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Beef industry statistics from 2004
Summary
The beef industry is the 3rd largest contributor of GVP to the
AlpValleys region with a herd size of approximately 345,000, and
total GVP of $105.6 million (see Table below). Beef operations in
the Towong Shire and Wangaratta Rural City contribute approximately
30% each of the total GVP derived from beef. Indigo Shire is the
next largest generating approximately 20% of GVP. Regional producers
supply store cattle to feedlots, as well as to abattoirs. The beef
industry also has significant indirect employment benefits through
meat processors, brokers and buyers, livestock agents, stock feed
suppliers, breeding services and transport service providers.
The Alp Valley region is seeing a fragmentation of larger herds
as lifestyle producers increase within the industry. However, anecdotally,
it is estimated that about 20% of producers still control about 80%
of cattle numbers.
North East Region |
1996 – 97
AG Census |
2000 – 01
AG Census |
2001 – 02
AG Survey |
2002 – 03
AG Survey |
Gross value of beef production |
$62,424,005 |
$105,661,837 |
$123,254,010 |
|
Current size of herd (no of
cattle) |
315,729 |
315,730 |
344,632 |
294,517 |
Contribution to Victorian GVP |
9.42% |
9.60% |
|
|
Contribution to Australian
GVP |
1.84% |
1.64% |
|
|
Estimated number of farms |
1,948 |
1,839 |
1,753 |
1,753 |
Source: ABS Agricultural Census – 1997 and 2001, Agricultural
Survey 2002 and 2003
Industry overview
Detail |
Comments |
Product description |
Fresh meat for local and export market, offal |
Main season |
The majority of survey respondents stated the
main season as being over spring and summer. |
Industry associations |
Victorian Farmers Federation (VFF), Meat Standards
Australia, Meat and Livestock Assoc, Beef Improvement Assoc,
Murray Grey Beef Cattle Society, Beefcheque. |
Domestic market information |
The price per head of cattle reported ranged
from between $400 - $850. Per kilogram of meat the range was
between $1.40 - $5.50. The main destinations of beef from the
region are to major processors, feedlots and Wodonga sale yards. |
Export market information |
Quite a large proportion of beef from the region
is exported overseas, with producers stating between 50% to
95% of their production being exported. Export destinations
include Japan, USA, Malaysia, Iraq, China, South Korea and
Italy. |
Source: AAVAF Survey 2004
Location of the industry within North East Victoria
2001 Ag Census |
%
of GVP |
%
of production volume |
%
of farms for commodity |
North East Region |
Victoria |
North East Region |
Victoria |
North East Region |
Victoria |
Alpine Shire |
11.4% |
0.2% |
10.2% |
1.3% |
13% |
1.40% |
Benalla (RC) |
2.9% |
0.0% |
4.4% |
0.6% |
3% |
0.39% |
Indigo Shire |
20.4% |
0.3% |
17.3% |
2.2% |
21% |
2.37% |
Towong shire |
30.3% |
0.5% |
33.7% |
4.4% |
23% |
2.59% |
Wangaratta (RC) |
29.5% |
0.5% |
29.9% |
3.9% |
35% |
3.91% |
Wodonga (RC) |
5.5% |
0.1% |
4.6% |
0.6% |
4% |
0.47% |
Source: ABS Agricultural Census - 2001
Projected beef industry growth
Source |
Indicator |
Comments |
(ABS) AG Census and survey
data |
Growth in production volume 1997 to 2001 |
Production levels between 1997 and 2001 were
relatively constant. |
Surveys |
Current profitability |
12.5% reported high profitability, 30% satisfactory,
32.5% low and 25% very low profitability. |
5 year business plans |
45% stated no change in plans, 32% planned
to increase production / improve beef quality, 7% wanted to
change from leasing their land / running agistment to running
their own herd, 7% wanted to change from running their own
herd to running agistment, 6% wanted to switch to other products,
and 3% wanted to decrease production. |
5 year business outlook |
Producers overall were quite optimistic about
the future, with 34% stating a good outlook, 52% satisfactory
and only 14% as poor. No respondents stated a very poor or
very good outlook. |
Business planning / budgeting |
50% conducted a formal business plan or budget
with an even spread planning for 1 year, 2-3 years and 5 years
in advance. |
Age of producers |
36% of producers were aged between 40 - 49
years, 24% between 50 - 59, and 40% stated being over 60 years
of age. |
Capital expenditure 2002-03 financial year |
The average capital expenditure as a percentage
of gross income was a high 72%, with expenditure ranging from
as low as $10,000 for smaller farms, to $410,000. |
Beef industry labour requirements
Detail |
Comments |
Estimate of labour employed
directly:- (based on 46 survey responses) |
Full time |
Norvic employs 500
full time workers operating two shifts per day 5 ½ days
per week
11 (between 0 and 4 full time employees required depending
on the size of the operation)
|
Part time |
5 (between 0 and 2 part time employees required) |
Casual |
63 (between 0 and 12 casual employees required) |
Areas of indirect employment |
Meat processors / abattoirs and manufacturers,
brokers / buyers (supermarket, feedlots), stockyards / sale
yards, livestock agents, grain providers, transport service
providers. |
Labour market issues |
Casual employment is the predominant form of
employment offered by producers, with the main seasons being
spring, summer and autumn depending on the producer. Some farmers
stated difficulty in finding experienced casual labour.
Norvic could create 150 new jobs if labour supply was found. |
Beef industry marketing activities
Detail |
Comments |
Marketing undertaken |
Most producers rely on their produce being
marketed by their livestock agents or buyers. Larger scale
operations initiate their own marketing such as web, print
media, brochures and signage. Direct marketing opportunities
also exist at open days, farm expos and shows. |
Value adding activities |
18% of respondents stated they were involved
in value adding activities. These activities involved the butchering
and packaging of beef for consumers, with one respondent operating
their own butchers to sell their meat direct to the public. |
Labels and brands |
Snowy Mountain Tender Meat, King Valley Beef. |
Beef industry strategic advantages and opportunities
-
Proximity to major road networks and good transport linkages
to saleyards, suppliers, and processors.
-
Excellent soils and moderate climate, usually
high and predictable rainfall in comparison to other regions
and a permanent water supply with adequate irrigation. One beef
producer stated the region was “one
of the safest farming and rainfall areas in the country with
good access to strong regional centres”.
-
Versatility of land use and diversity of farming activities undertaken
within the region.
-
‘Clean and green’ image of region.
Beef industry strategic disadvantages and impediments to growth
-
High cost of operation, and capital investment
required as land values and beef cattle prices both increase
(can be a barrier to new entrants).
-
Security of export markets given the high
volume of beef that is exported from the region, and also the
threat of beef imports on the strength of the domestic market.
-
Current size of farms limits the opportunity
for expansion, along with dramatic land value increases due to
rural living subdividing farmland into smaller lifestyle farms.
-
The ageing profile of beef producers within
the industry and the difficulty in obtaining labour.
-
Perceived lack of farming skills amongst lifestyle
farmers is causing concern about weed management, disease management
and overall risk management.
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Continuing future decline of US dollar and
increase of Australian dollar
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Some beef producers stated lack of knowledge
as a concern. Particular areas that were identified as specific
education opportunities include pasture and water management,
improving herd genetics and maintaining consistency in product
quality
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