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This publication presents results from the Australian dairy industry survey conducted in 2008 covering 2007–08 and projections for 2008–09. Results are reported at a national and regional level covering Queensland and north coast New South Wales, northern Victoria and the Riverina (NSW), Tasmania, Western Australia, South Australia, the Gippsland region (VIC), western Victoria, and southern and central New South Wales (map 1).
Despite ongoing drought, general confidence among dairy producers surveyed in 2008 remained high, with 77 per cent of farms feeling positive about the future of the dairy industry in Australia at the time of the survey (table 1).
Investment in non-land capital additions, including vehicles, plant, machinery and other farm improvements, increased by more than two-thirds for dairy farms in 2007-08. The increased investment in plant, machinery and other farm improvements may have been substantially opportunistic, with lower prices for imported farm machinery because of the strong Australian dollar, in combination with the improved cash flow. The increase in non-land investment also indicates that farmers may be aiming to improve the productivity of their existing land base rather than purchasing additional relatively high priced land (figures a and b).
|
|||||||||||||
Australia |
Queensland and Nth Coast NSW |
Northern Victoria and Riverina |
Tasmania |
Western Australia |
|||||||||
2007-08 |
2007-08 |
2007-08 |
2007-08 |
2007-08 |
|||||||||
|
|||||||||||||
| Attitude to future of dairy industry: | |||||||||||||
| Very positive about future | % |
22 |
(20) |
26 |
(34) |
19 |
(46) |
21 |
(57) |
30 |
(33) |
||
| Fairly positive about future | % |
55 |
(11) |
48 |
(18) |
62 |
(23) |
48 |
(42) |
31 |
(35) |
||
| Neutral about future | % |
17 |
(28) |
14 |
(25) |
17 |
(72) |
2 |
(62) |
22 |
(46) |
||
| Fairly negative about future | % |
3 |
(46) |
10 |
(82) |
2 |
(52) |
0 |
2 |
(86) |
|||
| Very negative about future | % |
4 |
(50) |
2 |
(100) |
0 |
29 |
(83) |
15 |
(76) |
|||
|
|||||||||||||
| Expected milk production in 3 years`time (in 2010-11): | |||||||||||||
| Higher than 2007-08 | % |
49 |
(11) |
64 |
(12) |
37 |
(34) |
49 |
(39) |
60 |
(18) |
||
| Less than 2007-08 | % |
3 |
(30) |
2 |
(68) |
0 |
1 |
(98) |
1 |
(87) |
|||
| Around the same as 2007-08 | % |
39 |
(15) |
24 |
(20) |
42 |
(38) |
21 |
(68) |
33 |
(34) |
||
| Unlikely to be in dairying | % |
9 |
(37) |
10 |
(57) |
21 |
(54) |
29 |
(83) |
6 |
(104) |
||
|
|||||||||||||
| Usage of grain, grain mixes and concentrates: | |||||||||||||
| Less than 0.5 tonnes per cow | % |
10 |
(41) |
1 |
(97) |
0 |
47 |
(28) |
12 |
(90) |
|||
| 0.5 to 1.0 tonnes per cow | % |
16 |
(33) |
7 |
(97) |
28 |
(51) |
13 |
(84) |
6 |
(104) |
||
| 1.0 to 2.0 tonnes per cow | % |
55 |
(11) |
83 |
(8) |
45 |
(34) |
36 |
(19) |
55 |
(22) |
||
| More than 2.0 tonnes per cow | % |
14 |
(15) |
6 |
(35) |
26 |
(24) |
2 |
(68) |
14 |
(43) |
||
|
|||||||||||||
| Average grain, grain mixes and | |||||||||||||
| concentrates fed per cow | tonnes |
1.33 |
(5) |
1.47 |
(5) |
1.48 |
(9) |
0.62 |
(16) |
1.49 |
(10) |
||
|
|||||||||||||
| Calving pattern | |||||||||||||
| Seasonal | % |
42 |
(14) |
5 |
(61) |
45 |
(35) |
76 |
(17) |
2 |
(72) |
||
| Split | % |
18 |
(20) |
5 |
(56) |
21 |
(28) |
18 |
(69) |
5 |
(64) |
||
| Year round | % |
40 |
(13) |
90 |
(4) |
34 |
(44) |
6 |
(55) |
93 |
(4) |
||
| Other | % |
0 |
(66) |
0 |
0 |
0 |
0 |
||||||
|
|||||||||||||
| Other | |||||||||||||
| Maximum cows milked | |||||||||||||
| 3 months | cows |
202 |
(4) |
129 |
(5) |
171 |
(10) |
277 |
(12) |
214 |
(6) |
||
| Milk production per cow | |||||||||||||
| milked 3 months | litres |
5 600 |
(2) |
5 300 |
(4) |
5 800 |
(5) |
5 300 |
(5) |
6 700 |
(4) |
||
|
|||||||||||||
South Australia |
Gippsland |
Western Victoria |
Southern and Central NSW |
||||||||||
2007-08 |
2007-08 |
2007-08 |
2007-08 |
||||||||||
| Attitude to future of dairy industry: | |||||||||||||
| Very positive about future | % |
26 |
(40) |
11 |
(65) |
31 |
(44) |
24 |
(38) |
||||
| Fairly positive about future | % |
51 |
(19) |
60 |
(22) |
50 |
(34) |
52 |
(22) |
||||
| Neutral about future | % |
22 |
(41) |
26 |
(48) |
15 |
(73) |
10 |
(62) |
||||
| Fairly negative about future | % |
1 |
(93) |
0 |
0 |
14 |
(82) |
||||||
| Very negative about future | % |
0 |
3 |
(96) |
4 |
(129) |
0 |
||||||
|
|||||||||||||
| Expected milk production in 3 years`time (in 2010-11): | |||||||||||||
| Higher than 2007-08 | % |
47 |
(23) |
35 |
(28) |
67 |
(21) |
61 |
(19) |
||||
| Less than 2007-08 | % |
3 |
(62) |
2 |
(120) |
9 |
(39) |
3 |
(71) |
||||
| Around the same as 2007-08 | % |
39 |
(27) |
63 |
(15) |
23 |
(60) |
34 |
(33) |
||||
| Unlikely to be in dairying | % |
11 |
(51) |
0 |
0 |
2 |
(71) |
||||||
|
|||||||||||||
| Usage of grain, grain mixes and concentrates: | |||||||||||||
| Less than 0.5 tonnes per cow | % |
0 |
16 |
(74) |
20 |
(86) |
0 |
||||||
| 0.5 to 1.0 tonnes per cow | % |
5 |
(71) |
17 |
(63) |
14 |
(88) |
0 |
|||||
| 1.0 to 2.0 tonnes per cow | % |
31 |
(30) |
55 |
(24) |
65 |
(20) |
50 |
(23) |
||||
| More than 2.0 tonnes per cow | % |
37 |
(25) |
9 |
(49) |
1 |
(114) |
32 |
(26) |
||||
|
|||||||||||||
| Average grain, grain mixes and | |||||||||||||
| concentrates fed per cow | tonnes |
2.02 |
(5) |
1.16 |
(10) |
1.06 |
(18) |
1.85 |
(6) |
||||
|
|||||||||||||
| Calving pattern | |||||||||||||
| Seasonal | % |
14 |
(54) |
47 |
(28) |
69 |
(19) |
12 |
(89) |
||||
| Split | % |
25 |
(29) |
24 |
(32) |
20 |
(62) |
1 |
(85) |
||||
| Year round | % |
57 |
(17) |
29 |
(44) |
11 |
(36) |
87 |
(13) |
||||
| Other | % |
4 |
(66) |
0 |
0 |
0 |
|||||||
|
|||||||||||||
| Other | |||||||||||||
| Maximum cows milked 3 months | cows |
251 |
(6) |
228 |
(8) |
226 |
(10) |
194 |
(7) |
||||
| Milk production per cow milked 3 months | litres |
6 600 |
(5) |
5 100 |
(6) |
5 700 |
(4) |
6 100 |
(5) |
||||
| Note: Figures in parentheses are relative standard errors (RSE) and provide a guide to the reliability of survey estimates. | |||||||||||||
Farm cash income for Australian dairy farms in 2007-08 was $139 500 a farm on average; the highest average farm cash income recorded in the past 20 years and a large increase from $43 110 in the previous year (figure c). On average, there was a significant increase in total cash receipts per farm because of higher milk prices and increased milk production. However, the increase in total cash receipts was partly offset by an increase in total cash costs. The higher total cash costs per farm were because of increases in expenditure on major farm inputs including hay, feed grains, fertilisers, chemicals and fuel, resulting from higher input prices, together with increases in farm expenditure on repairs and maintenance. On average, total cash costs rose by 35 per cent a farm in 2007-08 (table 2).
In 2008-09, average farm cash income for dairy industry farms is projected to fall to around $74 000 a farm in response to lower manufacturing milk prices. Average farm-gate milk prices have fallen sharply in regions where milk is predominantly used for manufactured dairy products because of the decline in prices on international markets. Despite increased milk production in most states, average total cash receipts per farm are projected to fall by around 19 per cent in 2008-09 (tables 2 and 3, figure d).
Partly offsetting the reduction in total cash receipts, average total cash costs are projected to fall by around 9 per cent in 2008–09 because of lower hay and feed grain prices, together with lower interest rates. Despite increased availability of feed grains, particularly in eastern Australia, and improved on-farm pasture growth in some regions, overall expenditure by dairy farms on fodder is projected to remain relatively high (tables 2 and 3).
Water inflows and storage levels remained historically low in northern Victoria and southern New South Wales irrigation regions, and irrigated dairy farms in these regions continued to receive low allocations of water in 2008-09. This has left many farms critically dependent on purchased feed grains and hay which is exacerbating the effect of reductions in farm cash receipts in these regions in 2008-09.
|
|||||||
2006-07 |
2007-08 |
2008-09 |
|||||
|
|||||||
| Physical indicators | |||||||
| Area of land operated at 30 June | ha |
244 |
251 |
(5) |
251 |
||
| Dairy herd at 30 June | no. |
310 |
334 |
(4) |
342 |
||
| Maximum cows milked 3 months | no. |
190 |
202 |
(4) |
201 |
||
| Total labour weeks worked | wks |
132 |
136 |
(3) |
na |
||
| Milk production | L |
1 044 470 |
1 136 900 |
(4) |
1 171 000 |
||
| Milk production per cow milked 3 months | L |
5 500 |
5 600 |
(2) |
5 800 |
||
|
|||||||
| Financial performance | |||||||
| Cash receipts | |||||||
| Total milk receipts | $ |
334 920 |
538 100 |
(4) |
439 000 |
||
| Dairy cattle sales | $ |
31 730 |
29 800 |
(5) |
32 000 |
||
| Beef cattle sales | $ |
7 840 |
7 400 |
(20) |
6 000 |
||
| Total cash receipts | $ |
394 580 |
616 500 |
(4) |
507 000 |
||
|
|||||||
| Cash costs | |||||||
| Dairy cattle purchases | $ |
6 630 |
9 300 |
(18) |
7 000 |
||
| Hired labour | $ |
20 950 |
23 200 |
(7) |
22 000 |
||
| Fertiliser | $ |
22 580 |
35 600 |
(6) |
33 000 |
||
| Fodder | $ |
135 610 |
185 300 |
(5) |
166 000 |
||
| Fuel oil and lubricants | $ |
13 680 |
15 800 |
(6) |
15 000 |
||
| Electricity | $ |
8 830 |
10 100 |
(5) |
10 000 |
||
| Repairs and maintainance | $ |
22 510 |
34 600 |
(7) |
28 000 |
||
| Interest payments | $ |
32 690 |
44 800 |
(8) |
31 000 |
||
| Rent | $ |
6 070 |
8 800 |
(16) |
8 000 |
||
| Total cash costs | $ |
351 460 |
477 000 |
(4) |
433 000 |
||
|
|||||||
| Farm cash income | $ |
43 110 |
139 500 |
(8) |
74 000 |
||
| plus buildup of trading stocks | $ |
4 280 |
17 100 |
(19) |
9 000 |
||
| less depreciation | $ |
24 390 |
27 300 |
(4) |
28 000 |
||
| less owner manager and family labour | $ |
53 070 |
55 200 |
(5) |
61 000 |
||
| Farm business profit | $ |
–30 060 |
74 100 |
(16) |
–6 000 |
||
|
|||||||
| Rate of return | |||||||
| – excl. capital appreciation | % |
0.3 |
4 |
(9) |
1.2 |
||
| – incl. capital appreciation | % |
10.3 |
10.9 |
(9) |
na |
||
|
|||||||
| Total capital value a | $ |
3 206 040 |
3 476 500 |
(4) |
na |
||
| Farm debt at June 30 a | $ |
479 760 |
571 800 |
(7) |
na |
||
| Equity ratio at June 30 a | % |
85 |
84 |
(1) |
na |
||
| Net capital additions exc. land | $ |
39 920 |
68 100 |
(29) |
na |
||
| Liquid assets – incl. FMDs | $ |
na |
107 600 |
(14) |
na |
||
| Farm management deposits at June 30 | $ |
12 500 |
28 400 |
(28) |
na |
||
| Proportion of farms holding FMDs | % |
15 |
19 |
(23) |
na |
||
| Off-farm income | $ |
21 150 |
20 100 |
(10) |
na |
||
|
|||||||
| Estimated population | no. |
9 081 |
8 106 |
||||
| Sample population | no. |
291 |
297 |
||||
| a Average for farms responding to debt questions in the survey. na Not available. Note: Figures in parentheses are relative standard errors (RSE) and provide a guide to the reliability of survey estimates. |
|||||||
In 2008-09, farm cash income is projected to fall in most regions because of the combined effects of the continued high dependence on purchased fodder and lower milk prices. However, in southern and central New South Wales, Western Australia, Queensland and the north coast of New South Wales, farm cash income is projected to strengthen in 2008-09. This is because of some improvement in seasonal conditions which reduced the need for most producers to purchase fodder, resulting in farm cash costs to decrease by more than the decrease in receipts (table 3 and figure e).
|
|||||||||||||||
Queensland & Nth Coast NSW |
Nth Victoria and Riverina |
Tasmania |
Western Australia |
||||||||||||
 |
|
|
|
||||||||||||
2007-08 |
2008-09 |
2007-08 |
2008-09 |
2007-08 |
2008-09 |
2007-08 |
2008-09 |
||||||||
|
|||||||||||||||
| Physical indicators | |||||||||||||||
| Area of land operated at 30 June | ha |
277 |
(16) |
264 |
218 |
(15) |
232 |
304 |
(28) |
319 |
431 |
(9) |
416 |
||
| Dairy herd at 30 June | no. |
246 |
(4) |
243 |
285 |
(9) |
302 |
418 |
(10) |
411 |
487 |
(7) |
478 |
||
| Maximum cows milked 3 months | no. |
129 |
(5) |
125 |
171 |
(10) |
166 |
277 |
(12) |
285 |
214 |
(6) |
211 |
||
| Total labour weeks worked | wks |
138 |
(4) |
na |
121 |
(5) |
na |
147 |
(13) |
na |
159 |
(4) |
na |
||
| Milk production | L |
684 900 |
(5) |
708 200 |
995 400 |
(9) |
985 500 |
1 453 800 |
(12) |
1 568 700 |
1 441 200 |
(6) |
1 489 600 |
||
| Milk production per cow | |||||||||||||||
| milked 3 months | L |
5 300 |
(4) |
5 600 |
5 800 |
(5) |
5 900 |
5 300 |
(5) |
5 500 |
6 700 |
(4) |
7 100 |
||
|
|||||||||||||||
| Financial performance | |||||||||||||||
| Cash receipts | |||||||||||||||
| Total milk receipts | $ |
347 000 |
(5) |
350 100 |
482 400 |
(9) |
363 600 |
690 200 |
(12) |
561 500 |
573 500 |
(7) |
546 200 |
||
| Dairy cattle sales | $ |
20 800 |
(10) |
20 400 |
24 300 |
(9) |
41 100 |
34 000 |
(21) |
29 100 |
49 500 |
(10) |
42 300 |
||
| Beef cattle sales | $ |
8 100 |
(39) |
7 000 |
1 300 |
(72) |
4 000 |
30 600 |
(62) |
17 000 |
46 100 |
(27) |
38 000 |
||
| Total cash receipts | $ |
426 800 |
(5) |
406 600 |
579 800 |
(10) |
442 300 |
822 100 |
(12) |
700 600 |
698 700 |
(6) |
634 100 |
||
|
|||||||||||||||
| Cash costs | |||||||||||||||
| Dairy cattle purchases | $ |
7 800 |
(59) |
5 600 |
9 600 |
(37) |
6 300 |
24 700 |
(42) |
21 300 |
13 500 |
(41) |
700 |
||
| Hired labour | $ |
17 400 |
(15) |
17 400 |
18 400 |
(15) |
24 100 |
42 800 |
(19) |
35 100 |
34 500 |
(18) |
28 900 |
||
| Fertiliser | $ |
19 200 |
(12) |
18 300 |
12 800 |
(24) |
10 700 |
83 200 |
(17) |
89 200 |
57 900 |
(8) |
60 000 |
||
| Fodder | $ |
128 200 |
(7) |
117 100 |
228 900 |
(10) |
176 900 |
159 300 |
(15) |
152 700 |
170 600 |
(8) |
152 600 |
||
| Fuel oil and lubricants | $ |
14 200 |
(10) |
13 700 |
16 000 |
(17) |
14 900 |
14 400 |
(15) |
13 500 |
21 100 |
(10) |
21 100 |
||
| Electricity | $ |
8 700 |
(9) |
9 000 |
8 500 |
(12) |
9 000 |
21 100 |
(15) |
21 000 |
10 300 |
(12) |
10 000 |
||
| Repairs and maintainance | $ |
23 400 |
(10) |
19 200 |
31 500 |
(19) |
23 200 |
40 600 |
(15) |
37 200 |
37 900 |
(14) |
29 600 |
||
| Interest payments | $ |
24 100 |
(18) |
15 800 |
38 300 |
(13) |
26 100 |
70 200 |
(24) |
59 100 |
61 300 |
(15) |
44 600 |
||
| Rent | $ |
3 900 |
(30) |
3 600 |
5 200 |
(42) |
5 900 |
18 000 |
(80) |
19 400 |
9 300 |
(19) |
9 000 |
||
| Total cash costs | $ |
321 200 |
(6) |
290 900 |
513 500 |
(9) |
411 500 |
678 900 |
(14) |
592 800 |
572 900 |
(8) |
482 900 |
||
|
|||||||||||||||
| Farm cash income | $ |
105 600 |
(11) |
115 700 |
66 300 |
(34) |
30 900 |
143 200 |
(22) |
107 700 |
125 900 |
(18) |
151 300 |
||
| plus buildup of trading stocks | $ |
23 500 |
(29) |
7 000 |
15 400 |
(44) |
8 500 |
31 000 |
(52) |
3 300 |
32 400 |
(47) |
10 000 |
||
| less depreciation | $ |
23 800 |
(6) |
23 600 |
24 300 |
(12) |
27 200 |
35 300 |
(16) |
34 200 |
37 100 |
(8) |
33 800 |
||
| less owner manager and | |||||||||||||||
| family labour | $ |
61 500 |
(6) |
69 200 |
51 600 |
(6) |
56 000 |
46 800 |
(12) |
52 100 |
63 400 |
(4) |
70 300 |
||
| Farm business profit | $ |
43 800 |
(27) |
29 900 |
5 900 |
(408) |
– 43 900 |
92 100 |
(24) |
24 700 |
57 700 |
(45) |
57 200 |
||
|
|||||||||||||||
| Rate of return | |||||||||||||||
| – excl. cap. appreciation | % |
2.5 |
(17) |
1.9 |
2.1 |
(49) |
-0.5 |
4.3 |
(14) |
2.5 |
1.5 |
(18) |
1.4 |
||
| – incl. cap. appreciation | % |
8.1 |
(21) |
na |
4 |
(28) |
na |
14.1 |
(17) |
na |
8.9 |
(41) |
na |
||
|
|||||||||||||||
| Total capital value a | $ |
3 072 500 |
(7) |
na |
2 551 300 |
(13) |
na |
4 966 800 |
(13) |
na |
8 971 400 |
(10) |
na |
||
| Farm debt at June 30 a | $ |
305 400 |
(17) |
na |
500 600 |
(13) |
na |
958 200 |
(24) |
na |
670 800 |
(13) |
na |
||
| Equity ratio at June 30 a | % |
90 |
(2) |
na |
80 |
(4) |
na |
81 |
(4) |
na |
93 |
(1) |
na |
||
| Net capital additions exc. land | $ |
55 700 |
(32) |
na |
17 100 |
(52) |
na |
331 000 |
(49) |
na |
18 400 |
(626) |
na |
||
| Liquid assets – incl. FMDs | $ |
86 000 |
(19) |
na |
54 300 |
(45) |
na |
87 300 |
(20) |
na |
16 100 |
(55) |
na |
||
| Farm management deposits | |||||||||||||||
| at June 30 | $ |
7 200 |
(36) |
na |
14 000 |
(85) |
na |
24 000 |
(40) |
na |
na |
||||
| Proportion of farms holding FMDs | % |
9 |
(33) |
na |
16 |
(72) |
na |
12 |
(46) |
na |
na |
||||
| Off–farm income | $ |
17 300 |
(20) |
na |
22 700 |
(19) |
na |
18 200 |
(47) |
na |
10 900 |
(34) |
na |
||
|
|||||||||||||||
| Estimated population | no. |
907 |
2 220 |
455 |
226 |
||||||||||
| Sample population | no. |
58 |
47 |
31 |
32 |
||||||||||
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South Australia |
Gippsland |
Western Victoria |
Southern and Central NSW |
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|
|
|
|
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2007-08 |
2008-09 |
2007-08 |
2008-09 |
2007-08 |
2008-09 |
2007-08 |
2008-09 |
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| Physical indicators | |||||||||||||||
| Area of land operated at 30 June | ha |
601 |
(15) |
563 |
173 |
(11) |
174 |
219 |
(8) |
220 |
344 |
(14) |
306 |
||
| Dairy herd at 30 June | no. |
437 |
(6) |
458 |
333 |
(9) |
345 |
378 |
(8) |
388 |
350 |
(7) |
331 |
||
| Maximum cows milked 3 months | no. |
251 |
(6) |
248 |
228 |
(8) |
222 |
226 |
(10) |
238 |
194 |
(7) |
186 |
||
| Total labour weeks worked | wks |
184 |
(8) |
na |
124 |
(9) |
na |
148 |
(6) |
na |
158 |
(5) |
na |
||
| Milk production | L |
1 647 500 |
(6) |
1 713 400 |
1 171 700 |
(9) |
1 233 700 |
1 283 000 |
(9) |
1 327 900 |
1 187 300 |
(6) |
1 200 500 |
||
| Milk production per cow | |||||||||||||||
| milked 3 months | L |
6 600 |
(5) |
6 900 |
5 100 |
(6) |
5 600 |
5 700 |
(4) |
5 600 |
6 100 |
(5) |
6 400 |
||
|
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| Financial performance | |||||||||||||||
| Cash receipts | |||||||||||||||
| Total milk receipts | $ |
774 900 |
(6) |
607 100 |
538 700 |
(9) |
427 700 |
613 200 |
(10) |
482 300 |
558 500 |
(6) |
534 500 |
||
| Dairy cattle sales | $ |
61 800 |
(16) |
51 000 |
32 000 |
(14) |
30 300 |
27 600 |
(13) |
25 800 |
34 000 |
(13) |
28 900 |
||
| Beef cattle sales | $ |
20 100 |
(31) |
12 000 |
900 |
(76) |
1 000 |
8 200 |
(50) |
6 000 |
5 900 |
(35) |
8 000 |
||
| Total cash receipts | $ |
965 300 |
(5) |
752 100 |
601 800 |
(9) |
474 000 |
674 500 |
(9) |
530 900 |
650 000 |
(6) |
587 400 |
||
|
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| Cash costs | |||||||||||||||
| Dairy cattle purchases | $ |
11 000 |
(34) |
7 700 |
1 900 |
(30) |
2 400 |
13 000 |
(42) |
12 300 |
7 900 |
(41) |
7 700 |
||
| Hired labour | $ |
47 700 |
(15) |
38 900 |
19 300 |
(25) |
20 500 |
22 700 |
(20) |
17 800 |
28 200 |
(17) |
20 200 |
||
| Fertiliser | $ |
40 800 |
(12) |
37 100 |
42 100 |
(13) |
37 400 |
54 300 |
(11) |
47 000 |
27 500 |
(15) |
35 500 |
||
| Fodder | $ |
310 400 |
(8) |
264 500 |
160 800 |
(14) |
167 000 |
156 800 |
(14) |
154 000 |
206 100 |
(7) |
184 500 |
||
| Fuel oil and lubricants | $ |
27 100 |
(16) |
24 300 |
14 000 |
(16) |
12 400 |
15 100 |
(9) |
14 600 |
16 600 |
(12) |
14 200 |
||
| Electricity | $ |
16 100 |
(10) |
17 000 |
9 600 |
(14) |
11 000 |
7 600 |
(8) |
8 000 |
15 000 |
(9) |
13 000 |
||
| Repairs and maintainance | $ |
48 600 |
(9) |
45 600 |
30 600 |
(19) |
22 900 |
43 900 |
(13) |
33 500 |
35 200 |
(10) |
36 000 |
||
| Interest payments | $ |
73 600 |
(14) |
55 600 |
37 900 |
(21) |
25 400 |
57 800 |
(19) |
39 100 |
42 100 |
(15) |
26 600 |
||
| Rent | $ |
9 800 |
(37) |
6 700 |
14 900 |
(27) |
10 900 |
6 900 |
(28) |
6 300 |
8 000 |
(32) |
8 500 |
||
| Total cash costs | $ |
762 400 |
(6) |
656 700 |
467 800 |
(10) |
400 100 |
570 200 |
(11) |
467 500 |
528 300 |
(7) |
451 700 |
||
|
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| Farm cash income | $ |
202 900 |
(15) |
95 400 |
134 000 |
(17) |
74 000 |
104 300 |
(27) |
63 500 |
121 800 |
(16) |
135 800 |
||
| plus buildup of trading stocks | $ |
–1 500 |
(729) |
13 400 |
4 100 |
(228) |
8 900 |
34 700 |
(20) |
8 000 |
37 100 |
(23) |
16 600 |
||
| less depreciation | $ |
47 400 |
(7) |
47 100 |
27 400 |
(9) |
25 800 |
25 600 |
(10) |
25 700 |
35 100 |
(9) |
31 100 |
||
| less owner manager and | |||||||||||||||
| family labour | $ |
66 000 |
(10) |
70 400 |
52 700 |
(9) |
58 100 |
56 200 |
(19) |
62 300 |
62 000 |
(7) |
66 800 |
||
| Farm business profit | $ |
87 900 |
(35) |
– 8 700 |
58 000 |
(42) |
– 1 000 |
57 100 |
(42) |
– 16 500 |
61 700 |
(34) |
54 400 |
||
|
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| Rate of return | |||||||||||||||
| –excl. cap. appreciation | % |
4.1 |
(15) |
1.7 |
4 |
(22) |
1.4 |
3.7 |
(16) |
0.9 |
2.3 |
(28) |
2.4 |
||
| –incl. cap. appreciation | % |
5.2 |
(36) |
na |
14.3 |
(22) |
na |
16 |
(24) |
na |
3.1 |
(30) |
na |
||
|
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| Total capital value a | $ |
4 402 600 |
(7) |
na |
3 117 200 |
(8) |
na |
3 854 200 |
(9) |
na |
5 015 500 |
(18) |
na |
||
| Farm debt at June 30 a | $ |
850 000 |
(12) |
na |
479 600 |
(22) |
na |
733 500 |
(15) |
na |
509 300 |
(15) |
na |
||
| Equity ratio at June 30 a | % |
81 |
(3) |
na |
85 |
(3) |
na |
81 |
(4) |
na |
90 |
(2) |
na |
||
| Net capital additions exc. land | $ |
132 000 |
(34) |
na |
55 400 |
(50) |
na |
79 300 |
(97) |
na |
37 200 |
(148) |
na |
||
| Liquid assets –incl. FMDs | $ |
96 400 |
(24) |
na |
203 900 |
(28) |
na |
70 600 |
(17) |
na |
170 100 |
(18) |
na |
||
| Farm management deposits | |||||||||||||||
| at June 30 | $ |
24 200 |
(49) |
na |
84 300 |
(38) |
na |
8 500 |
(62) |
na |
19 100 |
(54) |
na |
||
| Proportion of farms holding FMDs | % |
21 |
(40) |
na |
42 |
(30) |
na |
10 |
(69) |
na |
12 |
(53) |
na |
||
| Off–farm income | $ |
21 000 |
(18) |
na |
23 900 |
(25) |
na |
16 800 |
(25) |
na |
16 400 |
(18) |
na |
||
|
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| Estimated population | no. |
368 |
1 761 |
1 596 |
573 |
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| Sample population | no. |
35 |
27 |
27 |
40 |
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| a Average for farms responding to debt questions in the survey. na Not available. ns Not supplied rse exceeds 999 Note: Figures in parentheses are relative standard errors (RSE) and provide a guide to the reliability of survey estimates. |
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|
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2006-07 |
2007-08 |
|||
% |
% |
|||
| Farms with equity ratio above 70 per cent | ||||
| Positive income | 59 |
78 |
||
| Negative income | 22 |
5 |
||
|
||||
| Farms with equity ratio below 70 per cent | ||||
| Positive income | 9 |
14 |
||
| Negative income | 10 |
3 |
||
Farm business equity remained strong for dairy farms in 2007-08 and debt servicing capacity (figure f) improved. The proportion of dairy farms estimated to have a farm business equity ratio of greater than 70 per cent increased only marginally from 81 per cent in 2006-07 to 83 per cent in 2007-08 and the proportion of these farms recording negative farm cash incomes declined from 22 per cent in 2006-07 to 5 per cent in 2007-08. The proportion of farms estimated to have a farm business equity ratio of less than 70 per cent declined from 19 per cent in 2006-07 to 17 per cent in 2007-08 and the proportion of these farms recording negative farm cash incomes declined from 10 per cent to 3 per cent (table 4).