Cover image for AustBeef_2013_v1.0.1.pdf
AustBeef_2013_v1.0.1.pdf
Resource Name:
AustBeef_2013_v1.0.1.pdf
File Size:
3.07 MB
Resource Type:
Pdf Documents
Metadata
Title:
Australian beef: Financial performance of beef cattle producing farms, 2010-11 to 2012-13
Series:
Australian Beef
Series Issue:
13.8
Publication Date:
24/07/2013
Description:
This report was commissioned by Meat and Livestock Australia (MLA) and expands on results that were published in the Agricultural Commodities March quarter 2012 released at ABARES Outlook 2012 conference and the Australian farm survey results 2010-11 to 2012-13 report released in April. It presents detailed financial performance and production information for Australian beef cattle producing farms from 2010-11 to 2012-13. The average financial performance of Australian beef cattle producing farms (broadacre farms that carry more than 100 beef cattle) is estimated to have declined in 2012-13. This is due to lower beef cattle prices as turnoff of beef cattle increased in response to drier seasonal conditions and high beef cattle numbers, particularly in northern Australia. Average farm cash income for northern Australian beef cattle producing farms (located in Queensland, the Northern Territory and northern Western Australia) is estimated to have declined from an average of $102 900 per farm in 2011-12 to $100 000 per farm in 2012-13, around 10 per cent below the average for the 10 years ending 2012-13. In addition, a small reduction in cattle numbers in northern Australia has resulted in a lower cattle inventory value and a larger decline in farm business profit from an average of $45 100 per farm in 2011-12 to $2 000 per farm in 2012-13. Average farm cash income for southern Australian beef cattle producing farms is estimated to have declined from an average of $98 300 per farm in 2011-12 to $84 000 per farm in 2012-13, still around 19 per cent below the average for the 10 years ending 2012-13. Farm cash incomes were affected by drought through most of this period. Slowdown in growth of beef cattle numbers in southern Australia has also resulted in a much smaller increase in cattle inventory value compared with 2011-12 resulting in business profit declining even further, from an average of $30 500 per farm in 2011-12 to $4 000 per farm in 2012-13. Farm cash income for farm businesses in northern Australia most reliant on live cattle exports is projected to decline from an average of $169 300 per farm in 2011-12 to $117 000 per farm in 2012-13, due to further reduction in the number of cattle sold for live export combined with lower cattle prices. Farm business debt declined in 2011-12 and farm business equity ratios remain relatively high, averaging 88 per cent in northern Australia and 90 per cent in southern Australia at 30 June 2012, despite significant reduction in reported land values in some regions. In 2012-13, lower interest rates are expected to result in a small improvement in the debt servicing position of farms. Nevertheless, high farm debt due mainly to borrowing for farm investment over the past 15 years together with accumulated business losses has resulted in the proportion of farm receipts needed to meet interest payments being relatively high, particularly in northern Australia. The majority of Australian beef cattle producing farms have high farm equity and adequate farm cash income in 2012-13, but lower farm cash incomes and reduced land values has resulted in increased financial pressure on some farm businesses
Resource URL Description:
0 : Australian beef: Financial performance of beef cattle producing farms, 2010-11 to 2012-13 - Report - PDF [3.3 MB]

1 : Australian beef: Financial performance of beef cattle producing farms, 2010-11 to 2012-13 - Report with lower resolution images - PDF [1.1 MB]
Publisher:
ABARES : Australian Bureau of Agricultural and Resource Economics and Sciences : Department of Agriculture
Author:
MARTIN Peter

PHILLIPS Paul

LEITH Robert

CABOCHE Tim
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: Martin, P, Phillips, P, Leith, R & Caboche, T 2013, Australian beef: Financial performance of beef cattle producing farms, 2010-11 to 2012-13, ABARES research report 13.8 prepared for Meat & Livestock Australia, Canberra, July. CC BY 3.0
Identifier:
ISBN 978-1-74323-141-8

ISSN 1447-8358
Asset Name:
pb_abfpfd9aabf00420130724_11a