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Sheep industry statistics from 2004
Summary
Of the 26.4 million sheep in Victoria, approximately 21% are in
north east Victoria. Over one third of the industry, in the region,
is based in Wangaratta Rural City. Towong and Indigo Shires contain
a further 47 per cent of the industry.
As is similar to the beef industry, the sheep industry has significant
indirect employment benefits through meat processors, wool buyers
and sellers, brokers and buyers, livestock agents, grain providers
and transport service providers.
North East Region |
1996 – 97
AG Census |
2000 – 01
AG Census |
2001 – 02
AG Survey |
2002 – 03
AG Survey |
Gross value of production |
$6,538,348 |
$10,142,883 |
$16,663,541 |
- |
Production volume (kg) |
378,002 |
452,725 |
|
|
Total area of production |
1,665.2 |
1,329 |
421,137 |
359,924 |
Contribution to Victorian GVP
of commodity |
1.69% |
2.03% |
|
|
Contribution to Australian
GVP of commodity |
0.31% |
0.41% |
|
|
Estimated number of farms |
551 |
513 |
500 |
479 |
Source: ABS Agricultural Census – 1997 and 2001, Agricultural
Survey 2002 and 2003
Sheep industry overview
Detail |
Comments |
Product description |
Fresh meat for local and export market, live
sheep for export, offal and associated products |
Main season |
The majority of survey respondents stated the
main season as being over spring and summer. |
Industry associations |
Victorian Farmers Federation, North East Sheep
Breeders |
Domestic market information |
Prices received for lamb ranged from $60 to
$110 per lamb. These lamb are sold at stockyards within the
North East Region or freighted directly to the major city markets
of Melbourne and Sydney |
Export market information |
A number of survey respondents stated their
lamb was exported to countries such as the USA, Japan and China
by brokers like Elders, Castricums, Rodwells and Wesfarmers. |
Source: AVAAF Survey 2004
Location of the sheep 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 |
1.2% |
0.03% |
1.9% |
0.04% |
2% |
0.09% |
Benalla (RC) |
8.5% |
0.18% |
8.8% |
0.18% |
8% |
0.32% |
Indigo Shire |
27.5% |
0.59% |
23.2% |
0.47% |
47% |
0.99% |
Towong Shire |
20.1% |
0.43% |
22.5% |
0.46% |
23% |
0.93% |
Wangaratta (RC) |
36.3% |
0.78% |
37.9% |
0.77% |
39% |
1.57% |
Wodonga (RC) |
6.3% |
0.13% |
5.7% |
0.12% |
4% |
0.15% |
Projected sheep industry growth
Source |
Indicator |
Comments |
(ABS) AG Census and survey
data |
Growth in production volume 1997 to 2001 |
Stock of sheep and lambs was 378,002 in 1997
and grew by 16.5% to 452,725 in 2001 for the North East region |
Surveys |
Current profitability |
Responses ranged evenly between very low, low,
satisfactory and high. |
5 year business plans |
Most reported no change in plans with the rest
holding plans to increase stocking rates of lambs. |
5 year business outlook |
The majority of respondents reported a satisfactory
business outlook, followed by a poor outlook and a small proportion
stated having a good or very good 5 year outlook. |
Business planning / budgeting |
50% of respondents stated they conducted a
formal business plan or budget that ranged evenly between 1
year plans and 2-3 year plans. A couple stated they undertook
5+ year formal plans. |
Age of producers |
The majority surveyed fell within the older
age brackets of 50 to 59 years and 60 years plus. Around 16%
were aged between 30 and 39 years and 16% aged between 40 and
49 years. |
Capital expenditure 2002-03 financial year |
Capital expenditure was undertaken by nearly
all respondents and ranged from $2,000 to $200,000 for the
financial year. The median level of capital expenditure as
a percentage of gross income was 13.5%. |
Sheep industry labour requirements
Detail |
Comments |
Areas of indirect employment |
Meat processors / abattoirs and manufacturers,
brokers / buyers, stockyards / sale yards, livestock agents,
suppliers, transport service providers, shearer, wool classers,. |
Labour market issues |
Seasonal casual labour is the main type of
labour required by producers, with the main seasons being spring,
summer and autumn depending on the producer. Some farmers stated
difficulty in finding experienced casual labour at peak times. |
Sheep industry marketing activities
Detail |
Comments |
Marketing undertaken |
Mail outs, sales trips, trade shows and market
information management. |
Value adding activities |
Were only conducted by a couple of respondents,
with one stating they were involved in an integrated business
for lamb producing and finishing. |
Labels and brands |
Casmark, Rutherglen Lamb, King Valley Lamb. |
Sheep industry strategic advantages and opportunities
- The central location of the North East allows for accessibility
and proximity to key major markets in Melbourne and Sydney – and
for product to be shipped overseas
- Versatility of land use, moderate climate, reasonable rainfall,
and a strong farming infrastructure base such as transport networks
and local stock markets
- Green and clean image of the region- provided water supplies
remain healthy
- Prime lamb has further growth potential
- More intensive production through feed lotting
- Contracting of lifestyle properties
- Sheep milking
Sheep industry strategic disadvantages and impediments to growth
- The huge variation in market prices throughout the year, especially
where seasonal conditions are adverse. The possible over supply
/ market saturation within the lamb industry.
- Drought, input costs, council rates, capital costs, interest
rates, fluctuating exchange rate and government regulations.
- Lack of land and adequate capital / machinery as well as personal
time constraints.
- Lack of suitable casual or seasonal labour for peak periods.
- Peri urban development
- Animal rights pressures
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