An overview of food and fibre industries for Boonah and ...

An overview of food and fibre industries for

Boonah and Beaudesert Shires

Food and Fibre Futures Project

March 2007

An overview of food and fibre industries for Boonah and Beaudesert Shires

March 2007

Food and Fibre Futures Project

Produced by: Industry Development and Trade Department of Primary Industries and Fisheries GPO Box 46 Brisbane Queensland 4001 Australia

Author: John Switala Principal Industry Development Officer Food and Fibre Futures Project Industry Development and Trade.

Project Manager: Jason Keating Food and Fibre Futures Project Industry Development and Trade.

The Department of Primary Industries and Fisheries (DPI&F) seeks to maximise the economic potential of Queensland’s primary industries on a sustainable basis.

© The State of Queensland, Department of Primary Industries and Fisheries, 2009.

Except as permitted by the Copyright Act 1968, no part of the work may in any form or by any electronic, mechanical, photocopying, recording, or any other means be reproduced, stored in a retrieval system or be broadcast or transmitted without the prior written permission of DPI&F. The information contained herein is subject to change without notice. The copyright owner shall not be liable for technical or other errors or omissions contained herein. The reader/user accepts all risks and responsibility for losses, damages, costs and other consequences resulting directly or indirectly from using this information.

Enquiries about reproduction, including downloading or printing the web version, should be directed to [email protected] or telephone +61 7 3225 1398.

PR08–4017

iiiFood and Fibre Futures Project, Department of Primary Industries and Fisheries

ContentsForeword v

Summary vi

Introduction 1

Methodology 1

Moreton statistical division 2

Boonah Shire 4

Beaudesert Shire 12

Overview of Queensland’s beef, dairy, fruit and vegetable industries 19

Forecasts for food and fibre industries in Queensland 20

References 22

List of figuresFigure 1. Agriculture in Moreton in 2000–01 based on value of production 2

Figure 2. Agriculture in Queensland in 2000–01 based on value of production 3

Figure 3. Food and fibre industries in Boonah Shire in 2000–01 based on value 4 of production

Figure 4. Breakdown on the number of food and fibre businesses by industry 9 in Boonah as at 2000–01

Figure 5. Breakdown on the number of food and fibre businesses by value of 9 production in Boonah as at 2000–01

Figure 6. Breakdown on the number of dairy businesses by annual value of 10 production in Boonah as at 2000–01

Figure 7. Breakdown on the number of vegetable growing businesses by annual 11 value of production in Boonah as at 2000–01

Figure 8. Breakdown on the number of beef businesses by annual value of 11 production in Boonah as at 2000–01

Figure 9. Proportion of food and fibre industries in Beaudesert Shire in 2000–01 12 based on value of production

Figure 10. Breakdown of food and fibre industries in Beaudesert Shire in 2000–01 16 based on numbers of businesses

Figure 11. Breakdown of food and fibre industries in Beaudesert Shire in 2000–01 17 based on value of production

iv Food and Fibre Futures Project, Department of Primary Industries and Fisheries

Figure 12. Breakdown of plant nurseries in Beaudesert Shire in 2000–01 based 17 on value of production

Figure 13. Breakdown of dairies in Beaudesert Shire in 2000–01 based on value 18 of production

Figure 14. Volume matrix for key Queensland industries 20

List of tablesTable 1. Significance of agriculture in Queensland in 2000–01 2

Table 2. Value of agriculture for each local government area in the Moreton 3 statistical division in 2000–01

Table 3. Significance of agriculture in Boonah Shire in 2000–01 4

Table 4. Key agricultural activities in Boonah Shire in 2000–01 5

Table 5. Areas irrigated in Boonah Shire in 2000–01 7

Table 6. Number and distribution of food and fibre businesses operating in 8 Boonah Shire in 2000–01

Table 7. Value of agriculture in Beaudesert Shire in 2000–01 12

Table 8. Key agricultural activities in Beaudesert Shire in 2000–01 13

Table 9. Number and distribution of food and fibre businesses operating in 15 Beaudesert Shire in 2000–01

Table 10. Volume of production index for Queensland industries 19

Table 11. Forecast average annual employment growth rates for Moreton 21 statistical division, 2005–06 to 2013–14

vFood and Fibre Futures Project, Department of Primary Industries and Fisheries

Foreword

Upon the announcement of the proposed Wyaralong Dam, both Boonah and Beaudesert Shires attracted substantial stakeholder interest. Much of this interest was directed to agriculture (a key sector for both of these shires) and initial speculation centred upon direct and indirect impacts for their agricultural sector.

This initial discussion paper seeks to provide a background on agriculture, and the statistics available. Subsequent studies and consultancies may be able to use this paper to improve knowledge of agriculture and the region, and value add on the statistics and information contained here.

The information presented in this publication has been collected from many sources, and has been referenced accordingly to allow further, more detailed investigation if required.

We hope this paper helps understanding of the significance and diversity of agriculture within this region.

Sue Ryan Assistant Director-General Industry Development and Trade Department of Primary Industries and Fisheries

vi Food and Fibre Futures Project, Department of Primary Industries and Fisheries

Summary

Census statistics from Australian Bureau of Statistics (ABS) indicate that the Boonah/Beaudesert area is a significant and diversified food and fibre producing region.

The latest statistics from ABS (2000–01) indicate that Boonah generated $67 million of production (at the farm gate). Boonah’s food and fibre industries are dominated by livestock slaughtering (57.4%—mainly beef), livestock products (11.9%—mainly milk), and vegetables (21.6%).

Beaudesert Shire is also a significant food and fibre producing region, with $76 million of food and fibre produce in 2000–01. However, the region is predominantly based on livestock meat industries (57.5%—predominantly beef, but also poultry) and livestock products (24.8%—mainly milk).

Anecdotal evidence indicates that subsequent to 2000–01, restructuring (as a result of deregulation, markets, and the ongoing cost–price squeeze within food and fibre sector) and ongoing drought within the livestock and cropping industries (particularly dairy) has impacted farming and irrigation practices. The availability of revised food and fibre production statistics for 2005–06 (2008) will help identify changes that have occurred to date.

1Food and Fibre Futures Project, Department of Primary Industries and Fisheries

Introduction

This report examines the significance of food and fibre industries1 within Boonah and Beaudesert Shires.

The proposed Wyaralong Dam will reside predominantly within Boonah (with the dam wall and outflow flowing into Beaudesert Shire). Although the proposed Wyaralong Dam capacity is entirely for urban use, Wyaralong’s development may offer opportunities for improved rural supplies from other dams located within the region.

This report is a synopsis of published and unpublished data relating to food and fibre industries within the region. Of interest are historical production rates for food and fibre industries, along with emerging trends over more recent years. These trends provide some insights into future opportunities and likely food and fibre activities particularly suited to the Boonah/Beaudesert areas.

Methodology

The geographic scope of analysis for this study has been defined by the availability of reliable statistics for food and fibre industries. The development of Wyaralong Dam is located within the shires of Boonah and Beaudesert. The smallest geographical context in which reliable food and fibre statistics are available is at the local government area (shire) level; hence this report focuses on Boonah and Beaudesert Shires.

This report primarily presents secondary data from published and unpublished sources, particularly the Australian Bureau of Statistics (ABS). The most recent statistics at the time of this publication release are databases from the 2000–01 ABS census. Information from 2005–06 ABS census will be made available in 2008. In conjunction with 2000–01 census statistics, 1996–97 census data are used in this report for trend analysis.

1 The term ‘food and fibre industries’ covers the production, harvesting, processing and marketing of food, fibre and lifestyle products and services, including those from fisheries and forestry. It includes all participants in related horizontal and vertical supply chains, the growing knowledge base inherent in these activities, and knowledge-based industries that stem from this knowledge.

2 Food and Fibre Futures Project, Department of Primary Industries and Fisheries

Moreton statistical division

The Moreton region is a valuable food and fibre producing industries region as indicated in Table 1 below.

Table 1. Significance of agriculture in Queensland in 2000–01

Moreton Queensland

Total value of crops ($) $335 340 000 $3 391 171 700

Total value of livestock slaughterings ($) $214 698 000 $3 368 412 900

Total value of livestock products ($) $75 590 000 $490 290 600

Total value of agriculture ($) $625 628 000 $7 249 875 300

Source: DPI&F Calculations using ABS AgStats

As indicated in Table 1 above, the Moreton statistical division produced approximately $335 million worth of cropping (vegetables, fruit and broadacre field cropping) and $290 million worth of livestock (beef, dairy and pork) in 2000–01 (latest reliable statistics available). Using the figures presented in Table 1, the Moreton statistical division produced approximately 9% of total food and fibre production in Queensland in 2000–01.

Figure 1 below provides a graphical overview of the cropping and livestock interface within the Moreton statistical division.

Figure 1. Agriculture in Moreton in 2000–01 based on value of production

Total value of crops 54%

Total value of livestock slaughterings

34%

Total value of livestock products

12%

Source: DPI&F calculations using ABS AgStats

The Moreton statistical division is acknowledged as a major producer of livestock products (beef, dairy and poultry) and cropping activities (Figure 1) (fruit, vegetables, and field crops including grains, oils and fodder crops).


Also of interest is the comparison of food and fibre composition between the Moreton statistical division (Figure 1) and the state of Queensland (Figure 2).

Figure 2. Agriculture in Queensland in 2000–01 based on value of production

Livestock products 7%

Livestock slaughterings46% Crops

47%


Table 2 below highlights a number of key local government areas within Moreton engaged in food and fibre production. Both Boonah ($67 million agricultural production, 10.8% of total agricultural production within Moreton statistical division) and Beaudesert ($75 million, 12.1% of Moreton) are significant food and fibre production regions.

Table 2. Agriculture for each local government area in the Moreton statistical division in 2000–01

Area Total value of agriculture ($) % of Moreton

Beaudesert $75 925 000 12.1%

Boonah $67 360 000 10.8%

Caboolture $18 672 000 3.0%

Caloundra $93 023 000 14.9%

Esk $96 403 000 15.4%

Gatton $98 019 000 15.7%

Ipswich $20 680 000 3.3%

Kilcoy $11 516 000 1.8%

Laidley $56 041 000 9.0%

Maroochy $49 508 000 7.9%

Other $38 481 000 6.2%

Total $625 628 000 100%

Source: DPI&F calculations using ABS AgStats.


Boonah Shire

Wyaralong Dam will predominantly be located within Boonah Shire. Other shires partially affected include Beaudesert Shire.

A wide array of food and fibre production activities (both irrigated and non-irrigated) are pursued within Boonah Shire. As indicated in Table 3 below, agricultural production in 2000–01 was valued at over $67 million per annum (latest reliable statistics available relating to agriculture), involving 135 000 hectares of farmland. Cropping activities are valued at approximately $20 million, while livestock is valued at over $46 million.

Table 3. Significance of agriculture in Boonah Shire in 2000–01

Total area of holding 135 321 ha

Total value of fruit $35 000

Total value of vegetables $14 578 000

Total value of other crops $6 027 000

Total value of livestock slaughterings $38 688 000

Total value of livestock products $8 032 000

Total value of agriculture $67 360 000


Figure 3 below illustrates the breakdown in value of food and fibre industries in Boonah Shire in 2000–01. Livestock slaughterings features heavily (57.4%) for Boonah, against 46% (value of livestock slaughterings as a proportion of total food and fibre production) for Moreton statistical division.

Figure 3. Food and fibre industries in Boonah Shire in 2000–01 based on value of production

Vegetables21.6%

Fruit0.1%Livestock products

11.9%

Other crops8.9%Livestock slaughterings

57.4%



A significant vegetable industry exists, representing 21.6% of all production value.

More detailed insights into food and fibre production within Boonah Shire can be obtained from Table 4 below. Boonah is home to a wide range of cropping and livestock activities, reflecting the suitability of the region to food and fibre production.

Table 4. Key agricultural activities in Boonah Shire in 2000–01

Commodity Number of farms

Hectares Production (t)

Farm gate value ($)

Pure lucerne cut for hay 133 1660 15 616 $3 141 000

Wheat for grain 6 541 672 $156 000

Barley for grain 30 335 501 $85 000

Sorghum for grain (2001 harvest) 20 297 1054 $154 000

Maize for grain (2001 harvest) 22 211 1068 $198 000

Millet for grain (incl. panicum and canary seed)

4 or less 54 490 $202 000

Mung and other field beans 15 129 253 $44 000

Soybeans 46 614 1148 $531 000

Legumes for grain 17 211 332 $120 000

Nurseries cut flowers and cultivated turf

6 7 $400 000

Potatoes 20 245 4369 $1 765 000

French and runner beans (kg) 10 331 2 039 411 $4 358 000

Beetroot 5 81 2336 $533 000

Brussels sprouts and cabbages 4 or less 7 272 $148 000

Chinese cabbage (incl. bok choy and wong bok) (kg)

4 or less 24 1 014 171 $680 000

Carrots 14 58 8044 $4 800 000

Cauliflower 4 or less 15 188 $87 000

Marrows squashes and zucchinis (kg)

4 or less 2 7259 $11 000

Melons—watermelons 15 51 646 $302 000

Onions—spring (incl. shallots) (kg)

6 6 55 282 $137 000

Onions—white and brown 10 35 1164 $711 000

Parsnips 4 or less 2 36 $88 000

Peas—snow (kg) 4 or less 4 1841 $12 000


Commodity Number of farms

Hectares Production (t)

Farm gate value ($)

Pumpkins, triambles and trombones etc.

30 173 1759 $723 000

Sweet corn 4 or less 4 14 $13 000

Tomatoes 5 8 17 $22 000

Swedes 4 or less 3 7 $13 000

Macadamia (tree numbers and kg) 4 or less 1106 10 197 $24 000

Dairy cows (cow numbers and milk produced for sale (litres)

50 9375 24 931 609 $7 649 000

Meat cattle at 30 June (total number, number of sales and value of slaughter)

376 47 820 52 778 $36 222 000

Pigs (total number, number of sales, and value of slaughter)

13 2839 6156 $1 049 000

Meat chicken (total number, number of sales, and value of slaughter)

4 or less 131 425 584 749 $1 409 000

Eggs produced for human consumption—year ended 30 June—number (doz.)

4 or less NA 187 317 $285 000

Source: DPI&F calculations using ABS AgStats Note: Values rounded to nearest $1000 NA—Not available

Key industries identified in Table 4 include beef production ($36.2 million), milk ($7.6 million), carrots ($4.8 million), French and runner beans ($4.4 million), potatoes ($1.8 million), poultry ($1.7 million) and pork ($1 million).

Irrigation is crucial to Boonah Shire’s food and fibre industries. Table 5 on the following page provides an overview of irrigation usage in 2000–01 by activity.

Table 4. (cont.)


Table 5. Areas irrigated in Boonah in 2000–01

CommodityIrrigation area

(ha)Number of farms

Irrigation—cereals 548 33

Irrigation—vegetables for human consumption 1164 53

Irrigation—fruit (incl. nuts) 37 4 or less

Irrigation—other crops (incl. nurseries cut flowers and cultivated turf but excl. cotton)

261 23

Irrigation—rice 13 4 or less

Irrigation—other cereals 535 32

Irrigation—pastures (native or sown) 3259 133

Irrigation—total area reported 5454 179

Irrigation—total area irrigated 5268 181


Table 6 on the following page provides an overview of the number of food and fibre businesses within Boonah Shire in 2000–01. Of the 464 recorded farmers, there are approximately 290 involved in beef production. Other key food and fibre industries are dairy (59) and vegetable growing (41).


Tabl

e 6.

Num

ber a

nd d

istr

ibut

ion

of fo

od a

nd fi

bre

busi

ness

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pera

ting

in B

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h Sh

ire in

200

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ss th

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$200

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69

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21

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593

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290

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Figure 4. Breakdown on the number of food and fibre businesses by industry in Boonah as at 2000–01

Dairy cattle farming12.7%

Horse farming3.4%

Crop, plant and grain growing (nec)

6.2%

Other3.7% Vegetable growing

8.8%

Grain/beef cattle farming2.8%

Beef cattle farming62.4%


Of interest is the fact that 62% of all food and fibre businesses (Figure 4) (plus 2.8% grain/beef producers) are involved in beef production. The second largest group of producers are in dairy (12.7%), followed by vegetable farming (8.8%) and cropping (6.2%) (lucerne/fodder/grains).

Table 6 also highlights the fact that many food and fibre business are small operations (part-time operations or hobby farms). Approximately 160 of the 464 food and fibre businesses produced less than $22 500 turnover in 2000–01 (34% in Figure 5 below), while another 130 (28%) produced between $25 000 and $50 000 worth of food and fibre products (gross turnover, not income). The fact that 62% of all farmers in Boonah produce less than $50 000 primary production may indicate a diverse farming region with characteristics of a peri-urban landscape.

Figure 5. Breakdown on the number of food and fibre businesses by value of production in Boonah as at 2000–01

Over $100 000 pa22%

$50 000 pa to less than $100 000 pa

16%


28%

Less than $22 500 pa34%



By examining Table 6, some conclusions can be drawn regarding those industries with limited potential to gain significant commercial sizes of production due to physical constrains (availability of land at a relatively low cost, availability of irrigation water at a relatively low cost and climate), lack of markets, lack of supporting processing/infrastructure, poor economics (low profitability) or lack of access to capital. These industries are highlighted in Table 6 as those with a very high proportion of businesses earning less than $22 500 (e.g. horse farming, fruit growing, beef cattle farming and grain growing).

Note that there may be some exceptions supporting food and fibre industries with low values of gross production:

• newfarmbusinessintheinitialstagesofdevelopingproductioncapacity• newfarmbusinessengagedinafoodandfibreindustrythatisintheembryonicstage

of growth • farmbusinessoperatedonapart-timebasis(farmerisengagedinoff-farmincome)• farmbusinessoperatedasalifestyleactivity(notnecessarilyfocusedongeneratingincomeasa

primarily focus)• farmbusinessthatvalueaddstoitsprimaryproduce(andthereforeitsproductionisstatistically

recorded within confines of ‘manufacturing’ output for the region, and not necessary associated with farm).

Figure 6 highlights the breakdown of dairy operations within Boonah. Over 50% of all dairy farms turned over $150 000 worth of production (milk) in 2000–01. Less than 7% of dairy farms produced less than $50 000 worth of dairy production.

Figure 6. Breakdown on the number of dairy businesses by annual value of production in Boonah as at 2000–01

Over $350 000 pa11.9%

Less than $50 000 pa6.8%

$200 000 pa to $350 000 pa22.0%

$150 000 pa to $200 000 pa16.9%

$100 000 pa to $150 000 pa20.3%

$50 000 pa to $100 000 pa22.0%


Figure 7 highlights the breakdown of Vegetable growing operations within Boonah. In comparison to dairy (see Figure 6 above), the distribution of vegetable farms according to value of production is evenly spread across income groups. In fact, a significant proportion of vegetable farms (22%) produce over $500 000 annually.


Figure 7. Breakdown on the number of vegetable growing businesses by annual value of production in Boonah as at 2000–01

Over $500 000 pa22.0%

$22 500 pa to $50 000 pa14.6%


$150 000 pa to $500 000 pa19.5%

$100 000 pa to $150 000 pa17.1%

$50 000 pa to $100 000 pa22.0%


Figure 8 highlights the breakdown of cattle/beef operations within Boonah. In comparison to dairy and vegetable production (see Figures 6 and 7 above), the distribution of beef farms is skewed towards small operators.

Figure 8. Breakdown on the number of beef businesses by annual value of production in Boonah as at 2000–01

$50 000 pa to $100 000 pa13%

Less than $22 500 pa47%

$22 500 pa to $50 000 pa32%

Over $100 000 pa8%



Beaudesert Shire

Beaudesert Shire adjoins Boonah Shire. A number of food and fibre producers within Beaudesert Shire rely on irrigation water supplies originating from Boonah Shire.

As with Boonah Shire, Beaudesert Shire undertakes a range of livestock and cropping activities (as indicated in Table 7 below). Food and fibre production in 2000–01 was valued at approximately $76 million per annum (latest reliable statistics available relating to farm gate production), involving 734 000 hectares of farmland. Cropping activities are valued at approximately $13 million, while livestock (predominantly beef, poultry and milk) is valued at $62 million.

Table 7. Value of agriculture in Beaudesert in 2000–01*

Total area of holding 737 903 ha

Total value of fruit $3 785 000

Total value of vegetables $1 304 000

Total value of other crops $8 349 000


Total value of livestock products (mainly milk) $18 865 000


Source: DPI&F calculations using ABS AgStats *Relating only to Beaudesert Part B (main rural area)

As indicated in Figure 9 below, Beaudesert Shire’s food and fibre industries are diversified (incorporating livestock and cropping activities).

Figure 9. Proportion of food and fibre industries in Beaudesert Shire in 2000–01 based on value of production

Total value of vegetables1.7%

Total value of fruit5.0%

Total value of other crops11.0%

Total value of livestock slaughterings

57.5%

Total value of livestock products

(mainly milk)24.8%



Table 8 below provides greater insight into food and fibre industries within Beaudesert.

Key activities during 2000–01 include beef ($25.2 million), milk ($18.5 million), poultry meat ($17 million), turf ($3.2 million), avocado ($3.1 million) and lucerne hay ($1.2 million).

Table 8. Key agricultural activities in Beaudesert Shire in 2000–01

Commodity 2000–01 value ($)

Pure lucerne pastures cut for hay $1 230 000

Other pastures cut for hay $1 009 000

Wheat for grain $136 000

Barley for grain $11 000

Sorghum for grain $56 000

Maize for grain $157 000

Cereals cut for hay $87 000

Soybeans $279 000

Sugar cane $175 000

Cultivated turf $3 240 000

Nurseries $925 000

Cut flowers $281 000

Nurseries and flowers and turf $4 446 000

Potatoes for seed $56 000

All other vegetables for seed $264 000

Potatoes $26 000

Capsicums, chillies and peppers $94 000

Carrots $76 000

Cauliflowers $24 000

Cucumbers $43 000

Zucchini $137 000

Melons (watermelons) $12 000

Mushrooms $291 000

Pumpkins, triambles and trombones etc. $130 000

Tomatoes $83 000

Total vegetables $1 304 000

Avocados $3 139 000

Stone fruit $31 000

Orchard fruit (other) $82 000


Commodity 2000–01 value ($)

Kiwi fruit $498 000

Wool $283 000

Milk $18 541 000

Sheep and lambs slaughtered $80 000

Cattle and calves slaughtered $25 283 000

Pigs slaughtered $1 239 000

Other livestock slaughtered (nec) $10 000

Poultry slaughtered $17 010 000

Honey and Beeswax $40 000

Total value of fruit $3 785 000

Total value of crops $13 438 000


Total value of livestock products $18 865 000


Source: DPI&F calculations using ABS AgStats Note: Only food and fibre industries with a value over $10 000 have been included in the table above nec—Not elsewhere considered

Table 9 on the following page highlights that approximately 590 food and fibre businesses operated within Beaudesert Shire in 2000–01.

Table 8. (cont.)


Tabl

e 9.

Num

ber a

nd d

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ion

of fo

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ness

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in B

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cat

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287

4016

134

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262

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30

914

1635

148

10

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farm

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(mea

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Figure 10 below highlights the distribution of food and fibre businesses based on industry (number of farmers pursuing a particular activity). Within Beaudesert, 44% of farms are engaged in beef production, while 17% are in dairying and a further 11% are engaged in fruit growing.

Figure 10. Breakdown of food and fibre industries in Beaudesert Shire in 2000–01 based on numbers of businesses

Poultry farming(meat)5.1%

Horse farming4.9%

Other6.3%

Flower8.5%

Fruit growing11.0%

Vegetable growing2.7%

Dairy cattle farming17.0%

Beef cattle farming44.5%


Figure 11 on the following page highlights the distribution of food and fibre businesses based on value of production. Within Beaudesert, 27.5% of farms produce less than $22 500 per annum another 24.2% produce between $25 000 and $50 000 per annum (a total of over 50% of all farms turn over less than $50 000 per annum).

On the other hand, there are a number of large-scale production units within Beaudesert Shire. Over 10% of total farm numbers produced over $350 000 of produce in 2000–01.


Figure 11. Breakdown of food and fibre industries in Beaudesert Shire in 2000–01 based on value of production

Over $350 000 pa10.7%

$150 000 pa to $350 000 pa15.1%



24.4%

$50 000 pa to $150 000 pa22.2%


Figure 12 below highlights the distribution of plant nurseries within Beaudesert by value of production. Within Beaudesert Shire, more than one quarter (27.9%) of all nurseries produced less than $50 000 worth of product in 2000 –01.

On the other hand, there are a number of large scale production units within Beaudesert. Over 20% of plant nurseries produced over $350 000 produce in 2000/01.

Figure 12. Breakdown of plant nurseries in Beaudesert Shire in 2000–01 based on value of production

Over $350 000 pa20.9%


$150 000 pa to $350 000 pa14.0%

$50 000 pa to $150 000 pa37.2%


Figure 13 on the following page highlights the distribution of dairies within Beaudesert Shire by value of production. Within the Beaudesert Shire, more than half (51%) of all farms produced between $150 000 and $350 000 worth of product in 2000–01.


Figure 13. Breakdown of dairies in Beaudesert Shire in 2000–01 based on value of production

$150 000 pa to less than $350 000 pa

51.0%


Over $350 000 pa23.0%

$50 000 pa to $150 000 pa23.0%



Overview of Queensland’s beef, dairy, fruit and vegetable industries

The key industries for Boonah and Beaudesert Shires are beef, dairy, fruit and vegetables. At the state level, the prospect for each of these is varied.

The Australian dairy industry underwent substantial restructuring in the past six years as a result of deregulation, and anecdotal information indicates that a number of small family dairy operations have ceased production (while on the other hand some other dairies have increased capacity substantially).

As indicated below in Table 10, Queensland milk production has been in decline since 1999–2000, as deregulation brought about dramatic declines to farm gate milk prices, continued drought forcing feed rations prices higher, and limited irrigation water supplies reducing pasture production. Queensland milk production in 2005–06 has declined by more than 30% since 1999–2000 (in volume terms), and continues to exhibit a declining trend in production.

On the other hand, beef, fruit and vegetables have grown strongly in recent years (as indicated in Table 10 below). Fruit production is 86% higher in 2005–06 than in 1996–97. Likewise, vegetable production is 21% higher in volume terms, while beef is 32% higher.

Table 10. Volume of production index for Queensland industries

Volume index

1996– 97

1997– 98

1998– 99

1999– 2000

2000– 01

2001– 02

2002– 03

2003– 04

2004– 05

2005– 06

Beef 100 115 125 130 140 133 136 131 135 132

Milk 100 103 104 106 95 93 90 85 77 73

Fruit 100 112 108 128 159 151 151 158 187 186

Vegetable 100 96 96 100 104 108 98 127 125 121

Source: DPI&F 2005A

When examining the figures in Table 10 above, we should be mindful that overall industry production in volume terms will be dictated by a number of factors other than prices and markets. For example, the ongoing drought in recent years has substantially restricted the beef industry’s capacity to respond to ongoing high prices.

Figure 14 on the following page provides a graphical presentation of the numbers in Table 10 above. For the four industries depicted, a value of 100 is assigned to 1996–97 volume production. The fruit industry has clearly expanded substantially, while the beef and vegetable industries have expanded more marginally. However, the Queensland dairy industry has clearly declined.


Figure 14. Volume matrix for key Queensland industries

1996–971997–981998–991999–002000–012001–022002–032003–042004–052005–06

20018016014012010080604020

0Beef Milk Fruit Vegetable

Source: DPI&F 2005

Forecasts for food and fibre industries in Queensland

Monash University, through the use of in-house economic models, annually provides seven-year forecasts for the Australian economy (broken down to key industries and regions/statistical divisions across Australia). This information is made commercially available to paying subscribers within industry and government (the Queensland Government subscribes through the Office of Economic and Statistical Research, Queensland Treasury).

The latest Monash University release was the December 2005 modelling simulation (distributed in March 2006). Output from the model depicted a forecast period for 2004–05 to 2012–13.

The key forecast average annual growth rate for Queensland is 4.1% per annum up to 2012–13, which is above that forecast for Australia as a whole of 3.24% per annum.

The industry expected to experience the highest output growth is the mining sector growing at an average annual growth rate of 5.6% per annum, followed by finance and insurance services at 5.3% per annum. Agriculture, forestry and fishing is forecast to grow at 3.2% per annum, being below the state’s average growth rate of 4.1% per annum to 2012–13.

Of particular interest are growth prospects for the Moreton statistical division. Table 11 below provides forecasts up to 2012–13 as provided by Monash University. While the forecast growth rate for food/beverage processing/manufacturing is relatively low, prospects for the forestry sector are much stronger. Agriculture is also forecast to grow at over 2% per annum within the statistical division.


Table 11. Forecast average annual employment growth rates for Moreton statistical division, 2005–06 to 2013–14

Sector % pa

Agriculture 0.3%

Agricultural services 7.35%

Forestry/logging 2.6%

Food/beverages/tobacco 0.48%

Textile, clothing, footwear and leather products –1.34%

Wood/paper products 1.33%

Source: Monash Model Industry Forecasts June 2006, Monash University, Melbourne


References

Australian Bureau of Statistics agricultural commodities: AgStats on GSP: 1996–97 to 2000–01, catalogue number: 7117.0.30.001.

DPI&F (2005) Prospects for Queensland’s primary industries 2004–05 to 2005–06, September 2005.

Switala, J (2006) Monash Model Queensland Primary Industry Forecasts June 2006, Internal Departmental Discussion Paper.

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