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Agriculture, Fisheries and Forestry in the Latrobe- Gippsland region of Victoria, 2015 Research by the Australian Bureau of Agricultural and Resource Economics and Sciences About my region 15.20 March 2015

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Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015

Research by the Australian Bureau of Agriculturaland Resource Economics and Sciences

About my region 15.20March 2015

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Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015 ABARES

© Commonwealth of Australia 2015

Ownership of intellectual property rights

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).

Creative Commons licence

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.

Creative Commons Attribution 3.0 Australia Licence is a standard form licence agreement that allows you to copy, distribute, transmit and adapt this publication provided you attribute the work. A summary of the licence terms is available from creativecommons.org/licenses/by/3.0/au/deed.en. The full licence terms are available from creativecommons.org/licenses/by/3.0/au/legalcode.

Cataloguing data

ABARES 2015, Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015, About my region 15.20, Canberra, March. CC BY 3.0.

ISBN 978-1-74323-078-7ABARES project 43009

Internet

Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria 2015 is available at agriculture.gov.au/abares.

Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)

Postal address GPO Box 858 Canberra ACT 2601Switchboard +61 2 6272 3933Facsimile +61 2 6272 2001Email [email protected] agriculture.gov.au/abares

Inquiries about the licence and any use of this document should be sent to [email protected].

The Australian Government acting through the Department of Agriculture, represented by the Australian Bureau of Agricultural and Resource Economics and Sciences, has exercised due care and skill in preparing and compiling the information and data in this publication. Notwithstanding, the Department of Agriculture, ABARES, its employees and advisers disclaim all liability, including for negligence and for any loss, damage, injury, expense or cost incurred by any person as a result of accessing, using or relying upon information or data in this publication to the maximum extent permitted by law.

Acknowledgements

ABARES relies on the voluntary cooperation of farmers participating in the annual Australian Agricultural and Grazing Industries Survey, Australian Dairy Industry Survey, and Australian Vegetable Growing Farms Survey to provide data used in the preparation of this report. Without their help, these surveys would not be possible. ABARES farm survey staff collected most of the information presented in this report through on-farm interviews with farmers.

This regional profile was updated by Therese Thompson, Haydn Valle, Timothy Connolly, Kasia Mazur, Lucy Randall and Sharan Singh.

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Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015 ABARES

Contents1 Regional overview.................................................................................................................................. 1

Employment.............................................................................................................................................. 22 Agriculture sector................................................................................................................................... 4

Value of agricultural production......................................................................................................4Number and type of farms.................................................................................................................. 4Farm financial performance—Victoria..........................................................................................6

3 Fisheries Sector..................................................................................................................................... 13

4 Forestry Sector...................................................................................................................................... 15

References........................................................................................................................................................... 16

TablesTable 1 Number of farms, by industry classification, 2012–13......................................................5

Table 2 Financial performance, Victoria broadacre industries, 2011–12 to 2013–14, average per farm..................................................................................................................................... 7

Table 3 Farm cash income of Victoria broadacre farms, by region, 2012–13 to 2013–14, average per farm..................................................................................................................................... 7

Table 4 Financial performance, Victoria dairy industry, 2011–12 to 2013–14, average per farm.................................................................................................................................................... 11

Table 5 Physical and financial performance, vegetable growing farm businesses, Victoria, 2012–13 and 2013–14.......................................................................................................................12

FiguresFigure 1 Employment profile, Latrobe-Gippsland region, November 2014.............................3

Figure 2 Value of agricultural production, Latrobe-Gippsland region, Victoria, 2012–13 4

Figure 3 Distribution of farms by estimated value of agricultural operations, Latrobe Gippsland, Victoria 2012–13..............................................................................................................5

Figure 4 Real farm cash income, broadacre industries, average per farm................................7

Figure 5 Real farm cash income, grains industry, average per farm............................................8

Figure 6 Real farm cash income, sheep industry, average per farm............................................9

Figure 7 Real farm cash income, beef industry, average per farm................................................9

Figure 8 Real farm cash income, dairy industry, average per farm...........................................10

Figure 9 Real farm cash income, vegetable growing farm businesses, Victoria, 2005–06 to 2013–14........................................................................................................................................ 12

Figure 10 Area of native forest, by tenure............................................................................................15

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Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015 ABARES

MapsMap 1 Broad agricultural land use of the Latrobe-Gippsland region of Victoria...................1

Map 2 Agricultural industries of the Latrobe-Gippsland region of Victoria.............................2

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Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015 ABARES

1 Regional overviewThe Latrobe-Gippsland region of Victoria is located in the eastern corner of the state (Map 1). The region comprises the six local government areas of Bass Coast, Baw Baw, East Gippsland, Latrobe, South Gippsland and Wellington, and the major regional towns of Bairnsdale, Mallacoota, Sale, Traralgon and Wonthaggi. The region covers a total area of around 41 600 square kilometres or 18 per cent of Victoria’s total area and is home to approximately 255 900 people (ABS 2011).

Agricultural land in the Latrobe-Gippsland region occupies 11 550 square kilometres, or 28 per cent of the region. Areas classified as conservation and natural environments (nature conservation, protected areas and minimal use) occupy 11 770 square kilometres, or 28 per cent of the region. The most common land use by area is production forestry, which occupies 13 580 square kilometres or 33 per cent of the Latrobe-Gippsland region.

Map 1 Broad agricultural land use of the Latrobe-Gippsland region of Victoria

Source: Catchment scale land use of Australia – update March 2014 (ABARES, 2014)

1

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Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015 ABARES

Map 2 Agricultural industries of the Latrobe-Gippsland region of Victoria

Source: Catchment scale land use of Australia – update March 2014 (ABARES, 2014)

EmploymentAustralian Bureau of Statistics (ABS) data from the 2014 Labour Force Survey indicate that around 124 100 people were employed in the Latrobe-Gippsland region. The Latrobe-Gippsland region accounts for 4 per cent of total employment in Victoria and 27 per cent of all people employed in the Victorian agriculture, forestry and fishing sector.

Agriculture, forestry and fishing was the largest employment sector with 24 100 people (Figure 1), representing 20 per cent of the region’s workforce. The retail trade sector employed 14 100 people followed by health care and social assistance with 13 500 people. Other important employment sectors in the region were construction (11 100 people), education and training (9900 people) and manufacturing (9500).

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Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015 ABARES

Figure 1 Employment profile, Latrobe-Gippsland region, November 2014

- 10 20 30

Rental, Hiring and Real Estate ServicesMining

Information Media and TelecommunicationsFinancial and Insurance Services

Arts and Recreation ServicesWholesale Trade

Electricity, Gas, Water and Waste ServicesTransport, Postal and Warehousing

Professional, Scientific and Technical ServicesOther Services

Administrative and Support ServicesPublic Administration and Safety

Accommodation and Food ServicesManufacturing

Education and TrainingConstruction

Health Care and Social AssistanceRetail Trade

Agriculture, Forestry and Fishing

Employed total ('000 )

Source: Australian Bureau of Statistics

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Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015 ABARES

2 Agriculture sectorValue of agricultural productionIn 2012–13, the gross value of agricultural production (GVAP) in the Latrobe-Gippsland region was $1.5 billion, which was 13 per cent of the total gross value of agricultural production in Victoria ($11.6 billion). This is the most recent year for which ABS data are available.

The Latrobe-Gippsland region has a diverse and important agricultural sector. The most important commodity in the Latrobe-Gippsland region based on the gross value of agricultural production was milk (Figure 2). In 2012–13, milk contributed 42 per cent ($629 million) to the value of agricultural production in the region, and cattle and calves accounted for 23 per cent ($344 million). Vegetables accounted for 14 per cent ($204 million), with the major crops being potatoes ($38 million), beans ($24 million), carrots ($12 million) and tomatoes ($8 million).

In 2012–13, the Latrobe-Gippsland region accounted for around 72 per cent of the value of the state’s bean production and 51 per cent of the value of capsicum production.

Figure 2 Value of agricultural production, Latrobe-Gippsland region, Victoria, 2012–13

$m 200 400 600 800

Other

Eggs

Wool

Nurseries, cut flowers and turf

Sheep and lambs

Hay

Poultry

Vegetables

Cattle and calves

Milk

Source: Australian Bureau of Statistics, cat. no. 7503.0, Value of agricultural commodities produced, Australia

Number and type of farmsABS data indicate that in 2012–13 there were 5399 farms in the Latrobe-Gippsland region with an estimated value of agricultural operations of more than $5000 (Table 1). The region contains 17 per cent of all farm businesses in Victoria.

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Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015 ABARES

Table 1 Number of farms, by industry classification, 2012–13

Industry ClassificationLatrobe - Gippsland region Victoria

no. % no. %

Beef Cattle 2 652 49 8 219 27

Dairy 1 422 26 4 733 15

Mixed livestock 278 5 1 395 5

Sheep 163 3 3 774 12

Other livestock 128 2 918 3

Vegetable 93 2 691 2

Fruit and nuts 41 1 2 275 7

Other Crop growing 39 1 358 1

Nurseries, Cut Flowers and Turf 32 1 330 1

Other 551 10 8 191 27

Total Agriculture 5 399 100 30 884 100

Note: Estimated value of agricultural operations greater than $5000.Source: Australian Bureau of Statistics

Farms are classified in Table 1 according to the activities that generate most of their value of production. Beef cattle farms (2652 farms) were the most common, accounting for 49 per cent of all farms in the Latrobe-Gippsland region, and 32 per cent of all beef cattle farms in Victoria.

There is a large percentage of small farms in the region in terms of their value of agricultural output. Estimated value of agricultural operations (EVAO) is a measure of the value of production from farms and a measure of their business size. Around 40 per cent of farms in the Latrobe-Gippsland region had an EVAO of less than $50 000 (Figure 3). These farms accounted for only 4 per cent of the total value of agricultural operations in 2012–13. In comparison, 17 per cent of farms in the region had an EVAO of more than $350 000 and accounted for an estimated 68 per cent of the total value of agricultural operations in the region.

Figure 3 Distribution of farms by estimated value of agricultural operations, Latrobe Gippsland, Victoria 2012–13

%

10

20

30

40

< $50k $50k to $150k $150k to $350k $350k to $500k $500k to $1 m > $1 m

Share of farms Share of value of agricultural operations

Source: Australian Bureau of Statistics

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Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015 ABARES

Farm financial performance—VictoriaEach year, ABARES interviews Australian broadacre, dairy and vegetable producers as part of its annual survey program. Broadacre industries covered in this survey include the grains, grains–livestock, sheep, beef and sheep–beef industries. The information collected is a basis for analysing the current financial position of farms in these industries and expected changes in the short term. This paper uses data from the ABARES Australian agriculture and grazing industries survey (AAGIS), Australian dairy industry survey (ADIS), and Australian vegetable growing industry survey to report estimates of financial performance indicators (Box 1) for broadacre, dairy and vegetable farms in Victoria.

Box 1 DefinitionsMajor financial performance indicators Total cash receipts: total revenues received by the business during the financial year. Total cash costs: payments made by the business for materials and services and for permanent and casual hired

labour (excluding owner manager, partner and family labour). Farm cash income: total cash receipts – total cash costs Farm business profit: farm cash income + changes in trading stocks – depreciation – imputed labour costs Profit at full equity: return produced by all the resources used in the business, farm business profit + rent +

interest + finance lease payments – depreciation on leased items Rate of return: return to all capital used, profit at full equity * 100 / total opening capital Equity ratio: Farm capital minus farm debt expressed as a percentage of farm capitalIndustry types Grains: farms mainly engaged in producing broadacre crops such as wheat, coarse grains, oilseeds and pulses, and

including farms running sheep and/or beef cattle in conjunction with substantial broadacre crop activity. Sheep: farms mainly engaged in running sheep. Beef: farms mainly engaged in running beef cattle. Dairy: farms mainly engaged in milk production. Vegetable: farms mainly engaged in growing vegetables.

Performance of broadacre farms—VictoriaFarm cash income for Victorian broadacre farms declined from an estimated average of $92 310 per farm in 2011–12 to an average of $85 600 per farm in 2012–13, mainly as a result of lower livestock prices and reduced grain production (Table 2).

In 2013–14, receipts from sheep, lambs and wool are projected to increase as a result of higher prices. However, despite increased turnoff of beef cattle, lower saleyard prices are projected to result in little change in beef cattle receipts. Receipts from cropping are projected to remain similar to 2012-13, with only a small increase in winter crop production and lower prices for canola, barley and some grain legumes. On average, farm cash income for broadacre farms in Victoria is projected to decline slightly to $82 000 per farm in 2013–14, around 12 per cent above the ten-year average to 2012–13 of $73 000 per farm.

Overall, farm cash incomes are projected to increase in the Mallee region, although farm cash incomes vary greatly within this region. Farm cash income is projected to decline slightly in the Wimmera mainly as a result of lower prices for some grains and a larger decline is projected in the Central North due to the additional impact of lower beef cattle prices. In southern and eastern Victoria, increased cattle turn-off together with higher sheep, lamb and wool prices are projected to result in a small increase in average farm cash income (Table 3).

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Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015 ABARES

Figure 4 Real farm cash income, broadacre industries, average per farm

Note: p Preliminary estimate. y Provisional estimate.Source: ABARES Australian Agricultural and Grazing Industries Survey

Table 2 Financial performance, Victoria broadacre industries, 2011–12 to 2013–14, average per farm

Performance indicatorunit

s 2011–12 2012–13p RSE 2013–

14yTotal cash receipts $ 303 990 279 700 (9) 278 000Total cash costs $ 211 680 194 200 (10) 196 000Farm cash income $ 92 310 85 600 (11) 82 000Farms with negative farm cash income % 20 25 (18) 28Farm business profit $ 8 530 12 400 (68) –2 000Profit at full equity excluding capital appreciation $ 36 060 37 200 (27) 22 000Farm capital at 30 June a $ 2 902 350 2 820 700 (10) naFarm debt at 30 June b $ 278 170 252 400 (15) 255 000Equity ratio b % 90 91 (1) naRate of return excluding capital appreciation c % 1.3 1.3 (22) 0.8Off-farm income of owner manager and spouse b $ 37 960 32 200 (14) na

Note: a Excludes leased plant and equipment. b Average per responding farm. c Rate of return to farm capital at 1 July. p ABARES preliminary estimates. y ABARES provisional estimates. na Not available. RSE Relative standard errors, expressed as a percentage of the estimate provided.Source: ABARES Australian Agricultural and Grazing Industries Survey

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Table 3 Farm cash income of Victoria broadacre farms, by region, 2012–13 to 2013–14, average per farm

Region units 2012–13p RSE 2013–14yMallee $ 126 100 (26) 165 000Wimmera $ 157 400 (14) 150 000Central North $ 93 100 (15) 50 000Southern and Eastern Victoria $ 55 000 (26) 59 000

Note: p ABARES preliminary estimates. y ABARES provisional estimates. na Not available. Figures in parentheses are standard errors, expressed as a percentage of the estimate provided.Source: ABARES Australian Agricultural and Grazing Industries Survey

Performance of grains industry farms—VictoriaIn 2012–13, crop receipts increased for Victorian grains farms compared to those recorded in 2011–12, as higher crop prices offset reductions in crop production resulting from drier conditions through winter and spring. Farm cash income for Victorian grains industry farms averaged $171 000 a farm in 2012–13 (Figure 5).

Overall, in 2013–14, crop receipts for Victorian grains farms are projected to remain similar to those recorded in 2012–13, lower prices for canola, barley and some grain legumes mostly offsetting small increases in overall grain production.

Farm cash income for Victorian grains industry farms is projected to average $151 000 a farm in 2013–14, around 35 per cent above the industry average for the previous 10 years (Figure 5). However, farm cash incomes for Victorian grains industry farms were reduced by dry conditions throughout much of this period.

Figure 5 Real farm cash income, grains industry, average per farm

Note: p Preliminary estimate. y Provisional estimate.Source: ABARES Australian Agricultural and Grazing Industries Survey

Performance of sheep industry farms—VictoriaFarm cash incomes were relatively high in historical terms for Victorian sheep industry farms in the period 2009–10 to 2011–12 (Figure 6). However, in 2012–13, a reduction of 25 per cent in average prices received for lambs, a larger reduction in the average price received for adult sheep and an 8 per cent reduction in the average wool price received resulted in farm receipts for Victorian sheep farms falling by 23 per cent. Despite a reduction in average cash costs

8

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Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015 ABARES

resulting mainly from reduced expenditure on sheep purchases and interest payments, average farm cash income for sheep industry farms declined to an average of $53 000 per farm.

In 2013–14, higher adult sheep and lamb prices, together with a small increase in wool prices are projected to result in an increase in farm cash receipts. Average farm cash income for sheep industry farms is projected to increase to average $68 000 per farm, around 12 per cent above the industry average of $61 000 per farm for the ten-years to 2012–13.

Figure 6 Real farm cash income, sheep industry, average per farm

Note: p Preliminary estimate. y Provisional estimate.Source: ABARES Australian Agricultural and Grazing Industries Survey

Performance of beef industry farms—VictoriaA much smaller average herd size for Victorian beef industry farms, compared with the Australian average, results in average farm cash income for Victorian beef industry farms typically being well below the national average (Figure 7).

In 2012–13, a reduction of 15 per cent in the average price received for beef cattle sold reduced farm cash receipts and despite a further reduction in expenditure on beef cattle purchases average farm cash income for Victorian beef industry farms declined to average $18 000 per farm in 2012–13 (Figure 7).

In 2013–14, a further reduction in the average price received for beef cattle sold is projected to result in average farm cash income for Victorian beef industry farms declining further to average $11 000 per farm in 2013–14, less than half the industry average of $36 000 per farm for the ten-years to 2012–13 (Figure 7).

9

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Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015 ABARES

Figure 7 Real farm cash income, beef industry, average per farm

Note: p Preliminary estimate. y Provisional estimate.Source: ABARES Australian Agricultural and Grazing Industries Survey

Performance of dairy industry farms— VictoriaIn 2012–13, a reduction in farmgate milk prices averaging 7 per cent and a reduction of 3 per cent in average milk production in Victoria, together with an increase in average cash costs of 11 per cent driven mainly by a rise in expenditure on fodder and interest payments, resulted in farm cash incomes for Victorian dairy farms declining from $141 790 in 2011–12 to just $31 500 in 2012–13. An estimated 38 per cent of Victorian dairy farms recorded negative farm cash incomes and farm business profit declined to an average loss of $40 100 per farm (Table 4).

In 2013–14 average farm cash incomes are projected to rebound strongly with an increase in farmgate milk prices of around 20 per cent. Despite a projected reduction in milk production and an increase in total cash costs, resulting mainly from higher fodder expenditure, farm cash income for Victorian dairy farms is projected to increase to an average of $127 000 per farm. If achieved, this would be around 39 per cent above the average for the ten-years to 2012–13, in real terms. However, average farm cash income for Victorian dairy farms was low in many years during this period due to drought and reduced availability of irrigation water (Figure 8).

Figure 8 Real farm cash income, dairy industry, average per farm

10

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Note: p Preliminary estimate. y Provisional estimate.Source: ABARES Australian Agricultural and Grazing Industries Survey

11

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Table 4 Financial performance, Victoria dairy industry, 2011–12 to 2013–14, average per farm

Performance indicator units 2011–12 2012–13p RSE 2013–14yTotal cash receipts $ 583 330 523 500 (14) 629 000Total cash costs $ 441 540 492 000 (15) 502 000Farm cash income $ 141 790 31 500 (52) 127 000Farms with negative farm cash income % 16 38 (29) 14Farm business profit $ 67 030 –40 100 (32) 51 000Profit at full equity excluding capital appreciation $ 130 310 27 100 (58) 115 000Farm capital at 30 June a $ 2 988 710 3 371 100 (11) naFarm debt at 30 June b $ 644 610 747 800 (10) 754 000Equity ratio b % 79 78 (3) naRate of return excluding capital appreciation c % 4.3 0.8 (54) 3.5Off-farm income of owner manager and spouse b $ 20 020 22 800 (20) na

Note: a Excludes leased plant and equipment. b Average per responding farm. c Rate of return to farm capital at 1 July. p ABARES preliminary estimates. y ABARES provisional estimates. na Not available. RSE Relative standard errors, expressed as a percentage of the estimate provided.Source: ABARES Australian Agricultural and Grazing Industries Survey

Performance of vegetable industry farms—VictoriaNationally in 2013–14, average farm cash income is estimated to have declined to $156 000, 4 per cent lower than in 2012–13. Average to above average seasonal conditions helped growers to maintain the high yields of 2012–13. Overall vegetable production was also higher because the average area planted to vegetable crops increased. However, the resulting increase in vegetable cash receipts was partially offset by lower vegetable prices.

In 2012–13 farm cash income in Victoria is estimated to have increased to an average of $218 900 (Table 5), 10 per cent higher than the estimated farm cash income (in real terms) over the eight years to 2012–13 (Figure 9). Average area planted and crop yields were both higher, particularly for less commonly produced vegetables such as carrots, onions, lettuce, cauliflower and cabbages. Although prices for potatoes, carrots and tomatoes were higher, there were large decreases in the prices received for other vegetables. Nevertheless, estimated average vegetable cash receipts increased more than the increase in average cash costs.

Above average yields and higher prices for most vegetable crops are estimated to have resulted in increased average farm cash income in 2013–14 to $314 000 (Table 5), 32 per cent higher than the average farm cash income (in real terms) estimated for Victoria over the nine years to 2013–14 (Figure 9). The area planted to vegetables increased and yields were above average, resulting in increased vegetable production. Vegetable prices were higher for the main vegetable types grown, resulting in higher vegetable cash receipts. Reduced expenditure on repairs and maintenance, interest and plant hire offset higher expenditure on most other inputs.

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Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015 ABARES

Table 5 Physical and financial performance, vegetable growing farm businesses,Victoria, 2012–13 and 2013–14

average per farmSelected estimates units 2012–13 p RSE % Change

from 2011–122013–14 y RSE % Change

from 2012–13Vegetable cash receipts $ 1 083 100 (11) 23 1 179 000 (24) 9Area sown to vegetables ha 55.7 (12) 13 56.3 (26) 1Quantity of vegetables produced t 1 460 (13) 27 1 508 (26) 3Farm cash income $ 218 900 (22) 105 314 000 (29) 47

Note: p Preliminary estimate. y Provisional estimate. RSE Relative standard errors, expressed as a percentage of the estimate. Updated data for vegetable farm businesses will be available November 2015.Source: ABARES Australian vegetable growing farms survey

Figure 9 Real farm cash income, vegetable growing farm businesses,Victoria, 2005–06 to 2013–14

average per farm

0

50

100

150

200

250

300

350

2005

–06

2006

–07

2007

–08

2008

–09

2009

–10

2010

–11

2011

–12

2012

–13

p

2013

–14

y

$'0002013–14

Note: p Preliminary estimate. y Provisional estimate.Source: ABARES Australian vegetable growing farms survey

13

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Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015 ABARES

3 Fisheries SectorThe Latrobe-Gippsland region contains a significant seafood industry. The area includes a wild-catch sector with the main landing and home port being Lakes Entrance. There is also some aquaculture, particularly offshore mussel farms in Westernport Bay.

The main wild-caught species harvested in the area include southern rocklobster, abalone, snapper, southern calamari, gould's squid, King George whiting and mussels. Abalone wild-harvest occurs along the coastline primarily in the bay and inlet fisheries, in particular in the Corner Inlet and the Gippsland Lakes. The high value commercial snapper fishery is mostly located in Western Port Bay with incidental catches taken in the Corner Inlet and the Gippsland Lakes. The Gippsland Lakes, Western Port Bay, Lakes Entrance and Corner Inlet are also important areas for both recreational and commercial catch of a range of species, including black bream, southern calamari short finned eel fish, and King George whiting.

In the 2000 National Recreational and Indigenous Fishing Survey, this region recorded a participation rate of 22.9 per cent, much higher than the state average of 12.7 per cent (Henry and Lyle 2003). Latrobe-Gippsland residents fish in marine and estuarine waters from Western Port Bay to the NSW border. Corner Inlet, Gippsland Lakes and the Snowy River are popular fishing locations. Flathead, black bream, mullet, Australian salmon, King George whiting and blue mussels are the most common marine species targeted by fishers. In inland lakes and freshwater reaches of rivers, redfin, trout and carp are popular target species. Overall, fishing from the shore is the most popular way that residents access the fishery, but boat fishing is significant, accounting for 40 per cent of the recreational fishing effort in the region.

In 2012–13 the gross value of Victoria’s fisheries production (both aquaculture and wild-catch) was $75.2 million, an increase of 3 per cent ($1.9 million) from 2011–12. Victoria contributed 3 per cent of the total value of Australian fisheries production in 2012–13. In value terms, the wild-catch sector accounted for 73 per cent ($54.5 million) of the state’s total production and the aquaculture sector accounted for the remaining 27 per cent ($20.7 million).

Victoria’s wild-catch fisheries sector is dominated by two main products—abalone and Southern rocklobster—which account for 48 per cent and 31 per cent, respectively, of the total value of wild-caught production in 2012–13. Over the last decade the real value of Victoria’s wild-caught fisheries products has reduced by 53 per cent to $54.5 million in 2012–13.

The product for which the real value of production declined most over the past decade is wild-caught abalone, falling by 63 per cent to $26.3 million in 2012–13. This is largely attributable to the Abalone Viral Ganglioneuritis disease which has significantly reduced abalone production in the Victorian wild-catch sector in recent years. A large proportion of abalone is exported, mostly to Hong Kong, China and Japan. Exchange rate movements have a significant effect on the value of abalone exports and, in turn, production.

Commonwealth fisheries active in the waters off Victoria include the Commonwealth Trawl Sector (main source of domestic fresh fish for Sydney and Melbourne markets) and the Shark Gillnet and Shark Hook Sectors (supplies gummy shark or ‘flake’ to Melbourne) of the Southern and Eastern Scalefish and Shark Fishery. The Bass Strait Central Zone Scallop Fishery, Small Pelagic Fishery (mostly fishmeal for aquaculture and agriculture) and the Southern Squid Jig Fishery also operate in the waters off Victoria.

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In 2012–13 the volume of Victoria’s aquaculture production increased by 15 per cent (309 tonnes) to 2313 tonnes. Salmonids, blue mussels and abalone accounted for 44 per cent, 33 per cent and 16 per cent respectively of this volume and 27 per cent, 10 per cent and 54 per cent respectively of the total value of Victorian aquaculture in 2012–13.

In 2012–13, fisheries products exported from Victoria were valued at $138 million. This value includes State and Commonwealth fisheries products exported from the ports of Victoria, which may be sourced from Victorian waters or other parts of the country. The main export products include abalone and Southern rocklobster. Hong Kong, Vietnam and Japan are the major destinations for Victorian fisheries exports, accounting for 38 per cent, 26 per cent and 15 per cent of the total value of exports in 2012–13, respectively. Other major export destinations include Singapore (10 per cent) and China (4 per cent).

Recreational fishing is popular in Victoria. In the national survey of recreational fishers undertaken in the early 2000s it was found that Victoria had approximately 550 000 recreational fishers that fished in the 12 months to May 2000, an estimated 12.7 per cent of Victoria’s population (Henry and Lyle 2003). This includes gamefishing for species such as southern bluefin tuna (Green et. al. 2012). Recreational fishing also includes diving for Southern rocklobster, abalone, and scallops and hook and line fishing for a range of finfish species, such as snapper, King George whiting, black bream and flathead. Freshwater anglers target rainbow and brown trout, as well as native freshwater fish.

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Leasehold forest (400 ha—0.01%)

Multiple-use public forest (1 420 600 ha—52.7%)

Nature conservation reserve (898 600 ha—33.3%)

Other Crown land (118 800 ha—4.4%)

Private land (including Indigenous) (252 700 ha—9.4%)

Unresolved tenure (3800 ha—0.1%)

Agriculture, Fisheries and Forestry in the Latrobe-Gippsland region of Victoria, 2015 ABARES

4 Forestry SectorIn 2010–11, the total plantation area in the Latrobe-Gippsland region was approximately 105 300 hectares, comprised of approximately 39 600 hectares of hardwood plantations, 64 800 hectares of softwood plantations and 900 hectares of other plantations. The main hardwood species planted in the Latrobe-Gippsland region is blue gum (Eucalyptus globulus) and the main softwood species planted is radiata pine (Pinus radiata).

In 2011, there were approximately 2.7 million hectares of native forests in the Latrobe-Gippsland region, comprised mainly of Eucalypt medium open (1.3 million hectares), Eucalypt tall open (777 000 hectares) and Eucalypt medium woodland (318 400 hectares) forest types. The majority of the native forests are multiple-use public forest available for timber production (1.4 million hectares), while 898 600 hectares are in nature conservation reserves and 252 700 hectares are privately owned (Figure 10). Major timber processing industries are located at Maryvale, Nowa Nowa and Yarram.

Figure 10 Area of native forest, by tenure

Source: ABARES Australia’s State of the Forests Report 2013

Total sales and service income in the Victorian forest and wood product industry was estimated at approximately $6.6 billion in 2012–13, of which $2.6 billion was from the sale of paper and paper products, and the remaining $4.08 billion was generated from other wood product sales. Victoria is also the third largest exporter of woodchips in Australia, exporting approximately 1.1 million bone-dry tonnes in 2010–11, valued at $197 million. In 2011–12, both the volume and value of woodchip exports increased, to 1.5 million tonnes and $271 million respectively. Victoria is the only state that reported an increase in woodchip exports between 2010–11 and 2011–12. In 2011, the Victorian forestry sector employed 21 826 workers (0.9 per cent of the total employed workforce in Victoria) compared with 23 672 (1.1 per cent) in 2006 (number of people employed includes forestry support services and timber wholesaling).

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ReferencesABS 2011, Census of Population and Housing, Australian Bureau of Statistics, Canberra.

ABS 2014a, Agricultural Commodities, Australia, 2012–2013, cat. no. 7121.0, Australian Bureau Statistics, Canberra.

ABS 2014b, Labour Force, Australia, Detailed, Quarterly, Nov 2014, cat. no. 6291.0.55.003, Australian Bureau Statistics, Canberra.

ABS 2014c, Value of Agricultural Commodities Produced, Australia, 2012–13, cat. no. 7503.0, Australian Bureau Statistics, Canberra.

Australian Bureau of Agricultural and Resource Economics-Bureau of Rural Sciences 2010, Land use of Australia 2005-06, Version 4, Department of Agriculture, Fisheries and Forestry, Canberra.

ABARES 2014, Catchment scale land use of Australia – update March 2014. Department of Agriculture. http://data.daff.gov.au/anrdl/metadata_files/pb_luausg9abll20140506_11a.xml

Australian Bureau of Agricultural and Resource Economics and Sciences 2014, Australian forest and wood products statistics: March and June quarters 2014, Australian Bureau of Agricultural and Resource Economics and Sciences, Canberra.

Henry G.W. and Lyle J.M. 2003, The National Recreational and Indigenous Fishing Survey, FRDC Project No. 99/158.

Montreal Process Implementation Group for Australia and National Forest Inventory Steering Committee 2013, Australia’s State of the Forests Report 2013, Australian Bureau of Agricultural and Resource Economics and Sciences, Canberra.

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