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AUSTRALIA'S AGRICULTURE, FISHERIES AND FORESTRY AT A GLANCE 2012

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Australia's agriculture, fisheries and forestry at a glance 2012

Australia's agriculture, fisheries and forestry at a glance2012

Commonwealth of Australia 2012

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.

This publication (and any material sourced from it) should be attributed as: DAFF 2012, Australia's agriculture, fisheries and forestry at a glance 2012, Canberra, May. CC BY 3.0.

Cataloguing data

Department of Agriculture, Fisheries and Forestry, Canberra, May.

ISBN 978-1-921575-51-8 (printed) ISBN 978-1-921575-52-5 (online)

ABARES project: 43091

Internet

Australia's agriculture, fisheries and forestry at a glance 2012 is available at daff.gov.au/about/publications/australias_agriculture,_fisheries_and_forestry_at_a_glance_2012

Department of Agriculture, Fisheries and ForestryPostal address GPO Box 858 Canberra ACT 2601Switchboard +61 2 6272 2000Facsimile +61 2 6272 2001Web daff.gov.au

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

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

Contents

1Overview

Agriculture at a glance1

Agricultural production1

Farm incomes

1

Agricultural exports1

Productivity in Australian agriculture4

Climate

6

Recent climate

6

Climate change and agriculture8

Water

9

Water availability9

Water quality

10

Water use in agriculture10

Water trading

11

Soil

12

Land use

13

Land management practices15

Vegetation

17

Pests and diseases19

Weeds

20

Fisheries at a glance21

Fishing zones

21

Fisheries production21

Fisheries exports and imports24

People in fisheries26

Climate change and fisheries26

Fish stocks and fisheries management27

Forestry at a glance29

Forest products

31

Exports and imports31

People in forestry34

Water and forests35

Biodiversity conservation35

Forest pests and diseases36

Rural communities at a glance37

Rural communities and adaptation to change37

Opportunities for rural and regional communities37

Sector summaries40

Wheat

40

Coarse grains

42

Rice

44

Cotton

46

Oilseeds

47

Sugar

49

Wool

51

Beef and veal

53

Pig meat

55

Sheep meat

57

Poultry meat

59

Egg production

60

Dairy products

62

Horticulture

64

Wine and wine grapes65

Food

67

Overview

Agriculture, fisheries and forestry make an important contribution to Australia's economic prosperity. The industries recorded a combined gross value of production of $52.1 billion in 2010-11 and accounted for 2.4 per cent of gross domestic product.

Around 60 per cent of our agricultural production is exported, generating $32.4 billion in 2010-11. Our major agricultural exports are wheat, beef, wool, dairy products, cotton and wine.

Agriculture and forestry occupy 63 per cent of Australia's 7.7 million square kilometre landmass. Our fisheries, although based largely inshore, use an Exclusive Economic Zone of approximately 10 million square kilometres.

Together, agriculture, fisheries and forestry industries employed 351 000 people in 2010-11.

Agriculture at a glanceAgricultural production

In 2010-11 the total gross value of farm production is estimated to have increased by 21 per cent, to $48.2 billion, compared with the previous year. The size of the national sheep flock was 74 million head, the national cattle herd had 29 million head, and grains and oilseeds were grown on 24 million hectares of land. Production of wool was 429 000 tonnes (greasy equivalent), while milk production was around 9.1 billion litres and sugar production was 3.6 million tonnes.

There were 134 184 agricultural establishments in 2009-10, the latest year for which data is available.

Farm incomes

Favourable seasonal conditions led to increased crop and livestock production in 2010-11. These factors, combined with higher prices, saw farm cash incomes rise in 2010-11 to around $117 300 per farm for broadacre industries. For dairy farms, average farm cash incomes rose in 2010-11 to around $141 000 per farm.

Agricultural exports

Australian agriculture is export oriented. The total value of farm exports in 2010-11 was $32.4 billion. Wheat, beef and veal, and wool were the three largest agricultural exports in 2010-11.

Over the past 20 years there has been a shift in emphasis from European to Asian markets. This trend is expected to continue as income growth in countries such as China and ASEAN countries increases demand for agricultural products.

Farm sector indicators

2007-08

2008-09

2009-10

2010-11

Gross value of farm production

Crops

$m

24 237

22 769

21 119

27 106

Livestock

$m

19 516

19 149

18 537

21 057

Total

$m

43 752

41 918

39 656

48 162

Farm costs

$m

37 137

36 631

34 483

36 793

Net cash income a

$m

10 834

5 854

9 967

16 315

Net value of farm production b

$m

6 615

5 287

5 173

11 370

Value of farm exports (fob)

Crops

$m

13 070

17 001

15 231

17 621

Livestock

$m

14 500

15 147

13 318

14 823

Total

$m

27 570

32 148

28 550

32 444

Farm price indexes (1997-98 = 100)

Prices received by farmers

index

142

132

125

143

Prices paid by farmers

index

155

149

141

145

Farmers' terms of trade

index

91

89

89

99

Crop area and livestock numbers

Grains and oilseeds area

'000 ha

23 204

24 084

23 793

24 112

Sheep

million

77

73

68

74

Cattle

million

27

28

27

29

Employment

Agriculture

'000

302

322

325

307

Forestry and logging

'000

8

8

7

6

Commercial fishing

'000

14

9

11

12

Total portfolio, incl. service

'000

354

362

369

351

Total Australia

'000

10 684

10 892

11 027

11 355

a Gross farm cash income less total cash costs. b Gross value of farm production less total farm costs.

Sources: ABARES; Australian Bureau of Statistics

Agricultural export summary

2007-08

2008-09

2009-10

2010-11

$m

$m

$m

$m

Barley

1 496

1 321

1 093

1 295

Beef and veal

4 190

4 857

3 953

4 328

Canola

303

595

583

855

Cheese

968

796

715

731

Cotton

466

500

755

1 367

Cottonseed

8

19

46

85

Dairy - excluding cheese

1 796

1 885

1 372

1 614

Horticulture a

733

903

798

715

Lamb

803

925

916

1 033

Live cattle

446

538

550

499

Live sheep

286

339

297

346

Mutton

443

482

433

403

Pig meat

128

124

109

106

Rice

110

143

59

183

Sugar

1 006

1 338

1 887

1 436

Wheat

2 990

5 028

3 692

5 516

Wine

2 683

2 428

2 164

1 957

Wool

2 796

2 322

2 306

3 048

Other

5 918

7 603

6 824

6 929

Total farm exports

27 570

32 148

28 550

32 444

a Comprises mainly fresh fruit and vegetables.

Gross value of agriculture, fisheries and forestry production, 2010-11

Productivity in Australian agriculture

Given limited availability of land and water for agriculture, long-term growth in food production largely depends on productivity growth (increases in output in excess of additional input use).

Productivity growth is also the main way farmers offset rising costs and maintain profitability in the long term. This is because the terms of trade, a ratio of prices farmers receive to prices paid for inputs, has declined over time.

Australian agricultural exports, 2010-11

Over the past 33 years productivity growth in the broadacre farm sector, which covers dryland cropping and livestock, has averaged 1.2 per cent a year. Broadacre farmers have reduced their use of inputs by around 0.8 per cent a year and increased outputs by 0.5 per cent a year.

The rate of productivity growth of the cropping industry has slowed since the mid-1990s, while livestock industries have seen an increase in productivity. It is likely that recent droughts have had more effect on the cropping industry than on livestock industries.

Broadacre total factor productivity and the farmer terms of trade

Productivity growth in the dairy industry has averaged 0.3 per cent a year over the past 32 years. In contrast to broadacre industries, increased use of inputs, such as fodder, is driving output growth as dairy farms become more intensive.

Annual broadacre total factor productivity growth, by industry

Climate

Australia is a generally warm and dry continent with unreliable rainfall, both in distribution and timing. Recurring droughts and floods are natural features of the climate. Australia's distinct climate zones are:

subtropical and tropical regions to the north and north-east with most rainfall in the summer

temperate regions to the south with most rainfall in the winter

grassland and desert regions in the middle of the continent with irregular rainfall

areas of high rainfall on much of the coastal fringes and in the eastern ranges.

These climate zones influence agricultural land use. The tropical north is suited to extensive grazing (principally cattle), intensive horticulture (including vegetables) and sugar cane. The temperate regions support grain cropping and livestock production, while low-density grazing (mainly cattle) is found in the drier central regions.

Irrigation areas occur across all climate zones and these support the production of fruit, vegetables, dairy and many other intensive agricultural activities.

Climate zones

Recent climate

Australia's second wettest year on record was 2011 and January 2010 to December 2011 was the wettest two-year period on record. La Nia events in late 2010 to early 2011 and in late 2011 to early 2012 contributed to widespread heavy rainfall. Numerous extensive and significant floods caused damage to agriculture in some areas.

Despite significant flooding, production conditions were generally favourable for most of 2010 and 2011. Winter 2011-12 crop yields were the highest on record. Heavy rainfall increased soil moisture reserves and refilled most major storages in the Murray-Darling Basin, with total storage capacity at 90 per cent by March 2012. The increased water in storages is likely to benefit irrigated industries. Improved soil moisture will provide ideal conditions for crop and pasture growth in many areas, but there are some significant soil moisture deficiencies in parts of south-west Western Australia and western Victoria. Producers in these areas will be more reliant on in-crop rainfall.

Widespread heavy rainfall ended the prolonged drought conditions experienced since 2002. The Australian Government's Exceptional Circumstances declarations have ceased in all regions. Long-term rainfall deficiencies remain in south-west Western Australia, an area that has experienced a drying trend since the 1950s.

Rainfall trends, 1997-2011

Note: Autumn-winter rainfall deciles for the 15 years from 1997-2011 (compared with the rainfall record from 1900 to the present).

Source: Bureau of Meteorology

Climate change and agriculture

Australia's climate is changing as part of a long-term global trend associated with rising greenhouse gas emissions from human activities. Since 1950 there has been a 0.9C warming nationally and eastern and south-western Australia have become significantly drier. Climate change is expected to continue and potentially accelerate throughout the twenty-first century, presenting both challenges and opportunities for Australian agriculture.

The effects of climate change will vary across sectors, regions and production systems. Nationally, an increasing incidence of extreme weather events (such as drought and floods) is likely to pose significant challenges to agriculture.

Farmers need information systems that will help them identify the effects of climate change and assess the viability of adaptation options alongside other business management risks. Strategies for reducing greenhouse gas emissions from agriculture will play an increasingly important role as Australia moves toward lowering emissions.

Agriculture is the main source of methane and nitrous oxide emissions in Australia. According to the National Greenhouse Accounts, agriculture in 2009 produced 84.7 million tonnes of carbon dioxide equivalent about 16 per cent of Australia's total greenhouse gas emissions. This figure excludes land use, land use change and forestry activities. Most agricultural emissions come from livestock (methane), burning of savannas and nitrous oxide emissions from soils.

Change in mean temperature, 1960-2011

Source: Bureau of Meteorology

Further information

Climate variability: bom.gov.au/climate

Climate change: climatechangeinaustralia.gov.au; bom.gov.au/climate/change; climatechange.gov.au

Australia's National Greenhouse Accounts: climatechange.gov.au/government/initiatives/national-greenhouse-accounts.aspx

Water

Long-term average annual rainfall across Australia varies from less than 300 millimetres per year in central Australia to more than 3000 millimetres per year in far north Queensland.

Australia's average rainfall is approximately 3.7 million gigalitres of water per year (a gigalitre is a billion litres). Of this approximately:

89 per cent (3.29 million gigalitres) evaporates back into the atmosphere, mainly through vegetation

9 per cent (350 000 gigalitres) runs off into streams, rivers and storages

2 per cent (65 000 gigalitres) drains below the root zone to recharge groundwater aquifers and rivers.

Of all the inhabited continents, Australia has the lowest proportion of rainfall going into its rivers and aquifersonly 11 per cent compared with a world average of 65 per cent. The difference in flow rate between wet and dry years in Australian rivers is more than twice that of European rivers.

Water availability

About 65 per cent of runoff occurs in far north Australia and coastal Queensland. Only 6.8 per cent of Australia's runoff is in the Murray-Darling Basin, although the region uses more than 50 per cent of Australia's water. Seasonal distribution of rainfall also varies widely. Runoff in northern Australia is mostly in the monsoonal wet season. Runoff in the Murray-Darling Basin is spread throughout the year.

Irrigation is a well-established and important feature of the agricultural landscape, especially in the Murray-Darling Basin. Water use for irrigation, industry and urban needs has placed pressure on water-dependent ecosystems. The challenge is to balance the use of water for production purposes, while maintaining water quality and conserving the natural environment. A national program of water reform aims to achieve this balance.

Australia has more than 500 large dams supplying around 84 000 gigalitres of water for irrigation, industry, hydro-electricity and urban use.

River Murray system inflows have been below average for eight out of the past 10 years and the 2006-07 financial year was the driest on record. Rainfall across the entire Basin was very much above average during 2010 and 2011. Water storage levels in the Murray-Darling Basin were at approximately 90 per cent of capacity at March 2012, with inflows and water storage well above the long-term average.

Long-term average runoff from each drainage division

Water quality

The natural cycle of drought and flood across much of Australia has resulted in stream flows that are highly variable, both seasonally and annually. Variable flow affects water quality, particularly where water harvesting and water use increase the variation in stream flow.

Risks to water quality include the effects of salt, acid sulphate minerals and algal blooms.

The recent drought has caused a general reduction in the amount of salt in Australia's major rivers, because of an overall decrease in recharge to groundwater. High rainfall and flooding in eastern Australia in 2010-11 and 2011-12 have the potential to contribute to salinity. This could occur through the rise in water tables and the drainage of salt from floodplains that have been dry for over a decade.

Water use in agriculture

Agricultural industries are the major consumer of water in Australia, representing 52 per cent of Australian water consumption in 2009-10. Of the water used for agriculture, 90 per cent (6596 gigalitres) was used for irrigating crops and pastures and 10 per cent (763 gigalitres) for other agricultural purposes.

Less than 1 per cent of agricultural land in Australia was irrigated in 2009-10. However, irrigated agriculture accounted for 29 per cent of Australia's gross value of agricultural production.

The gross value of irrigated agricultural production (GVIAP) for Australia was $11.5 billion in 2009-10. The three commodities with the highest GVIAP in Australia were vegetables ($2.4 billion), fruit ($2.2 billion) and dairy production ($1.8 billion).

Crops with the highest irrigation water use in 2009-10 were: livestock grazing (26 per cent of total irrigation water use), cotton (13 per cent), sugar cane (11 per cent), fruit (10 per cent), cereal crops other than rice (9 per cent), hay (8 per cent), grapes (8 per cent), vegetables (6 per cent), rice (4 per cent), other broadacre crops (2 per cent) and nursery production (1 per cent).

Water trading

Water markets play an important role in allowing water to be moved to where it is most needed. Need may be shaped by seasonal water availability and commodity prices.

In the southern Murray-Darling Basin, trade has tended to move water use from upstream areas to downstream irrigation areas, shifting use from dairy pastures, rice and other annual crops to perennial horticulture and grapevines.

Gross value of irrigated agricultural production and irrigation water use in Australia

When water is in short supply, or in times of drought, farmers have used a range of risk management options, such as reducing planting areas, planting less water-intensive crops and dryland cropping. When water availability and commodity prices are favourable, production of annual irrigated crops such as rice and cotton has increased.

Further information:

Murray-Darling Basin Authority: mdba.gov.au

Bureau of Meteorology (water): bom.gov.au/water

Bureau of Meteorology (drainage and river basins): bom.gov.au/hydro/wr/basins

Water use on Australian farms: abs.gov.au/ausstats/[email protected]/mf/4618.0

National Water Commission (water trade): nwc.gov.au/markets/trading

Soil

The agricultural landscape includes a wide range of soil types, from old, deeply weathered and infertile soils to younger, more fertile soils. Soil types, their relative area and major uses in Australia include:

weakly developed soils (40 per cent), widespread but limited to sheep and cattle grazing

gradational soils (29 per cent), including earthy soils and those dominated by carbonate, primarily used for horticulture and grazing

soils with contrasting texture (17 per cent), used for forest and cereal production in temperate areas and for beef cattle grazing in tropical areas

cracking clays (12 per cent), primarily used for grazing and limited agriculture where rainfall is adequate

wet soils (2 per cent), saturated for prolonged periods, which require drainage before agricultural use, including for sown pastures and sugar cane

organic soils (less than 1 per cent), including peaty soils, mainly in the world heritage site in south-west Tasmania

sandy soils (less than 1 per cent), characterised by a build-up of organic matter, iron and aluminium. They have limited use because of low fertility, poor water retention and seasonal waterlogging.

Compared with soils in the northern hemisphere, Australian soils have less organic matter, low amounts of phosphorous and other nutrients, and poorer structure resulting in reduced nutrient storage and water-holding capacity.

Important soil-management issues include erosion (wind and water), salinisation (dryland and irrigation), acidification and compaction. Soils are managed in various ways, including maintaining ground cover and windbreaks, avoiding the use of steep slopes, applying fertilisers (mainly phosphorus and nitrogen) and by using lime.

Australian soil types

Further information

Soil Health Knowledge Bank: soilhealthknowledge.com.au

State of the environment 2011 (soil condition): environment.gov.au/soe/2011/report/land/2-2-soil.html#s2-2

Australian Collaborative Land Evaluation Program: clw.csiro.au/aclep

Australian Soil Resource Information System: asris.csiro.au

Sustainable resource management (soils): daff.gov.au/natural-resources/soil-land-salinity

Climate Change Research Program (soil carbon): daff.gov.au/climatechange/australias-farming-future/climate-change-and-productivity-research/soil_carbon

Land use

Agriculture occupies 456 million hectares or almost 59 per cent of the continent; this includes livestock grazing, dryland and irrigated agriculture, but not timber production. Dryland grazing on natural and modified pastures occupies 429 million hectares or 56 per cent of the continent, largely in arid and semi-arid areas. In the past two decades the area of land used for grazing has decreased, while the area used for cropping and horticulture has increased.

Minimal use, nature conservation and other protected areas, including Indigenous uses, occupy 283 million hectares or 36 per cent of Australia's land mass.

Summary of Australian land use 2005-06

Land use

Area ('000 hectares)

Percentage (%)

Grazing

428 898

55.7

Minimal use

124 272

16.2

Other protected areas, including Indigenous uses

101 536

13.2

Nature conservation

56 924

7.4

Dryland cropping and horticulture

25 662

3.3

Timber production

13 824

1.8

Water

12 562

1.6

Intensive uses

3 132

0.4

Irrigated cropping and horticulture

1 682

0.3

Unknown

224

0.0

Total

768 715

100

Further Information

Australian Collaborative Land Use and Management Program: adl.brs.gov.au/landuse/

ABARES publications (land use): daff.gov.au/abares/publications_remote_content/publication_topics/land_use

Land use in Australia, 2005-06

Land management practices

Land management practices are the means by which land use objectives are achieved. For agricultural uses this includes cultivation methods, crop residue management, soil pH management, nutrient application, lime and dolomite application, and ground cover management.

Sustainable land management practices benefit soil health and soil productivity; they can also reduce wind and water erosion and loss of soil carbon. Data for some practices have been collected by the Australian Bureau of Statistics since the mid-1990s.

Farmers have significantly reduced cultivation for broadacre crops and increased the retention of crop residues, practices which help reduce soil erosion and increase soil carbon. The area of broadacre cropping not cultivated before sowing has almost quadrupled from 21 per cent of the total area cropped in 1995-96 to 76 per cent in 2009-10. The area of crop residue left intact has also risen, from 22 per cent in 1995-96 to 68 per cent in 2009-10.

The application of lime and/or dolomite to soil is used to reduce soil acidity and improve soil productivity. The number of cereal growing businesses applying lime or dolomite to their holdings has increased from 8 to 19 per cent. Much smaller increases have occurred in the dairy and horticultural industries.

Cultivation in Australia

Soil acidity management in Australia

Further Information

Sustainable farm practices: nrm.gov.au/about/caring/priorities/sustainable.html

Land management and farming in Australia, 2009-10: abs.gov.au/ausstats/[email protected]/mf/4627.0

Land management and farming in Australia, 2007-08: abs.gov.au/AUSSTATS/[email protected]/allprimarymainfeatures/C3FC0BDD85E571DBCA2578B50011D983?opendocument

Agricultural commodities in Australia, 2000-01: abs.gov.au/AUSSTATS/[email protected]/allprimarymainfeatures/C2F60E87034AB0A8CA25709E003BA503?opendocument

Vegetation

Australia's native vegetation estate comprises shrublands and heathlands (37 per cent), native grasslands and minimally modified pastures (33 per cent), and native forests and woodlands (19 per cent). The remaining 10 per cent of the continent comprises non-native vegetation, such as annual crops and modified pastures (9 per cent), and plantations (0.2 per cent).

Native vegetation clearing has occurred in the intensive agricultural zone. In these areas native vegetation has been replaced with crops and modified pastures, forest plantations and horticultural trees and shrubs. In these landscapes remnants of native vegetation and non-native vegetation exist as a mosaic of vegetation types. In the extensive agricultural zone (including rangelands) much of the native vegetation remains and supports pastoral industries. The clearing of native vegetation has declined since the 1990s as states and territories introduced regulatory controls.

Vegetation management can profoundly affect landscape condition, soil health and the supply of ecosystem goods and services, such as food, fibre and water production. Vegetation management can also affect climate change mitigation and adaptation. The importance of managing vegetation for ecosystem goods and services is reflected in the on-the-ground investments being made through conservation programs, land clearing controls and environmental management systems.

At a broad scale, vegetation condition can be assessed using the Vegetation Assets, States and Transitions (VAST) classification framework. The classification indicates that the greatest extent of least modified native vegetation is in the centre and north of Australia. The most modified and replaced vegetation is in the intensive use areas of the continent.

Australian vegetation extent

Australian vegetation condition

Further information

ABARES vegetation condition tool: adl.brs.gov.au/VAST/

Vegetation Assets, States and Transitions: accounting for vegetation condition in the Australian landscape: adl.brs.gov.au/brsShop/data/vast_report.pdf (pdf 419kb)

State of the environment 2011 (vegetation): environment.gov.au/soe/2011/report/land/2-3-vegetation.html#s2-3

Pests and diseases

It is not possible to eradicate the many endemic pest animals and diseases found across Australia. Efforts instead focus on cost-effective ways to reduce damage caused by pest species.

Wild dogs, rabbits, foxes, pigs, pest birds and mice cost agriculture around $745 million in 2009 in damages and expenditure on management, administration and research. Major agricultural impacts of pest animals include:

competition for grazing and land degradation by rabbits and feral goats

attacks on livestock by wild dogs, foxes and feral pigs

damage to grain and fruit crops by mice and birds.

Introduced insects, such as cattle ticks and aphids, cost agriculture more than $5 billion a year in production losses and $1 billion in control costs. Economic modelling suggests that an outbreak of karnal bunt, a fungal disease affecting wheat, would cause an immediate loss of $295 million in exports a year.

Biosecurity and environment protection authorities use control measures at Australia's borders to reduce the risk of new pests and diseases becoming established in Australia. They also conduct risk assessments to decide which exotic species can be imported and how they should be kept.

Further information

Pests, diseases and weeds: daff.gov.au/natural-resources/invasive; daff.gov.au/animal-plant-health/pests-diseases-weeds

Plant pests/diseases: planthealthaustralia.com.au

Animal pests/diseases: animalhealthaustralia.com.au

Weeds

Some of the many exotic plant species introduced into Australia since European settlement have become weeds. Weeds contaminate crops, displace pasture plants and compete with crop and pasture plants for water and nutrients. Weeds also harbour diseases and insect pests, reduce livestock carrying capacity and condition, and can be toxic to livestock.

Weed damage and control costs Australian agriculture more than $4 billion a year. Farmers see weed control as one of their highest priorities in preventing long-term land degradation. The most effective means of weed control are prevention, early detection and eradication. Once weeds become established, farmers can use control methods to reduce damage to crops, livestock and the environment.

Australia is a leader in the biological control of weeds. Biocontrol provides exceedingly high benefit-to-cost ratios and reduces reliance on herbicides and other less desirable management practices. However, not all weeds are suitable for biological control.

The Australian Weeds Strategy identifies priorities for weed management across the nation. To support this strategy the Weeds of National Significance initiative provides a framework for the control of individual weed species.

Invasion curve for weeds

Further information

Weeds: weeds.gov.au; www.daff.gov.au/natural-resources/invasive

Fisheries at a glanceFishing zones

The Australian Exclusive Economic Zone (EEZ) extends from 12 nautical miles offshore to 200 nautical miles off the coast of Australia. It is the world's third largest EEZ, covering around 10 million square kilometres and spanning the tropics to Antarctic waters.

The Australian Fishing Zone extends from 3 nautical miles offshore to the limit of the EEZ (excluding Antarctic waters) and is defined in Australian Government legislation. Australia also has rights to the continental shelf beyond the EEZ.

Fisheries production

In 2009-10 the gross value of Australian fisheries production was $2.2 billion. This included the harvest of wild stocks and production from aquaculture. The highest value fisheries product was salmonids at $369.1 million, representing 17 per cent of the gross value of fisheries production. This was followed by rock lobster ($368.8 million, 17 per cent), prawns ($324 million, 15 per cent), abalone ($180 million, 8 per cent) and tuna ($125 million, 6 per cent).

The species produced in Australia in largest volumes was sardines, a relatively low value product. These species together accounted for 62 per cent of Australia's fishery production.

In 2009-10 the gross value of Australian aquaculture production was $870 million, representing 40 per cent of the gross value of Australian fisheries production.

Together salmonids, tuna, prawns, edible oysters and pearl oysters represented 87 per cent ($753 million) of the value of aquaculture production, with salmonids accounting for 42 per cent of that total.

Australian Exclusive Economic Zone and fishing zone

Gross value of production of Australian fisheries, by sector, 2000-01 to 2009-10

Australian fisheries production, by sector and state

2006-07

2007-08

2008-09

2009-10 a

$m

$m

$m

$m

State wild catch fisheries

New South Wales

87

89

79

81

Victoria

75

68

54

48

Queensland

207

208

223

222

Western Australia

352

324

291

272

South Australia

219

206

219

201

Tasmania

188

166

176

172

Northern Territory

29

33

34

31

Total

1 157

1 093

1 077

1 026

Aquaculture

New South Wales

46

48

49

52

Victoria

20

17

15

17

Queensland

72

75

84

101

Western Australia

129

123

101

96

South Australia

208

262

246

193

Tasmania

306

321

351

392

Northern Territory

25

23

21

25

Total

806

869

867

877

Commonwealth fisheries

294

289

315

317

Total value b

2 217

2 206

2 214

2 196

a Preliminary. b Total value has been adjusted to exclude southern bluefin tuna caught in the Commonwealth southern bluefin tuna fishery, which is input to farms in South Australia. This avoids double counting.

Fisheries production, by category and species

2008-09

2009-10 a

$m

tonnes

$m

tonnes

Fish

Tuna

187

13 699

125

10 957

Salmonids

326

30 036

369

31 915

Other

463

115 738

461

119 736

Total

977

159 473

955

162 607

Crustaceans

Prawns

290

24 186

324

27 034

Rock lobster

415

12 203

380

10 141

Crab

58

5 314

56

5 185

Other

8

443

19

978

Total

771

42 146

779

43 339

Molluscs

Abalone

189

5 612

180

5 176

Scallops

26

7 599

26

7 466

Oysters

93

14 227

100

14 871

Squid

8

1 856

10

1 627

Other

114

4 702

126

4 715

Total

430

34 001

442

33 792

Other

37

1 889

19

2 021

Total value

2 214

237 508

2 196

241 758

a Preliminary. Numbers may vary due to rounding.

Fisheries exports and imports

In 2010-11 the value of Australian exports of all fisheries products (edible and non-edible) totalled $1.2 billion. Rock lobster was the most valuable export species by value, which together with pearls, tuna and prawns accounted for 82 per cent of Australian total export value of fisheries products.

Value of Australian fisheries exports and imports, 2000-01 to 2010-11

Hong Kong ($394 million) was Australia's main edible seafood export destination (excluding live products), followed by Japan ($225 million), China ($143 million), Singapore ($41 million) and the United States ($35 million).

Australian exports of edible fisheries products, by destination (by value), 2010-11

Over the past decade Australia has become a net importer of fish products in value terms. In 2010-11 the value of Australian imports of all fisheries products (edible and non-edible) totalled $1.5 billion; edible products accounted for $1.3 billion of that total, or approximately 83 per cent.

Major sources for Australian edible imports, excluding live products, were Thailand ($340 million), New Zealand ($211 million), China ($186 million) and Vietnam ($162 million). Prepared and preserved fish, mainly tuna, accounted for approximately 70 per cent of the total value of edible fisheries products imported from Thailand. The major import products from New Zealand were frozen fish fillets, and fresh and chilled whole fish. The major import from Vietnam was frozen fish fillets, and from China, prawns.

Australian imports of edible fisheries products, by selected countries (by value), 2010-11

People in fisheries

In 2006, approximately 16 000 people were employed in commercial fishing, aquaculture, fish processing and wholesaling activities. Support industries that rely on income created from commercial fishing also provide employment in transport, mechanical services and retailing.

Remote regions, such as north-west and northern Australia, have a greater proportion of the workforce in the fishing industry compared with other parts of the country.

Climate change and fisheries

It is difficult to predict how climate change will affect commercial, recreational and Indigenous fishing activities and aquaculture industries in Australia. Climate change is raising sea levels, ocean acidification and sea surface temperature, especially off southeastern Australia. It may also affect ocean currents and wind patterns, and increase the frequency and intensity of storms and tropical cyclones.

Employment in the commercial fishing industry, 2007 a

Aquaculture

Fishing b

Seafood processing

Fish wholesaling

Total employment

New South Wales

709

1 106

203

1 039

3 057

Victoria

280

514

259

859

1 912

Queensland

551

1 460

273

1 037

3 321

South Australia

325

1 152

357

452

2 286

Western Australia

766

1 003

509

460

2 738

Tasmania

935

643

385

295

2 258

Northern Territory

62

222

15

43

342

Australian Capita Territory

0

7

0

17

24

Australia

3 628

6 107

2 001

4 202

15 938

a Based on ANZSIC 2006 classification, b Includes fishing, hunting and trapping (not elsewhere specified).

Source: Australian Bureau of Statistics

Australia's fishing and aquaculture industries will have to adapt to changes in both physical environment and marine life, including where species occur, their growth and productivity, migratory pathways, predator-prey relationships and the composition of marine communities. Adult albacore tuna, for example, often occur in the open ocean where sea surface temperatures are around 18C. Their distribution is expected to extend further southwards as sea surface temperatures increase and the East Australian Current strengthens.

Fish stocks and fisheries management

A fish stock is a population of fish that is largely distinct from other populations of the same species, and can be regarded as a separate entity for management or assessment purposes.

Fish stocks are managed by the Australian, state and territory governments. The Australian Government is party to several international conventions or agreements for the management of fish stocks, including those that range beyond the Australian Fishing Zone. These stocks are exploited across various Exclusive Economic Zones and on the high seas.

Commonwealth legislation relevant to fisheries management includes the Fisheries Management Act 1991, the Fisheries Administration Act 1991, Torres Strait Fisheries Act 1984 and the Environment Protection and Biodiversity Conservation Act 1999. States and territories have similar legislation for fisheries management. Principles of conservation, sustainable yield and ecologically sustainable development are common to Australian fisheries legislation.

The status of Australian Government-managed fish stocks has improved in recent years. Of the 96 fish stocks classified in the Fishery status reports 2010, 71 were classified as not subject to overfishing (down from 73 in 2009) and 56 were classified as not overfished. A total of 53 stocks were classified as both not overfished and not subject to overfishing.

In 2010, 11 stocks were classified as overfished (down from 12 in 2009) and 8 stocks were classified as subject to overfishing (down from 10 in 2009). Of these, six stocks were classified as both overfished and subject to overfishing.

The number of fish stock classified as uncertain also dropped in 2010. Twenty-nine stocks were classified as uncertain with respect to their biomass status (down from 30 in 2009) and 17 were classified as uncertain with respect to fishing mortality status (down from 18 in 2009).

Biological stock status of Australian Government managed fish stocks, 2004 to 2010

Note: The number of stocks assessed increased from 74 (2004) to 101 (2009), then declined to 96 stocks in 2010.

The economic performance of each Australian Government-managed fishery is examined in terms of maximising the net economic returns to the Australian community. Commonwealth fisheries accounted for 15 per cent ($316.7 million) of the gross value of production of all Australian fisheries in 2009-10 ($2.20 billion).

The economic status of the majority of the most valuable Commonwealth fisheries has improved in recent years. The Northern Prawn Fishery is now earning positive net economic returns. This follows targeting of maximum economic yield in the tiger prawn fishery since 2004 and significant structural adjustment under the Securing our Fishing Future program.

The Commonwealth Trawl Sector and Scalefish Hook Sector of the Southern and Eastern Scalefish and Shark Fishery (SESSF) have recorded improved net economic returns, due to stock rebuilding and structural adjustment. The key fish stocks (in terms of value) are being managed at or near target levels. The long-term recovery of orange roughy stocks may improve net economic returns in the future. The Gillnet Hook and Trap Sector of the SESSF has maintained positive net economic returns over the last decade.

Other fisheries that are likely to have generated positive net economic returns in 2009-10 include the Bass Strait Central Zone Scallop Fishery, Heard Island and McDonald Islands Fishery, Macquarie Island Toothfish Fishery, and the Great Australian Bight Trawl Sector of the SESSF.

The Eastern Tuna and Billfish Fishery and the Torres Strait Prawn Fishery continue to exhibit a negative or close to negative trend in fishery level net economic returns. The current overfished state of the southern bluefin tuna stock undermines the economic status of this fishery.

Further information

Fishery status reports 2010: daff.gov.au/abares/publications

Forestry at a glance

Australia's forest estate comprises 149.4 million hectares, covering about 19 per cent of the continent. Native forests cover 147.4 million hectares and plantations 2 million hectares. Eucalypt forests comprise 78 per cent of Australia's native forests. The plantations comprise about 1 million hectares of softwood species (mainly exotic pines) and 1 million hectares of hardwood species (mainly eucalypts).

About 23 million hectares (16 per cent) of native forests are in nature conservation reserves. Privately managed freehold, leasehold and indigenous managed land accounts for 70 per cent of forested land; state, territory and other government agencies manage the remainder. Indigenous-managed land includes more than 21 million hectares of forest, or 14 per cent of Australia's total forest area.

Multiple-use public forests, 6 per cent of Australia's forests, continue to provide most of Australia's native timber products. States in which native forest harvesting occurs have management processes backed by legislation and codes of forest practice designed to maintain environmental values and the productive capacity of forests.

Most multiple-use public forests and nature conservation reserves are available to the public for recreation and tourism.

Forest area by ownership

a Some formal conservation reserves, such as freehold Indigenous national park, are included in other categories.

Forest area by forest type

'000 ha

% of area

Native forest a

Acacia

10 365

6.9

Callitris

2 597

1.7

Casuarina

2 229

1.5

Eucalypt

116 449

77.9

Mangrove

980

0.7

Melaleuca

7 556

5.1

Rainforest

3 280

2.2

Other forest

3 942

2.6

Total native forest

147 397

98.65

Plantation b

Hardwood plantation

981

0.7

Softwood plantation

1 025

0.7

Other plantation

12

0.0

Total plantation

2 018

1.35

Total forest

149 415

100.00

a 2008 area. b 2010-11 area.

Note: Values are rounded.

Sources: Australia's State of the Forests Report 2008, Bureau of Rural Sciences; National Plantation Inventory 2012 Update, Australian Bureau of Agricultural and Resource Economics

Australian forest, 2007

Note: A closed forest is one in which the tree crown cover ranges from greater than 80 to 100 per cent of the land area when viewed from above. An open forest is one in which the tree crown cover ranges from greater than 50 to 80 per cent of the land area when viewed from above. A woodland forest is one in which the tree crown cover ranges from greater than 20 to 50 per cent of the land area when viewed from above.

Forest products

Australia's forest industries contributed over $8 billion to Australia's gross domestic product in 2009-10. Forest product manufacturing contributes over 7 per cent to Australia's manufacturing sector value added.

In 2009-10 Australia harvested around 25.6 million cubic metres of logs from forests valued at almost $1.8 billion, with 74 per cent of the total volume harvested from plantations and the remaining 26 per cent from native forests. These logs are processed into high value timber products. In 2009-10 sales and service income from the primary forest manufacturing industry was valued at over $22 billion.

Most forest product processing in Australia is made up of coniferous (softwood) and broadleaved (hardwood), wood-based panels, paper and paperboard, and woodchips. Output from these industries fluctuates with demand and supply conditions, such as activity in the domestic housing sector, overall economic growth, and rates of plantation establishment and harvesting.

Exports and imports

The balance of payments deficit in the forest products sector is just under $2 billion, comprising almost $2.5 billion of exports and around $4.4 billion of imports in 2010-11. Woodchips are the largest contributor to the value of Australia's primary wood product exports, representing 36 per cent of the total in 2010-11.

Logs harvested

Unit

1999-2000

2004-05

2008-09

2009-10

Source a

Native broadleaved

Sawlogs and veneer logs

'000 m3

3 951

3 320

2 640

2 494

Pulplogs and other logs

'000 m3

7 142

6 546

5 099

4 122

Total

'000 m3

11 094

9 866

7 739

6 617

Plantation broadleaved

Sawlogs and veneer logs

'000 m3

149

273

168

136

Pulplogs and other logs

'000 m3

690

2 663

4 579

4 428

Total

'000 m3

839

2 936

4 746

4 564

Coniferous

Sawlogs and veneer logs

'000 m3

7 341

9 121

8 552

9 529

Pulplogs and other logs

'000 m3

5 133

5 075

4 762

4 907

Total

'000 m3

12 475

14 196

13 314

14 436

Total log harvest

'000 m3

24 408

26 998

25 799

25 616

Gross value of log production b

Native broadleaved

$m

610

640

581

511

Plantation broadleaved

$m

47

172

355

342

Coniferous

$m

708

842

823

929

Total

$m

1 364

1 653

1 759

1 782

a Includes Australian Bureau of Agricultural and Resource Economics estimates for private native broadleaved. b Estimated gross value of logs delivered to mill door, excluding goods and services tax.

Forest products output and consumption

Unit

1999-2000

2004-05

2008-09

2009-10

Annual production

Sawnwood

Broadleaved

'000 m3

1 538

1 261

990

na

Coniferous

'000 m3

3 086

3 679

3 740

na

Total

'000 m3

4 624

4 940

4 730

na

Wood-based panels

Veneer

'000 m3

4

4

117

123

Plywood

'000 m3

192

156

118

120

Particleboard

'000 m3

978

944

911

928

Medium density

fibreboard

'000 m3

621

794

632

558

Total

'000 m3

1 795

1 898

1 778

1 730

Paper and paperboard

Newsprint

kt

464

443

444

427

Printing and writing

kt

535

659

723

496

Household and sanitary

kt

232

197

196

194

Packaging and industrial

kt

1 605

1 945

1 915

2 058

Total

kt

2 836

3 244

3 278

3 175

Annual consumption

Sawnwood

'000 m3

5 501

5 528

4 995

na

Wood-based panels

'000 m3

1 705

1 804

1 767

1 817

Paper and paperboard

kt

3 871

4 227

4 165

4 030

Note: See ABARES 2011, Australian forest and wood products statistics for assumptions relating to these data.

Sources: Australian Bureau of Agricultural and Resource Economics; Australian Bureau of Statistics; forest industry associations; private industry; state and territory forest services

Forest products trade

Unit

1999-2000

2004-05

2008-09

2009-10

Annual production

Imports

Sawnwood

'000 m3

719

671

748

846

$m

428

419

429

473

Wood-based panels

'000 m3

266

362

416

479

$m

152

228

250

289

Paper and paperboard

kt

1 410

1 743

1 744

1 886

$m

2 088

2 187

2 175

2 223

Total a

$m

3 834

4 017

4 200

4 408

Exports

Roundwood

'000 m3

1 098

864

1 377

1 638

$m

67

82

138

198

Sawnwood

'000 m3

78

293

387

349

$m

62

121

125

115

Wood-based panels

'000 m3

548

391

244

216

$m

207

153

88

98

Paper and paperboard

kt

497

811

890

1 029

$m

459

601

649

747

Woodchips

kt

4 994

5 363

4 818

5 064

$m

744

839

856

884

Total a

$m

1 846

2 140

2 261

2 474

a Excludes secondary wood products.

The value of paper and paperboard exports has increased by 24 per cent in the five years to 2010-11; these products now contribute around 30 per cent to the total value of forestry exports. Over the last five years, the fastest growing export values have been roundwood logs and recovered paper. Over the same period, values of import paper manufactures, sawnwood and wood-based panels have also grown.

Japan remains our major trading partner in forest product exports, accounting for around 30 per cent of the value in 2010-11, while New Zealand is the largest source of Australia's imports, providing around 16 per cent of the value of imports. China is emerging as a major trading partner in forest products. In 2010-11, China accounted for 22 per cent of the value of Australia's forest product exports ($544.4 million) and 15 per cent of the value of imports ($676 million).

People in forestry

According to the Australian Bureau of Statistics labour force survey, the forestry, wood, pulp and paper manufacturing industries directly employed around 66 000 people in 2010-11; this is around 12 per cent below the 75 000 people estimated to be employed in these industries in 2009-10.

Most forest sector employment is in processing industries. In 2010-11 wood product manufacturing employed around 37 000 people, and pulp and paper products around 20 000. Forestry support service industries together employed around 9 000 people. Many people are also employed in small, regional communities in the timber haulage, merchandising and importing parts of the forestry sector.

Employment in forestry and forest products sector

Unit

1999-2000

2004-05

2008-09

2009-10

Labour force a

Forestry

Forestry and logging

'000

10

8

7

6

Forestry support services

'000

4

3

4

4

Total

'000

14

11

11

9

Total agriculture, forestry and fishing

'000

432

348

369

351

Proportion of forestry and logging

%

3

3

3

3

Wood, pulp and paper manufacturing employment

Wood product manufacturing

Log sawmilling and timber dressing

'000

21

18

12

13

Other wood product manufacturing

'000

26

35

34

25

Total

'000

47

53

46

37

Pulp, paper and converted paper products

Pulp, paper and paperboard

'000

11

9

4

5

Converted paper products

'000

11

9

8

10

Other pulp, paper and converted paper

'000

8

7

7

6

Total

'000

29

24

19

20

Total wood, pulp and paper manufacturing

'000

76

77

64

57

Total manufacturing industries

'000

1 068

1 025

1 006

992

Contribution to total manufacturing

%

7

7

6

6

Total employment in forestry, wood, pulp and paper manufacturing

'000

90

88

75

66

Total Australian employment

'000

9 018

10 088

11 027

11 355

Proportion of total forestry, logging and wood manufacturing in Australian employment

%

1.0

0.9

0.7

0.6

a Labour force based on Australian and New Zealand Industry Classification 2006; annual data are the average of the total employment (full-time plus part-time) quarterly survey.

Water and forests

Much of Australia's fresh water for household, industrial and agricultural use is captured in forested catchments. More than 30 million hectares of public forests (20 per cent of the total forest area) are managed primarily for protection of biodiversity, soil and water values. More than 4 million hectares of forest are managed specifically for water supply, with other activities prohibited. Multiple-use public forests are subject to codes of practice designed to reduce soil erosion and to maintain water quality.

Historical clearing of deep-rooted native vegetation (including forests and woodlands) in the agricultural areas of Australia has caused water tables to rise. Where the groundwater is saline, a rising watertable leads to saline surface soils and streams. Strategic revegetation for environmental or commercial purposes is being used to limit movement of salt in the landscape and its effects on agricultural production and stream salinity.

Because trees can use more water than pasture, plantation expansion is a concern in catchments where water is in short supply. Plantation expansion may have a negative effect on regional water availability in some parts of the Murray-Darling Basin if these new plantations are concentrated in particular sub-catchments. However, plantation forestry is a minor land use sector across the Basin; such forests occupy a small area of the catchments in which they are located.

Wildfires increase soil erosion and reduce water quality. Natural regrowth in fire-affected catchments can reduce water yields for decades.

Biodiversity conservation

In the main native forest timber production areas the Australian and some state governments have negotiated 20-year plans for the conservation and sustainable management of Australia's native forests.

These regional forest agreements provide a comprehensive, adequate and representative reserve system for forest biodiversity conservation. The agreements aim to place in nature conservation reserves 15 per cent of the pre-1750 distribution of each forest type, 60 per cent of the existing distribution of each forest type if vulnerable, 60 per cent of existing old-growth forest, 90 per cent or more of high-quality wilderness forests, and all remaining occurrences of rare and endangered forest ecosystems, including rare old-growth forests.

In the five years to 2008, national representation of forests in formal nature conservation reserves increased by 1.1 million hectares to 23 million hectares16 per cent of Australia's forests. Other reserves have also been set aside for conservation purposes within forests used for the production of timber and other forest products, and in areas of private forest managed for conservation objectives. Outside formal and other conservation reserves, legislative protections and/or codes of practice protect environmental values.

Forest pests and diseases

With the exception of exotic cinnamon fungus and the myrtle rust fungus, native forest and plantation species are mostly affected by indigenous diseases, which can be widely distributed but usually do not cause severe damage.

Diseases of introduced plantation species are usually caused by exotic pests and diseases that sometimes reach epidemic proportions. Pests such as bark beetles and blue stain fungi can cause commercial damage. Managing pests and diseases in forest plantations is an ongoing cost of management to foresters.

Exotic animals (such as feral goat, hare and pig) and indigenous animals (such as kangaroo, possum and wallaby) can cause damage to forests, particularly young seedlings.

Projected changes in climate, including drier and warmer conditions, could affect growth of forests and their susceptibility to pests and diseases.

The management of pests and diseases using pesticides is highly regulated. The quantity of pesticides used in forests is less than 1 per cent of the total Australian pesticides market.

Further information

Australian forest and wood products statistics: daff.gov.au/abares/publications_remote_content/publication_series/australian_forest_and_wood_products_statistics

Australia's state of the forests report 2008: adl.brs.gov.au/forestsaustralia/publications/sofr2008.html

Rural communities at a glanceRural communities and adaptation to change

Characteristics of rural and regional Australia

The 2006 Australian Bureau of Statistics' population census shows that 7.5 million peoplearound one-third of the Australian populationdo not live in capital cities.

In the food production industries, over 90 per cent of employment is in rural and regional areas.

The average age of the population is increasing at a faster rate in small towns and rural areas than in urban areas, as young people and families move to regional centres and cities. For example, the median age of farmers in 2006 was 52 years. While an ageing population may affect succession and labour supply, it offers advantages in terms of skills, maturity and experience.

Pressures on rural communities

Rural and regional Australia face pressures for change. Pressures include those brought about by natural disasters, government policies, programs or laws, and changing export requirements. Recent research has focused on the ways in which communities are affected by these pressures, and how they respond and adapt to opportunities that are presented.

Adaptive capacity of rural and regional communities

Adaptive capacity is a useful concept for understanding the potential of communities to adapt to, and cope with, changes that affect them. Adaptive capacity refers to the strengths, resources and vulnerabilities of a given community, and is strongly influenced by local context and historical processes. The ability of communities to adapt varies widely across Australia.

The Australian Bureau of Agricultural and Resource Economics (ABARES) uses a relative adaptive capacity index to measure how communities deal with change. The index is based on social factors, such as income, education levels, age structure, mobility, housing and employment diversity. The index draws on data from the Australian Bureau of Statistics' 2006 Census of population and housing.

Opportunities for rural and regional communities

Agritourism and food tourism

Agritourism and food tourism have attracted visitors to regional Australia for decades. Working farms or other farm or food-related businesses, including restaurants, markets and produce outlets, offer recreational and educational experiences, and natural products. These services are sometimes combined with other types of tourism, such as ecotourism or nature-based tourism.

Relative adaptive capacity

Note: Lower represents lower ranked general adaptive capacity to change, across Statistical Local Areas.

Source: Relative adaptive capacity index, developed by the Australian Bureau of Agricultural and Resource Economics and the University of New England, 2011

The businesses may be open for just a season or year-round, but they all have a common theme: they help farmers stay on the farm.

Most agritourism and food tourism businesses are family run, by farmers or other individuals. Some business owners have moved or retired to the country to pursue business or lifestyle goals. Most operators are over 50 years old and many owners and managers are women. A number of businesses are run by, and employ, members of local Indigenous communities.

The average property size of agritourism and food tourism businesses is around 60 hectares and small diversified farms are common. The average time businesses have operated is 11 years.

Types of agritourism and food tourism activity

Farmers markets

Farmers markets operate regularly in many communities. At such markets farmers and food producers sell fresh farm-origin and associated value-added processed food products directly to customers.

Alternative fresh food retail markets, such as farmers markets, represent about 7 per cent of the market for fresh food in Australia. By comparison, major supermarkets represent about 50 per cent.

Farmers markets are becoming more important for both food producers and consumers of produce and gourmet foods. These markets also have the potential to strengthen community ties and boost local tourism.

Farmers markets in Australia are held more often and in more locations than in 2004, with increasing numbers of customers and stallholders. In 2011 there were over 150 farmers markets nationally.

A key factor in this growth is consumer interest in locally produced foods, in farming and food production, and in sustainable, ethical and organic production methods.

ABARES surveyed 72 farmers markets in 2011 and found that:

67 per cent were operated by not-for-profit organisations, with an average of 10 casual volunteers involved per market and less than two paid employees

75 per cent had a self-regulated policy about sourcing produce only from the local area

43 per cent were held weekly and 44 per cent monthly

69 per cent reported an increased number of stallholders since the market first opened.

Farmers markets can provide economic benefits for producers, including higher financial returns, an alternative low-cost retail outlet, an increase in their skills and capacities, and a venue to test new products.

Operators of farmers markets have developed operating principles and policies aimed at maintaining the integrity of farmers markets and consumers' trust.

Further information

Adaptive capacity of regional communities: mdba.gov.au/files/bp-kid/713-Capacity-MDB-2010_REPORT.pdf (pdf 1.14mb)

Australian food statistics 2010-11: daff.gov.au/publications

Farmers markets in rural communities: rirdc.infoservices.com.au/items/05-109

Drivers of regional agritourism and food tourism in Australia: adl.brs.gov.au/data/warehouse/pe_abarebrs99001744/Agritourism_2010_REPORT_11a.pdf (pdf 1.38mb)

Australian Farmers' Markets Association: farmersmarkets.org.au/

Australian Competition and Consumer Commission (grocery prices): accc.gov.au/content/index.phtml?itemId=838251

Sector summaries

Wheat

Location

Wheat is grown in all states, primarily in the 300 to 600 millimetre rainfall belt of south-eastern and southwestern Australia. Wheat is often grown in conjunction with other grains and oilseeds and can be on mixed enterprise farms with livestock. Wheat is planted from April to July and harvested from October to January.

Industry

Production is highly dependent on rainfall between April and November. Under favourable seasonal conditions, production is generally between 24 and 25 million tonnes. An average of around 13 million hectares is planted annually.

Production since 1980-81

Highest: 27.9 million tonnes, 2010-11

Lowest: 8.9 million tonnes, 1982-83

Wheat

Wheat production, consumption, stocks, trade and prices

2007-08

2008-09

2009-10

2010-11

World

Production

Mt

607

685

679

653

China

Mt

109

113

115

115

European Union

Mt

118

151

138

137

India

Mt

76

79

81

81

Russian Federation

Mt

49

64

62

42

United States

Mt

56

68

60

60

Consumption

Mt

602

645

652

656

Closing stocks

Mt

132

172

199

195

Trade

Mt

110

137

128

126

Price

US$/t

362

271

209

317

Australia

Area

'000 ha

12 578

13 530

13 881

13 645

Production

kt

13 569

21 420

21 834

27 891

Exports

kt

7 408

13 410

13 725

18 431

Egypt

kt

284

449

501

730

Indonesia

kt

1 608

2 728

2 854

3 892

Iraq

kt

198

531

635

906

Japan

kt

878

791

1 110

1 175

Korea, Rep. of

kt

694

712

826

1 197

- value

$m

2 990

5 028

3 692

5 516

Australian premium white

- pool return

A$/t

423

324

249

346

Coarse grains

Location

Barley, triticale and oats are winter crops grown primarily in the wheat belt. Grain sorghum is a summer crop grown in northern New South Wales and southern and central Queensland. A small amount of maize is also grown as a summer crop in Australia.

Industry

The main coarse grain grown in Australia is barley, used principally for livestock feed and malting. Barley selected for malting usually attracts a higher price than barley selected for feed. Production of barley was around 8.1 million tonnes in 2010-11. Between 35 and 40 per cent of Australian-grown barley typically achieves malting grade. On average, 63 per cent of all barley grown in Australia is exported.

Grain sorghum, which is used for livestock feed, is the second highest produced coarse grain in Australia. Production of sorghum was around 2.1 million tonnes in 2010-11. The percentage of grain sorghum exported is usually lower than barleyaround 27 percent of total production was exported in 2010-11.

Production since 1980-81

Highest: 15.6 million tonnes, 2003-04

Lowest: 4.0 million tonnes, 1982-83

Coarse grains

Coarse grains production

2007-08

2008-09

2009-10

2010-11

World

Production

Mt

1 078

1 107

1 114

1 092

Consumption

Mt

1 057

1 079

1 107

1 126

Closing stocks

Mt

162

193

196

165

US corn price (fob Gulf, Oct-Sept)

US$/t

218

173

163

277

Australia

Barley

Area

'000 ha

4 902

5 015

4 422

3 740

Production

kt

7 160

7 997

7 865

8 145

Exports

kt

4 051

3 898

4 234

4 625

- value

$m

1 496

1 321

1 093

1 295

Price - feed barley

A$/t

308

227

155

217

Grain sorghum

Area

'000 ha

942

767

498

674

Production

kt

3 790

2 692

1 508

2 068

Exports

kt

251

1 368

487

553

- value

$m

76

405

116

146

Oats

Area

'000 ha

1 238

870

850

832

Production

kt

1 502

1 160

1 162

1 142

Triticale

Area

'000 ha

360

323

350

330

Production

kt

450

363

545

685

Maize

Area

'000 ha

68

65

59

61

Production

kt

387

376

328

351

Rice

Location

Rice is produced mainly in southern New South Wales where it is planted in October and harvested in March. Small amounts of rice are grown in northern Victoria, northern New South Wales, Queensland and the Ord River Irrigation Area in northern Western Australia.

Industry

Rice production fell between 2002-03 and 2004-05, and again between 2006-07 and 2007-08. These declines in production generally reflected irrigation water availability.

Production since 1980-81

Highest: 1.6 million tonnes, 2000-01

Lowest: 0.02 million tonnes, 2007-08

Rice

Rice production, consumption, stocks, trade and prices

2007-08

2008-09

2009-10

2010-11

World

Production (milled)

Mt

432

447

440

449

China

Mt

130

134

137

137

India

Mt

97

99

89

96

Indonesia

Mt

37

38

36

35

Bangladesh

Mt

29

31

31

33

Vietnam

Mt

24

24

25

26

Consumption

Mt

428

436

437

449

Closing stocks

Mt

80

91

94

96

Trade

Mt

29

29

31

35

Prices

Thailand

US$/t

551

609

552

515

United States

US$/t

694

1 119

791

840

Australia

Area

'000 ha

2

7

19

75

Production (paddy)

kt

18

61

197

726

Production value

$m

7

34

90

174

Exports (Apr-Mar)

kt

92

124

51

65

- value

$m

110

143

59

183

Average grower return

A$/t

414

566

457

240

Cotton

Location

Around 70 per cent of Australia's cotton is produced in New South Wales. The major production area stretches south from the Macintyre River and embraces the Gwydir, Namoi and Macquarie valleys, as well as regions along the Barwon and Darling Rivers and smaller areas south. The remaining cotton is grown principally in southern and central Queensland.

Lint production since 1980-81

Highest: 898 000 tonnes, 2010-11

Lowest: 99 000 tonnes, 1980-81

Cotton production and world indicator price

Cotton production, consumption, stocks and trade

2007-08

2008-09

2009-10

2010-11

World

Production

kt

26 056

23 314

22 076

24 951

Brazil

kt

1 603

1 193

1 187

1 960

China

kt

8 056

7 991

6 968

6 641

India

kt

5 226

4 921

5 008

5 531

Pakistan

kt

1 873

1 894

2 090

1 916

United States

kt

4 182

2 790

2 654

3 942

Consumption

kt

26 843

23 962

25 779

25 367

Closing stocks

Mt

13

13

10

9

Stocks to consumption ratio

%

49

55

37

36

Cotlook 'A' index

USc/lb

72.9

61.2

77.5

164.3

Australia

Area harvested

'000 ha

63

164

208

590

Lint production

kt

133

329

387

898

Exports

kt

266

260

395

505

China

kt

91

90

140

219

Chinese Taipei

kt

1

1

5

6

Indonesia

kt

74

81

83

88

Japan

kt

29

20

18

18

Korea, Rep. of

kt

14

12

34

19

Thailand

kt

43

45

75

75

- value

$m

466

500

755

1 367

Oilseeds

Location

Canola and cottonseed are the main oilseeds produced in Australia. Linseed, peanuts, soybeans, safflower and sunflower seeds are also grown in smaller quantities.

Canola is grown principally in New South Wales, Victoria, South Australia and Western Australia. Cottonseed is produced in the cotton growing regions of northern New South Wales and southern and central Queensland. Most of Australia's peanut crop is produced in Queensland's South Burnett region.

Industry

Winter oilseeds (canola, linseed and safflower) are harvested between October and December, while summer oilseeds (cottonseed, sunflower, soybean and peanut) are harvested between March and April. Over the past decade, drought conditions have limited oilseed production across Australia. The most severely affected years were 2002-03 and between 2006-07 and 2007-08.

In 2010-11 around 69 per cent of the canola crop was exported. The main export markets were the Netherlands, Germany, Belgium, Japan and France. About one-fifth of the cottonseed crop was exported in 2010-11, valued at $8.5 million. Oilseeds are crushed for meal, animal feed and vegetable oil. Vegetable oil is used for cooking, heating and industrial purposes.

Production since 1980-81

Highest: 3.9 million tonnes, 1999-2000

Lowest: 0.3 million tonnes, 1982-83

Oilseeds

Oilseeds production

2007-08

2008-09

2009-10

2010-11

World

Production

Mt

392

396

442

452

Consumption

Mt

401

402

423

442

Closing stocks

Mt

62

55

72

78

Soybean indicator price (Oct-Sep)

US$/t

549

421

429

560

Australia

Total production

kt

1 565

2 478

2 609

3 782

winter

kt

1 229

1 858

1 933

2 397

summer

kt

336

620

676

1 385

Canola

Area

'000 ha

1 277

1 693

1 712

2 093

Production

kt

1 214

1 844

1 920

2 382

Exports

kt

519

973

1 238

1 453

- value

$m

303

595

583

855

Price (Nov-Oct) delivered Melbourne

A$/t

696

525

440

557

Cottonseed

Area

'000 ha

63

164

208

590

Production

kt

188

466

547

1 269

Exports

kt

18

37

106

268

- value

$m

8

19

46

85

Sunflower seed

Area

'000 ha

48

52

27

29

Production

kt

73

55

41

44

Price (Apr-Mar)

A$/t

868

550

550

605

Sugar

Location

Around 95 per cent of Australia's sugar comes from Queensland and the remainder from northern New South Wales. Sugar cane is grown along 2100 kilometres of coastline between Mossman in Far North Queensland and Grafton in northern New South Wales. Cane production on the Ord River in Western Australia ceased in 2007.

Industry

Harvested areas of sugar cane in Australia have declined since 2002-03 because of a range of factors, including relatively low world prices, drought, cyclones, sugar cane smut (a fungal disease), urban encroachment and higher returns from alternative land uses, particularly forestry.

Production since 1980-81

Highest: 5.6 million tonnes, 1997-98

Lowest: 3.0 million tonnes, 1991-92

Sugar

Sugar production, consumption, stocks, prices and trade

2007-08

2008-09

2009-10

2010-11

World

Production

Mt

166

151

159

166

Brazil

Mt

31

36

41

39

China

Mt

16

14

12

11

India

Mt

29

15

21

26

Mexico

Mt

6

5

5

5

Thailand

Mt

8

7

7

10

Consumption

Mt

160

161

163

166

Change in stocks

Mt

6

-10

-5

1

Stocks to consumption ratio

%

45

38

34

34

Price

USc/lb

11.7

14.9

21.0

27.7

Australia

Area

'000 ha

381

391

389

334

Production

kt

4 763

4 634

4 472

3 610

Average pool return

A$/t

276

334

511

444

Exports

kt

3 493

3 268

3 506

2 735

Indonesia

kt

760

594

752

583

Japan

kt

480

440

366

343

Korea, Rep. of

kt

1 038

1 043

1 201

790

Malaysia

kt

403

532

548

341

- value

$m

1 006

1 338

1 887

1 436

Sources: Australian Bureau of Statistics; International Sugar Organization; Queensland Sugar Limited

Wool

Location

In 2010-11 more than 80 per cent of Australia's wool clip was produced in New South Wales, Victoria and Western Australia. About 34 per cent of wool produced in 2010-11 was superfine wool, which has a fibre diameter less than 19.5 microns. Tasmania and Western Australia have the highest concentrations of superfine wool production, with around 57 and 44 per cent of wool tested in both states falling into the superfine category.

Industry

Most Australian wool is merino wool with a fibre diameter of 19 to 22 microns. In recent years, the increased use of meat breeds has led to a higher proportion of medium to strong types of wool.

In 2010-11 Australia exported 444 000 tonnes of greasy wool, valued at around $3.05 billion. China, India and Italy were the top three export markets for Australian wool. Other wool exporters include New Zealand, South Africa and Argentina.

Total wool production since 1980-81

Highest: 1031 000 tonnes, 1989-90

Lowest: 420 000 tonnes, 2008-09

Wool

Wool production, trade and prices

2007-08

2008-09

2009-10

2010-11

World

Wool production

kt

2 216

2 120

1 967

1 992

Argentina

kt

65

62

61

62

Australia

kt

459

420

423

429

China

kt

399

365

368

387

New Zealand

kt

206

158

183

195

Wool exports

kt

553

484

501

507

Australia

Sheep numbers

m

77

73

68

74

Sheep shorn

m

95

86

83

85

Wool production - greasy

shorn

kt

408

371

353

368

other

kt

51

50

70

61

Total

kt

459

420

423

429

Wool exports - balance of payments basis

volume - greasy equiv.

kt

483

445

428

444

value

$m

2 796

2 322

2 306

3 048

Market indicator - clean

eastern

Ac/kg

945

794

872

1 132

western

Ac/kg

947

762

863

1 092

Auction price - greasy

Ac/kg

599

499

551

734

Beef and veal

Location

Beef production is widespread across Australia. In northern Australia most cattle grazing takes place on large properties. The typically larger properties and remote locations in the north make management practices and supplementary feeding more costly than in southern Australia. Most grazing in southern Australia takes place on smaller properties. Over the past decade, northern Australia has accounted for an increasing proportion of the Australian cattle herd.

Industry

Unlike many other major beef producing countries, Australian cattle are principally reared on pasture. In recent years, lower demand from Japan and the Republic of Korea for grain-fed beef has contributed to a fall in the number of cattle being fattened in feedlots.

Australia accounts for around 4 per cent of global beef production, but is one of the world's largest beef exporters. Around two-thirds of Australian beef production is exported, with Japan, the United States and the Republic of Korea the largest markets. Chinese Taipei is another important established market, while the largest emerging markets are the Russian Federation, Indonesia, the Middle East, the Philippines and Malaysia.

Production since 1980-81

Highest: 2.2 million tonnes, 2006-07

Lowest: 1.3 million tonnes, 1984-85

Beef and veal

Beef and veal production, trade and prices

2007-08

2008-09

2009-10

2010-11

World

Production

Argentina

kt

3 300

3 150

3 380

2 620

Brazil

kt

9 303

9 024

8 935

9 115

China

kt

6 134

6 132

5 764

5 600

European Union

kt

8 188

8 090

7 913

8 022

United States

kt

12 097

12 163

11 891

12 047

Australia

Cattle numbers

million

27

28

27

29

Slaughterings

'000

8 799

8 643

8 364

8 097

Production

kt

2 155

2 137

2 109

2 133

Exports (shipped weight)

United States

kt

240

282

211

160

Japan

kt

365

363

350

351

Korea, Rep. of

kt

146

113

124

139

Total

kt

930

968

899

937

- value

$m

4 190

4 857

3 953

4 328

Live cattle

'000

708

845

871

728

- value

$m

446

538

550

499

Saleyard price

Ac/kg

286

296

288

323

Pig meat

Location

Pig raising is widespread within grain producing regions in each state. The quantity of pork produced by each state is linked to major grain growing regions, but is also influenced by the size of Australia's major population centres.

The Australian pig herd was around 2.3 million head in 2010-11. Queensland has the largest pig herd at around 670 000 head, while New South Wales and Victoria each have around 500 000 head. South Australia, Western Australia and Tasmania have around 385 000, 265 000 and 13 000 head, respectively.

Industry

Australian pig meat prices have been influenced by international price movements as a result of increased exposure to the global market. During the 10 years to 2010-11, Australian pig meat exports fell from 59 000 tonnes to 31 000 tonnes, while pig meat imports rose from 44 000 tonnes to 132 000 tonnes. Because feed grain is a major input into pig meat production, movements in feed grain prices affect producer profits. During the ten years to 2010-11, Australian per person pig meat consumption increased by 21 per cent to 24.5 kilograms.

Production since 1980-81

Highest: 420 000 tonnes, 2002-03

Lowest: 228 000 tonnes, 1981-82

Pig meat

Pig meat production, trade and prices

2007-08

2008-09

2009-10

2010-11

World

Production

China

kt

42 878

46 205

48 905

51 070

European Union

kt

22 858

22 596

22 434

22 552

United States

kt

9 962

10 599

10 442

10 186

Brazil

kt

2 990

3 015

3 130

3 195

Canada

kt

1 746

1 786

1 789

1 772

Russian Federation

kt

1 640

1 736

1 844

1 920

Australia

Pig numbers

'000

2 412

2 302

2 289

2 343

Slaughterings

'000

5 217

4 499

4 561

4 643

Production

kt

377

322

331

342

Exports

kt

39

32

30

31

Japan

kt

1

1

0

0

New Zealand

kt

10

8

7

5

Singapore

kt

21

17

14

13

- value

$m

128

124

109

106

Imports

kt

103

128

143

132

Price

- over-the-hooks market

Ac/kg

240

330

309

269

- US national indicator

USc/kg

134

137

142

178

Sheep meat

Location

Sheep meat production was once secondary to wool growing. In the three years to 2010-11, around 80 per cent of farms that ca