9 0.0 0.0 $267 $0 21 0

668 3.4 8.5 0 0 6.1 0.0 0.0 $125 $0 32 0

694 2.3 0 0 7.6 36.2 0.0 0.0 $366 $0 210 0

698 37.3 0.0 0.0 $0 $0 0 0

700 0 0 10.4 0.0 0.0 0.0 $0 $0 0 0

742 139.1 0.0 0.0 $0 $0 0 0

755 2.9 5.0 17.6 20.4 0.0 $224 $400 40 22

804 1.8 5.1 29.6 87.7 0.0 $132 -$61 12 27

1014 3.0 5.5 18.4 9.2 0.0 $83 $65 20 20

1017 0 0 0 $0 $0 0 0

Average 2.6 4.4



TABLE C17Average Whole Farm Economic Performance - Gippsland

Year Gross Income Variable Costs Overhead Costs Net Income EBIT(Operating Profit)

Return on Assets

Return on Equity

NOMINAL($/HA)

REAL($/HA)

NOMINAL($/HA)

REAL($/HA)

NOMINAL($/HA)

REAL($/HA)

NOMINAL($/HA)

REAL($/HA)

NOMINAL($/HA)

REAL($/HA)

2004-05 $344 $471 $114 $156 $74 $101 $156 $214 $92 $126 3.0% 4.0%

2005-06 $282 $371 $144 $190 $78 $103 $60 $79 -$22 -$29 -0.4% -1.6%

2006-07 $293 $378 $140 $181 $85 $110 $67 $86 -$27 -$35 -0.7% -2.2%

2007-08 $604 $745 $251 $310 $105 $130 $248 $306 $148 $183 2.1% 1.0%

2008-09 $392 $477 $240 $292 $116 $141 $36 $44 -$52 -$63 -1.6% -5.0%

2009-10 $456 $538 $187 $221 $117 $138 $152 $179 $59 $70 0.4% -0.5%

2010-11 $697 $793 $202 $230 $164 $187 $330 $376 $178 $203 2.6% 2.1%

2011-12 $690 $776 $226 $254 $196 $220 $268 $302 $90 $101 1.9% 0.7%

2012-13 $536 $589 $236 $259 $207 $227 $93 $102 -$68 -$75 0.3% -0.8%

2013-14 $695 $741 $259 $276 $415 $443 $21 $22 $86 $92 1.2% -0.1%

2014-15 $776 $815 $259 $272 $204 $214 $313 $329 $168 $177 2.0% 1.5%

2015-16 $795 $827 $325 $338 $200 $208 $270 $281 $152 $158 2.2% 3.2%

2016-17 $1,192 $1,217 $371 $379 $283 $289 $320 $327 $362 $370 3.6% 4.5%

2017-18 $920 $920 $339 $339 $261 $261 $95 $95 $143 $143 1.8% 2.4%

Long Term Average $487 $179 $122 $196 $101 1.3% 0.7%

2017-18 vs LT avg +$433 +$160 +$139 -$101 +$42 +0.5% +1.7%

Note: ‘Real’ dollar values are the nominal values converted to 2017-18 dollar equivalents by the C.P.I. to allow for inflation. The data in the above table from 2004-05 to 2008-09 has been obtained from the Sheep Farm Monitor Project. Data from 2009 -10 onwards has been obtained from the Livestock Farm Monitor Project.Early figures for prime lamb and beef cattle enterprises were not reported in the old Sheep Farm Monitor Projects and are therefore not shown in the above table.

TABLE C18Historical Gross Margins For Livestock Enterprises – Gippsland

Years Wool Sheep Prime Lambs Beef Cattle

NOMINAL ($/DSE)

REAL ($/DSE)

NOMINAL($/HA)

REAL($/HA)

NOMINAL ($/DSE)

REAL ($/DSE)

NOMINAL($/HA)

REAL($/HA)

NOMINAL ($/DSE)

REAL ($/DSE)

NOMINAL($/HA)

REAL($/HA)

2004-05 $15 $20 $162 $222

2005-06 $8 $11 $91 $120

2006-07 $9 $12 $99 $128

2007-08 $18 $22 $243 $301 $17 $21 $277 $342

2008-09 $4 $4 $48 $58 $15 $19 $221 $269

2009-10 $15 $17 $145 $171 $25 $30 $353 $416 $18 $21 $249 $294

2010-11 $34 $38 $327 $372 $41 $47 $710 $808 $24 $27 $418 $476

2011-12 $29 $32 $324 $365 $35 $39 $627 $705 $19 $21 $344 $387

2012-13 $23 $26 $259 $285 $20 $22 $435 $478 $13 $15 $220 $242

2013-14 $22 $24 $292 $311 $25 $26 $519 $554 $20 $21 $354 $378

2014-15 $20 $21 $246 $258 $34 $36 $710 $746 $25 $26 $480 $504

2015-16 $37 $38 $449 $467 $33 $34 $475 $494 $30 $32 $472 $491

2016-17 $40 $41 $450 $459 $40 $41 $651 $665 $44 $45 $816 $833

2017-18 $52 $52 $664 $664 $38 $38 $636 $636 $28 $28 $606 $606

Long term Average $28 $269 $33 $319 $33 $401

2017-18 vs LT avg +$24 +$395 +$5 +$317 -$5 +$206



TABLE C19Historical Data For Selected Average Profitability Indicators- Gippsland

Years Stocking Rate Wool Sheep

Micron Wool Cut (Gr.) Net Wool Price Ave Sale Price Lamb

DSE/HA KG/HA NOMINAL ($/KG) GR.

REAL ($/KG) GR.

NOMINAL($/HD)

REAL($/HD)

%

2004-05 11.4 19.0 36 $5.33 $7.30 $41 $56 74%

2005-06 11.7 18.8 37 $5.38 $7.08 $31 $41 73%

2006-07 11.2 18.4 36 $6.47 $8.34 $23 $29 74%

2007-08 15.3 18.8 43 $6.86 $8.47 $42 $52 79%

2008-09 13.0 18.5 34 $5.62 $6.84 $37 $45 70%

2009-10 13.0 18.2 31 $6.28 $7.41 $62 $73 62%

2010-11 15.4 18.6 34 $8.79 $10.01 $92 $105 66%

2011-12 17.2 18.4 37 $7.92 $8.91 $72 $81 84%

2012-13 17.0 18.7 44 $7.81 $8.58 $54 $60 81%

2013-14 18.0 18.6 43 $7.88 $8.40 $48 $51 80%

2014-15 18.2 18.2 48 $7.71 $8.10 $58 $61 77%

2015-16 15.7 17.7 51 $9.10 $9.47 $72 $75 81%

2016-17 17.4 18.0 43 $11.42 $11.66 $92 $93 59%

2017-18 16.9 18.1 42 $14.19 $14.19 $91 $91 67%

Long term Average 15.1 18.4 39.9 $8.91 65.2 73%

2017-18 vs LT avg +1.8 +2.0 +$5.28 +26.0 -7%

Years Prime Lambs Beef Cattle

Wool Cut (Gr.) Net Wool Price Ave Sale Price Lamb Calving Av Sale Price


REAL ($/KG) GR.

NOMINAL($/HD)

REAL($/HD)

% % NOMINAL($/HD)

REAL($/HD)

2004-05

2005-06

2006-07

2007-08 32.0 $3.80 $4.69 $72 $89 103%

2008-09 24.8 $3.42 $4.16 $79 $96 99%

2009-10 30.5 $3.61 $4.25 $99 $117 103% 89% $652 $769

2010-11 35.0 $4.30 $4.90 $132 $151 103% 88% $780 $888

2011-12 35.9 $4.65 $5.23 $108 $121 111% 90% $783 $881

2012-13 43.1 $4.72 $5.18 $79 $87 109% 90% $682 $749

2013-14 38.0 $5.08 $5.42 $103 $110 100% 91% $677 $722

2014-15 41.0 $5.69 $5.98 $105 $110 106% 89% $854 $897

2015-16 38.0 $6.83 $7.11 $96 $100 102% 91% $1,053 $1,096

2016-17 31.7 $5.23 $5.34 $129 $132 111% 89% $1,285 $1,312

2017-18 29.2 $7.65 $7.65 $130 $130 102% 90% $1,063 $1,063

Long Term Avg 34.5 $5.45 $113 104% 90% $931

2017-18 vs LT Avg -5.3 +$2.21 +$17 -3% +0.1% +$132

Note: ‘Real’ dollar values are the nominal values converted to 2017-18 dollar equivalents by the C.P.I. to allow for inflation. The data in the above table from 2004-05 to 2008-09 has been obtained from the Sheep Farm Monitor Project. Data from 2009 -10 onwards has been obtained from the Livestock Farm Monitor Project.Early figures for prime lamb and beef cattle enterprises were not reported in the old Sheep Farm Monitor Projects and are therefore not shown in the above table.


GlossaryCost structureVariable costs plus overhead costs as a percentage of gross farm income.

Debt ratioInterest and lease costs as a percentage of gross farm income.

Earnings before interest and tax (EBIT)Previously reported as operating profit.

EBIT is calculated by subtracting variable costs, overhead costs and owner/operator allowance from gross farm income. EBIT is the return from all the capital used in the business.

Effective hectaresAll figures expressed per hectare are per effective hectare unless otherwise stated.Total hectares minus the area of land which is of little or no value for livestock or crop production (e.g. house and shed area).

EquityTotal assets minus total liabilities.

Grazed hectaresEffective hectares minus two thirds of the cropped area- assumes that a third of the cropped area is grazed at some time during the year.

Gross farm incomeIncome from each enterprise, wool, lamb and beef, etc., and is calculated by multiplying price received per unit by the number of units. Non-cash income such as changes in inventory of livestock or stocks of other inputs/output such as feed produced and conserved are also included.

Gross marginGross income minus variable costs for a specific enterprise.

Net IncomeGross farm income minus variable and overhead costs, not including owner/operator labour.

Net farm incomeEBIT minus interest and lease charges. The amount of profit available for capital investment, loan principal repayments and tax.

Overhead costsAll fixed costs that cannot be easily allocated to a specific enterprise (e.g. fuel, permanent labour, rates, administration, depreciation, etc) but excluding interest,leases, capital expenditure, principal repayments and tax.

Owner/operator allowanceAllowance for the owner/operator’s own labour. Set at$87,349 per year (pro rata for actual time worked) for 2017-18. In addition an allowance of $45,973 per year (pro rata for actual time worked) is provided for other unpaid family labour.

Return on assets (RoA)EBIT divided by the value of total assets. RoA gives an indication of how efficiently a business generates profit from its assets.

Return on equity (RoE)Net farm income divided by the equity value. RoE gives an indication of profitability by measuring the return on the farmers’ equity. If RoE is lower than RoA, the cost of the capital invested is greater than the profit generated on the additional assets.

Variable costsVariable costs are costs that are specific to an enterprise, such as animal health and supplementary feed costs, and vary directly in relation to the size of the enterprise. Subtracting specific variable costs, i.e. wool variable costs, from specific enterprise income, i.e. wool income, gives a wool gross margin.

WOOL SHEEP ($/HEAD) 2016-17 2017-18


List of abbreviationsABS Australian Bureau of Statistics AWEXAustralian Wool Exchange BoM Bureau of Meteorologycwt Carcass weightDEDJTR Department of Economic

Development, Jobs, Transport and Resources, Victoria

DSE Dry Sheep EquivalentLFMP Livestock Farm Monitor ProjectEBIT Earnings before interest and taxha Hectare(s)kg Kilogramslwt Live weightM MillionML MegalitreMLA Meat and Livestock Australiamm Millimetres. 1 mm is equivalent to 4

points or 1/25th of an inch of rainfallNFI Net Farm IncomeRoA Return on assetsRoE Return on equityt Tonne = 1,000 kgy/y Year-on-year

Standard valuesStandard values are used to calculate changes in value of stock on hand. The main standard values used in 2017- 18 are shown below.

Ewes $88 $97Weaners $86 $95Wethers $97 $107Rams $103 $113

PRIME LAMBS ($/HEAD) 2016-17 2017-18

Ewes $182 $195Weaners $134 $145Wethers $134 $147Rams $284 $294

CATTLE ($/HEAD) 2016-17 2017-18

Cows $1,330 $1,150 Heifers $1,225 $1,040

Weaners $535 $460Steers 1-2yrs $1,270 $1,080Steers 2+ yrs $1,745 $1,480

Bulls $2,715 $2,310

CROPS ($/TONNE WET) 2016-17 2017-18

Pasture Hay $168 $161Silage $41 $80Wheat $240 $295Oats $177 $221Barley $194 $277Canola $520 $531


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