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CostOfProd_AustBeefAndSheep_2016_v1.0.0.docx
Resource Name:
CostOfProd_AustBeefAndSheep_2016_v1.0.0.docx
File Size:
799.64 KB
Resource Type:
Word 2007 OOXML Documents
Metadata
Title:
Cost of production - Australian beef cattle and sheep producers 2012-13 to 2014-15
Series:
Research reports
Series Issue:
16.13
Publication Date:
12/10/2016
Description:
Overview This report presents and discusses cost of production estimates for beef cattle and sheep producers for the three years 2012-13, 2013-14 and 2014-15. The report draws on data from the ABARES annual Australian Agricultural and Grazing Industries Survey (AAGIS). This survey has been conducted by ABARES and its predecessors since 1977-78 and provides government and industry stakeholders with important data for analysing and monitoring changes in Australia's broadacre industries. Meat & Livestock Australia commissioned and funded this report. Key Issues * The on-farm cost of beef production on a per kilogram live weight basis increased between 2012-13 and 2014-15, as producers increased farm expenditure in 2014-15 in response to the much higher prices received for beef cattle. Between 2008-09 and 2012-13, producers pared back expenditure on beef inputs to a minimum in response to low beef cattle prices in an attempt to maintain operating margins (receipts per kilogram less costs of production). * The largest increase in production costs occurred in northern Australia, where many beef producers were also subject to dry seasonal conditions in 2013-14 and 2014-15. This resulted in increased expenditure on fodder and freight. Overall, the total cost of production increased between 2012-13 and 2014-15 by 33 cents per kilogram live weight in northern Australia and by 25 cents in southern Australia. * Total costs of production averaged over the three years ending 2014-15 were similar in southern and northern Australia, at 174 cents per kilogram live weight in southern Australia and 175 cents in northern Australia. Northern Australia includes Queensland, the Northern Territory and the Kimberley, Pilbara and Murchison-Gascoyne regions of Western Australia. All other regions are included in southern Australia. * Higher beef cattle prices in 2014-15 resulted in operating margins increasing relative to the very low margins recorded in 2013-14. However, expenditure on farm inputs increased, so operating margins were similar to those recorded in 2012-13. * The average on-farm cost of sheep production on a per kilogram live weight basis remained largely unchanged between 2012-13 and 2014-15. * The average cost of production for beef cattle and sheep producers for the period 2012-13 to 2014-15 decreased as production size increased, which indicates that significant economies of size exist in beef and sheep meat production. These economies of size would be an incentive to expand beef and sheep meat production to enhance profitability. * Economies of size for sheep producers appear to result mainly from larger sheep enterprises using farm capital and labour more efficiently. However, for beef producers, cash operating costs for larger herd size producers were lower than those for smaller producers and they used farm capital and labour more efficiently.
Resource URL Description:
0 : Cost of production - Australian beef cattle and sheep producers 2012-13 to 2014-15 - Report - MS Word [0.8 MB]

1 : Cost of production - Australian beef cattle and sheep producers 2012-13 to 2014-15 - Report - PDF [1.7 MB]
Publisher:
ABARES : Australian Bureau of Agricultural and Resource Economics and Sciences : Department of Agriculture
Author:
MARTIN Peter
Right Management:
Use constraints: copyright

Other constraints: RIGHTS NOTICE: Unless otherwise noted, copyright (and any other intellectual property rights, if any) in this publication is owned by the Commonwealth of Australia (referred to as the Commonwealth)

Other constraints: LICENSING: 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. http://creativecommons.org/licenses/by/3.0/au

Other constraints: ATTRIBUTION: This publication (and any material sourced from it) should be attributed as: Martin, P 2016, Cost of production - Australian beef cattle and sheep producers 2012-13 to 2014-15, ABARES research report 16.13, Canberra, October. CC BY 3.0
Identifier:
ISBN 978-1-74323-312-2

ISSN 1447-8358
Asset Name:
pb_cpabs9aabf20161012