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AustDairyFinPerf_v.1.0.0.pdf
Resource Name:
AustDairyFinPerf_v.1.0.0.pdf
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2.30 MB
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Metadata
Title:
Australian Dairy: financial performance of dairy producing farms, 2010-11 to 2012-13
Series:
Australian Dairy
Series Issue:
13.9
Publication Date:
24/07/2013
Description:
Overview This report provides results at a regional level of financial performance, management practices, and productivity of dairy producing farms. It presents results from ABARES annual Australian Dairy Industry Survey (ADIS), which is funded by DAFF and Dairy Australia. The report expands on farm survey results published in Agricultural commodities, March quarter 2013, and Australian farm survey results 2010-11 to 2012-13, both released at the ABARES Outlook 2013 conference. ABARES conducted the ADIS between July and November 2012, covering the 2011-12 financial year and projections for 2012-13. Key Issues * The average farm cash income for dairy farms is estimated to decline from $143 200 per farm in 2011-12 to $87 000 in 2012-13, around 2 per cent below the average for the 10 years to 2011-12. This is due to a combination of lower milk prices, increased cash costs and relatively little change in milk production in most dairy regions. * Dairy farms in South Australia and western Victoria are estimated to experience the largest fall in farm cash income in 2012-13. In western Victoria farm cash income is estimated to reduce from $112 400 in 2011-12 to $14 000 per farm in 2012-13 and, in South Australia, from $193 000 in 2011-12 to $97 000 in 2012-13. * In Tasmania, despite a slight increase expected in milk production, lower milk prices are expected to result in reduced milk receipts. This, combined with the effect of higher fodder costs, is likely to reduce farm cash income by 33 per cent in 2012-13. * New investment on dairy farms remained relatively high in 2011-12. Net capital additions to dairy farms averaged $72 000 per farm, around 7 per cent above the average for the previous 10 years. Investment in farm improvements (buildings, irrigation systems, water supply structures and fencing) was around 33 per cent above the average for the previous 10 years. * Average debt per farm in the dairy industry increased in 2011-12 to about $700 000 per farm. Growth in average debt per farm has slowed in recent years-with more restricted access to credit from lending institutions, reduced demand for increases in debt and less growth in land values. * Lower interest rates in 2011-12 and 2012-13 resulted in the ratio of interest payments to cash receipts declining to average 7.7 per cent in 2012-13. This is slightly lower than the 10-year average of around 8 per cent. * Despite a large proportion of debt being used to fund land purchase and working capital, farm equity remained strong in 2011-12. The impact on farm equity of the rise in debt over the previous decade was mostly offset by increases in land values since 2001-02. The average equity ratio for dairy farms at 30 June 2012 was 80 per cent. * Overall in 2012-13, 49 per cent of dairy farmers surveyed indicated they were positive about the future of the dairy industry-a decline from the 63 per cent recorded in 2011-12. Farms with positive views had a better financial position and higher average farm business profits and rates of return than farms with negative views. Further, farms with positive views invested more in farm capital and farm land in 2011-12. * Productivity growth in the dairy industry averaged 1.6 per cent a year from 1978-79 to 2010-11. Before deregulation in July 2000, total dairy industry output increased as a result of productivity growth as well as growth in total inputs used. Since the removal of industry price supports, both outputs and inputs trended downward, with productivity increasing as inputs contracted more rapidly than outputs.
Resource URL Description:
0 : Australian Dairy: financial performance of dairy producing farms, 2010-11 to 2012-13 - Report - PDF [2.3 MB]

1 : Australian Dairy: financial performance of dairy producing farms, 2010-11 to 2012-13 - Report with lower resolution images - PDF [0.8 MB]
Publisher:
ABARES : Australian Bureau of Agricultural and Resource Economics and Sciences : Department of Agriculture
Author:
DHARMA Surya

DAHL Astrid
Right Management:
Use constraints: copyright

Other constraints: Licence type:Copyright

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

Other constraints: This publication (and any material sourced from it) should be attributed as: Dharma, S & Dahl, A 2013, Australian dairy: financial performance of dairy producing farms, 2010-11 to 2012-13, ABARES research report 13.9, Canberra, June. CC BY 3.0
Identifier:
ISBN 978-1-74323-135-7

ISSN 1447-8358
Asset Name:
pb_adfpfd9abac007201307_11a