Oilseeds

 

Oilseed industry statistics from 2004

Summary

Oilseed production in the north east is restricted almost exclusively to Canola. The industry is a relatively small contributor to GVP and very small within a state context. Production is greatest in the Rural City of Wangaratta (approx. 35%) with the industry evenly spread throughout the remaining rural cities and shires except Indigo and Wodonga. The Grains Research and Development Corporation include the north east in its southern grain growing region. The southern region is characterised by:

  • temperate climate;
  • relatively infertile soils;
  • yield depends upon reliable spring rainfall;
  • smaller enterprise size;
  • diverse production patterns and opportunities;
  • large and diverse domestic market;
  • phase farming innovator; and
  • shift in intensive livestock production and demand for feed grains to this region.

Oilseeds

North East Region

1996 – 97 AG Census

2000 – 01 AG Census

2001 – 02 AG Survey

2002 -03 AG Survey

Gross value of production

$249,940

$850,331

$666,996

Production volume (tonnes)

684

2,753

1,743

755

Total area of production (ha)

455

1,565

986

984

Contribution to Victorian GVP of commodity

0.5%

0.7%

Contribution to Australian GVP of commodity

0.1%

0.1%

Estimated number of farms

10

15

22

Source: ABS Agricultural Census 1997 and 2001, Agricultural Survey 2002 and 2003

Industry overview

Detail

Comments

Product description

Canola seed.

Main season

Sowing in Autumn with cropping in December – January depending on seasonal conditions

Industry associations

Grains Research and Development Corporation

Domestic market information

The price for canola, in 2000, dipped to $275/tonne in the face of a large world supply. Farmers contend that a minimum price of $300/tonne is needed to offset risk and higher production costs.

For 2000, a 2 tonne/ha canola crop was estimated to return a gross margin of $400/ha compared to $230/ha for a 2.5 tonne/ha wheat crop.

Export market information

Exports of canola from the north east is unknown with most canola joining the pool of accumulation services. ($321/tonne as at 08/12/2004)

Location of the Oilseed industry within AlpValleys region

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

17.3%

0.5%

17.5%

0.5%

12%

0.76%

Benalla (RC)

4.3%

0.1%

4.4%

0.1%

1%

0.06%

Indigo Shire

20.6%

0.6%

20.5%

0.6%

20%

1.25%

Towong Shire

19.8%

0.6%

19.8%

0.6%

24%

1.48%

Wangaratta (RC)

35.5%

1.0%

35.5%

1.0%

39%

2.42%

Wodonga (RC)

2.4%

0.1%

2.2%

0.1%

4%

0.26%

Source: ABS Agricultural Census – 2001

Projected oilseeds industry growth

Whilst GVP for canola oilseed has increased markedly between 1997 – 2002, the industry is not expected to grow rapidly. Oilseeds fits well with cereals and pulses in crop rotations. Yields are dependent upon seasonal conditions.

Oilseeds labour requirements

Labour requirements are similar to other cropping activities and undertaken as part of many integrated mix farming enterprises. High fertiliser requirements, weed control and windrowing make for higher input costs however whether that translates into additional labour requirements from off farm is difficult to determine.

Oilseeds marketing activities

There is no marketing of oilseeds which is specific to the north east region. Grain accumulation services, GrainCorp and Cargill all market canola without particular reference to the north east.

Oilseeds strategic advantages and opportunities

  • Processing services are relatively close by (Numurkah and Wagga Wagga)
  • Reliable climate although offset by short growing season

Oilseeds strategic disadvantages and impediments to growth

  • Growing season is too short for much of north east region
 
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