Ownership of intellectual property rightsdata.daff.gov.au/data/warehouse/9aa/regionalReports/... · Web viewAll material in this publication is licensed under a Creative Commons Attribution

Agriculture, Fisheries and Forestry in the Outback region of the Northern Territory, 2014

Research by the Australian Bureau of Agriculturaland Resource Economics and Sciences

About my region 14.48June 2014

Agriculture, Fisheries and Forestry in the Outback region of the Northern Territory, 2014 ABARES

© Commonwealth of Australia 2014

Ownership of intellectual property rightsUnless otherwise noted, copyright (and any other intellectual property rights, if any) in this publication is owned by the Commonwealth of Australia (referred to as the Commonwealth).

Creative Commons licenceAll material in this publication is licensed under a Creative Commons Attribution 3.0 Australia Licence, save for content supplied by third parties, logos and the Commonwealth Coat of Arms.

Creative Commons Attribution 3.0 Australia Licence is a standard form licence agreement that allows you to copy, distribute, transmit and adapt this publication provided you attribute the work. A summary of the licence terms is available from creativecommons.org/licenses/by/3.0/au/deed.en. The full licence terms are available from creativecommons.org/licenses/by/3.0/au/legalcode.

This publication (and any material sourced from it) should be attributed as: ABARES 2014, Agriculture, Fisheries and Forestry in the Outback region of the Northern Territory 2014, About my region 14.48, Canberra, June. CC BY 3.0.

Cataloguing dataABARES 2014, Agriculture, Fisheries and Forestry in the Outback region of the Northern Territory 2014, About my region 14.48, Canberra, June.

ISSN TBAISBN 978-1-74323-092-3 ABARES project 43009

InternetAgriculture, Fisheries and Forestry in the Outback region of the Northern Territory 2014 is available at daff.gov.au/abares/publications.

Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)Postal address GPO Box 1563 Canberra ACT 2601Switchboard +61 2 6272 2010Facsimile +61 2 6272 2001Email [email protected] daff.gov.au/abares

Inquiries regarding the licence and any use of this document should be sent to: [email protected].

The Australian Government acting through the Department of Agriculture, Fisheries and Forestry represented by the Australian Bureau of Agricultural and Resource Economics and Sciences, has exercised due care and skill in the preparation and compilation of the information and data in this publication. Notwithstanding, the Department of Agriculture, Fisheries and Forestry, ABARES, its employees and advisers disclaim all liability, including liability for negligence, for any loss, damage, injury, expense or cost incurred by any person as a result of accessing, using or relying upon any of the information or data in this publication to the maximum extent permitted by law.

AcknowledgementsThis regional profile was updated by Tim Caboche, Peter Martin, Therese Thompson, Sonja Nikolova, Johnny Xu, Sharan Singh and Mary Stephan.

mailto:[email protected]

mailto:[email protected]


Contents1 Regional overview.................................................................................................................................. 1

Employment.............................................................................................................................................. 12 Agriculture sector................................................................................................................................... 3

Value of agricultural production......................................................................................................3Number and type of farms.................................................................................................................. 3Farm financial performance—Northern Territory..................................................................5

3 Fisheries sector..................................................................................................................................... 10

4 Forestry sector.......................................................................................................................................12

References........................................................................................................................................................... 13

TablesTable 1 Number of farms, by industry classification, 2011–12......................................................4

Table 2 Financial performance, Northern Territory beef industry, 2011–12 to 2013–14 8

Table 3 Farm cash income of Northern Territory broadacre farms, by region, 2012–13 to 2013–14...................................................................................................................................................... 8

FiguresFigure 1 Employment profile, Northern Territory – Outback region, August 2011.............2

Figure 2 Value of agricultural production, Northern Territory – Outback region, 2011–12......................................................................................................................................................................... 3

Figure 3 Distribution of farms by estimated value of agricultural operations, Northern Territory – Outback region, 2011–12............................................................................................4

Figure 4 Real farm cash income, beef industry.....................................................................................6

Figure 5 Farm cash income Northern Territory beef industry farms with greater than 10 000 head of cattle............................................................................................................................. 7

Figure 6 Farm cash income Northern Territory beef industry farms with less than 10 000 head of cattle............................................................................................................................. 7

Figure 7 Area of native forest, by tenure...............................................................................................12

MapsMap 1 Northern Territory – Outback region..........................................................................................1

Map 2 Australian broadacre zones and regions....................................................................................9


1 Regional overviewThe Northern Territory – Outback region covers the whole of the Northern Territory excluding the Darwin greater capital city region. It includes the towns of Alice Springs and Katherine (Map 1). The region comprises the twelve local government areas of Alice Springs, Barkly, Belyuen, Central Desert, Coomalie, East Arnhem, Katherine, MacDonnell, Roper Gulf, Tiwi Islands, Victoria-Daly and West Arnhem. The region covers a total area of around 1 345 000 square kilometres or 99.7 per cent of the Northern Territory’s total area and is home to approximately 89 400 people (ABS 2011).

Agricultural land in the Northern Territory – Outback region occupies 670 180 square kilometres, or 50 per cent of the region. Areas classified as conservation and natural environments (nature conservation, protected areas and minimal use) occupy 658 850 square kilometres, or 49 per cent of the region. The most common land use by area is grazing natural vegetation which occupies 670 02q square kilometres or 50 per cent of the Northern Territory – Outback region.

Map 1 Northern Territory – Outback region

EmploymentAustralian Bureau of Statistics (ABS) census data from 2011 indicate that around 34 800 people were employed in the Northern Territory – Outback region. The Northern Territory – Outback region accounts for 35 per cent of total employment in the Northern Territory and 67 per cent of all people employed in the Northern Territory’s agriculture, forestry and fishing sector.

Public administration and safety was the largest employing sector in the region with 6918 people (Figure 1), followed by health care and social assistance with 3978 people and

1


education and training with 3830 people. Other important employment sectors in the region were retail trade (2568 people), construction (2248 people) and accommodation and food services (2246 people).

The agriculture, forestry and fishing sector employed 1266 people, representing 4 per cent of the region’s workforce. Of these, 89 per cent were employed in agriculture and 8 per cent in support services for the agriculture, forestry and fishing sector. Fishing, hunting and trapping accounted for 1 per cent. In addition, an estimated 100 people were employed in food product manufacturing and 44 people were employed in wood, pulp and paper product manufacturing in the region (included in manufacturing sector).

Figure 1 Employment profile, Northern Territory – Outback region, August 2011

- 2 4 6 8

OtherFinancial and Insurance Services

Information Media and TelecommunicationsRental, Hiring and Real Estate Services

Electricity, Gas, Water and Waste ServicesWholesale Trade

Arts and Recreation ServicesAdministrative and Support ServicesTransport, Postal and Warehousing

ManufacturingAgriculture, Forestry and Fishing

Professional, Scientific and Technical ServicesMining

Accommodation and Food ServicesConstructionRetail Trade

Education and TrainingHealth Care and Social AssistancePublic Administration and Safety

Employed total ('000 )

Source: Australian Bureau of Statistics

2


2 Agriculture sectorValue of agricultural production In 2011–12, the gross value of agricultural production (GVAP) in the Northern Territory – Outback region was $418 million, which was 86 per cent of the total gross value of agricultural production in the Northern Territory ($483 million) for 2011–12. This is the most recent year for which data are available from the ABS on GVAP for this region.

The Northern Territory – Outback region has an important agricultural sector, dominated by the cattle industry. In 2011–12, cattle and calves contributed 80 per cent ($336 million) of the value of agricultural production in the region. Vegetables accounted for 11 per cent ($47 million) with the major crop being melons ($40 million). Fruit accounted for 4 per cent ($18 million) with the major crop being mangoes ($14 million) and non-wine grapes ($3 million).

Figure 2 Value of agricultural production, Northern Territory – Outback region, 2011–12


Number and type of farmsABS data indicate that in 2011–12 there were 329 farms in the Northern Territory - Outback region with an estimated value of agricultural operations of more than $5000 (Table 1). The region contains 64 per cent of all farm businesses in the Northern Territory.

3


Table 1 Number of farms, by industry classification, 2011–12Industry Classification Northern Territory - Outback

regionNorthern Territory

no. % no. %Beef Cattle 201 61 208 41 Fruit and nuts 38 12 134 26 Vegetable 26 8 51 10 Other livestock 8 3 14 3 Other Crop growing 8 2 10 2 Other 47 14 93 18 Total Agriculture 328 100 510 100

Note: Where the estimated value of agricultural operations is more than $5000.Source: Australian Bureau of Statistics

Farms are classified in Table 1 according to the activities that generate most of their value of production. Beef cattle (201 farms) were the most common, accounting for 61 per cent of all farms in the Northern Territory-Outback region, and 97 per cent of all beef cattle farms in the Northern Territory.

A high proportion of farms in the region are very large in terms of their business size. Estimated value of agricultural operations (EVAO) is a measure of the value of production from farms and a measure of their business size, and is somewhat similar to turnover. Around 49 per cent of farms in the Northern Territory-Outback region had an EVAO of less than $350 000 (Figure 3). These farms accounted for only 5 per cent of the total value of agricultural operations in 2011–12. In comparison, 30 per cent of farms in the region had an EVAO of more than $1 million and accounted for an estimated 81 per cent of the total value of agricultural operations in the region in 2011–12.

Figure 3 Distribution of farms by estimated value of agricultural operations, Northern Territory – Outback region, 2011–12


4


Farm financial performance—Northern TerritoryEach year, ABARES interviews Australian broadacre producers as part of its annual survey program. Broadacre industries covered in this survey include the grains, grains–livestock, sheep, beef and sheep–beef industries. The information collected provides a basis for analysing the current financial position of farms in these industries and expected changes in the short term. This paper uses data from the ABARES Australian agriculture and grazing industries survey (AAGIS) to provide estimates of financial performance of Northern Territory beef industry farm businesses (Box 1).

Box 1 Definitions

Major financial performance indicators

Total cash receipts: total revenues received by the business during the financial year.

Total cash costs: payments made by the business for materials and services and for permanent and casual hired labour (excluding owner manager, partner and family labour).

Farm cash income: total cash receipts – total cash costs

Farm business profit: farm cash income + changes in trading stocks – depreciation – imputed labour costs

Profit at full equity: return produced by all the resources used in the business, farm business profit + rent + interest + finance lease payments – depreciation on leased items

Rate of return: return to all capital used, profit at full equity * 100 / total opening capital

Equity ratio: Farm capital minus farm debt expressed as a percentage of farm capital

Industry types

Beef: farms mainly engaged in running beef cattle.

Performance of beef industry farms— Northern TerritoryMany farm businesses in the upper Northern Territory derive most of their total cash receipts from selling cattle for live export to Indonesia. Reliance is highest in the Top End–Gulf of Carpentaria and Victoria River–Katherine regions and is also relatively high in the Barkly–Tennant Creek region.

Turn-off of cattle for live export declined between 2010–11 and 2012–13, with a reduction in both the number of farms selling cattle for live export and the average number of cattle sold for live export per farm. The effect on farm cash receipts of the reduction in turn-off for live export was partially offset by the sale of other cattle. Initially, the average price received for other cattle (cattle sold for slaughter in Australia) rose in 2011–12 as excellent seasonal conditions resulted in increased sale weights. Wet seasonal conditions in 2010–11 and 2011–12 together with the slowdown in live cattle exports resulted in reduced turnoff and an increase in beef cattle numbers across northern Australia. The increase in cattle numbers halted abruptly in 2012–13 as failure of the northern wet season resulted in dry conditions, increased cattle turnoff and lower beef cattle prices.

5


Average total cash receipts declined by 20 per cent in 2012–13 compared with 2011–12, mainly as a result of lower average sale prices for cattle. However, reductions in purchases of beef cattle and transfer of beef cattle to properties by corporate operators resulted in a small reduction in average total cash costs and average farm cash income increased slightly from an average of $253 730 per farm in 2011–12 to $267 300 in 2012–13 (Table 2).

In 2013–14 drier seasonal conditions, particularly in the Alice Springs District, and an increase in live cattle exports led to increased cattle turn-off. Higher beef cattle turnoff is projected to lead to a small increase in total farm cash receipts despite low prices for cattle, higher farm cash income and business profit for Northern Territory beef industry farms. Farm cash income is projected to increase to average $403 000 per farm (Table 2 and Figure 4). However, there is substantial variability across farm businesses depending on herd size and region with around 48 per cent of Northern Territory beef farms projected to record negative farm cash income in 2013–14 (Table 2).

Figure 4 Real farm cash income, beef industry

average per farm

-400

-200

0

200

400

600

800

1000

1200

Australia Northern Territory

2013–14$'000

Note: p Preliminary estimate. y Provisional estimate.

The average financial performance of beef industry farms in the Northern Territory is heavily influenced by the performance of very large herd size, mostly corporate farms. These farms are found in all Northern Territory Regions, but predominantly in the Barkly and Victoria River-Katherine districts. These businesses dominate cattle turn-off and financial performance estimates for the Northern Territory and typically have financial performance that is well above the average for other smaller herd size businesses in the region as well as performance that is very variable from year to year.

Farm cash income for businesses with greater than 10 000 head of cattle averaged $1.6 million over the 10 years ending 2012–13 with substantial variability between years (Figure 5).

6


Figure 5 Farm cash income Northern Territory beef industry farms with greater than 10 000 head of cattle

average per farm


In contrast, farm cash income for businesses with less than 10 000 head of beef cattle averaged just $52 000 per farm over the same period and has generally trended downwards since 2004–05 (Figure 6).

Figure 6 Farm cash income Northern Territory beef industry farms with less than 10 000 head of cattle

average per farm


7


Table 2 Financial performance, Northern Territory beef industry, 2011–12 to 2013–14

average per farm

Performance indicator units 2011–12 2012–13p RSE 2013–14yTotal cash receipts $ 1 937 910 1 572 300 (13) 1 796 000Total cash costs $ 1 684 180 1 305 000 (12) 1 392 000Farm cash income $ 253 730 267 300 (34) 403 000Farms with negative farm cash income % 54 66 (15) 48Farm business profit $ 322 860 502 200 (25) 543 000Profit at full equity - excluding capital appreciation $ 446 620 577 900 (22) 617 000Farm capital at 1 July a $ 19 373 600 16 382 300 (13) naFarm debt at 30 June b $ 1 725 590 1 233 900 (30) 1 186 000Equity ratio b % 80 84 (4) naRate of return - excluding capital appreciation c % 2.2 3.5 (13) 3.8Off-farm income of owner manager and spouse b $ 46 050 47 400 (39) na

Note: a Excludes leased plant and equipment. b Average per responding farm. c Rate of return to farm capital at 1 July. p ABARES preliminary estimates. y ABARES provisional estimates. na Not available. RSE Relative standard errors, expressed as a percentage of the estimate provided.

The average farm cash income of beef industry farms in 2012–13 and 2013–14 varies across regions, partly as a consequence of the differences in average herd size within the regions. Farm cash income in the Barkly region (Map 2) where large herd size farms predominate is estimated to have averaged $2.2 million in 2012–13 and is projected to remain relatively similar in 2013–14 (Table 3). In the Victoria River District-Katherine and Top End Darwin and the Gulf, regions more reliant on live cattle exports, farm cash income is projected to increase in 2013–14. In the Alice Springs District a slight increase is projected in average farm cash income, with higher farm receipts resulting from forced sales of cattle due to dry seasonal conditions.

Table 3 Farm cash income of Northern Territory broadacre farms, by region, 2012–13 to 2013–14

average per farm

Region units 2012–13p RSE 2013–14y711: Alice Springs District $ 69 400 (232) 73 000712: Barkly Tablelands $ 2 225 800 (23) 2 173 000713: Victoria River District - Katherine $ - 135 400 (47) 103 000714: Top End Darwin and the Gulf $ - 24 700 (544) 170 000

Note: p ABARES preliminary estimates. y ABARES provisional estimates. na Not available. RSE Relative standard errors, expressed as a percentage of the estimate provided.

8


Map 2 Australian broadacre zones and regions

9


3 Fisheries sectorIn 2011–12, the gross value of the Northern Territory’s fisheries production (both aquaculture and wild-catch) was $51 million, a decrease of 14 per cent ($8 million) from 2010–11. The Northern Territory contributed 2 per cent of the total value of Australian fisheries production in 2011–12. In value terms, the wild-catch sector accounted for 66 per cent ($34 million) of the territory’s total production and the aquaculture sector accounted for the remaining 34 per cent ($17 million).

The Northern Territory’s wild-catch fisheries sector provides a range of fisheries products with the highest contribution being from crabs (primarily mud crabs), which account for 24 per cent of the total value of wild-catch fisheries with a value of $8 million. Other important wild-catch fisheries products are sea perch (16 per cent; $5 million), gold band snapper (15 per cent; $5 million), barramundi (13 per cent; $4.5 million) and mackerel (11 per cent; $3.7 million). Over the last decade the value of the Northern Territory’s wild-catch fisheries products has decreased from $46.5 million (2000–01) to $25.7 million (2011–12; in 2011–12 terms). The products for which the real value of production declined most over the past decade are crabs and barramundi, falling by $6 million and $3 million respectively between 2000–01 and 2011–12.

In 2011–12, the value of the Northern Territory’s aquaculture production is estimated to have decreased by 36 per cent from $27 million in 2010–11 to $17 million in 2011–12. Aquaculture pearls are the most valuable aquaculture product produced in the region, valued at $9 million and 53 per cent of the total regional gross value of fisheries production from aquaculture. In 2011–12, the value of Northern Territory aquaculture pearls declined by 56 per cent ($12 million). Pearls are produced predominantly for the export market, with most pearls being exported to Hong Kong.

While most finfish products from the region are wild-caught, there is an increasing trend toward barramundi aquaculture production. The barramundi aquaculture industry has grown rapidly in recent years in the region. In 2011–12, over $7 million worth of barramundi aquaculture was produced in the Northern Territory.

The Commonwealth Northern Prawn Fishery was the most valuable fishery in the Northern Territory region, with a gross value of production across the entire fishery (Western Australia, the Northern Territory and Queensland) in 2011–12 of $65 million. In 2011–12, the gross value of production for the Northern Prawn Fishery decreased by 32 per cent due to a 47 per cent decrease in catches of tiger prawns, and 36 per cent decrease in catches of banana prawns. Darwin is a major landing site for the Northern Prawn Fishery.

In 2011–12, the Northern Territory’s seafood product exports were valued at around $0.1 million. The main export products include live and fresh, chilled or frozen fish, and crabs with Hong Kong and Japan being the main export markets. The main non-edible fisheries product produced for the export market in the Northern Territory is pearls.

It is estimated that Northern Territory residents and visitors spend nearly $51 million annually on recreational fishing, with the purchase of vessels and vehicles and their associated running costs making up the bulk of the expenditure (West et al. 2012). According to the most recent survey of recreational fishing activity in the Northern Territory (West et al. 2012), the main target fish species are barramundi, followed by golden snapper, small bait fish, catfish, saddletail

10


and crimson snapper, and mullet. Mud crabs dominate the crustacean catch, followed by cherabin, the giant freshwater prawn.

The Northern Territory also has a significant indigenous customary fish sector. The 2000–01 National Recreational and Indigenous Fishing Survey (NRIFS) aimed to better understand the level of fishing undertaken by the Indigenous fishing sector (Henry and Lyle 2003). The survey collected fisheries catch statistics from Indigenous people aged five years and older, living in coastal communities across the north of Australia, from Broome in Western Australia to Cairns in Queensland (excluding those living in the Torres Strait). The survey showed that an estimated 37 000 Indigenous people living in the north of Australia fished at least once during the survey year. This was equivalent to 92 per cent of the Indigenous population in the region.

The survey indicated that Indigenous fishers in northern Australia harvested approximately 900 000 finfish, 1.1 million molluscs, 660 000 prawns and yabbies, 180 000 crabs and rocklobsters and smaller numbers of other species during 2000–01. The most prominent finfish species groups were mullet, catfish, tropical snapper, bream and barramundi. The most prominent non-finfish species groups were mussels, freshwater prawn, mud crabs, prawns and oysters.

11


4 Forestry sectorIn 2010–11, the total plantation area in the Northern Territory – Outback was approximately 15 900 hectares, comprised of approximately 800 hectares of hardwood plantations and 15 100 hectares of other plantations. The main hardwood species planted is mangium (Acacia mangium) and African mahogany (Khaya senegalensis). Plantations in the Northern Territory NPI region are predominantly located on Melville Island and some northern parts of the mainland.

In 2011, there were approximately 15 million hectares of native forests in the Northern Territory - Outback region, comprised mainly of Eucalypt medium woodland (5.8 million hectares), Eucalypt medium open (5 million hectares), Acacia (957 500 hectares), Melaleuca (891 500 hectares), Eucalypt low woodland (855 300 hectares), Eucalypt low open (472 700 hectares), Mangrove (305 600 hectares) and Rainforest (251 000 hectares) forest types. The majority of the native forests are privately managed (9.6 million hectares) or leased (5.2 million hectares) (Figure 7). There are no major timber processing industries in the Northern Territory – Outback region.

Figure 7 Area of native forest, by tenure

Leasehold forest (5 169 649 ha―34.4%)

Multiple-use public forest (0%)

Nature conservation reserve (1616 ha―0.01%)

Other Crown land (254 525 ha―1.7%)

Private land (including Indigenous) (9 570 995 ha―63.7%)

Unresolved tenure (25 704 ha―0.2%)

Total sales and service income in the Northern Territory’s forest and wood product industry is estimated at approximately $69 million in 2010–11. Sales and service income from the wood product industry, which consists of structural woods and woodchips, was valued at approximately $45 million, and $24 million from paper and paper product sales. In 2011–12, income data were not available for wood products or paper and paper products. Woodchips are not exported from the Northern Territory. In 2011, the Northern Territory forestry sector employed 244 people (0.3 per cent of the total employed workforce) compared with 197 (0.3 per cent) in 2006 (number of people employed includes forestry support services and timber wholesaling).

12


ReferencesABS 2011, Census of Population and Housing, Australian Bureau of Statistics, Canberra.

ABS 2012, Agricultural Commodities, Australia, 2010–11, cat. no. 7121.0, Australian Bureau Statistics, Canberra.

Henry G.W. and Lyle J.M. 2003, The National Recreational and Indigenous Fishing Survey, FRDC Project No. 99/158.

West, L. D., Lyle, J. M., Matthews, S. R., Stark, K. E. and Steffe, A. S. (2012). Survey of Recreational Fishing in the Northern Territory, 2009–10. Northern Territory Government, Australia. Fishery Report No. 109, available at http://www.nt.gov.au/d/Content/File/p/Fish_Rep/FR109.pdf.

13

Documents

Ownership of intellectual property rightsdata.daff.gov.au/data/warehouse/9aa/regionalReports/... · Web viewAll material in this publication is licensed under a Creative Commons Attribution