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Agriculture and Forestry in the Wide Bay region of Queensland, 2014

Research by the Australian Bureau of Agriculturaland Resource Economics and Sciences

About my region 14.34June 2014

Agriculture and Forestry in the Wide Bay region of Queensland, 2014 ABARES

© Commonwealth of Australia 2014

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This publication (and any material sourced from it) should be attributed as: ABARES 2014, Agriculture, Fisheries and Forestry in the Wide Bay region of Queensland 2014, About my region 14.34, Canberra, June. CC BY 3.0.

Cataloguing dataABARES 2014, Agriculture, Fisheries and Forestry in the Wide Bay region of Queensland 2014, About my region 14.34, Canberra, June.

ISSN TBAISBN 978-1-74323-097-8 ABARES project 43009

InternetAgriculture and Forestry in the Wide Bay region of Queensland 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 2010|Facsimile +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 and Sharan Singh.

mailto:[email protected]

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

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

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

3 Forestry sector.......................................................................................................................................12

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

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

Table 2 Financial performance, Queensland broadacre industries, 2011–12 to 2013–14, average per farm..................................................................................................................................... 6

Table 3 Farm cash income of Queensland broadacre farms, by region, 2012–13 to 2013–14, average per farm..............................................................................................................................7

Table 4 Financial performance, Queensland dairy industry, 2011–12 to 2013–14, average per farm...................................................................................................................................10

Table 5 Selected estimates, vegetable growers, Queensland.......................................................11

FiguresFigure 1 Employment profile, Wide Bay region, August 2011.......................................................2

Figure 2 Value of agricultural production, Wide Bay region, Queensland, 2011–12...........3

Figure 3 Distribution of farms by estimated value of agricultural operations, Wide Bay, Queensland, 2011–12............................................................................................................................4

Figure 4 Real farm cash income, broadacre industries, average per farm................................6

Figure 5 Real farm cash income, grains industry, average per farm............................................8

Figure 6 Real farm cash income, beef industry, average per farm................................................9

Figure 7 Real farm cash income, dairy industry, average per farm...........................................10

Figure 8 Area of native forest, by tenure...............................................................................................12

MapsMap 1 Wide Bay region of Queensland.....................................................................................................1

Map 2 Australian broadacre zones and regions....................................................................................7


1 Regional overviewThe Wide Bay region of Queensland is located in the south-east of the state (Map 1). The region comprises the five local government areas of Bundaberg, Fraser Coast, Gympie, North Burnett, and South Burnett, and the major regional towns of Bundaberg, Eidsvold, Gympie, Maryborough and Torquay. The region covers a total area of around 48 500 square kilometres, or 3 per cent of Queensland’s total area, and is home to approximately 273 300 people (ABS 2011).

Agricultural land in the Wide Bay region occupies 33 280 square kilometres, or 69 per cent of the region. Areas classified as conservation and natural environments (nature conservation, protected areas and minimal use) occupy 7710 square kilometres, or 16 per cent of the region. The most common land use by area is grazing modified pastures which occupies 18 340 square kilometres or 38 per cent of the Wide Bay region.

Map 1 Wide Bay region of Queensland

EmploymentAustralian Bureau of Statistics (ABS) census data from 2011 indicate that around 100 200 people were employed in the Wide Bay region. The Wide Bay region accounts for 5 per cent of total employment in Queensland and 15 per cent of all people employed in the Queensland agriculture, forestry and fishing sector.

Health care and social assistance was the largest employing sector (Figure 1), with 14 031 people, followed by retail trade with 12 335 people. Other important employment sectors were manufacturing (8886 people), and education and training (8364 people).

The agriculture, forestry and fishing sector employed 8317 people, representing 8 per cent of the region’s workforce. Of these, 87 per cent were employed in agriculture, 5 per cent were employed in support services for the agriculture, forestry and fishing sector, and 4 per cent worked in forestry and logging. Fishing, hunting and trapping employed a further 2 per cent, and

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aquaculture employed 1 per cent. In addition, an estimated 2658 people were employed in food product manufacturing and 1372 people were employed in wood, pulp and paper manufacturing in the region (included in the manufacturing sector employment).

Figure 1 Employment profile, Wide Bay region, August 2011

- 5 10 15

OtherArts and Recreation Services

Information Media and TelecommunicationsFinancial and Insurance Services

Rental, Hiring and Real Estate ServicesElectricity, Gas, Water and Waste Services

MiningWholesale Trade

Administrative and Support ServicesProfessional, Scientific and Technical Services

Transport, Postal and WarehousingPublic Administration and Safety

Accommodation and Food ServicesConstruction

Agriculture, Forestry and FishingEducation and Training

ManufacturingRetail Trade

Health Care and Social Assistance

Employed total ('000 )

Source: Australian Bureau of Statistics

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2 Agriculture sectorValue of agricultural production In 2011–12 the gross value of agricultural production (GVAP) in the Wide Bay region was $949 million, which was 9 per cent of the total gross value of agricultural production in Queensland ($10.0 billion) for 2011–12. This is the most recent year for which data are available from the ABS on GVAP for this region.

The Wide Bay region has a diverse and important agricultural sector. In 2011–12, the Wide Bay region accounted for almost 100 per cent of the total value of Queensland citrus fruit production, 73 per cent of the total value of nut production, 62 per cent of the total value of avocado production, and 46 per cent of the total value of peanut production.

The most important commodity in the Wide Bay region based on the gross value of agricultural production was cattle and calves (Figure 2). In 2011–12, cattle and calves contributed 25 per cent ($235 million) to the value of agricultural production in the region. Fruit contributed 22 per cent ($ 207 million). Vegetables contributed 17 per cent ($ 166 million) with the major crops being tomatoes ($34 million) and capsicums (excluding chillies, $18 million). Sugar cane accounted for 14 per cent ($128 million) of the total value, with milk 6 per cent ($59 million) and pigs 5 per cent ($52 million).

Figure 2 Value of agricultural production, Wide Bay region, Queensland, 2011–12


Number and type of farmsABS data indicate that in 2011–12 there were 4622 farms in the Wide Bay region with an estimated value of agricultural operations of more than $5000 (Table 1). The region contains 16 per cent of all farm businesses in Queensland.

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Table 1 Number of farms, by industry classification, 2011–12Industry Classification Wide Bay region Queensland

no. % no. %Beef Cattle 2,402 52 12,529 45

Sugar cane 460 10 3,075 11

Fruit and nuts 329 7 1,617 6

Other livestock 226 5 1,659 6

Vegetable 200 4 1,076 4

Dairy 160 3 771 3

Grain growing 141 3 1,473 5

Mixed grains and livestock 102 2 1,025 4

Other Crop growing 92 2 558 2 Nurseries, Cut Flowers and Turf 91 2 425 2

Other 421 9 3,871 14

Total Agriculture 4,624 100 28,079 100

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 (2402 farms) were the most common, accounting for 52 per cent of all farms in the Wide Bay region, and 19 per cent of all beef cattle farms in Queensland.

A large proportion of farms in the region are small 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 48 per cent of farms in the Wide Bay region had an EVAO of less than $50 000 (Figure 3). These farms accounted for only 6 per cent of the total value of agricultural operations in 2011–12. In comparison, 11 per cent of farms in the region had an EVAO of more than $350 000 and accounted for an estimated 63 per cent of the total value of agricultural operations in the region in 2011–12.

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Figure 3 Distribution of farms by estimated value of agricultural operations, Wide Bay, Queensland, 2011–12

0%

10%

20%

30%

40%

50%

60%

< $50k $50k to $150k $150k to $350k $350k to $500k $500k to $1 m > $1 m

Share of farms Share of value of agricultural operations


Farm financial performance—QueenslandEach year, ABARES interviews Australian broadacre, dairy and vegetable producers as part of its annual survey program. Broadacre industries covered in this survey include the grains, grains–livestock, sheep, beef and sheep–beef industries. The information collected is a basis for analysing the current financial position of farms in these industries and expected changes in the short term. This paper uses data from the ABARES Australian agriculture and grazing industries survey (AAGIS), Australian dairy industry survey (ADIS), and Australian vegetable growing industry survey to report estimates of financial performance indicators (Box 1) for broadacre, dairy and vegetable farms in Queensland.

Box 1 Definitions

Major financial performance indicators

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

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

Farm cash income: total cash receipts – total cash costs

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

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

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

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

Industry types

Grains: farms mainly engaged in producing broadacre crops such as wheat, coarse grains, oilseeds and pulses, and including farms running sheep and/or beef cattle in conjunction with substantial broadacre crop activity.

Sheep: farms mainly engaged in running sheep.

Beef: farms mainly engaged in running beef cattle.

Dairy: farms mainly engaged in milk production.

Vegetable: farms mainly engaged in growing vegetables.

Performance of broadacre farms—QueenslandFarm cash income for Queensland broadacre farms declined from an estimated average of $91 210 per farm in 2011–12 to an average of $89 700 per farm in 2012–13 (Table 2, Figure 4). The decline in average broadacre farm cash income was mainly a consequence of the onset of dry seasonal conditions resulting in reduced crop production, increased turn-off of beef cattle and high expenditure on fodder purchases. Total receipts from sale of beef cattle declined as a result of lower cattle prices, sheep and wool receipts were also lower while crop receipts increased due to large increases in grain prices, relative to prices 2011–12.

Figure 4 Real farm cash income, broadacre industries, average per farm

Note: p Preliminary estimate. y Provisional estimate.

Receipts from beef cattle typically account for around 70 per cent of average total cash receipts for Queensland broadacre farms. In 2013–14, receipts from beef cattle are projected to decline slightly due to lower average prices received for cattle sold and despite a further increase in turnoff in most regions resulting from the continuation of drought conditions. In addition, production of both winter and summer crops declined in 2013–14 reducing crop receipts for Queensland broadacre farms by around 20 per cent on average.

Average total cash costs are projected to increase by around 6 per cent in 2013–14, mainly as a result of a projected increase of around 90 per cent in expenditure on fodder and despite a

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further decline in beef cattle purchase expenditure and lower expenditure on crop production expenses as the area planted to crops was reduced.

Table 2 Financial performance, Queensland broadacre industries, 2011–12 to 2013–14, average per farm

Performance indicator units 2011–12 2012–13p RSE 2013–14yTotal cash receipts $ 368 520 358 500 (4) 325 000Total cash costs $ 277 310 268 800 (4) 285 000Farm cash income $ 91 210 89 700 (12) 39 000Farms with negative farm cash income % 30 33 (12) 33Farm business profit $ 30 060 - 4 900 (171) - 77 000Profit at full equity excluding capital appreciation $ 77 390 40 000 (21) - 32 000Farm capital at 30 June a $ 4 943 140 4 768 100 (3) naFarm debt at 30 June b $ 576 860 549 900 (8) 586 000Equity ratio b % 88 88 (1) naRate of return excluding capital appreciation c % 1.6 0.8 (21) -0.7Off-farm income of owner manager and spouse b $ 29 740 23 800 (12) 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.

Table 3 Farm cash income of Queensland broadacre farms, by region, 2012–13 to 2013–14, average per farm

Region units 2012–13p RSE 2013–14y311: Cape York and the Gulf $ 84 800 (116) 55 000312: West and South West $ 328 000 (34) 54 000313: Central North $ 122 800 (47) - 34 000314: Charleville - Longreach $ 122 100 (29) 73 000321: Eastern Darling Downs $ 65 700 (33) 15 000322: Darling Downs and Central Highlands $ 115 900 (15) 45 000331: South Queensland Coastal $ 17 000 (57) 50 000332: North Queensland Coastal $ 18 100 (82) 49 000

Note: p ABARES preliminary estimates. y ABARES provisional estimates. na Not available. Figures in parentheses are standard errors, expressed as a percentage of the estimate provided.

Farm cash income for broadacre farms in Queensland is projected to decline to average $39 000 per farm; this is the lowest average farm cash income recorded for Queensland broadacre farms in the 37 years the AAGIS survey has operated and around half the ten-year average to 2012–13.

Reductions in beef cattle numbers and in grain and fodder stocks are expected to result in a further decline in farm business profit, from a loss of $4 900 in 2012–13 to a loss of $77 000 in 2013–14.

Average farm cash incomes are projected to decline in all regions of Queensland in 2013–14 except coastal regions. As cattle numbers reduce, business profit is also expected to be negative in all regions in 2013–14, except for Cape York and the Gulf of Carpentaria (Map 2).

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Map 2 Australian broadacre zones and regions

Performance of grains industry farms—QueenslandFarm cash receipts increased, on average, for Queensland grains industry farms in 2012–13 as a result of higher grain prices and despite reduced production of summer and winter grain, oilseed and pulse crops. Average farm cash income for grains industry farms in Queensland increased to around $179 000 per farm in 2012–13, around double the industry average for the previous 10 years (Figure 5).

In 2013-14, production of both winter and summer crops is estimated to have declined by around one quarter and with only a small increase in grain prices total crop receipts are estimated to have declined by around 15 per cent on average. The reduction in crop receipts is expected to be only partly offset by reduced expenditure on fertiliser, fuel and grain marketing costs and labour costs due to the reduced area planted to crops and reductions in expenditure on repairs and maintenance compared with 2012–13. Farm cash income is projected to decline to average just $32 000 per farm, the lowest farm cash income since 2006–07 when drought also severely reduced incomes for Queensland grains industry farms.

In comparison, farm cash incomes for grains farms nationally are projected to increase to a near record in 2013-14, due mainly to very high grain production in South Australia and Western Australia.

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


Performance of beef industry farms—QueenslandIn 2012–13 drier seasonal conditions and high beef cattle numbers in northern Australia resulted in an increase in beef cattle turnoff in Queensland. Lower average sale prices for beef cattle more than offset the increase in turnoff to result in a decline in average beef cattle receipts for Queensland beef industry farms. Expenditure on the purchase of fodder more than doubled while expenditure on beef cattle purchases was sharply reduced. Farm cash income for Queensland beef industry farms declined to average $67 000 per farm in 2012–13 (Figure 6).

In 2013-14, expansion of drought conditions is projected to lead to a increase of around 10 per cent in the average number of cattle sold per farm by Queensland beef industry farms. The increase in turn-off is projected to be mostly offset by a reduction in the average sale price received due largely to the sale of cattle in unfinished condition. The modest increase in farm receipts is projected to be more than offset by increased expenditure on fodder, fuel and freight costs, resulting in average farm cash income for beef industry farms declining to average $39 000 per farm, or around 50 per cent below the average for the previous 10 years, in real terms (Figure 6).

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

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Reduction in beef cattle numbers resulting from increased cattle turnoff will reduce the value of cattle inventories on Queensland beef industry farms. As a consequence, farm business profit for Queensland beef industry farms is projected to decline to average - $73 000 per farm in 2013–14.

Performance of dairy industry farms— QueenslandIn 2012–13, a reduction in average farmgate milk prices received of around 5 per cent, combined with a reduction in milk production, and an increase of around 8 per cent in total cash costs resulted in farm cash income for Queensland dairy farms declining to average $79 200 per farm.

In 2013–14, average farm cash incomes are projected to remain low for Queensland dairy farms, averaging around $80 000 per farm (Table 4, Figure 7) or around 22 per cent below the industry average for the previous 10 years. Milk production is estimated to have declined and total cash costs to have increased with milk prices for most farms remaining similar to or only slightly above 2013–14 prices. Overall, the proportion of dairy farms recording negative farm cash incomes is projected to increase from around 14 per cent in 2012-13 to around 33 per cent in 2013–14.

Figure 7 Real farm cash income, dairy industry, average per farm


Table 4 Financial performance, Queensland dairy industry, 2011–12 to 2013–14, average per farm

Performance indicatorunit

s 2011–12 2012–13p RSE 2013–14yTotal cash receipts $ 482 650 456 800 (4) 473 000Total cash costs $ 375 890 377 600 (5) 393 000Farm cash income $ 106 770 79 200 (19) 80 000Farms with negative farm cash income % 11 14 (61) 33Farm business profit $ 20 940 - 8 500 (162) - 2 000Profit at full equity excluding capital appreciation $ 45 670 18 700 (65) 25 000Farm capital at 30 June a $ 3 125 680 2 875 800 (5) na

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Farm debt at 30 June b $ 276 490 306 000 (17) 334 000Equity ratio b % 91 89 (2) naRate of return excluding capital appreciation c % 1.5 0.6 (67) 0.9Off-farm income of owner manager and spouse b $ 7 510 17 100 (29) 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.

Performance of vegetable industry farms— QueenslandThere were 764 vegetable growing farms in Queensland in 2011–12, a similar number to 2012–13 (Table 5). The majority of farms grew only one type of vegetable (57 per cent of vegetable growing farms) in 2011–12, while a small proportion grew five or more types of vegetables (9 per cent). The most common vegetables grown were pumpkins (199 farms), green beans (117 farms), onions (87 farms) and potatoes (81 farms). Vegetable growing farms were mainly located in three regions across the state: the Darling Downs west of Brisbane, Bundaberg, Bowen and the Burdekin delta in north Queensland. In 2011–12, the average area planted to vegetables was 37 hectares with around 75 per cent of vegetable growers planting less than 32 hectares to vegetables. The major costs for vegetable growing farms in Queensland in 2011–12 were hired labour, packing charges and materials and freight.

Farm cash income averaged $182 100 per farm for vegetable growing farm in 2011–12 (Table 5). Total cash receipts declined in 2011–12 to average $704 100 per farm.

In 2012–13, reduction in the average area planted to vegetables together with lower yields, reduced vegetable production, and lower vegetable receipts, resulted in reduced total cash receipts. Despite there also being a reduction in average total cash costs, lower cash receipts resulted in farm cash income declining to average $130 000 per farm in 2012–13.

Table 5 Selected estimates, vegetable growers, Queensland

average per farm

Selected estimates units 2010–11 2011–12p RSE 2012–13yNumber of growers no. 767 764 764Vegetables receipts $ 697 230 630 800 (13) 574 000Total cash receipts $ 799 040 704 100 (12) 641 000Total cash costs $ 644 910 522 000 (14) 511 000Farm cash income $ 154 120 182 100 (20) 130 000Rate of return a % 3.0 4.4 (31) 2.5Total area operated June 30 ha 146 147 (19) naArea sown to vegetables ha 42 37 (20) 34Total vegetables sold t 825 740 (20) 549Total area of vegetables irrigated ha 41 36 (21) naVolume of irrigation water applied ml 82 85 (14) na

Note: a Excludes capital appreciations. p Preliminary estimate y Provisional estimate. na Not available. Figures in parentheses are standard errors expressed as a percentage of the estimate. Updated data for Vegetable farms will be available November 2014.Source: ABARES Australian vegetable growing farms survey

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3 Forestry sectorIn 2010–11, the total plantation area in the Wide Bay region was approximately 127 100 hectares, comprised of approximately 12 500 hectares of hardwood plantations, 109 500 hectares of softwood plantations and 5100 hectares of other plantation. The main hardwood species planted is Dunn’s white gum (Eucalyptus dunnii) and lemon-scented gum (Corymbia citriodora), and the main softwood species planted is hoop pine (Araucaria cunninghamii).

In 2011, there were approximately 2.4 million hectares of native forests in the Wide Bay region, comprised mainly of Eucalypt medium woodland (870 200 hectares), Eucalypt medium open (868 800 hectares) and Rainforest (123 600 hectares) forest types. The majority of the native forests are privately managed (1.1 million hectares), 436 798 hectares are in nature conservation and 475 100 hectares are multiple-use public forest available for timber production. Major timber processing industries are located in Imbil, Toolara Forest and Owanyilla with the majority of mills being sawmills.

Figure 8 Area of native forest, by tenure

Leasehold forest (220 047 ha―9.3%)

Multiple-use public forest (475 097 ha―20%)

Nature conservation reserve (436 798 ha―18.4%)

Other Crown land (71 627 ha―3%)

Private land (including Indigenous) (1 104 608 ha―46.6%)

Unresolved tenure (62 679 ha―2.6%)

Queensland’s forest and wood product industry generated approximately $4 billion of sales and service income in 2010–11. Most of the income was generated from the sale of wood products (such as structural wood and woodchips) estimated at approximately $3 billion. The remaining $1 billion was generated from the sale of paper and paper products. In 2011–12, the sale of wood products generated about $2.6 billion and data for income from paper and paper products were not available. Despite being Australia’s largest wood product export state, Queensland is a relatively small exporter of woodchips. In 2010–11, Queensland exported 63 000 tonnes of woodchips, valued at $11 million. In 2011–12, woodchip exports from the state declined to 52 000 tonnes, valued at approximately $8 million. In 2011–12, woodchip exports declined to 52 000 tonnes, valued at $84 million. In 2011, Queensland’s forestry sector employed 12 845 workers (0.6 per cent of the total employed workforce) compared with 16 411 (0.9 per cent) in 2006 (number of people employed includes forestry support services and timber wholesaling).

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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.

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