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7503.0 - Value of Agricultural Commodities Produced, Australia, 2003-04  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 12/09/2005   
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This publication was suspended from 1998 (with 1996-97 data). Data for previous years was released in the publication Agriculture, Australia (cat. no. 7113.0).


ABOUT THIS PUBLICATION


This publication contains information on the value of agricultural commodities produced for all states, territories and Australia for the year ended 30 June 2004. It includes gross and local values of production and gross unit values for all major agricultural commodities. It also provides chain volume indexes from 1998-99 to 2003-04.


SUMMARY OF FINDINGS


OVERVIEW

The gross value of agricultural commodities produced in 2003-04 rose by $4.4 billion (up 13% to $36.9b), as drought conditions eased throughout much of Australia. Most of the increase was due to a rise in the value of crops (up 32% to $20.5b). The gross value of livestock slaughterings and other disposals rose by 2% to $10.9b, while the value of livestock products fell by 14% to $5.5b during the same period.

The most valuable agricultural commodities in 2003-04 were cattle and calf slaughterings and other disposals (up 4% to $6.7b), wheat (up 109% to $5.6b), milk (remaining steady at $2.8b), wool (down 28% to $2.4b) and sheep and lamb slaughterings and other disposals (steady at $2.0b).

Graph: Value of production for selected agricultural commodities, 2004



CROPS

In 2003-04, the gross value of all crops increased by 32% to $20.5b. There were notable increases recorded for most of the major broadacre crops as well as for many fruit and vegetable crops.

The gross value of broadacre crops rose by 46% to $14.3b. Despite significant decreases in average prices, large increases in production caused a rise in the gross values of wheat (up 109% to $5.6b), barley (up 78% to $1.8b) and canola (up 76% to $686m). Decreases were recorded for sugar cane cut for crushing (down 16% to $854m) and cotton (down 12% to $751m).

The gross value of fruit and nut crops rose by 8% to $3.9b. Increases were recorded for grapes (up 23% to $1.7b), strawberries (up 4% to $135m) and mandarins (up 11% to $133m). Decreases were recorded for apples (down 3% to $368m), bananas (down 11% to $286m) and oranges (down 30% to $236m).

The gross value of vegetable crops rose by 11% to $2.4b. Increased production of many major vegetable crops saw the gross values rise despite generally lower average prices. Potatoes were the highest value vegetable crop in 2003-04 with the gross value steady at $481m. Increases were recorded for tomatoes (up 24% to $280m), mushrooms (up 14% to $219m) and onions (up 21% to $153m). Carrots fell by 7% to $150m.


LIVESTOCK SLAUGHTERINGS AND OTHER DISPOSALS

The gross value of livestock slaughterings and other disposals rose by 2% to $10.9b in 2003-04. Most livestock categories reported less disposals but these were offset by increased prices for slaughtered cattle and calves, as well as for sheep and lambs.

The gross value of cattle and calf slaughterings and other disposals rose by 4% to $6.7b. An 8% drop in the total number of animals slaughtered was offset by a 13% increase in the average price (up from $628 per head in 2002-03 to $709 per head in 2003-04). The gross value of live meat cattle exports fell by 39% to $351m in 2003-04.

The gross value of sheep and lamb slaughterings and other disposals remained steady at $2.0b, with a 15% drop in slaughter numbers being offset by higher average prices. The average price rose by 18% to $66 per head. The value of live sheep exports decreased by 35% to $268m.

The gross value of pig slaughterings and other disposals fell by 4% to $879m. The average price remained steady at $157 per head in 2003-04.

The gross value of poultry slaughterings and other disposals was little changed in 2003-04 at $1.3b. The average price also remained steady at $2.88 per bird.


LIVESTOCK PRODUCTS

The gross value of total livestock products fell by 14% to $5.5b in 2003-04, with decreases in the gross value of wool partly offset by an increase in the gross value of eggs. Wool decreased by 28% to $2.4b, mainly due to a 22% drop in the average price. The gross value of milk remained steady at $2.8b, while eggs rose by 13% to $336m, mainly due to an 11% rise in average price.


MARKETING COSTS

Total marketing costs comprised $3.2b or 9% of the total gross value of agricultural production in 2003-04.

Marketing costs represent the difference between gross and local values. Although there are difficulties in obtaining complete information on marketing costs (which include freight, cost of containers, commission and other marketing charges), the information provides a perspective on the marketing costs of major commodities. Significant differences in the marketing costs for individual commodities may occur as a result of different marketing arrangements.

Marketing costs for crops were $2.2b, or 11% of the gross value of production for crops. Marketing costs among selected crops were: wheat, $794m (or 14% of gross value); barley, $218m (or 12% of gross value); bananas, $88.1m (or 31% of gross value); potatoes, $68.2m (or 14% of gross value); tomatoes, $62.0m (or 22% of gross value); and grapes, $57.7m (or 3% of gross value).

Marketing costs for livestock slaughterings and other disposals were $834m or 8% of the total gross value of these commodities. For cattle and calf slaughterings and other disposals, these costs were estimated at $557m (8% of gross value), and for sheep and lamb slaughterings and other disposals, $192m (9% of gross value).

Marketing costs for livestock products were $165m or 3% of the total gross value of these commodities. For wool, these costs were $124m (5% of gross value) and for eggs, $41.0m (12% of gross value). As milk is collected at the farm gate by the processor, marketing costs are not calculated for this commodity.


STATE AND TERRITORY COMPARISONS

In 2003-04, Victoria ($8.7b) had the highest value of agricultural production of all the states and territories, followed by New South Wales ($8.5b), Queensland ($7.7b), Western Australia ($6.3b), South Australia ($4.6b), Tasmania ($857m), the Northern Territory ($294m) and the Australian Capital Territory ($19.2m).

New South Wales

The gross value of agricultural production in New South Wales increased by 7% to $8.5b in 2003-04. This represented 23% of the total gross value of Australian agricultural production.

The gross value of crops rose by 33% to $4.6b. This was due to increased production levels as the industry began the recovery from drought. Increases in gross value were recorded for most of the major cereal crops including wheat (up 127% to $1.5b), barley (up 194% to $323m), canola (up 103% to $168m) and oats (up 223% to $99.3m). Cotton was the only significant crop to show a decrease in gross value (down 39% to $404m) due entirely to a fall in production as average price remained steady. Grapes increased by 17% to $323m, while the gross value of rice increased by 18% to $179m. The gross value of oranges decreased by 40% to $82.9m due to a fall in production.

The gross value of livestock slaughterings and other disposals decreased by 5% to $2.6b. Decreases were reported for almost all major livestock categories, with cattle and calves down by 8% to $1.3b, sheep and lambs down by 6% to $521m, while pigs remained steady at $279m. Poultry increased slightly (up 4%) to $476m.

The gross value of livestock products decreased by 27% to $1.3b. Wool production decreased in value by 35% to $845m, while the gross value of milk fell by 8% to $392m, and the gross value of eggs fell by 3% to $101m.

Victoria

The gross value of agricultural production in Victoria in 2003-04 increased by 17% to $8.7b. This represented 24% of the total gross value of Australian agricultural production.

The gross value of crops increased by 39% to $4.0b. As Victoria recovered from drought, a drop in average prices was more than offset by the large increases in production of all major crops. Some of the more significant increases in gross value occurred in wheat (up 170% to $666m), barley (up 187% to $383m) and cereal crops for hay (up 281% to $165m). The gross value of potatoes rose by 25% to $133m with the increase brought about entirely by an increase in production as average price remained steady.

The gross value of livestock slaughterings and other disposals increased by 10% to $2.4b. All categories of livestock recorded an increase in gross value except for pigs. Cattle and calves increased by 12% to $1.2b, sheep and lambs increased by 14% to $697m, and poultry increased by 3% to $374m. Pigs however, decreased by 7% to $153m.

The gross value of livestock products decreased by 4% to $2.3b due mainly to a decrease in the value of wool (down 27% to $491m). The gross value of eggs increased by 13% to $88.8m. The gross value of milk rose by 5% to $1.7b, mainly due to an increase in average price (up 8%).

Queensland

The gross value of agricultural production in Queensland in 2003-04 increased by 6% to $7.7b. This represented 21% of the total gross value of Australian agricultural production.

The gross value of crops (including pastures and grasses) increased by 7% to $3.7b. The gross value of cotton increased by 85% in 2003-04 to $346m due to a 78% increase in production. The gross value of sugar cane dropped by 17% to $779m due mainly to a 16% fall in average price. A drop in both production and average price saw the gross value of bananas fall by 10% to $256m.

The gross value of livestock slaughterings and other disposals increased by 6% to $3.6b. Cattle and calf slaughterings and other disposals rose by 7% to $3.1b, with a 15% increase in price more than offsetting a fall in production. Sheep and lamb slaughterings and other disposals also increased by 7%, to $57.0m. Poultry rose by 2% to $207m, while pigs fell by 3% to $206m.

The gross value of livestock products decreased by 9% to $399m. The gross value of wool fell by 30% to $97.1m. The gross value of milk fell by 9% to $228m, while eggs increased by 51% to $73.6m.

South Australia

The gross value of agricultural production in South Australia in 2003-04 increased by 12% to $4.6b. This represented 12% of the total gross value of Australian agricultural production.

The gross value of crops increased by 25% to $3.2b. Lower average prices for wine grapes were offset by a 44% increase in production, leading to a 32% increase in the gross value of grapes to $789m. Although average price for wheat fell by 15%, this was more than offset by a 68% increase in production which saw gross value increase 44% to $782m. The gross value of potatoes fell by 16% to $114m due to a fall in average price.

The gross value of livestock slaughterings and other disposals fell by 7% to $791m. Sheep and lamb slaughterings and other disposals fell by 5% to $316m, while cattle and calf slaughterings and other disposals increased by 4% to $243m.

The gross value of livestock products decreased by 15% to $546m due mainly to a decrease in the gross value of wool (down 19% to $326m). The value of milk also fell (down 11% to $199m).

Western Australia

The gross value of agricultural production in Western Australia in 2003-04 increased by 38% to $6.3b. This represented 17% of the total gross value of Australian agricultural production.

The gross value of crops increased by 73% to $4.5b. A fall in average prices was more than offset by increases in production, leading to an increase in gross value for both wheat (up 131% to $2.4b) and barley (up 76% to $542m). The gross value of lupins for grain rose by 36% to $220m, while canola increased by 71% to $225m.

The gross value of livestock slaughterings and other disposals remained steady at $1.1b. Cattle and calf slaughterings and other disposals rose by 5% to $489m. Sheep and lamb slaughterings and other disposals fell by 10% to $400m.

The gross value of livestock products decreased by 16% to $699m. The gross value of wool decreased by 19% to $558m, while the gross value of milk decreased marginally to $111m.

Tasmania

The gross value of agricultural production in Tasmania in 2003-04 decreased by 2% to $857m. This represented 2% of the total gross value of Australian agricultural production.

The gross value of crops fell by 4% to $387m. The gross value of grapes increased by 20% to $18.1m. The gross value of potatoes remained steady at $75.3m, while the value of apples fell by 26% to $32.5m. Onions increased by 33% to $33.6m and carrots increased by 40% to $22.5m.

The gross value of livestock slaughterings and other disposals increased by 9% to $222m. Cattle and calf slaughterings and other disposals increased by 10% to $150m, while sheep and lamb slaughterings and other disposals increased by 11% to $46.8m.

The gross value of livestock products fell by 9% to $249m. A fall in production and average price saw a decrease in the gross value of wool (down 30% to $77.2m). The gross value of milk increased by 6% to $160m.

Territories

The gross value of agricultural production in the Northern Territory in 2003-04 remained steady at $294m. Livestock slaughterings and other disposals increased slightly to $239m. The total value of crops was little changed at $52.2m.

The gross value of agricultural production in the Australian Capital Territory in 2003-04 also remained steady at $19.2m.

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