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Further information regarding the Livestock FarmMonitor Project may be obtained from:

Paul DeaneDepartment of Economic Development,Jobs, Transport and ResourcesLevel 26, 1 Spring StMelbourne, Victoria, [email protected]

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1 Livestock Monitor Project | Victoria 2016 -17

Contents

State summary 03Fast Facts 03Wool Prices 05Lamb Prices 05Beef Prices 05Weather 07

About the research and acknowledgements 08

Profit map 09

South West 11Fast Facts 11Charts 12

Northern Victoria 13Fast Facts 13Charts 14

Gippsland 15Fast Facts 15Charts 16

Appendices 18

Glossary 61

Abbreviations and standard values 62

Livestock Monitor Project | Victoria 2016 -17 2

State summaryEconomic performance for many sheep and cattle producers improved markedly in 2016-17, with some farms achieving record profits. Based on data from the Livestock Farm Monitor Project (LFMP), average farm profits (real terms) were the highest in over a decade. High and/or rising prices coupled with above average rainfall and pasture growth increased gross farm incomes. Sheep producers experienced the greatest improvement in economic performance, with merino wool price gains outperforming red meat prices.

Fast FactsData from 75 sheep and cattle farms across Victoria were analysed to measure economic and financial farm performance in 2016-17 (Figure 1). To help mitigate regional influences, this report groups farms into three regions – South West, Northern and Gippsland for the 2016-17 financial year.

Earnings before interest and tax (EBIT) rose to $367/ ha (Table 1). Return on assets and return on equity also improved significantly to 5% and 6% respectively (Figure 2). At an individual farm level, a range of returns was observed, with return on assets (RoA) greater than 10% in some instances. A small proportion of farms in Northern and Gippsland regions recording zero or slightly negative return on assets.

FIGURE 1. LIVESTOCK FARM MONITOR PROJECT LOCATIONS 2016-17

FIGURE 2. STATE AVERAGE LFMP ECONOMIC RETURNS

Gross farm income (real terms) in the South West rose to the highest level on record in 2016-17, based on survey data since the start of the Livestock Farm Monitor Project in 1971. The combination of higher than average rainfall and favourable spring and autumn temperatures for pasture growth improved profitability (Table 1). Prices received for wool, lamb and beef continued to rise in 2016-17 also helping to boost profitability.

TABLE 1. STATE SUMMARY

Pasture growth was generally exceptional across Victoria’s South West and Northern region for the 2016-17 season - a vast improvement on the previous year. Both regions had above rainfall for spring 2016 and autumn 2017. However seasonal conditions were mixed in Gippsland. While spring rainfall was adequate, autumn rainfall was well below average in parts of Gippsland, resulting in lower pasture availability and increased supplementary feeding. As a result, farms with the highest profitability and return on assets in 2016-17 are more likely to be from the South West and Northern areas.


FIGURE 3. STATE EARNINGS BEFORE INTEREST AND TAX (EBIT)

Annual prices gains were larger for wool (merino) than lamb and beef prices in 2016-17, resulting in merino wool producers recording the greatest improvement in economic performance. Overall, average earnings for participants in 2016-17 showed similar returns for the three different types of enterprises measured in the Livestock Farm Monitor Project (Table 2).

TABLE 2. STATE ENTERPRISE EBIT

Participant farms were selected according to farm size, location and enterprise mix. The distribution of farm size is shown in Figure 4. This year’s survey had a slightly larger percentage of smaller farms (<500 hectares) compared to 2015-16. Average farm size across the three regions ranged from 905 hectares in Northern Victoria to 966 hectares in the South West. Average land values for participants were similar in the Northern and South West, however the Gippsland average was nearly double ($10,800/ha) the value of the other regions.

FIGURE 4. DISTRIBUTION OF FARM SIZE

Statewide variable costs averaged $284/ha in 2016-17 while overhead and owner operator allowances combined totalled $322/ha (Table 3). Based on a comparison of costs with farms that participated both this year (2016-17) and last year (2015-16), the net change in costs were minimal for these farm businesses. Variable costs fell by $25/ha or 9% in 2016 -17 while overheads increased by $16/ha or 10% compared with 2015-16. For the 55 farms participating in the last two years, 2016-17 gross farm income increased by $225/ha or 33% compared with 2015-16.

For the state Top 20% (15 farms) with the highest RoA in 2016-17, costs were lower, especially overheads (Table 3). Gross farm income was higher, averaging $1,143/ha for the Top 20% of farms in 2016-17, with farms from the South West over-represented in the Top 20% sample. In 2016-17 the state Top 20% consisted of 10 farms from the South West, four from the Northern group, and one farm from Gippsland.

TABLE 3. STATE FARM FINANCIAL SUMMARY


Commodity Price OverviewPrices for wool, lamb and beef continued to rise in 2016-17, reaching record highs relative to recent decades (Figures 5 and 7). Annual price gains were larger for wool (merino) than lamb and beef prices in 2016-17. Prices for 19 micron wool in the southern region averaged 22% higher in 2016-17 compared with 2015-16, while lamb and beef prices increased by around 10%.

FIGURE 5. SEASON AVERAGE VICTORIAN CATTLE AND LAMB PRICES

Within the year, intra-season price variability rose sharply for merino wool producers. Intra-season price volatility (Figure 6) is a guide as to how important the time of sale is on livestock enterprise economic performance for the year. For cattle producers price volatility remained low in the 2016-17 season, decreasing the impact of timing of cattle sales on individual farm performance relative to farm systems with a high proportion of wool income (Figure 6).When intra-season price volatility is high, using a one year timeframe to compare farm performance can be fraught with danger. High or low economic returns for one year may be more just the ‘luck’ of the market and price trend in that particular year suiting the timing of product availability for a farm. Taking a longer term perspective is preferable, where a range of market characteristics, price trends and seasonal conditions can be factored into farm economic performance.

FIGURE 6. INTRA-SEASONAL PRICE VARIABILITY

Wool PricesMerino wool prices also rose to record highs in 2016-17, increasing sheep producer profits (EBIT) and returns on assets. Prices for 19 micron wool averaged $17/kg clean in 2016-17, up 22% year-on-year (y/y) (Figure 7). Similar to the lamb market, price increases were strongest for Australian merino wool in the second half of season.

FIGURE 7. SOUTHERN REGION WOOL MARKET INDICATORS

There was a large difference in prices received forselling 19 micron merino wool in spring 2016 compared with autumn 2017 (Figure 8). Wool prices averaged $15.90/kg clean from October to December 2016 but by autumn 2017, 19 micron wool prices were averaging $19/kg clean. This is likely to have favoured autumn shearing businesses in 2016-17. In other years, when prices are falling, the opposite can be the case.

FIGURE 8. QUARTERLY SOUTHERN 19 MICRON WOOL PRICES

However, not all wool types experienced price gains in 2016-17. Farm systems using a non-merino ewe base and producing coarser wools experienced a fall in wool income. Although southern region 28 micron wool prices still remained high relative to the last decade in 2016-17, prices were 14% below 2015-16 levels (Figure 9). Coarser 32 micron wool prices fell more sharply, down 31% in 2016-17 to $4.55/kg clean – the lowest level since 2010.


FIGURE 9. SOUTHERN 28 & 32 MICRON WOOL PRICES

Lamb PricesIn 2016-17 trading conditions were characterized by record high sheep and lamb prices in Australia and Victoria. Victorian lamb prices averaged 13% higher in 2016-17 compared with the previous financial year (Figure 10). The price gains in 2016-17 were on top of rises in the previous three years, making it the fourth consecutive year of higher prices for lamb producers.

Victorian lamb prices were higher in the second half of the financial year, potentially favouring farm businesses with a skew to lamb and sheep sales through summer and autumn (Figure 10). Heavy trade lambs averaged 18% higher in autumn 2016-17 compared with 2015-16, while producers selling in spring received a 7% price increase on the previous year (Figure 10).

FIGURE 10. VICTORIAN HEAVY TRADE LAMB PRICES

Beef PricesVictorian saleyard cattle prices averaged 12% higher in 2016-17, consolidating the strong gains achieved in prior years. (Figure 11). Australian cattle prices peaked early in the season (September/October 2016) and then fell by around 10% through to the end of December 2016. Cattle prices then largely stabilised, with Victorian trade steer prices consistently trading at 610-640c/kg cwt in the second half of fiscal year 2016-17 (Figure 12).

FIGURE 11. VICTORIAN TRADE STEER PRICES

The influence of time of sale within the year on individual beef producer performance was less important than for the sheep industry. Price volatility for the season remained lower for beef prices compared with wool and lamb prices, with less price variation across quarters. Based on Victorian trade steer prices, selling method may also have influenced price volatility (Figure 11). As has been the case in recent seasons, saleyard prices recorded greater weekly price volatility compared with selling consignments direct to processors.

FIGURE 12. VICTORIAN SALEYARD TRADE STEER PRICES


Weather OverviewRainfall and subsequent pasture growth was the best in over a decade in general across Victoria in 2016-17. Well above average spring rainfall across most of Victoria in 2016 (Figure 13) boosted farm profits through higher livestock and pasture production.

FIGURE 13. VICTORIAN SPRING 2016 RAINFALL (% OF AVERAGE)

By agricultural regions, the areas most benefiting from higher than average rainfall tended to be the dryland, mixed cropping and livestock zones in western Victoria (Wimmera/Mallee) and northern Victoria (North East, Central). Highlighting how good the main crop and pasture growth period was in 2016, Victorian crop yields were the highest on record in 2016-17 (Figure 14).

FIGURE 14. VICTORIAN WHEAT YIELDS

Where it occurred abundant spring pasture growth allowed for significant amounts of hay to be cut and conserved, but also forced fodder prices lower. Pasture hay prices in Victoria fell by 5% to $168/tonne in 2016-17.

However not all areas had wetter conditions, central Gippsland experienced below average rainfall in spring 2016 (Figure 13). Similarly, autumn was drier than longer term averages in the eastern half of the state (Figure 15) – in central and coastal Gippsland, while the western half of the state experienced above average autumn rainfall.

FIGURE 15. VICTORIAN AUTUMN 2017 RAINFALL (% OF AVERAGE)


About the research and acknowledgementsThis report has been funded by the Department of Economic Development, Jobs, Transport and Resources. The Department of Economic Development, Jobs, Transport and Resources staff are grateful for the cooperation of Victoria’s livestock farmers who have contributed their data to this project.

To calculate these performance indicators, the Livestock Farm Monitor Project collects data about farm income, costs, assets and liabilities for the financial year. The ‘Profit Map’ on the following page illustrates the framework of the methodology.

The Livestock Farm Monitor Project surveys farms to collect physical and financial information. Participant farms are selected according to farm size, location and enterprise mix. The results published in this report should not be taken to represent true averages because the farms are not selected at random.

This year 75 livestock farms participated. The distribution of cattle and sheep numbers by farm are shown in Figures 16 and 17. There are 20 new farms this year or 27% of farms that did not participate in last year’s Livestock Farm Monitor Project. Caution is therefore warranted in drawing comparisons between years in the report.

FIGURE 16. DISTRIBUTION OF CATTLE NUMBERS

The method employed to generate the production and profitability data in this report is consistent with previous Farm Monitor Project reports. However this may differ to methods employed elsewhere. Key differences can include the allocation of overhead costs, owner operator wages, livestock trading profits, and standard dollar values for stock on hand and dry sheep equivalent (DSE) ratings of livestock.

The method employed to generate the profitability and production data in this report was adapted from the method described in The Farming Game (Malcolm et. al. 2005) and is consistent with that used in previous Livestock Farm Monitor and Dairy Farm Monitor Reports.

The Livestock Farm Monitor Project measures the performance of livestock farm businesses using four key farm business performance indicators. Earnings Before Interest and Tax (EBIT) and Return on Assets (RoA) indicate the operational efficiency of the farming business.

Earnings before interest and tax (EBIT)EBIT is the profit or loss from all capital used in the business as different farms have different capital structures. Prior to 2013/14 Livestock Farm Monitor reports, EBIT was referred as ‘Operating Profit’.

Return on assetsReturn on assets (RoA) indicates the overall earning of the total farm assets, irrespective of the capital structure of the business. It is EBIT expressed as a percentage of the total assets under management in the farm business, including the value of leased assets. This is the return from farming and indicates how efficiently the business is using total farm resources. There is also a further return to the asset from any increase in the value of the assets over the year, such as land value which is excluded in this report. Any reference in the report to Return on Assets relates to operating return and excludes capital returns (appreciation).

Net farm incomeNet farm income is the final measure of profit for the farm business. It is what remains after all costs, including interest and lease costs, have been deducted from income. Net farm income is then used to pay tax and consumption, and what is left over is surplus, and therefore growth, as it can be invested into the business to expand the equity base; either by direct reinvestment or the repayment of debt.

Return on equityReturn on equity (RoE) measures the owners’ rate of return on their own capital investment in the business. It is net farm income expressed as a percentage of equity. Descriptions of the other financial indicators highlighted in the Profit Map are provided in the Glossary.


Profit Map

Return on assets managed Return on equity



South West

South West

Sheep and cattle producers reported record profits in 2016-17 due to excellent seasonal conditions and record high prices. Ideal spring and autumn rainfall increased pasture availability and livestock outputs. Farm economic performance was exceptional, with nearly half of all farms in the South West achieving greater than 7% return on assets. Of the 31 farms surveyed in South West region, five farms achieved greater than 10% return on assets.

Fast FactsIn 2016-17 livestock farms in the South West averaged 966 hectares, running an average of 6,069 sheep and 218 cattle, based on the 31 farms surveyed (Table 4). Prime lamb production remained the dominant enterprise in the sample (Table 5).

TABLE 4. SOUTH WEST WHOLE FARM PHYSICAL SUMMARY

TABLE 5. SOUTH WEST WHOLE FARM ENTERPRISE MIX

After two years of below average rainfall, South West producers in 2016-17 recorded well above average rainfall. For 2016-17 participants, average rainfall was 25% higher than longer term averages. Only two farms in the sample recorded ‘average’ rainfall in 2016-17. Farm profits were also boosted by price rises across lamb, wool and cattle markets. Return on assets for some farms in South West reached well above 10%, with the average for the 31 farms surveyed 6.9%.

TABLE 6. SOUTH WEST WHOLE FARM FINANCIAL SUMMARY

The Top 20% of farms ranked by the highest return on assets achieved a gross farm income over $300/ha higher than the average farm with only a marginal increase in overhead and variable costs (Table 6). The more profitable farms in 2016-17 tended to be more focused on prime lamb production (Table 5) while achieving higher stocking rates (Table 7).

TABLE 7. SOUTH WEST ENTERPRISE SUMMARY


South West

The importance of rainfall in farm economic performance in the South West:

Despite the region benefiting as a whole from above average rainfall and pasture growth, individual farm economic performance appeared to be still influenced by rainfall in the South West. On average all participant farms in the South West received an additional 150mm in 2016-17 than long term averages. But the top 20% of farms had an additional 200mm more rainfall in 2016-17 than their long term farm average. The two farms that achieved the highest return on assets of 15% (Figure 20) had an additional 300 mm more rain than their farm average of 600mm.

FIGURE 18. EARNINGS BEFORE INTEREST AND TAX ($/HA)

FIGURE 19. NET FARM INCOME ($/HA)

FIGURE 20. RETURN ON ASSET

FIGURE 21. RETURN ON EQUITY

FIGURE 22. EBIT HISTORY

FIGURE 23. ROA AND ROE HISTORY


Northern Victoria

Northern Victoria

Above average rainfall and pasture production for Northern Victorian sheep and cattle producers resulted in one of the strongest economic performances in a decade in 2016-17. Farm profits improved from price rises across lamb, wool and cattle markets. Return on assets for some farms reached as high as 10%, with average RoA of 4.3% for the 23 farms surveyed in the north.

Fast FactsIn 2016-17, Northern Victorian participant farms averaged 905 hectares, running on average 3,391 sheep and 358 head of cattle (Table 8). Average labour use efficiency was 5,104 DSE per labour unit (including contractor labour). The main enterprises run on Northern Victorian farms in the sample were wool and beef (Table 9).

TABLE 8. NORTHERN WHOLE FARM PHYSICAL SUMMARY

TABLE 9. NORTHERN WHOLE FARM ENTERPRISE MIX

Most Northern farm participants received higher than average rainfall in 2016-17. Average rainfall in 2016-17 was 18% higher than the long term average for the 23 farms surveyed in the North. A quarter of farms received more than 130% of long term average rainfall. Gross income improved significantly in the North in 2016-17, with the rare combination of exceptional seasonal conditions and high commodity prices. Return on assets averaged 4.3% for the Northern participants, with a handful of farms achieving RoA greater than 10%.

TABLE 10. NORTHERN WHOLE FARM FINANCIAL SUMMARY

The defining characteristic of the Top 20% of farms in the Northern group ranked by RoA were lower variable and overheads (Table 10), which may suggest a lower input/ cost model strategy for these farms. However gross farm income for the top 20% of farms (by return on assets) still averaged 10% higher compared to the average of all farms in the North group. The more profitable farms in 2016-17 tended to be more focused on wool production rather than beef (Table 9).

TABLE 11. NORTHERN ENTERPRISE SUMMARY


Northern Victoria

The importance of scale in farm economic performance in the Northern region:

Farms are more likely to achieve higher economic returns with the right size asset base, scale and labour use efficiency. Livestock Farm Monitor participant data indicates the average asset base for a farm in the North is $6.0-$6.5 million. However not all farms needed a large asset base to perform well in 2016-17. Two of the farms in the Northern Top 20% (by RoA) had farm size of less than 350 hectares compared to the state average of 900 hectares. Labour use efficiency, including all time spent by the owner operator, family, employee and contractors, averaged 5,100 DSE/person in the North versus 6,900 DSE/person for the Top 20%.



FIGURE 26. RETURN ON ASSETS





Gippsland

Gippsland

Gippsland experienced less favourable seasonal conditions than the South West and Northern Victoria in 2016-17. Profitability for sheep and cattle still improved markedly, with spring 2016 pasture availability higher in south and west Gippsland after producers experienced a failed spring in 2015. In east Gippsland the season deteriorated from early autumn 2017 onwards, with producers having to supplement feed through winter and into spring.

Fast FactsIn 2016-17 the 21 Gippsland farms surveyed averaged 939 hectares in size, and on average ran 541 head of cattle and 3,344 sheep (Table 12). In 2016-17 beef remained the dominant enterprise for both the average and Top 20% of livestock farms in Gippsland (Table 13).

TABLE 12. GIPPSLAND WHOLE FARM PHYSICAL SUMMARY

TABLE 13. GIPPSLAND WHOLE FARM ENTERPRISE MIX

TABLE 14. GIPPSLAND WHOLE FARM FINANCIAL SUMMARY

Similar to the Northern participants, the defining characteristic of the Top 20% of farms ranked by RoA in Gippsland were lower variable and overhead costs (Table 14). Lower overhead costs reflect the larger scale of the Top 20%, with farming area close to double the regional average (Table 12). The Top 20% of farms in 2016-17 also had lower average land values and had less assets invested in plant and machinery per hectare than the Gippsland average.

TABLE 15. GIPPSLAND ENTERPRISE SUMMARY

Rainfall was around 10% below the long term average for the Gippsland farms surveyed. However the variability in rainfall and seasonal conditions was high, making comparisons across farms within the Gippsland region more difficult. Some farms in Gippsland received just 80% of long term rainfall, while for a small number of farms the opposite occurred, with 2016-17 rainfall well above the long term average.Gross income trended higher again for Gippsland producers in 2016-17, aided by a further improvement in cattle prices. RoA averaged 3.6% for Gippsland participants (Table 14), with approximately one quarter of farms achieving a greater than 5% return on assets in 2016-17 (Figure 32).


Gippsland

The importance of asset (land) valuations in farm economic performance in Gippsland:

Economic efficiency is often best measured using return on assets or EBIT divided by total farm assets. Total farm assets are largely influenced by land valuations, which in turn are the result of a range of factors such as rainfall, soil types, competing agri sectors and peri-urban influences. The variation in land values from Gippsland participants was high - making economic performance comparisons across farms more difficult in the region. Land value per hectare was as low as $4,000/ha ranging to >$15,000/ ha in some instances. As a guide to the variability by region, Gippsland’s land value coefficient of variation (CV%) was 70%, North 50%, while land values in South West were more consistent – variability was only 24% for South West participants.

FIGURE 32. RETURN ON ASSETS








Appendices


Appendices : South West

TABLE A1

Main Financial Indicators 2016–17 South West

Farm No.Gross Variable

Overhead CostsCost O/O Earnings before Net Farm Return on

Debt RatioReturn on

Income Costs Structure Allowance Int/Tax (EBIT) Income Assets Equity

$/HA $/HA $/HA $/HA $/HA $/HA

14 $943 $379 $108 52% $85 $372 $341 7.2% 3% 7.3%39 $663 $278 $115 59% $41 $229 $78 3.1% 23% 1.7%43 $1,174 $251 $156 35% $54 $713 $550 15.1% 14% 26.6%55 $985 $370 $310 69% $18 $288 $288 3.7% 0% 3.7%58 $986 $273 $273 55% $113 $327 $94 3.6% 24% 2.1%66 $578 $92 $263 61% $55 $167 $167 3.6% 0% 3.6%87 $552 $211 $122 60% $36 $183 $176 3.3% 1% 3.2%88 $1,274 $293 $216 40% $76 $689 $593 11.9% 8% 14.5%

114 $785 $153 $145 38% $69 $418 $403 10.0% 2% 10.4%502 $763 $249 $130 50% $72 $311 $222 6.4% 12% 7.3%510 $535 $150 $88 45% $57 $239 $79 4.3% 30% 2.4%512 $1,271 $343 $115 36% $160 $654 $621 14.7% 3% 16.0%525 $1,307 $329 $228 43% $65 $684 $544 8.6% 11% 10.6%623 $1,105 $196 $125 29% $128 $655 $402 8.5% 23% 16.2%627 $523 $115 $121 45% $37 $250 $175 4.6% 14% 5.4%628 $1,827 $586 $369 52% $54 $818 $769 9.0% 3% 9.1%659 $911 $249 $88 37% $105 $469 $469 8.6% 0% 8.6%693 $1,043 $257 $119 36% $24 $642 $516 8.7% 12% 11.3%715 $1,286 $261 $216 37% $148 $661 $621 7.9% 3% 9.2%719 $967 $335 $170 52% $76 $385 $309 6.2% 8% 5.8%720 $1,424 $141 $141 20% $160 $981 $805 10.8% 12% 14.3%751 $1,097 $385 $114 45% $52 $546 $485 7.9% 6% 8.3%754 $517 $91 $81 33% $117 $228 $208 3.2% 4% 3.5%758 $1,057 $246 $126 35% $204 $480 $306 5.4% 17% 7.8%759 $535 $131 $62 36% $59 $283 $216 4.6% 12% 5.5%761 $1,544 $350 $154 33% $77 $963 $961 12.0% 0% 12.0%767 $1,002 $313 $103 41% $99 $487 $458 6.8% 3% 10.5%807 $973 $251 $182 44% $99 $442 $426 5.9% 2% 5.8%808 $1,044 $517 $209 69% $154 $164 $42 2.1% 12% 0.8%809 $1,158 $466 $244 61% $267 $182 $87 2.4% 8% 1.6%

1004 $782 $167 $158 42% $205 $252 $129 3.2% 16% 3.6%Average $987 $272 $163 45% $96 $457 $372 6.9% 9% 8.0%

Top 20%# $1,328 $302 $185 36% $93 $748 $672 11.9% 6% 14.7%Top 20%* $1,425 $325 $211 37% $81 $808 $704 11.2% 8% 14.5%

# South West Top 20% ranked by RoA.* South West Top 20% ranked by EBIT/ha.



TABLE A2

Key Physical Data 2016–17 South West

Farm NoAverage Actual Stocking

S.R. - Rf S.R. - RfJuly Stocking

P Applied P AppliedP Nutrient K Nutrient S Nutrient

Rainfall Rainfall Rate Rate Balance Balance Balance

MM MM DSE/HA DSE/HA/ DSE/HA/ KG P/ KG P/25MM OVER DSE/HA GRAZED KG/HA KG/HA KG/HA

100MM GRAZED HA250MM HA/100MM

14 687 868 17 2.0 0.7 27 5 0.6 4 6 339 673 853 18 2.2 0.8 17 30 3.6 27 11 943 600 950 17 1.8 0.6 17 15 1.6 14 7 1355 624 826 13 1.5 0.6 19 10 1.2 3 -358 701 848 20 2.4 0.8 13 5 0.6 5 -066 557 703 11 1.6 0.6 10 0 0.0 -4 -21 -587 626 757 10 1.3 0.5 12 7 0.9 6 1 788 654 830 15 1.8 0.6 13 19 2.3 15 19 17114 600 616 11 1.7 0.7 9 8 1.3 5 -5 5502 666 791 11 1.4 0.5 11 11 1.3 7 3 7510 675 675 10 1.5 0.6 15 4 0.6 3 1 4512 581 906 16 1.7 0.6 13 12 1.4 10 19 10525 570 886 7 0.8 0.3 5 3 0.3 -8 6 -2623 681 651 22 3.3 1.4 14 15 2.3 11 14 13627 610 758 10 1.3 0.5 14 0 0.0 -1 1 -1628 652 834 30 3.6 1.3 21 18 2.2 17 31 5659 631 812 15 1.8 0.7 14 6 0.8 3 6 4693 570 755 13 1.8 0.7 11 9 1.2 4 -12 -2715 833 1,055 23 2.1 0.7 27 1 0.1 -3 14 -5719 632 823 13 1.5 0.6 11 12 1.5 9 6 7720 719 860 19 2.1 0.8 18 0 0.0 -3 -5 -3751 658 758 17 2.2 0.8 14 15 1.9 11 -4 9754 572 758 12 1.6 0.6 11 9 1.2 7 -0 -1758 750 845 16 1.9 0.7 15 20 2.4 16 7 22759 664 744 12 1.6 0.6 10 70 9.4 65 -9 2761 751 954 24 2.5 0.8 15 16 1.7 12 17 2767 734 867 13 1.5 0.5 23 8 1.0 4 -13 5807 611 761 17 2.2 0.8 11 11 1.5 9 -1 -2808 744 884 16 1.8 0.6 13 14 1.6 12 29 16809 630 770 15 2.0 0.7 20 10 1.3 7 13 9

1004 744 884 18 2.1 0.7 21 6 0.7 3 -4 4Average 658 816 15.5 1.9 0.7 15 12 1.5 9 4 5

Top 20%# 651 850 18.7 2.2 0.8 15 13 1.5 10 12 7Top 20%* 657 886 18.6 2.1 0.7 15 12 1.4 8 13 5


TABLE A3

Wool Sheep Production 2016–17 South West

StockingAdult

Clean Wool Clean Wool Clean Wool Net CleanAverage

Average Ave Sale Gross Gross Gross LambFarm No Clean Wool WoolRate Cut Cut Cut Cut Wool Price Micron Wool Yield Price Margin Margin Margin Marking %

DSE/HA KG/HD KG/HA KG/DSEKG/HA

$/KG $/HD $/HA$/HA

$/DSE/100MM /100MM

14 17 3.6 33 1.9 3.7 $18.8 17.4 66% $93 $551 $64 $32 86%39 18 4.1 47 2.6 5.5 $16.1 17.6 78% $84 $602 $71 $33 57%55 13 3.6 30 2.4 3.6 $17.1 17.5 67% $113 $652 $79 $52 95%

114 11 3.9 25 2.3 4.0 $16.2 18.4 65% $85 $386 $63 $36 89%502 11 2.9 21 1.8 2.6 $18.7 16.1 62% $78 $439 $56 $39 86%510 10 3.0 17 1.8 2.6 $13.6 17.0 71% $87 $395 $59 $40 83%512 16 4.4 46 2.9 5.0 $16.0 17.0 70% $94 $871 $96 $56 95%525 7 3.3 13 1.8 1.5 $15.6 18.5 71% $98 $186 $21 $26 100%627 10 3.6 23 2.2 3.0 $16.3 17.0 70% $0 $368 $49 $37 66%659 15 3.5 32 2.1 3.9 $18.3 17.6 68% $77 $623 $77 $42 86%719 13 4.3 34 2.7 4.2 $17.8 18.5 68% $73 $539 $66 $43 81%759 12 3.1 23 1.9 3.0 $19.0 16.3 69% $65 $319 $43 $26 73%

1004 18 2.6 30 1.6 3.4 $19.0 17.0 68% $83 $589 $67 $32 73%Average 13 3.5 29 2.2 3.5 $17.1 17.4 69% $79 $502 $62 $38 82%

Top 20%* 14 3.8 36 2.5 4.2 $17.1 17.4 68% $95 $715 $84 $50 92%

* Top 20% ranked according to gross margin per hectare per 100mm of rainfall.



TABLE A4

Prime Lamb Production 2016–17 South West

Farm No.Stocking Lamb Lamb Lamb Av Lamb Av Lamb Av Lamb Adult Gr. Wool Greasy Wool Average Wool

Rate Produced Produced Produced Weight Price Price Cut Cut Micron

DSE/HA KG LWT/HA KG CWT/HAKG CWT /

KG CWT $/KG CWT $/HD KG/HD KG/HAHA/100MM

43 17.4 273 122 13 16 $9.9 $156 2.9 15 3158 20.1 430 193 23 20 $5.0 $100 4.6 38 3287 9.6 122 55 7 20 $5.8 $117 4.8 28 2888 14.9 388 175 21 24 $6.0 $146 5.0 42 28

502 11.4 176 79 10 21 $5.5 $114 4.6 20 16512 15.7 177 80 9 15 $6.7 $104 5.3 38 18525 7.1 111 51 6 21 $5.4 $115 4.9 13 22623 21.7 420 189 29 21 $5.5 $115 4.5 34 28627 10.0 155 70 9 23 $5.7 $128 2.6 13 29628 30.2 524 236 28 22 $6.6 $146 3.4 45 33659 14.9 289 130 16 22 $4.8 $108 4.0 17 28715 22.6 428 192 18 22 $6.2 $135 4.9 40 32751 16.5 335 151 20 21 $6.0 $129 4.0 27 30754 11.9 227 102 13 21 $4.8 $101 2.8 20 30758 16.2 235 106 13 22 $6.0 $134 3.6 25 28759 12.1 303 136 18 24 $3.7 $89 4.5 27 19761 23.6 534 240 25 23 $6.6 $150 5.1 47 30807 17.0 295 133 17 22 $6.0 $131 3.8 18 28808 15.7 355 160 18 22 $5.2 $115 4.3 29 28809 15.3 359 162 21 28 $5.0 $141 4.6 27 30

1004 18.4 366 165 19 22 $5.1 $113 5.8 47 27Average 16.3 310 139 17 22 $5.8 $123 4.3 29 27

Top 20%* 22.6 467 210 26 22 $6.2 $139 4.5 42 30

Farm No Ewe BreedNet Greasy Wool

Gross Margin Gross Margin Gross Margin Lamb Marking % Ewe % of dsePrice

$/KG $/HA $/HA/100MM $/DSE

43 Xbred $3.2 $953 $100 $55 133% 60%58 Xbred $2.3 $822 $97 $41 125% 75%87 Xbred $4.5 $271 $36 $28 86% 73%88 Xbred $5.6 $901 $109 $60 100% 80%

502 Merino $10.6 $580 $73 $51 87% 61%512 Merino $13.6 $865 $95 $55 84% 69%525 Xbred $9.3 $330 $37 $46 111% 74%623 Xbred $3.1 $889 $137 $41 119% 61%627 Xbred $5.5 $314 $41 $31 94% 89%628 Xbred $2.5 $930 $112 $31 125% 69%659 Xbred $5.1 $515 $63 $34 145% 60%715 Xbred $2.4 $1,032 $98 $46 135% 75%751 Xbred $3.7 $504 $67 $31 119% 74%754 Xbred $3.5 $434 $57 $36 123% 85%758 Xbred $4.1 $289 $34 $18 118% 77%759 Merino $12.6 $369 $50 $31 66% 63%761 Xbred $3.4 $1,202 $126 $51 149% 61%807 Xbred $8.0 $789 $104 $46 110% 95%808 Xbred $5.5 $417 $47 $27 118% 87%809 Xbred $4.6 $481 $62 $31 104% 99%1004 Xbred $5.8 $779 $88 $42 108% 100%

Average $5.6 $651 $78 $40 112% 76%Top 20%* $3.6 $981 $121 $46 123% 68%




TABLE A5

Beef Cattle Production 2016–17 South West

Farm No. Stocking Rate Beef Produced Beef Produced Beef Sold Av Sale Price Av Wt Sales Av Sale Price

DSE/HA KG LWT/HA KG LWT/HA/100MM KG LWT/HA $/HD KG LWT $/KG LWT

87 9.6 194 26 197 $1,316 426 $3.09627 10 188 25 135 $1,230 356 $3.45751 16.5 461 61 703 $1,104 427 $2.58809 15.3 306 40 286 $3,312 714 $4.64

1004 18.4 180 20 233 $1,694 621 $2.7339 18.4 606 71 884 $504 527 $0.96

114 10.8 442 72 462 $1,355 556 $2.4439 18.4 429 50 1310 $1,357 399 $3.40

693 13.3 307 41 227 $1,956 568 $3.44720 18.5 289 34 392 $1,397 395 $3.54754 11.9 196 26 143 $1,251 499 $2.51758 16.2 363 43 248 $1,562 486 $3.21767 13.2 262 30 126 $1,314 465 $2.86807 17 333 44 281 $852 416 $2.05

Average 14.8 325 41 402 $1,443 490 $2.90Top 20%* 15.9 387 52 721 $1,370 450 $3.13

Farm No Gross Margin Gross Margin Gross Margin Time of Calving Calving % Cow % Beef Enterprise

$/HA $/HA/100MM $/DSE

87 $343 $45 $36 Feb 90% 27% Autumn627 $481 $63 $48 Apr 98% 31% Autumn751 $691 $91 $42 May 96% 7% Autumn809 $585 $76 $38 Apr 95% 46% Autumn1004 $212 $24 $11 Apr 98% 31% Autumn39 $220 $26 $12 34% Other

114 $822 $133 $76 44% Other39 $1,963 $230 $107 Aug 69% 5% Spring

693 $639 $85 $48 Aug 86% 100% Spring720 $1,108 $129 $60 Sep 95% 100% Spring754 $402 $53 $34 Aug 89% 57% Spring758 $794 $94 $49 Sep 82% 84% Spring767 $575 $66 $44 Sep 85% 100% Spring807 $516 $68 $30 Aug 99% 20% Spring

Average $668 $84 $46 90% 50%Top 20%* $1,298 $164 $81 82% 50%

*Top 20% ranked according to gross margin per hectare per 100mm of rainfall.



TABLE A6

Wool Sheep Variable Costs 2016–17 South West

Farm No. Animal HealthContract Supp Feed &

Pasture Casual LabourFreight/ Shearing

Other Selling CostsTotal Var.

Services Agistmt Cartage Supplies Costs

$/DSE $/DSE $/DSE $/DSE $/DSE $/DSE $/DSE $/DSE $/DSE $/DSE

14 $4.2 $6.9 $4.9 $4.0 $0.0 $0.9 $0.2 $0.4 $3.1 $2539 $2.9 $7.0 $1.8 $7.1 $0.0 $0.2 $0.3 $0.1 $2.2 $2155 $4.0 $7.1 $1.9 $2.7 $0.0 $0.2 $0.2 $0.8 $3.1 $2066 $1.6 $4.7 $1.1 $1.0 $0.0 $0.0 $0.2 $0.1 $2.2 $11114 $2.3 $5.8 $2.8 $5.0 $0.7 $0.0 $0.3 $0.3 $1.7 $19502 $2.1 $4.0 $5.0 $3.4 $0.4 $0.5 $0.3 $0.8 $2.1 $19510 $2.7 $6.7 $0.0 $3.5 $0.0 $0.7 $0.0 $0.6 $3.4 $18512 $3.6 $5.6 $5.1 $6.6 $0.0 $1.2 $0.4 $1.2 $3.8 $27525 $4.4 $17.2 $5.6 $2.6 $1.8 $4.7 $0.9 $1.5 $1.4 $40627 $2.2 $9.0 $0.0 $0.8 $0.0 $0.2 $0.3 $0.3 $1.7 $15659 $5.4 $6.0 $5.1 $2.8 $0.1 $0.4 $0.3 $0.4 $3.3 $24719 $4.5 $8.2 $4.1 $7.6 $0.0 $0.0 $0.3 $0.2 $3.8 $29759 $4.7 $3.5 $0.3 $5.0 $0.0 $0.4 $0.2 $1.1 $2.6 $181004 $1.5 $4.1 $0.4 $3.3 $0.0 $0.3 $0.0 $0.0 $2.2 $12

Average $3.3 $6.8 $2.7 $4.0 $0.2 $0.7 $0.3 $0.6 $2.6 $21Top 20%* $4.3 $6.2 $4.0 $4.0 $0.0 $0.6 $0.3 $0.8 $3.4 $24





$/HA $/HA $/HA $/HA $/HA $/HA $/HA $/HA $/HA $/HA

14 $71 $118 $84 $68 $0 $15 $3 $7 $53 $41939 $54 $128 $34 $130 $0 $3 $5 $1 $40 $39355 $50 $89 $24 $34 $0 $3 $3 $10 $39 $25166 $18 $53 $13 $11 $0 $0 $2 $1 $24 $122114 $25 $62 $30 $54 $7 $0 $3 $3 $19 $203502 $23 $45 $57 $39 $4 $6 $3 $9 $24 $211510 $27 $66 $0 $35 $0 $6 $0 $6 $33 $173512 $56 $88 $80 $103 $0 $19 $7 $19 $59 $430525 $31 $123 $40 $19 $13 $33 $6 $10 $10 $286627 $23 $90 $0 $8 $0 $2 $3 $3 $17 $146659 $81 $89 $75 $42 $1 $6 $5 $6 $49 $355719 $57 $103 $51 $95 $0 $0 $4 $2 $47 $360759 $57 $42 $3 $60 $0 $4 $2 $14 $31 $2131004 $27 $75 $8 $62 $0 $6 $0 $1 $40 $218

Average $43 $84 $36 $54 $2 $7 $3 $7 $35 $270Top 20%* $62 $89 $60 $60 $0 $9 $5 $11 $49 $345




TABLE A7

Prime Lamb Variable Costs 2016-17 South West






43 $1.7 $2.0 $3.1 $7.3 $0.1 $0.3 $0.1 $0.7 $0.0 $1558 $3.6 $2.8 $2.1 $3.0 $0.2 $0.7 $0.6 $0.2 $3.2 $1687 $1.7 $5.6 $3.5 $5.2 $0.0 $0.6 $0.3 $0.2 $2.8 $2088 $1.5 $5.0 $2.4 $9.2 $0.0 $1.9 $0.2 $0.1 $2.3 $23

502 $0.6 $2.4 $0.7 $3.4 $0.0 $1.1 $0.2 $0.2 $3.6 $12512 $1.5 $3.0 $4.0 $6.6 $0.1 $1.6 $0.2 $0.4 $3.5 $21525 $1.4 $2.0 $3.8 $2.6 $0.4 $2.4 $0.1 $0.4 $3.6 $17623 $0.8 $2.0 $0.6 $3.9 $0.4 $0.8 $0.1 $0.3 $2.7 $12627 $2.1 $6.9 $0.0 $0.8 $0.0 $0.1 $0.3 $0.3 $1.1 $12628 $1.2 $3.6 $9.4 $4.6 $0.0 $0.7 $0.0 $0.1 $0.9 $20659 $2.9 $3.0 $4.7 $2.8 $0.0 $0.4 $0.2 $0.2 $2.9 $17715 $0.8 $2.9 $0.0 $4.1 $1.4 $1.0 $0.1 $1.4 $2.5 $14751 $2.1 $4.4 $8.5 $8.6 $0.0 $1.0 $0.0 $0.1 $2.9 $28754 $0.7 $2.9 $0.2 $3.3 $0.0 $1.0 $0.3 $0.4 $3.6 $12758 $1.1 $2.5 $0.0 $8.5 $1.5 $0.9 $0.0 $0.6 $2.2 $17759 $5.3 $3.9 $0.2 $5.0 $0.0 $0.4 $0.2 $1.4 $3.6 $20761 $2.4 $2.8 $1.2 $5.1 $0.0 $0.8 $0.1 $1.3 $1.3 $15807 $2.0 $1.8 $3.6 $5.5 $0.0 $0.8 $0.0 $1.6 $0.9 $16808 $4.9 $1.9 $9.7 $12.9 $0.0 $1.1 $0.1 $2.7 $1.3 $35809 $3.4 $2.6 $3.0 $5.6 $0.0 $0.3 $0.0 $0.3 $6.2 $211004 $1.6 $4.5 $0.5 $3.3 $0.0 $0.3 $0.0 $0.1 $5.5 $16

Average $2.1 $3.3 $2.9 $5.3 $0.2 $0.9 $0.1 $0.6 $2.7 $18Top 20%* $1.5 $3.4 $3.4 $5.7 $0.1 $1.0 $0.1 $0.4 $1.8 $17






43 $29 $34 $54 $128 $1 $6 $1 $13 $0 $26558 $73 $56 $41 $60 $3 $13 $11 $4 $64 $32687 $16 $54 $34 $50 $0 $5 $2 $2 $27 $19088 $23 $74 $35 $137 $0 $28 $2 $2 $34 $335

502 $6 $27 $8 $39 $0 $12 $2 $2 $41 $137512 $24 $46 $62 $103 $1 $26 $4 $6 $54 $326525 $10 $15 $27 $19 $3 $17 $1 $3 $26 $120623 $18 $44 $13 $86 $10 $16 $3 $7 $59 $254627 $21 $70 $0 $8 $0 $1 $3 $3 $11 $116628 $35 $109 $282 $138 $0 $22 $0 $2 $27 $614659 $43 $44 $70 $42 $0 $5 $2 $3 $44 $254715 $17 $66 $0 $92 $32 $23 $2 $32 $58 $322751 $35 $73 $141 $142 $0 $17 $0 $1 $47 $455754 $8 $34 $2 $39 $0 $12 $4 $5 $43 $147758 $17 $40 $0 $138 $24 $14 $0 $10 $36 $278759 $64 $47 $2 $60 $0 $5 $3 $16 $43 $241761 $58 $67 $29 $120 $0 $19 $3 $30 $30 $355807 $35 $31 $61 $93 $0 $14 $0 $27 $15 $274808 $76 $31 $153 $202 $0 $17 $1 $42 $21 $543809 $51 $39 $47 $86 $0 $4 $0 $4 $95 $3261004 $30 $83 $8 $62 $0 $6 $0 $1 $102 $292

Average $33 $52 $51 $88 $4 $13 $2 $10 $42 $294Top 20%* $33 $73 $90 $120 $2 $21 $2 $10 $38 $390




TABLE A8

Beef Cattle Variable Costs 2016–17 South West

Farm No. Enterprise Animal HealthContract Supp Feed &

Pasture Casual Labour Freight/Cartage Other Selling CostsTotal Var.

Services Agistmt Costs

$/DSE $/DSE $/DSE $/DSE $/DSE $/DSE $/DSE $/DSE $/DSE

39 Autumn $0.4 $0.0 $0.9 $7.1 $0.0 $0.0 $0.0 $0.0 $887 Autumn $3.1 $0.0 $18.0 $5.2 $0.0 $0.0 $0.3 $3.1 $30627 Autumn $0.2 $0.0 $7.5 $0.8 $0.0 $0.4 $0.0 $3.2 $12751 Autumn $1.0 $0.2 $0.0 $8.6 $0.0 $1.0 $0.0 $6.0 $17809 Autumn $3.0 $8.6 $24.7 $5.6 $0.0 $1.9 $1.7 $3.4 $491004 Autumn $1.1 $0.6 $2.6 $3.3 $0.0 $0.0 $0.3 $2.2 $1039 Other $5.1 $0.0 $0.0 $7.1 $0.0 $0.0 $0.0 $0.0 $12114 Other $0.5 $0.0 $0.4 $5.0 $0.0 $2.7 $0.1 $0.5 $939 Spring $0.9 $0.0 $0.8 $7.1 $0.0 $3.5 $0.0 $1.8 $14693 Spring $1.5 $1.5 $2.8 $10.8 $2.4 $0.1 $1.2 $0.7 $21720 Spring $1.5 $0.0 $3.3 $1.0 $0.3 $0.0 $0.4 $2.5 $9754 Spring $0.9 $0.1 $1.7 $3.3 $0.0 $0.3 $0.4 $2.6 $9758 Spring $1.1 $0.6 $2.3 $8.5 $0.0 $1.2 $0.4 $1.0 $15767 Spring $1.0 $0.0 $12.9 $2.1 $0.0 $0.0 $0.0 $2.3 $18807 Spring $0.9 $0.0 $0.0 $5.5 $0.0 $0.0 $1.8 $1.1 $9

Average $1.5 $0.7 $5.0 $5.2 $0.2 $0.7 $0.4 $2.0 $16.2Top 20%* $1.0 $0.0 $1.5 $4.4 $0.1 $0.9 $0.2 $1.0 $8.8

Farm No. Animal Health Contract ServicesSupp Feed &

Pasture Casual Labour Freight/ Cartage Other Selling Costs Total Var. CostsAgistmt

$/HA $/HA $/HA $/HA $/HA $/HA $/HA $/HA $/HA

39 $7 $0 $16 $130 $0 $0 $0 $0 $15287 $29 $0 $173 $50 $0 $0 $3 $29 $284627 $2 $0 $76 $8 $0 $4 $0 $32 $121751 $16 $3 $0 $142 $0 $16 $0 $99 $276809 $46 $132 $378 $86 $0 $29 $26 $52 $749

1004 $20 $10 $48 $62 $0 $0 $5 $41 $18739 $93 $0 $0 $130 $0 $0 $0 $0 $223114 $5 $0 $5 $54 $0 $29 $1 $5 $9939 $17 $0 $15 $130 $0 $65 $0 $33 $260693 $20 $19 $37 $143 $32 $1 $15 $9 $277720 $27 $0 $60 $18 $5 $0 $8 $45 $164754 $11 $2 $20 $39 $0 $3 $5 $31 $110758 $18 $10 $37 $138 $0 $19 $6 $16 $243767 $13 $0 $171 $28 $0 $0 $1 $30 $242807 $15 $0 $0 $93 $0 $0 $31 $19 $158

Average $23 $11 $68 $82 $2 $11 $7 $29 $236Top 20%* $13 $0 $27 $67 $2 $10 $3 $17 $138




TABLE A9

Pasture Costs Per Grazed Hectare 2016–17 South West

Farm No Seed Chemicals Contract Services Fert & Soil Conditioners Other Total Pasture Cost

$ / GRAZED HA $ / GRAZED HA $ / GRAZED HA $ / GRAZED HA $ / GRAZED HA $ / GRAZED HA

14 $10 $4 $9 $45 $5 $7339 $7 $1 $0 $115 $0 $13043 $10 $7 $22 $78 $0 $12255 $4 $6 $0 $16 $0 $2758 $9 $11 $7 $32 $0 $6066 $4 $3 $0 $1 $6 $1387 $6 $9 $0 $31 $4 $4988 $14 $8 $18 $116 $0 $155114 $3 $2 $0 $33 $1 $52502 $4 $2 $0 $24 $1 $31510 $7 $0 $0 $21 $3 $35512 $3 $6 $11 $81 $1 $103525 $0 $1 $1 $5 $6 $14623 $10 $3 $0 $71 $3 $87627 $0 $8 $0 $0 $0 $8628 $15 $12 $6 $83 $8 $142659 $0 $6 $0 $41 $0 $47693 $4 $4 $101 $45 $2 $156715 $32 $11 $0 $47 $1 $91719 $20 $0 $0 $63 $0 $83720 $0 $5 $0 $14 $0 $19751 $22 $19 $4 $98 $8 $151754 $1 $3 $5 $30 $0 $39758 $0 $1 $0 $130 $1 $151759 $5 $5 $3 $25 $0 $44761 $38 $4 $14 $68 $0 $124767 $0 $0 $1 $34 $0 $35807 $22 $9 $0 $58 $0 $93808 $28 $27 $56 $100 $6 $217809 $14 $3 $10 $79 $0 $106

1004 $11 $3 $0 $36 $16 $66Average $10 $6 $9 $52 $2 $81

Top 20%# $12 $6 $10 $68 $2 $103Top 20%* $13 $6 $10 $61 $2 $96

# South West Top 20% ranked RoA.* South West Top 20% ranked EBIT/ha.



TABLE A10

Overhead Costs Per Hectare 2016–17 South West

Farm No Paid Labour Fuel & Vehicle InsuranceR&M - Plant & R&M - Land &

Admin Rates & Rents Sundries Depreciation Total OverheadsEquip. Improv.


14 $23 $4 $10 $21 $8 $20 $15 $0 $8 $10839 $28 $6 $6 $11 $18 $19 $17 $0 $11 $11543 $44 $9 $5 $14 $39 $16 $14 $0 $16 $15655 $165 $14 $11 $14 $10 $20 $24 $1 $51 $31058 $81 $14 $7 $12 $48 $67 $15 $3 $25 $27366 $133 $23 $12 $17 $14 $29 $17 $1 $18 $26387 $51 $11 $10 $10 $14 $11 $12 $1 $2 $12288 $25 $26 $31 $18 $10 $39 $20 $0 $47 $216114 $23 $20 $12 $7 $30 $20 $11 $4 $19 $145502 $1 $11 $14 $17 $19 $14 $12 $0 $42 $130510 $7 $13 $11 $5 $15 $7 $18 $0 $12 $88512 $9 $10 $12 $29 $15 $18 $15 $1 $6 $115525 $29 $6 $16 $20 $25 $24 $15 $1 $92 $228623 $5 $7 $12 $11 $12 $33 $11 $0 $34 $125627 $0 $23 $13 $6 $26 $7 $25 $1 $21 $121628 $152 $55 $14 $0 $17 $27 $26 $0 $80 $369659 $4 $10 $6 $23 $4 $7 $16 $2 $16 $88693 $1 $18 $10 $6 $10 $32 $22 $0 $21 $119715 $15 $9 $12 $15 $52 $63 $24 $4 $24 $217719 $14 $24 $9 $17 $32 $16 $18 $1 $39 $170720 $0 $2 $13 $0 $39 $21 $16 $0 $51 $141751 $13 $2 $10 $5 $13 $12 $16 $0 $43 $114754 $1 $10 $7 $5 $21 $10 $14 $1 $11 $81758 $0 $15 $13 $9 $50 $14 $11 $2 $14 $126759 $0 $3 $7 $1 $3 $17 $9 $0 $22 $62761 $48 $9 $10 $8 $15 $27 $24 $2 $11 $154767 $0 $15 $14 $12 $10 $12 $14 $0 $25 $103807 $56 $2 $18 $27 $13 $27 $26 $0 $13 $182808 $0 $2 $25 $48 $23 $40 $23 $0 $47 $209809 $0 $62 $47 $24 $24 $24 $21 $3 $39 $2441004 $0 $23 $19 $19 $29 $26 $20 $0 $23 $158

Average $30 $15 $13 $14 $21 $23 $17 $1 $28 $163Top 20%# $43 $19 $14 $11 $24 $24 $18 $1 $33 $185Top 20%* $50 $18 $15 $10 $24 $26 $19 $0 $49 $211




TABLE A11

Wool Sheep Profitability Per Kilogram of Clean Wool Produced 2016–17 South West

Net WoolSheep

Variable Overhead O/O Interest & **Cost ofEarnings

Net FarmEarnings

Net FarmFarm No. Trading before Int/ before Int/Income Costs Costs Allowance Lease Production Income IncomeProfit Tax Tax

$/KG CLEAN $/KG CLEAN $/KG CLEAN $/KG CLEAN $/KG CLEAN $/KG CLEAN $/KG CLEAN $/KG CLEAN $/KG CLEAN $/HA $/HA

14 $19.8 $9.9 $12.9 $3.3 $2.7 $1.0 $19.0 $10.7 $10 $348 $31739 $16.7 $4.5 $8.4 $2.6 $0.7 $3.2 $11.7 $9.5 $6 $445 $29455 $17.8 $12.4 $8.4 $8.3 $0.6 $0.0 $17.3 $12.9 $13 $386 $386

114 $16.9 $7.0 $8.2 $5.4 $2.6 $0.6 $16.2 $7.7 $7 $189 $174502 $19.7 $11.1 $10.1 $4.6 $2.9 $4.3 $17.6 $13.2 $9 $277 $187510 $14.3 $18.6 $10.0 $4.9 $3.0 $9.3 $17.9 $15.0 $6 $259 $99512 $16.8 $11.5 $9.5 $2.1 $3.3 $0.7 $14.9 $13.4 $13 $609 $577525 $16.0 $20.3 $22.2 $8.8 $2.6 $11.7 $33.6 $2.7 -$9 $35 -$116627 $17.1 $5.8 $6.5 $5.5 $2.1 $3.3 $14.2 $8.7 $5 $196 $120659 $19.3 $11.5 $11.2 $2.0 $2.8 $0.0 $16.0 $14.9 $15 $471 $471719 $18.7 $7.4 $10.5 $3.8 $1.8 $2.2 $16.0 $10.1 $8 $348 $271759 $19.9 $3.1 $9.4 $3.0 $3.3 $2.9 $15.7 $7.4 $4 $167 $100

1004 $20.0 $6.8 $7.2 $5.4 $6.2 $4.1 $18.9 $7.9 $4 $239 $116Average $17.9 $10.0 $10.3 $4.6 $2.7 $3.3 $17.6 $10.3 $7 $305 $230

TABLE A12

Prime Lamb Profitability Per Kilogram Carcass Weight Produced 2016–17 South West

Net WoolNon-Lamb

Variable Overhead O/O Interest & **Cost of Lamb PriceEarnings

Net FarmEarnings

Net FarmFarm No Sheep Before Int/ Before Int/Income Costs Costs Allowance Lease Production Received Income IncomeTrading Tax - EBIT Tax - EBIT

$/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/KG CWT $/HA $/HA

43 $0.4 $3.3 $2.0 $1.3 $0.4 $1.3 $3.7 $5.8 $5.8 $4.5 $420 $32458 $0.5 $2.3 $1.4 $1.4 $0.5 $1.2 $3.2 $2.9 $2.5 $1.3 $279 $14387 $2.3 $1.4 $3.0 $2.5 $0.8 $0.1 $6.3 $4.3 $1.7 $1.5 $67 $6288 $1.3 -$0.5 $1.7 $1.2 $0.4 $0.6 $3.3 $6.1 $3.6 $3.0 $631 $532502 $2.7 $0.7 $1.2 $1.2 $0.8 $1.1 $3.2 $5.2 $5.3 $4.2 $399 $314512 $6.6 $0.7 $3.3 $1.2 $1.9 $0.4 $6.4 $6.9 $7.8 $7.4 $641 $608525 $2.3 $1.9 $1.7 $2.1 $0.6 $2.8 $4.4 $3.5 $3.4 $0.6 $111 $20623 $0.6 $0.8 $1.0 $0.7 $0.6 $1.3 $2.3 $4.4 $3.5 $2.1 $517 $317627 $0.9 $3.0 $1.5 $1.8 $0.7 $1.1 $4.0 $2.2 $2.1 $1.0 $54 $26628 $0.5 $0.6 $2.5 $1.5 $0.2 $0.2 $4.1 $5.4 $2.3 $2.1 $440 $400659 $0.7 $1.7 $1.6 $0.5 $0.7 $0.0 $2.8 $3.2 $2.8 $2.8 $244 $244715 $0.5 $1.3 $1.3 $1.1 $0.8 $0.2 $3.2 $4.8 $3.5 $3.3 $517 $485751 $0.7 $0.6 $2.7 $0.7 $0.3 $0.4 $3.8 $4.8 $2.3 $1.9 $270 $221754 $0.7 $0.3 $1.0 $0.8 $0.6 $0.2 $2.3 $4.2 $2.9 $2.7 $263 $245758 $1.0 -$1.7 $2.2 $1.1 $2.1 $1.7 $5.5 $5.7 -$0.5 -$2.2 -$54 -$221759 $2.5 -$0.8 $1.4 $0.5 $0.5 $0.5 $2.4 $2.4 $1.7 $1.2 $144 $101761 $0.7 $1.6 $1.3 $0.6 $0.3 $0.0 $2.1 $4.0 $4.1 $4.1 $600 $599807 $1.1 $1.1 $1.8 $1.3 $0.6 $0.1 $3.6 $5.5 $4.1 $3.9 $497 $482808 $1.0 -$1.1 $3.0 $1.2 $0.8 $0.8 $5.1 $5.8 $0.6 -$0.2 $101 -$34809 $0.8 -$2.1 $1.4 $1.3 $1.1 $0.6 $3.8 $5.7 $0.6 $0.1 $118 $10

1004 $1.6 -$2.7 $1.2 $1.0 $1.1 $0.7 $3.3 $6.9 $2.5 $1.8 $563 $399Average $1.4 $0.6 $1.8 $1.2 $0.8 $0.7 $3.7 $4.8 $3.0 $2.2 $325 $251

** Interest and lease costs are excluded from the cost of production.



TABLE A13

Beef Cattle Profitability Per Kilogram Liveweight Produced 2016–17 South West

Farm No. Trading ProfitVariable Overhead O/O Interest & **Cost of Beef Price Earnings Net Farm Earnings Net Farm BeefCosts Costs Allowance Lease Production Received before Int/Tax Income before Int/Tax Income Enterprise

$/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/HA $/HA

39 -$0.3 $0.3 $0.2 $0.1 $0.3 $0.5 $1.0 $0.1 -$0.2 $56 -$95 Autumn87 -$0.0 $1.3 $0.4 $0.1 $0.0 $1.7 $3.1 $1.3 $1.3 $260 $253 Autumn

627 -$0.4 $0.5 $0.6 $0.1 $0.4 $1.1 $3.5 $1.9 $1.5 $365 $290 Autumn751 -$0.7 $0.4 $0.2 $0.1 $0.1 $0.7 $2.6 $1.2 $1.1 $557 $495 Autumn809 -$0.5 $2.3 $0.9 $1.2 $0.3 $4.4 $4.6 -$0.2 -$0.5 -$52 -$147 Autumn1004 -$0.7 $0.8 $0.7 $0.9 $0.7 $2.4 $2.7 -$0.4 -$1.1 -$80 -$203 Autumn58 -$3.0 $0.1 $0.1 $0.1 $0.1 $0.4 $3.3 -$0.1 -$0.2 $54 $145 Other

114 -$0.5 $0.2 $0.3 $0.1 $0.0 $0.6 $2.4 $1.4 $1.4 $618 $603 Other39 $1.7 $0.5 $0.4 $0.1 $0.4 $1.1 $3.4 $4.0 $3.7 $1,729 $1,579 Spring

693 -$0.5 $0.9 $0.4 $0.1 $0.4 $1.3 $3.4 $1.6 $1.2 $495 $369 Spring720 $0.7 $0.4 $0.5 $0.6 $0.6 $1.5 $3.5 $2.8 $2.2 $800 $624 Spring754 -$0.1 $0.4 $0.4 $0.8 $0.1 $1.6 $2.5 $0.8 $0.7 $160 $140 Spring758 -$0.4 $0.6 $0.3 $0.6 $0.5 $1.5 $3.2 $1.3 $0.8 $465 $291 Spring767 -$0.1 $0.7 $0.3 $0.4 $0.1 $1.5 $2.9 $1.3 $1.2 $336 $307 Spring807 -$0.2 $0.4 $0.3 $0.2 $0.1 $0.9 $2.1 $1.0 $0.9 $328 $312 Spring

Average -$0.3 $0.7 $0.4 $0.4 $0.3 $1.4 $2.9 $1.2 $0.9 $406 $331


TABLE A14

Capital Structure 2016–17 South West

2016–17 Average 2016-17 Top 20% by RoA 2016-17 Top 20% by EBIT

FARM AREAS

Freehold Area 1,000 984 1,053

Area Leased In 84 12 65

Area Leased Out 7 29 34

Effective Area 966 889 1,026

LAND VALUES

Total Land Value per Hectare $5,421 $4,964 $5,912

Total Land Value per DSE $378 $269 $401

Owned Land Value per Hectare $5,033 $4,511 $5,511

Leased Land Value per Hectare $3,914 $459 $3,301

OTHER ASSETS (PER EFFECTIVE HECTARE)

Plant & Vehicles $317 $387 $547

Livestock $1,165 $1,323 $1,261

Hay & Grain on Hand $45 $45 $66

Other Assets $92 $135 $131

Total Assets $7,041 $6,854 $7,918

LIABILITIES

Liabilities per Hectare $1,308 $1,212 $1,593

EQUITY

Equity per Hectare $5,205 $5,598 $6,086

Average Equity % 75% 81% 75%

RATIOS

Debt Ratio 9% 6% 8%

Plant & Equipment Ratio 4.2 4.4 3.2



TABLE A15

Farm Labour Efficiency and Enterprise Mix 2016–17 South West


SHEEP ENTERPRISES

Average Sheep Number 6,069 6,859 6,877

Sheep Labour Efficiency (ha/person) 550 388 604

Sheep Labour Efficiency (DSE/person) 7,668 6,886 8,655

BEEF ENTERPRISES

Average Cattle Number 218 156 112

Cattle Labour Efficiency (ha/person) 554 191 69

Cattle Labour Efficiency (DSE/person) 7,205 2,516 1,276

TOTAL LABOUR EFFICIENCY

Hectares per person 474 382 426

DSE per person 7,148 7,212 8,152

ENTERPRISE MIX

Wool Sheep (%) 29% 16% 3%

Prime Lambs (%) 41% 54% 66%

Beef (%) 22% 20% 17%

Hay/Cropping (%) 6% 3% 7%

TABLE A16

Supplementary Feed Data 2016–17 South West

Yield Amount Fed to Sheep Amount Fed to Cattle Gross Margins Area Cut(wet tonnes per ha) (average wet kgs per DSE) (average wet kgs per DSE) ($ per ha) (ha)

Farm No Pasture Hay Pasture Hay Silage Grain Pasture Hay Silage Grain Pasture Hay Silage Pasture Hay Silage

14 2.9 11.9 12.2 $180 8139 8.3 1.843 2.9 13.755 0.3 8.7 $61 13058 7.7 0.3 2.9 2.066 5.5 0.9 4.2 $918 30687 19 1.0 67.0 $648 5088 6.6 8.2 $951 $1,268 64 54114 10.4 1.9 1.2 $897 18510 2.7 1.7 3.4512 11.5 4.4 $1,519 18525 0.5 10.5623 3.7 0.8 0.8 $532 15627 44.8628 3.4 2.7 32.7 $536 $1,557 18 9659 4.0 22.2 6.4 $665 105693 8.5 16.6 $1,432 45715719 20.5720 1.4 12.9 $1,282 26751 24.1 15.6 $2,336 90754 2.6 0.8 9.6 $1,368 8758 6.4 8.8 $928 58759 1.2761 1.9 1.1 $571 41767 3.5 3.5 52.0 $205 $1,643 74 32502 1.4 16.1807 16.3808 16.9 17.3 $1,308 75809 4.5 3.2 2.3 11.1 67.6 50.6 6.4 $559 $1,641 50 151004 10.0 1.8 8.8 $1,682 $2,453 40 20

Average 5.1 4.7 8.2 10.2 17 28 3.4 $829 $1,322 72 44



TABLE A17

Average Whole Farm Economic Performance – South West

Year Gross Income Variable Costs Overhead Costs Net IncomeEBIT Return on Return on

(Operating Profit) Assets Equity

NOMI- REAL NOMI- REAL NOMI- REAL NOMI- REAL NOMI- REALNAL NAL NAL NAL NAL % %($/HA) ($/HA) ($/HA) ($/HA) ($/HA)($/HA) ($/HA) ($/HA) ($/HA) ($/HA)

1970-71 $46 $498 $15 $162 $10 $108 $20 $216 2.9% 3.3%1971-72 $46 $467 $12 $122 $11 $112 $22 $224 3.8% 3.2%1972-73 $86 $808 $14 $131 $12 $113 $60 $563 12.6% 14.4%1973-74 $111 $910 $20 $164 $18 $148 $73 $598 12.6% 15.3%1974-75 $66 $463 $16 $112 $17 $119 $33 $231 3.1% 4.8%1975-76 $68 $426 $21 $131 $19 $119 $27 $169 2.7% 3.1%1976-77 $90 $496 $23 $127 $21 $116 $46 $254 6.6% 6.8%1977-78 $94 $480 $30 $153 $23 $117 $40 $204 4.7% 4.6%1978-79 $137 $644 $32 $150 $31 $146 $74 $348 6.3% 6.4%1979-80 $167 $708 $40 $170 $30 $127 $97 $411 6.7% 6.9%1980-81 $156 $608 $58 $226 $33 $129 $65 $254 2.9% 3.7%1981-82 $130 $458 $49 $172 $38 $134 $42 $148 1.0% 0.4%1982-83 $122 $387 $53 $168 $39 $124 $30 $95 -0.1% -0.2%1983-84 $188 $573 $48 $146 $43 $131 $97 $296 5.1% 4.0%1984-85 $191 $546 $54 $154 $46 $131 $91 $260 4.4% 3.5%1985-86 $197 $519 $51 $134 $45 $119 $101 $266 3.8% 3.3%1986-87 $235 $566 $53 $128 $49 $118 $133 $321 6.1% 5.4%1987-88 $335 $754 $75 $169 $59 $133 $200 $450 9.5% 9.3%1988-89 $343 $717 $80 $167 $61 $128 $202 $422 7.7% 7.2%1989-90 $326 $633 $90 $175 $66 $128 $170 $330 5.8% 4.6%1990-91 $221 $415 $73 $137 $57 $107 $91 $171 2.1% -0.5%1991-92 $190 $353 $68 $126 $55 $102 $67 $124 1.0% -2.2%1992-93 $198 $361 $67 $122 $54 $98 $77 $140 1.5% -1.1%1993-94 $220 $394 $85 $152 $54 $96 $82 $146 1.8% 0.1%1994-95 $278 $476 $104 $178 $84 $144 $91 $156 2.5% 0.9%1995-96 $273 $454 $98 $163 $82 $136 $93 $155 2.6% 0.8%1996-97 $287 $475 $113 $187 $76 $127 $97 $161 2.7% 1.1%1997-98 $302 $496 $117 $193 $80 $132 $104 $171 2.6% 1.3%1998-99 $285 $464 $116 $189 $79 $128 $90 $146 1.8% 0.3%1999-00 $308 $485 $126 $199 $80 $126 $102 $160 2.1% 0.8%2000-01 $418 $622 $125 $186 $95 $141 $198 $295 5.4% 5.2%2001-02 $536 $776 $150 $216 $102 $148 $284 $411 7.6% 8.7%2002-03 $515 $725 $200 $282 $106 $149 $209 $294 4.7% 4.9%2003-04 $519 $714 $183 $251 $85 $117 $251 $345 5.0% 5.7%2004-05 $501 $672 $206 $276 $92 $123 $203 $272 $137 $184 3.0% 2.3%2005-06 $453 $584 $202 $261 $91 $118 $160 $206 $80 $103 1.6% 1.2%2006-07 $429 $542 $239 $302 $103 $130 $87 $110 $27 $34 0.0% -2.9%2007-08 $636 $769 $260 $314 $122 $147 $255 $308 $189 $228 3.1% 2.4%2008-09 $602 $717 $274 $326 $130 $155 $199 $237 $82 $98 2.2% 1.0%2009-10 $658 $760 $259 $299 $121 $140 $278 $321 $210 $243 3.2% 2.5%2010-11 $793 $884 $214 $239 $137 $153 $442 $493 $366 $408 5.7% 5.7%2011-12 $696 $766 $341 $375 $137 $151 $293 $323 $225 $248 3.7% 3.3%2012-13 $547 $589 $285 $307 $141 $152 $121 $130 $60 $65 1.0% -1.2%2013-14 $608 $635 $252 $263 $150 $157 $206 $215 $142 $148 2.2% 0.8%2014-15 $698 $718 $319 $328 $158 $163 $221 $227 $153 $157 2.3% 1.8%2015-16 $764 $779 $306 $312 $159 $162 $299 $305 $228 $228 3.4% 2.9%2016-17 $987 $987 $272 $272 $163 $163 $372 $372 $457 $457 6.9% 8.0%

Long Term Avg $605 $219 $133 $250 $200 3.5% 2.6%2016-17 vs LT Avg +$383 +$53 +$29 +$122 +$257 +3.4% +5.5%

Note: ‘Real’ dollar values are the nominal values converted to 2016-17 dollar equivalents by the C.P.I. to allow for inflation. The data in the above table from 1970-71 to 2008-09 has been obtained from the South West Farm Monitor Project. Data from 2009-10 onwards has been obtained from the Livestock Farm Monitor Project.



TABLE A18

Historical Gross Margins For Livestock Enterprises – South West

Year Wool Sheep Prime Lambs Beef Cattle

NOMINAL REAL NOMINAL REAL NOMINAL REAL NOMINAL REAL NOMINAL REAL NOMINAL REAL($/DSE) ($/DSE) ($/HA) ($/HA) ($/DSE) ($/DSE) ($/HA) ($/HA) ($/DSE) ($/DSE) ($/HA) ($/HA)

1970-71 $1 $16 $18 $195 $2 $24 $31 $335 $3 $30 $40 $4331971-72 $2 $22 $27 $274 $3 $26 $31 $315 $3 $30 $35 $3561972-73 $8 $79 $96 $902 $8 $75 $96 $902 $3 $28 $34 $3191973-74 $8 $72 $105 $860 $9 $76 $108 $885 $5 $42 $60 $4921974-75 $5 $35 $53 $372 $6 $40 $67 $470 $1 $10 $16 $1121975-76 $5 $32 $63 $394 $7 $45 $98 $613 -$0 -$2 -$3 -$191976-77 $7 $39 $85 $469 $9 $52 $115 $634 $1 $6 $12 $661977-78 $6 $34 $83 $424 $8 $41 $100 $511 -$1 -$5 -$12 -$611978-79 $9 $43 $114 $536 $9 $42 $98 $460 $8 $37 $100 $4701979-80 $10 $43 $122 $517 $10 $42 $128 $543 $8 $35 $91 $3861980-81 $7 $30 $86 $335 $8 $31 $116 $452 $3 $13 $41 $1601981-82 $7 $25 $78 $275 $6 $20 $69 $243 $2 $7 $21 $741982-83 $6 $19 $64 $203 $7 $24 $96 $304 -$3 -$9 -$27 -$861983-84 $11 $35 $121 $369 $9 $26 $99 $302 $9 $26 $79 $2411984-85 $11 $34 $129 $369 $9 $25 $118 $337 $10 $29 $110 $3141985-86 $12 $32 $131 $345 $13 $34 $159 $419 $10 $27 $107 $2821986-87 $14 $35 $157 $378 $20 $49 $255 $615 $11 $27 $125 $3011987-88 $25 $57 $262 $590 $21 $47 $251 $565 $10 $22 $112 $2521988-89 $23 $49 $249 $521 $23 $47 $264 $552 $10 $22 $110 $2301989-90 $18 $36 $196 $381 $17 $33 $212 $412 $9 $17 $100 $1941990-91 $10 $20 $106 $199 $12 $22 $139 $261 $11 $21 $147 $2761991-92 $8 $15 $85 $158 $11 $21 $110 $204 $10 $19 $110 $2041992-93 $8 $16 $86 $157 $13 $24 $174 $317 $13 $23 $142 $2591993-94 $8 $15 $85 $153 $13 $23 $158 $284 $13 $23 $133 $2381994-95 $14 $25 $139 $238 $14 $25 $201 $344 $7 $12 $83 $1431995-96 $11 $19 $118 $196 $20 $33 $250 $416 $6 $10 $77 $1281996-97 $12 $20 $143 $236 $17 $29 $282 $468 $3 $5 $42 $691997-98 $12 $20 $139 $228 $17 $28 $228 $376 $7 $11 $91 $1501998-99 $8 $14 $108 $176 $15 $24 $204 $333 $11 $17 $140 $2271999-00 $12 $19 $144 $228 $12 $19 $173 $272 $10 $16 $131 $2072000-01 $17 $25 $221 $329 $17 $25 $251 $374 $21 $31 $292 $4342001-02 $23 $34 $284 $411 $28 $40 $421 $609 $23 $33 $335 $4842002-03 $15 $22 $232 $327 $20 $28 $346 $487 $11 $16 $190 $2672003-04 $16 $22 $243 $335 $25 $34 $380 $522 $21 $29 $339 $4662004-05 $12 $17 $201 $269 $20 $27 $314 $421 $20 $27 $309 $4142005-06 $7 $10 $119 $153 $15 $20 $247 $319 $11 $15 $179 $2312006-07 $8 $10 $112 $141 $11 $14 $139 $176 $9 $12 $177 $2242007-08 $14 $17 $236 $285 $13 $16 $257 $311 $14 $17 $268 $3242008-09 $12 $15 $179 $213 $18 $21 $271 $322 $20 $23 $312 $3712009-10 $17 $20 $267 $308 $30 $35 $459 $530 $16 $18 $243 $2812010-11 $37 $41 $550 $613 $41 $45 $628 $700 $32 $35 $538 $6002011-12 $27 $31 $382 $421 $28 $31 $453 $499 $22 $24 $322 $3552012-13 $12 $13 $166 $178 $15 $16 $232 $250 $16 $17 $237 $2552013-14 $11 $12 $158 $165 $27 $29 $428 $447 $19 $20 $287 $3002014-15 $13 $14 $188 $193 $25 $26 $394 $406 $30 $31 $414 $4262015-16 $18 $18 $210 $214 $32 $33 $497 $506 $42 $42 $618 $6302016-17 $38 $38 $502 $502 $40 $40 $651 $651 $46 $46 $668 $668

Long Term Avg $24 $292 $29 $406 $21 $2862016-17 vs LT Avg +$14 +$210 +$11 +$245 +$26 +$382




TABLE A19

Historical Data For Selected Average Profitability Indicators - South West

Years Stocking Rate Wool Sheep

MicronWool Cut Net Wool

Average Sale Price Lamb(Gr.) Price

NOMINAL REAL NOMINAL REALDSE/HA (KG/HA) ($/HD) ($/HD) %($/HD) ($/HD)

1970-71 15.3 42 $0.7 $7.7 $3 $29 78%1971-72 14.0 43 $0.8 $8.4 $3 $25 66%1972-73 12.2 42 $2.3 $21.1 $7 $63 64%1973-74 12.5 47 $1.8 $15.1 $12 $99 81%1974-75 12.1 51 $1.3 $9.1 $4 $30 81%1975-76 13.6 51 $1.4 $9.0 $4 $24 84%1976-77 12.9 47 $1.9 $10.4 $9 $47 77%1977-78 14.0 46 $2.0 $10.0 $10 $51 79%1978-79 12.7 48 $2.1 $9.6 $16 $76 80%1979-80 13.0 42 $2.6 $10.9 $18 $78 85%1980-81 12.8 40 $2.6 $10.1 $17 $66 77%1981-82 12.0 36 $2.7 $9.4 $12 $41 72%1982-83 11.7 38 $2.7 $8.3 $8 $25 79%

1983-84 11.7 42 $2.8 $8.5 $16 $48 83%1984-85 13.1 45 $3.2 $8.9 $14 $39 83%1985-86 12.0 44 $3.5 $9.0 $12 $31 84%1986-87 12.2 43 $4.0 $9.7 $17 $40 79%1987-88 11.8 43 $7.0 $15.8 $17 $39 82%1988-89 12.1 43 $6.8 $14.3 $19 $39 82%1989-90 12.4 45 $6.0 $11.6 $11 $22 77%1990-91 11.8 21.3 41 $4.3 $8.1 $5 $9 75%1991-92 11.4 21.3 38 $3.7 $6.8 $8 $15 71%1992-93 11.6 21.7 44 $3.0 $5.4 $13 $24 71%1993-94 11.3 21.3 37 $3.6 $6.4 $13 $24 72%1994-95 11.1 21.2 38 $5.6 $9.6 $15 $25 76%1995-96 12.4 21.3 45 $3.7 $6.2 $21 $35 77%1996-97 13.9 20.9 46 $4.5 $7.5 $19 $31 77%1997-98 13.3 20.7 42 $4.6 $7.6 $20 $34 75%1998-99 14.2 20.8 51 $3.5 $5.6 $17 $27 81%1999-00 14.4 20.4 52 $4.4 $7.0 $13 $20 84%2000-01 14.9 20.2 52 $5.6 $8.3 $26 $38 77%2001-02 15.2 20.1 55 $5.8 $8.4 $43 $62 77%2002-03 15.6 19.5 51 $6.9 $9.7 $35 $49 73%2003-04 16.0 19.4 54 $5.7 $7.9 $43 $60 72%2004-05 15.8 19.2 55 $5.3 $7.1 $41 $55 78%2005-06 15.5 18.9 43 $5.5 $7.0 $35 $46 76%2006-07 14.6 18.7 51 $6.4 $8.1 $30 $38 74%2007-08 17.5 18.4 52 $6.3 $7.6 $40 $48 79%2008-09 16.2 18.3 49 $6.3 $7.5 $44 $52 75%2009-10 16.0 18.2 48 $6.5 $7.5 $69 $80 73%2010-11 15.8 18.6 48 $9.5 $10.6 $104 $116 72%2011-12 15.3 18.4 44 $8.8 $9.7 $69 $76 84%2012-13 15.4 17.7 45 $7.9 $8.4 $42 $45 76%2013-14 15.0 17.5 44 $7.5 $7.9 $48 $50 67%2014-15 14.8 17.7 45 $7.6 $7.8 $64 $66 76%2015-16 14.0 17.8 38 $8.6 $8.7 $66 $67 81%2016-17 15.5 17.4 42 $11.8 $11.8 $79 $79 82%

Long Term Avg 13.8 45 $8.6 $45 77%

2016-17 vs LT Avg +1.7 -3 +$3.1 +$34 +5.3%




TABLE A19 [CONTD.]

Historical Data For Selected Average Profitability Indicators - South West

Years Prime Lambs Beef Cattele

Wool Cut (Gr.) Net Wool Price Average Sale Price Lamb Calving Average Sale Price

KG/HANOMINAL REAL NOMINAL REAL

% %NOMINAL REAL

($/KG) GR. ($/KG) GR. ($/HD) ($/HD) ($/HD) ($/HD)

1970-71 28 $0.7 $7.4 $4 $44 100% 93% $93 $1,0061971-72 46 $0.7 $7.5 $4 $39 87% 89% $90 $9151972-73 35 $2.0 $18.3 $7 $64 90% 89% $97 $9111973-74 39 $1.2 $10.1 $14 $118 88% 92% $134 $1,0981974-75 43 $0.9 $6.6 $6 $43 99% 92% $56 $3931975-76 45 $1.3 $8.3 $7 $41 105% 91% $40 $2501976-77 42 $1.7 $9.2 $10 $56 101% 87% $55 $3031977-78 45 $1.7 $8.5 $13 $64 104% 84% $69 $3521978-79 32 $1.9 $8.9 $17 $78 96% 91% $188 $8831979-80 31 $2.1 $8.8 $21 $88 96% 90% $263 $1,1151980-81 32 $1.9 $7.4 $19 $74 94% 90% $235 $9171981-82 30 $2.4 $8.3 $13 $46 69% 90% $172 $5941982-83 40 $2.0 $6.2 $11 $34 94% 93% $180 $560

1983-84 41 $1.9 $5.8 $19 $56 97% 95% $332 $9931984-85 40 $2.2 $6.2 $15 $42 102% 88% $322 $9031985-86 36 $2.3 $5.9 $18 $46 103% 87% $362 $9361986-87 44 $2.9 $7.0 $25 $60 104% 89% $363 $8751987-88 37 $4.8 $10.8 $25 $55 108% 90% $371 $8351988-89 41 $4.2 $8.9 $26 $53 101% 86% $389 $8131989-90 43 $3.4 $6.6 $24 $46 106% 89% $406 $7881990-91 41 $1.8 $3.4 $21 $39 115% 89% $381 $7151991-92 26 $2.8 $5.2 $19 $35 95% 88% $352 $6531992-93 43 $2.5 $4.6 $33 $60 97% 88% $416 $7581993-94 41 $2.6 $4.7 $37 $66 100% 84% $454 $8121994-95 43 $3.7 $6.3 $32 $55 96% 88% $390 $6681995-96 38 $3.2 $5.4 $48 $79 92% 88% $421 $6991996-97 38 $3.8 $6.4 $39 $64 98% 89% $311 $5161997-98 34 $3.5 $5.7 $38 $62 95% 90% $330 $5431998-99 36 $2.5 $4.0 $33 $54 98% 91% $411 $6691999-00 36 $2.9 $4.5 $30 $47 101% 91% $461 $7282000-01 41 $3.3 $4.9 $38 $56 100% 92% $616 $9172001-02 41 $4.3 $6.2 $61 $89 102% 89% $729 $1,0542002-03 36 $5.3 $7.4 $62 $88 98% 90% $546 $7702003-04 35 $4.0 $5.4 $71 $98 97% 88% $661 $9082004-05 33 $3.6 $4.9 $67 $90 99% 88% $715 $9592005-06 32 $3.0 $3.8 $56 $72 107% 86% $655 $8452006-07 32 $3.9 $5.0 $56 $71 98% 89% $502 $6342007-08 33 $3.6 $4.3 $62 $75 101% 85% $586 $7082008-09 34 $3.1 $3.7 $74 $88 110% 88% $732 $8722009-10 36 $4.1 $4.7 $91 $105 104% 90% $702 $8112010-11 34 $5.7 $6.4 $123 $137 101% 87% $853 $9512011-12 32 $4.5 $5.0 $95 $105 112% 84% $774 $8532012-13 30 $4.2 $4.5 $70 $75 108% 85% $666 $7162013-14 28 $5.2 $5.4 $95 $99 102% 88% $732 $7652014-15 31 $4.8 $5.0 $95 $98 116% 87% $794 $8172015-16 32 $5.2 $5.2 $101 $103 117% 93% $1,126 $1,1472016-17 29 $5.7 $5.7 $123 $123 112% 90% $1,456 $1,456

Long Term Avg 36 $5.7 $72 101% 89% $815

2016-17 vs LT Avg -7 -$0.0 +$52 +11% +1.4% +$641



Appendices : Northern Victoria

TABLE B1

Main Financial Indicators 2016–17 Northern Victoria

Gross Variable Overhead Cost O/OEarnings before

Net Farm Return on Return onFarm No. Interest & Tax Debt RatioIncome Costs Costs Structure Allowance Income Assets Equity- EBIT


584 $1,164 $374 $136 44% $22 $633 $465 6.4% 14% 10.8%586 $500 $158 $106 53% $76 $160 $160 2.6% 0% 2.6%588 $640 $105 $48 24% $66 $422 $358 10.5% 10% 11.8%589 $855 $75 $136 25% $28 $616 $511 9.4% 12% 12.9%599 $678 $203 $72 41% $82 $320 $245 6.0% 11% 9.1%614 $490 $216 $78 60% $55 $141 $19 2.4% 25% 0.6%616 $435 $127 $32 37% $57 $218 $168 7.9% 12% 10.7%630 $652 $119 $189 47% $196 $147 $137 2.3% 1% 2.4%650 $441 $54 $203 58% $162 $21 ($154) 0.3% 40% -4.2%688 $798 $146 $168 39% $47 $437 $437 10.3% 0% 11.0%706 $1,380 $306 $222 38% $130 $722 $613 13.4% 8% 16.4%708 $859 $134 $124 30% $49 $552 $552 5.8% 0% 5.8%709 $336 $73 $159 69% $107 ($3) ($36) -0.1% 10% -1.0%711 $401 $232 $104 84% $122 ($56) ($63) -1.6% 2% -1.8%712 $817 $269 $158 52% $183 $207 $207 5.5% 0% 5.5%744 $551 $210 $168 69% $93 $80 ($17) 2.2% 17% -1.5%745 $781 $278 $234 66% $70 $199 $164 2.9% 5% 4.2%756 $538 $136 $78 40% $100 $224 $125 3.3% 19% 4.7%757 $1,068 $301 $574 82% $0 $194 $171 1.7% 2% 1.6%762 $1,188 $385 $307 58% $454 $42 ($46) 0.2% 7% -0.3%800 $552 $202 $317 94% $0 $33 $33 0.3% 0% 0.3%802 $1,612 $868 $394 78% $125 $225 ($149) 2.3% 23% -5.3%803 $566 $114 $138 44% $87 $228 $227 3.9% 0% 4.5%

Average $752 $221 $180 54% $100 $251 $179 4.3% 9% 4.4%Top 20%# $822 $152 $121 33% $66 $483 $417 10.3% 8% 12.6%Top 20%* $1,011 $207 $157 35% $55 $592 $516 9.1% 7% 11.4%

# Northern Top 20% by RoA.* Northern Top 20% by EBIT/ha.



TABLE B2

Key Physical Data 2016–17 Northern Victoria

Farm NoAverage Actual Stocking

S.R. - Rf S.R. - RfJuly Stocking

P Applied P AppliedP Nutrient K Nutrient S Nutrient

Rainfall Rainfall Rate Rate Balance Balance Balance

DSE/HA/DSE/ KG P/

MM MM DSE/HA HA/25MM DSE/HA KG P/ GRAZED KG/HA KG/HA KG/HA100MM OVER GRAZED HAHA/100MM

250MM584 705 745 17 2.3 0.9 15 19 2.5 17 0 9586 518 614 7 1.2 0.5 7 14 2.3 13 8 5588 633 737 9 1.2 0.4 6 3 0.4 2 2 7589 579 720 13 1.8 0.7 22 0 0.0 -1 -5 -3599 670 890 11 1.3 0.4 9 8 0.9 7 4 6614 570 622 5 0.8 0.3 4 6 1.0 4 1 2616 500 677 4 0.6 0.2 -5 6 0.9 5 -0 6630 734 721 12 1.7 0.6 12 5 0.6 3 -2 3650 594 660 5 0.8 0.3 5 3 0.4 2 3 0688 695 905 10 1.1 0.4 13 3 0.3 1 20 -2706 439 447 13 2.9 1.7 7 10 2.3 8 4 2708 845 1,084 15 1.3 0.4 14 13 1.2 10 -2 14709 951 1,010 8 0.8 0.3 7 1 0.1 -1 -0711 586 687 5 0.8 0.3 4 6 0.9 1 -8 -1712 507 563 10 1.7 0.8 15 14 2.5 10 -18 3744 457 641 4 0.7 0.3 6 5 0.8 3 2 1745 853 974 17 1.8 0.6 15 12 1.2 10 -1 12756 770 890 8 0.9 0.3 6 5 0.6 4 5 -0757 669 887 15 1.7 0.6 11 7 0.8 4 -3 -2762 683 754 9 1.2 0.5 10 6 0.7 5 16 6800 707 814 12 1.4 0.5 9 6 0.8 3 -7 2802 547 612 11 1.7 0.7 10 19 3.0 16 28 4803 519 684 7 1.0 0.4 8 9 1.3 6 -4 7

Average 640 754 10 1.3 0.5 9 8 1.1 6 2 4Top 20%# 569 697 10 1.5 0.7 9 4 0.8 3 4 2Top 20%* 652 780 14 1.9 0.8 14 9 1.3 7 4 4

# Northern Top 20% ranked by RoA.* Northern Top 20% ranked by EBIT/ha.



TABLE B3

Wool Sheep Production 2016–17 Northern Victoria

Farm No.Stocking Adult Clean Clean Wool Clean Wool Clean Wool Net Clean Av Wool Av Wool Av Sale Gross Gross Gross Lamb

Rate Wool Cut Cut Cut Cut Wool Price Micron Yield Price Margin Margin Margin Marking


$/KG $/HD $/HA$/HA/

$/DSE/100MM 100MM

584 17 3.4 39 2.2 5.2 $19.1 17.6 68% $122 $736 $99 $43 73%586 7 3.8 18 2.4 3.0 $22.0 18.5 70% $102 $346 $56 $47 87%588 9 3.3 21 2.4 2.8 $19.3 18.4 70% $105 $420 $57 $49 72%589 13 2.5 23 1.8 3.1 $14.1 17.0 68% $58 $194 $27 $15 83%599 11 3.9 29 2.6 3.2 $16.7 17.7 74% $92 $517 $58 $46 72%614 5 2.8 15 2.9 2.3 $18.5 17.0 71% $101 $150 $24 $31 0%616 4 4.8 11 2.8 1.6 $15.5 18.5 68% $130 $247 $37 $63 93%711 5 4.2 12 2.2 1.7 $13.9 18.5 65% $128 $209 $30 $40 99%712 10 3.9 24 2.5 4.2 $15.9 16.5 61% $114 $480 $85 $50 95%744 4 3.5 12 2.6 1.8 $12.8 18.7 69% $114 $192 $30 $43 72%745 17 2.7 34 1.9 3.5 $21.4 15.2 74% $50 $500 $51 $29 65%803 7 5.1 19 2.8 2.8 $16.0 20.0 66% $131 $355 $52 $53 93%

Average 9.1 3.7 21 2.4 2.9 $17.1 17.8 69% $104 $362 $51 $42.4 75%Top 20%* 12.7 3.7 30 2.4 4.2 $17.2 17.3 68% $109 $577 $81 $46.3 80%


TABLE B4

Prime Lamb Production 2016–17 Northern Victoria

Farm No. Stocking RateLamb Lamb Lamb Av Lamb Av Lamb Av Lamb Adult Gr. Greasy Wool Average Wool

Produced Produced Produced Weight Price Price Wool Cut Cut Micron



588 8.6 248 111 15 25 $6.0 $147 6.1 27 20599 11.2 187 84 9 22 $6.0 $132 3.8 19 29630 12.0 217 98 14 22 $5.8 $129 4.3 19 29688 10.2 205 92 10 23 $6.1 $143 4.0 18 28712 9.6 144 65 12 20 $5.4 $108 7.0 20 17744 4.4 124 56 9 26 $5.7 $145 4.7 9 27756 8.4 140 63 7 21 $5.6 $119 3.5 16 20757 15.1 290 131 15 20 $6.4 $130 3.9 29 27803 6.7 121 55 8 24 $6.4 $155 7.7 18 20

Average 9.6 186 84 11 23 $5.9 $134 5.0 19 24Top 20%* 9.4 227 102 13 24 $6.0 $145 5.0 22 24

Farm No. Ewe Breed Net Greasy Wool Price Gross Margin Gross Margin Gross Margin Lamb Marking % Ewe % of DSE


588 Merino $9.4 $780 $106 $90 125% 76%599 Xbred $4.9 $325 $37 $29 105% 74%630 Xbred $3.8 $523 $73 $44 117% 63%688 Xbred $5.6 $768 $85 $76 103% 93%712 Merino $8.3 $328 $58 $34 101% 87%744 Xbred $4.0 $200 $31 $45 110% 82%756 Xbred $8.5 $354 $40 $42 118% 62%757 Xbred $3.6 $738 $83 $49 143% 64%803 Merino $10.9 $452 $66 $68 97% 83%

Average $6.6 $496 $64 $53 113% 76%Top 20%* $7.5 $774 $95 $83 114% 85%




TABLE B5

Beef Cattle Production 2016–17 Northern Victoria

Farm No. Stocking Rate Beef Produced Beef Produced Beef Sold Average Sale Price Average Wt Sales Average Sale Price

DSE/HA KG LWT/HAKG LWT/

KG LWT/HA $/HD KG LWT $/KG LWTHA/100MM

630 12 345 48 366 $1,500 693 $2.16757 15.1 263 30 362 $1,396 462 $3.02762 9.2 258 34 249 $2,012 485 $4.16803 6.7 149 22 124 $1,471 451 $3.26650 5.2 122 19 202 $1,226 380 $3.23800 11.5 195 24 197 $1,032 430 $2.40584 17.3 361 48 453 $1,586 521 $3.04588 8.6 121 16 197 $1,285 472 $2.72688 10.2 155 17 46 $1,713 475 $3.60708 14.6 257 24 237 $1,467 458 $3.20709 7.8 75 7 152 $1,233 428 $2.89745 17.3 148 15 359 $1,268 421 $3.01756 8.4 254 29 266 $1,426 455 $3.13802 10.7 301 49 315 $3,451 758 $4.55

Average 11.0 215 27 252 $1,576 492 $3.17Top 20%* 12.4 307 44 339 $2,350 588 $3.92

Farm No Gross Margin Gross Margin Gross Margin Time of Calving Calving % Cow % Beef Enterprise


630 $462 $64 $38 Apr 79% 21% Autumn757 $696 $79 $46 Mar 80% 36% Autumn762 $690 $92 $75 Mar 81% 100% Autumn803 $408 $60 $61 Feb 97% 45% Autumn650 $364 $55 $70 Oct 84% 71% Other800 $260 $32 $23 Oct 80% 100% Other584 $756 $102 $44 Sep 68% 47% Spring588 $302 $41 $35 Oct 97% 8% Spring688 $411 $45 $41 Jul 100% 33% Spring708 $695 $64 $48 Jul 92% 100% Spring709 $218 $22 $28 Aug 95% 97% Spring745 $271 $28 $16 Sep 93% 22% Spring756 $666 $75 $80 Sep 74% 16% Spring802 $579 $95 $54 Aug 71% 100% Spring

Average $484 $61 $47 85% 57%Top 20%* $675 $96 $58 73% 82%




TABLE B6

Wool Sheep Variable Costs 2016–17 Northern Victoria


Pasture Casual Labour Freight/ CartageShearing

Other Selling Costs Total Ent. CostsServices Agistmt Supplies


584 $2.5 $7.3 $1.9 $7.5 $0.0 $0.3 $0.3 $0.7 $2.4 $23586 $1.7 $3.5 $5.4 $8.0 $0.0 $1.0 $0.5 $1.2 $3.3 $25588 $1.0 $3.5 $1.1 $4.2 $0.0 $0.4 $0.3 $0.7 $3.8 $15589 $1.4 $2.3 $0.2 $1.4 $0.0 $0.5 $0.2 $0.1 $2.1 $8599 $3.8 $6.2 $2.4 $5.6 $0.3 $0.4 $0.2 $0.5 $3.5 $23614 $1.6 $6.5 $7.0 $0.0 $0.3 $7.9 $1.4 $2.5 $8.3 $35616 $1.8 $5.5 $4.9 $10.2 $1.0 $0.6 $0.4 $1.7 $5.4 $31711 $2.1 $3.3 $2.2 $3.8 $0.0 $1.1 $0.7 $0.9 $5.6 $20712 $1.6 $5.9 $6.4 $7.8 $0.4 $0.4 $0.4 $1.1 $6.3 $30744 $5.0 $7.2 $8.3 $0.2 $0.2 $0.2 $0.5 $3.7 $5.1 $30745 $2.1 $5.8 $0.5 $5.3 $1.0 $0.5 $0.2 $0.8 $3.8 $20803 $2.5 $3.5 $4.0 $5.7 $0.0 $0.0 $1.5 $2.7 $4.6 $24

Average $2.2 $5.0 $3.7 $5.0 $0.3 $1.1 $0.5 $1.4 $4.5 $24Top 20%* $2.6 $6.4 $3.5 $7.0 $0.2 $0.3 $0.3 $0.8 $4.1 $25


Pasture Casual Labour Freight/ CartageShearing

Other Selling Costs Total Ent. CostsServices Agistmt Supplies


584 $43 $125 $32 $129 $0 $5 $5 $11 $42 $393586 $12 $26 $40 $59 $0 $8 $3 $9 $25 $183588 $9 $30 $9 $36 $0 $3 $2 $6 $33 $129589 $18 $29 $2 $18 $0 $6 $3 $1 $26 $102599 $42 $69 $27 $62 $3 $4 $2 $6 $39 $254614 $8 $32 $35 $0 $2 $39 $7 $12 $41 $174616 $7 $21 $19 $40 $4 $2 $2 $7 $21 $122711 $11 $17 $11 $20 $0 $6 $4 $5 $29 $102712 $15 $56 $61 $75 $4 $4 $4 $11 $61 $291744 $22 $32 $37 $1 $1 $1 $2 $16 $23 $134745 $36 $101 $8 $91 $17 $8 $4 $13 $66 $345803 $17 $23 $27 $38 $0 $0 $10 $18 $31 $163

Average $20 $47 $26 $47 $3 $7 $4 $10 $36 $199Top 20%* $33 $84 $40 $89 $2 $4 $3 $9 $47 $313




TABLE B7

Prime Lamb Variable Costs 2016–17 Northern Victoria



Other Selling CostsTotal Ent.



588 $0.2 $4.1 $0.9 $4.2 $0.0 $1.0 $0.4 $0.7 $7.2 $19599 $3.0 $3.1 $2.3 $5.6 $0.2 $0.7 $0.1 $0.5 $5.2 $21630 $1.4 $1.8 $0.1 $2.7 $0.0 $0.2 $0.1 $0.6 $5.0 $12688 $1.2 $2.7 $1.0 $2.6 $5.7 $1.2 $0.2 $1.4 $4.3 $20712 $1.8 $4.0 $4.4 $7.8 $0.5 $0.5 $0.2 $1.3 $3.9 $24744 $4.2 $8.7 $12.1 $0.2 $0.3 $1.2 $0.3 $3.9 $5.1 $36756 $1.2 $4.9 $0.5 $5.6 $1.5 $0.5 $0.2 $2.2 $3.7 $20757 $1.9 $3.7 $3.3 $2.7 $0.0 $1.3 $0.0 $0.8 $3.7 $17803 $1.4 $0.0 $2.6 $5.7 $0.0 $0.0 $0.0 $0.7 $5.3 $16

Average $1.8 $3.7 $3.0 $4.1 $0.9 $0.7 $0.2 $1.3 $4.8 $21Top 20%* $0.7 $3.4 $0.9 $3.4 $2.8 $1.1 $0.3 $1.0 $5.7 $19



Other Selling CostsTotal Ent.



588 $2 $36 $7 $36 $0 $8 $3 $6 $62 $161599 $34 $35 $25 $62 $2 $7 $2 $6 $58 $232630 $16 $22 $1 $32 $0 $3 $2 $7 $60 $144688 $12 $28 $10 $26 $57 $12 $2 $14 $43 $205712 $18 $38 $42 $75 $5 $4 $2 $12 $37 $233744 $18 $38 $54 $1 $1 $5 $1 $17 $22 $159756 $10 $41 $4 $47 $13 $4 $2 $18 $31 $170757 $29 $56 $49 $40 $0 $19 $0 $11 $55 $260803 $9 $0 $17 $38 $0 $0 $0 $4 $35 $104

Average $17 $33 $23 $40 $9 $7 $1 $11 $45 $185Top 20%* $7 $32 $9 $31 $29 $10 $3 $10 $53 $183




TABLE B8

Beef Cattle Variable Costs 2016–17 Northern Victoria

Farm No. Enterprise Animal HealthContract Supp Feed &

Pasture Casual LabourFreight/


Services Agistmt Cartage Costs


630 Autumn $1.3 $1.4 $14.8 $2.7 $0.0 $0.4 $1.0 $5.8 $27709 Autumn $0.0 $0.0 $6.1 $3.1 $0.0 $0.0 $0.0 $0.0 $9757 Autumn $1.7 $0.0 $19.0 $2.7 $0.0 $1.0 $2.5 $2.5 $29762 Autumn $3.4 $3.0 $17.3 $8.3 $0.0 $3.2 $6.7 $4.4 $46803 Autumn $1.5 $0.0 $3.6 $5.7 $0.0 $0.0 $1.3 $0.9 $13650 Other $1.6 $0.0 $0.0 $6.3 $0.0 $1.4 $0.3 $9.7 $19706 Other $1.5 $0.0 $0.0 $4.2 $0.0 $0.0 $0.0 $0.0 $6744 Other $0.0 $0.0 $36.0 $0.2 $0.0 $0.0 $3.4 $0.0 $40800 Other $2.5 $0.4 $2.8 $6.2 $0.0 $3.5 $2.3 $3.1 $21584 Spring $1.1 $0.7 $10.0 $7.5 $0.0 $1.0 $0.7 $2.9 $24588 Spring $1.4 $0.0 $1.8 $4.2 $0.0 $1.5 $0.1 $3.8 $13688 Spring $0.0 $0.2 $1.0 $2.6 $5.2 $1.4 $1.0 $1.2 $12708 Spring $0.3 $0.0 $2.4 $4.9 $0.0 $0.7 $0.1 $0.6 $9709 Spring $1.3 $0.0 $2.8 $3.1 $0.0 $0.4 $0.6 $3.6 $12745 Spring $0.7 $0.0 $1.9 $5.3 $1.0 $0.5 $0.7 $5.2 $15756 Spring $0.3 $3.9 $0.0 $5.6 $0.0 $1.9 $3.0 $6.8 $21802 Spring $1.5 $16.6 $27.6 $6.7 $0.0 $4.9 $8.3 $2.0 $68

Average $1.2 $1.5 $8.7 $4.7 $0.4 $1.3 $1.9 $3.1 $23Top 20%* $2.0 $6.8 $18.3 $7.5 $0 $3.0 $5.2 $3.1 $46


Pasture Casual Labour Freight/ Cartage Other Selling Costs Total Var. CostsServices Agistmt


630 $16 $17 $178 $32 $0 $4 $12 $70 $329709 $0 $0 $48 $24 $0 $0 $0 $0 $71757 $25 $0 $288 $40 $0 $16 $38 $38 $445762 $31 $28 $159 $77 $0 $29 $62 $40 $425803 $10 $0 $24 $38 $0 $0 $9 $6 $86650 $8 $0 $0 $33 $0 $7 $2 $50 $100706 $19 $0 $0 $55 $0 $0 $0 $0 $74744 $0 $0 $159 $1 $0 $0 $15 $0 $175800 $29 $4 $32 $71 $0 $40 $26 $36 $239584 $20 $12 $173 $129 $0 $17 $11 $51 $413588 $12 $0 $16 $36 $0 $13 $1 $33 $111688 $0 $2 $10 $26 $52 $14 $10 $12 $126708 $4 $0 $35 $72 $0 $11 $1 $9 $132709 $10 $0 $22 $24 $0 $3 $4 $28 $92745 $13 $0 $33 $91 $17 $9 $12 $89 $264756 $2 $32 $0 $47 $0 $16 $25 $57 $180802 $17 $177 $295 $72 $0 $53 $88 $21 $723

Average $13 $16 $87 $51 $4 $14 $19 $32 $234Top 20%* $22 $72 $209 $92 $0 $33 $54 $37 $520




TABLE B9

Pasture Costs Per Grazed Hectare 2016–17 Northern Victoria

Farm No. Seed Chemicals Contract Services Fert & Soil Conditioners Other Total Pasture Cost

$/GRAZED HA $/GRAZED HA $/GRAZED HA $/GRAZED HA $/GRAZED HA $/GRAZED HA

584 $7 $2 $12 $76 $0 $129586 $1 $1 $0 $56 $0 $59588 $2 $0 $8 $15 $2 $37589 $0 $0 $18 $0 $0 $19599 $9 $5 $0 $38 $3 $62614 $0 $0 $0 $0 $0 $0616 $0 $0 $0 $25 $0 $40630 $0 $12 $0 $20 $0 $32650 $0 $0 $0 $33 $0 $33688 $0 $0 $0 $26 $0 $26706 $1 $0 $0 $47 $2 $60708 $0 $0 $0 $75 $0 $75709 $0 $4 $20 $0 $0 $24711 $0 $1 $0 $9 $0 $10712 $33 $24 $11 $6 $6 $79744 $0 $0 $0 $0 $0 $0745 $0 $8 $0 $63 $4 $95756 $0 $0 $0 $47 $0 $47757 $14 $5 $0 $25 $0 $44762 $0 $14 $6 $42 $0 $77800 $26 $0 $5 $39 $8 $78802 $17 $4 $42 $22 $0 $84803 $10 $6 $0 $15 $10 $41

Average $5 $4 $5 $30 $2 $50Top 20%# $1 $0 $5 $23 $1 $36Top 20%* $2 $1 $6 $45 $0 $62

* Top 20% ranked according to Earnings before Interest and Tax (EBIT) per hectare.

TABLE B10

Overhead Costs Per Hectare 2016–17 Northern Victoria

Farm No Paid Labour Fuel & Vehicle InsuranceR&M - Plant & R&M - Land &

Admin Rates & Rents Sundries Depreciation Total OverheadsEquip. Improv.


584 $51 $15 $2 $1 $27 $14 $9 $6 $11 $136586 $2 $4 $12 $12 $4 $12 $28 $0 $31 $106588 $0 $1 $2 $6 $13 $11 $10 $1 $3 $48589 $1 $27 $9 $0 $6 $28 $39 $0 $27 $136599 $0 $6 $7 $4 $10 $16 $11 $1 $18 $72614 $0 $7 $7 $13 $9 $18 $9 $1 $14 $78616 $0 $2 $3 $2 $0 $7 $9 $0 $9 $32630 $34 $9 $17 $4 $52 $27 $16 $1 $30 $189650 $32 $43 $26 $9 $13 $39 $32 $2 $7 $203688 $54 $9 $8 $0 $29 $18 $29 $1 $20 $168706 $4 $22 $14 $0 $32 $44 $94 $4 $8 $222708 $33 $9 $5 $7 $15 $12 $27 $0 $16 $124709 $0 $15 $9 $9 $66 $25 $11 $2 $22 $159711 $0 $5 $7 $10 $10 $16 $15 $0 $40 $104712 $3 $24 $14 $27 $10 $25 $19 $1 $36 $158744 $32 $27 $9 $34 $16 $15 $11 $4 $20 $168745 $1 $31 $14 $27 $50 $38 $13 $1 $58 $234756 $1 $17 $8 $2 $8 $16 $5 $2 $18 $78757 $266 $9 $34 $37 $33 $90 $59 $5 $42 $574762 $3 $45 $11 $43 $23 $112 $26 $4 $40 $307800 $208 $0 $33 $36 $4 $8 $4 $0 $24 $317802 $0 $46 $33 $26 $67 $107 $39 $20 $56 $394803 $0 $33 $14 $11 $4 $21 $27 $4 $25 $138

Average $31 $18 $13 $14 $22 $31 $24 $3 $25 $180Top 20%# $12 $12 $7 $2 $16 $22 $36 $1 $13 $121Top 20%* $28 $16 $8 $2 $22 $23 $40 $2 $16 $157

# Northern Top 20% ranked by RoA. * Top 20% ranked according to Earnings before Interest and Tax (EBIT) per hectare.



TABLE B11

Wool Sheep Profitability Per Kilogram of Clean Wool Produced 2016–17 Northern Victoria

Net WoolSheep

Variable Overhead O/O Interest & **Cost ofEarnings

Net FarmEarnings

Net FarmFarm No. Trading before Int/ before Int/Income Costs Costs Allowance Lease Production Income IncomeProfit Tax Tax


584 $20.0 $9.1 $10.1 $4.0 $0.5 $4.1 $14.6 $14.4 $10 $561 $401586 $22.6 $12.3 $10.1 $5.7 $4.2 $0.0 $20.0 $14.9 $15 $270 $270588 $20.6 $5.8 $6.3 $2.2 $2.9 $3.1 $11.4 $15.0 $12 $309 $246589 $14.9 -$1.7 $4.6 $5.7 $1.3 $4.7 $11.5 $1.6 -$3 $37 -$69599 $17.6 $9.2 $8.9 $2.6 $2.6 $2.7 $14.0 $12.7 $10 $364 $288614 $19.5 $2.6 $12.0 $4.6 $3.8 $8.4 $20.4 $1.6 -$7 $24 -$98616 $16.3 $17.7 $11.4 $2.4 $4.3 $3.8 $18.0 $16.1 $12 $173 $132711 $14.7 $12.0 $8.9 $8.0 $13.1 $0.6 $29.9 -$3.2 -$4 -$37 -$43712 $18.0 $14.4 $12.3 $6.1 $7.4 $0.0 $25.7 $6.7 $7 $159 $159744 $13.5 $14.4 $11.7 $9.9 $7.3 $8.3 $28.9 -$9 -$11 -$107745 $22.8 $2.1 $10.2 $6.5 $2.0 $1.1 $18.7 $6.2 $5 $208 $172803 $16.9 $10.1 $8.7 $6.4 $3.6 $0.1 $18.7 $8.3 $8 $157 $155

Average $18.1 $9.0 $9.6 $5.3 $4.4 $3.1 $19.3 $7.8 $5 $185 $126


TABLE B12

Prime Lamb Profitability Per Kilogram Carcass Weight Produced 2016–17 Northern Victoria

Net WoolNon-Lamb

Variable Overhead O/O Interest & **Cost of Lamb Price Earnings before Net Farm Earnings Net FarmFarm No. SheepIncome Costs Costs Allowance Lease Production Received Int/Tax Income before Int/Tax IncomeTrading


588 $2.3 -$0.1 $0.9 $0.5 $0.6 $0.6 $1.9 $5.7 $6.0 $5.5 $640 $579599 $1.1 -$1.1 $2.0 $0.8 $0.9 $0.9 $3.7 $5.9 $2.2 $1.3 $184 $108630 $0.7 $0.6 $0.9 $1.9 $1.7 $0.1 $4.4 $4.9 $1.8 $1.7 $148 $140688 $1.1 $3.7 $1.6 $2.0 $0.5 $0.0 $4.1 $5.1 $5.8 $5.8 $452 $452712 $2.5 -$0.8 $3.0 $2.1 $2.7 $0.0 $7.8 $6.3 $0.3 $0.3 $21 $21744 $0.7 $0.5 $2.4 $2.1 $1.5 $1.7 $6.0 $4.8 -$0.0 -$1.7 -$0 -$83756 $2.4 $1.6 $2.2 $1.3 $1.7 $1.6 $5.1 $3.8 $2.7 $1.1 $112 $45757 $0.8 $0.6 $1.5 $4.4 $0.0 $0.2 $5.9 $5.7 $1.3 $1.1 $147 $128803 $3.6 $0.5 $1.2 $2.3 $1.2 $0.0 $4.7 $5.3 $4.8 $4.8 $217 $216

Average $1.7 $0.6 $1.7 $1.9 $1.2 $0.6 $4.8 $5.3 $2.8 $2.2 $213 $178



TABLE B13

Beef Cattle Profitability Per Kilogram Liveweight Produced 2016–17 Northern Victoria

Farm No. Trading ProfitVariable Overhead O/O Interest & **Cost of Beef Price Earnings Net Farm Earnings Net Farm BeefCosts Costs Allowance Lease Production Received before Int/Tax Income before Int/Tax Income Enterprise

$/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/HA $/HA

630 -$0.1 $0.8 $0.6 $0.8 $0.0 $2.1 $2.2 $0.0 -$0.0 -$0 -$10 Autumn757 $1.0 $1.6 $2.0 $0.0 $0.1 $3.5 $3.0 $0.6 $0.5 $147 $124 Autumn762 $0.0 $1.5 $1.2 $1.6 $0.3 $4.3 $4.2 -$0.1 -$0.4 -$25 -$114 Autumn803 -$0.0 $0.5 $0.8 $0.6 $0.0 $1.9 $3.3 $1.4 $1.3 $201 $200 Autumn650 -$1.2 $0.3 $1.0 $0.8 $0.9 $2.0 $3.2 $0.1 -$0.8 $9 -$98 Other800 -$0.2 $1.0 $1.5 $0.0 $0.0 $2.5 $2.4 -$0.3 -$0.3 -$58 -$58 Other584 $0.2 $1.1 $0.3 $0.1 $0.5 $1.4 $3.0 $1.9 $1.4 $666 $499 Spring588 $0.4 $0.7 $0.4 $0.5 $0.5 $1.5 $2.7 $1.7 $1.1 $201 $137 Spring688 -$0.3 $0.7 $0.9 $0.3 $0.0 $1.9 $3.6 $1.4 $1.4 $221 $221 Spring708 -$0.0 $0.5 $0.5 $0.2 $0.0 $1.1 $3.2 $2.0 $2.0 $526 $526 Spring709 $0.8 $0.8 $2.1 $1.4 $0.4 $4.3 $2.9 -$0.6 -$1.1 -$48 -$81 Spring745 -$0.1 $1.2 $2.0 $0.5 $0.2 $3.6 $3.0 -$0.7 -$0.9 -$98 -$134 Spring756 -$0.0 $0.5 $0.3 $0.1 $0.4 $0.9 $3.1 $2.2 $1.8 $567 $467 Spring802 -$0.3 $2.3 $1.2 $0.4 $1.2 $4.0 $4.6 $0.2 -1.0 $73 -$301 Spring

Average $0.0 $1.0 $1.0 $0.5 $0.3 $2.5 $3.2 $0.7 $0.4 $170 $98


TABLE B14

Capital Structure 2016–17 Northern Victoria


FARM AREAS

Freehold Area 691 994 977



Effective Area 905 1,235 1,328

LAND VALUES




Leased Land Value per Hectare $3,667 $2,484 $3,277



Livestock $816 $661 $1,083



Total Assets $7,184 $4,830 $7,454

LIABILITIES

Liabilities per Hectare $774 $1,158 $1,077

EQUITY



RATIOS

Debt Ratio 9% 8% 7%

Plant & Equipment Ratio 4.8 7 7.6



TABLE B15

Farm Labour Efficiency and Enterprise Mix 2016–17 Northern Victoria


SHEEP ENTERPRISES

Average Sheep Number 3,391 5,077 5,354


Sheep Labour Efficiency (DSE/person) 4,734 8,150 6371

BEEF ENTERPRISES



Cattle Labour Efficiency (DSE/person) 5,143 4,140 8484



DSE per person 5,104 6900 9,243

ENTERPRISE MIX

Wool Sheep (%) 36% 54% 30%

Prime Lambs (%) 18% 17% 13%

Beef (%) 34% 8% 36%


TABLE B16

Supplementary Feed Data 2016–17 Northern Victoria

Yield (wet Amount Fed to Sheep Amount Fed to Cattle Gross Margins Area Cuttonnes per ha) (average wet kgs per DSE) (average wet kgs per DSE) ($ per ha) (ha)

Farm No Pasture Hay Pasture Hay Silage Grain Pasture Hay Silage Grain Pasture Hay Silage Pasture Hay

584 8.5 1.9586588 3.5 3.7 $564 10589 5.0 0.9 $841 12599 10.5614 3.3 7.9 26.4 $374 180616 13.3630 11.0 32.3 $1,850 4650688 3.6706 8.2 4.2 $1,047 12.2708 4.1 11.0 $437 66709 5.0 7.9 6.9 $392 $636 8711 13.4712 4.9 18.5 $817 3.6744 28.2 16.6745 6.9 1.6 11.4 $597 44756 2.5757 4.1 3.5 3.5 3.5 43.6 50.1 $383 $934 71762 7.4800 6.8 11.7 1.2 $1,151 $2,670 92802 27.9 $1,247803 1.3 2.7 17.5 2.3 $210 20

Average 5.3 3.3 3.5 11.8 15.9 21.5 9.5 $722 $1,372 44



TABLE B17

Average Whole Farm Economic Performance - Northern Victoria

Year Gross Income Variable Costs Overhead Costs Net Income EBIT (Operating Profit) Return on Return onAssets Equity

NOMINAL REAL NOMINAL REAL NOMINAL REAL NOMINAL REAL NOMINAL REAL($/HA) ($/HA) ($/HA) ($/HA) ($/HA) ($/HA) ($/HA) ($/HA) ($/HA) ($/HA)

2004-05 $272 $365 $107 $144 $57 $76 $108 $145 $53 $71 1.1% -0.2%2005-06 $272 $351 $111 $143 $63 $81 $99 $128 $45 $58 1.5% 0.0%2006-07 $275 $347 $164 $207 $66 $83 $46 $58 $0 $0 0.2% -1.8%2007-08 $293 $354 $114 $138 $65 $79 $114 $138 $62 $75 2.4% 1.5%2008-09 $263 $313 $121 $144 $72 $86 $69 $82 $8 $10 0.3% -1.3%2009-10 $340 $393 $103 $119 $83 $96 $154 $178 $82 $95 2.5% 2.0%2010-11 $499 $556 $112 $125 $108 $120 $279 $311 $183 $204 4.5% 4.9%2011-12 $436 $481 $132 $145 $106 $116 $199 $219 $118 $130 2.9% 2.6%2012-13 $383 $413 $168 $181 $106 $114 $110 $118 $25 $27 0.6% -1.8%2013-14 $433 $452 $151 $158 $104 $109 $178 $186 $102 $107 2.0% 0.9%2014-15 $461 $474 $181 $186 $120 $124 $160 $165 $86 $89 1.9% 1.0%2015-16 $513 $523 $207 $211 $145 $148 $161 $164 $77 $78 1.4% 0.5%2016-17 $752 $752 $221 $221 $180 $180 $179 $179 $251 $251 4.3% 4.4%

Long Term Avg $444 $163 $109 $159 $92 2.0% 1.0%2016-17 vs LT Avg +$308 +$58 $72 +$20 +$159 +2.3% +3.4%

Note: ‘Real’ dollar values are the nominal values converted to 2016-17 dollar equivalents by the C.P.I. to allow for inflation. The data in the above table from 2004-05 to 2008-09 has been obtained from the Sheep Farm Monitor Project. Data from 2009-10 onwards has been obtained from the Livestock Farm Monitor Project.

TABLE B18

Historical Gross Margins For Livestock Enterprises - Northern Victoria

Year Wool Sheep Prime Lambs Beef Cattle


2004-05 $14 $19 $126 $1692005-06 $11 $14 $107 $1382006-07 $11 $14 $95 $1202007-08 $16 $19 $123 $148 $11 $13 $90 $1092008-09 $13 $15 $106 $126 $16 $19 $137 $1632009-10 $24 $28 $202 $233 $25 $29 $225 $260 $29 $34 $350 $4042010-11 $44 $49 $396 $442 $46 $51 $401 $447 $31 $35 $365 $4072011-12 $33 $36 $332 $365 $28 $31 $250 $275 $25 $28 $285 $3142012-13 $18 $19 $172 $185 $25 $26 $190 $204 $23 $25 $247 $2662013-14 $23 $24 $234 $244 $32 $33 $319 $333 $26 $27 $317 $3312014-15 $26 $27 $279 $287 $28 $29 $291 $299 $25 $26 $282 $2902015-16 $25 $25 $217 $221 $32 $32 $221 $225 $39 $39 $434 $4422016-17 $42 $42 $362 $362 $53 $53 $496 $496 $47 $47 $484 $484

Long Term Avg $26 $234 $32 $281 $33 $3672016-17 vs LT Avg +$17 +$128 +$21 +$215 +$14 +$117

Note: ‘Real’ dollar values are the nominal values converted to 2016-17 dollar equivalents by the C.P.I. to allow for inflation. The data in the above table from 2004-05 to 2008-09 has been obtained from the Sheep Farm Monitor Project. Data from 2009 -10 onwards has been obtained from the Livestock Farm Monitor Project. Early figures for prime lamb and beef cattle enterprises were not reported in the old Sheep Farm Monitor Projects and are therefore not shown in the above table.



TABLE B19

Historical Data For Selected Average Profitability Indicators - Northern Victoria

Year Stocking Rate Wool Sheep

Micron Wool Net Wool Price Ave Sale Price Lamb

DSE/HA KG/HANOMINAL REAL NOMINAL REAL

%($/KG) GR. ($/KG) GR. ($/HD) ($/HD)

2004-05 9.3 19.2 33 $4.9 $6.5 $46 ($/HD) 75%2005-06 9.8 18.8 30 $5.1 $6.6 $41 $53 79%2006-07 9.7 18.3 30 $6.9 $8.8 $33 $42 69%2007-08 8.2 18.8 29 $6.1 $7.4 $41 $50 72%2008-09 8.5 18.4 29 $5.7 $6.8 $45 $53 80%2009-10 8.8 18.3 27 $6.1 $7.0 $72 $83 77%2010-11 9.4 18.6 32 $8.8 $9.8 $102 $114 78%2011-12 9.3 18.5 29 $8.4 $9.3 $80 $88 84%2012-13 9.4 18.5 30 $7.5 $8.0 $56 $60 80%2013-14 9.8 18.0 33 $7.3 $7.6 $63 $66 77%2014-15 10.2 18.1 36 $8.2 $8.5 $76 $78 78%2015-16 8.8 17.8 28 $8.8 $9.0 $71 $72 85%2016-17 9.9 17.8 31 $11.7 $11.7 $104 $104 75%

Long Term Avg 9.3 31 $8.2 $71 78%2016-17 vs LT Avg +0.6% +0% +3.5 +$33 -2%

Year Prime Lambs Beef Cattle

Wool Cut (Gr.) Net Wool Price Ave Sale Price Lamb Calving Av Sale Price


% %NOMINAL REAL


2004-052005-062006-072007-08 18 $4.4 $5.3 $53 $64 87%2008-09 16 $3.2 $3.9 $68 $81 98%2009-10 18 $3.3 $3.8 $95 $109 111% 87% $640 $7392010-11 20 $4.3 $4.8 $127 $142 105% 87% $847 $9442011-12 19 $4.8 $5.3 $102 $112 107% 87% $815 $8982012-13 21 $5.0 $5.4 $78 $84 111% 87% $814 $8752013-14 23 $5.1 $5.3 $90 $94 109% 93% $698 $7292014-15 22 $6.3 $6.5 $101 $104 112% 90% $937 $9642015-16 18 $6.4 $6.5 $102 $104 119% 90% $1,189 $1,2122016-17 19 $6.6 $6.6 $134 $134 113% 85% $1,576 $1,576

Long Term Avg 19 $5.3 $103 107% 88% $9922016-17 vs LT Avg +0 +$1.3 +$31 +6% -3% +$584





Appendices : Gippsland

TABLE C1

Main Financial Indicators 2016-17

Gross Farm Variable Overhead Cost O/OEarnings

Net Farm Return on Return onFarm No before Interest Debt RatioIncome Costs Costs Structure Allowance Income Assets Equity& Tax - EBIT


541 $919 $301 $126 47% $26 $465 $375 8.9% 10% 11.1%553 $778 $252 $181 56% $89 $256 $180 3.6% 10% 2.7%555 $775 $288 $145 56% $63 $278 $242 4.8% 5% 5.1%574 $942 $242 $155 42% $94 $451 $221 5.6% 24% 23.7%638 $1,484 $311 $338 44% $66 $769 $769 3.8% 0% 3.8%639 $1,785 $658 $540 67% $164 $423 $423 1.9% 0% 2.5%653 $559 $132 $132 47% $105 $190 $177 3.9% 2% 3.9%663 $1,207 $285 $393 56% $348 $181 $176 1.2% 0% 1.1%667 $1,175 $295 $317 52% $157 $407 $407 3.0% 0% 3.0%694 $486 $101 $80 37% $10 $294 $246 5.4% 10% 5.3%698 $2,647 $643 $558 45% $1,072 $375 $375 1.9% 0% 1.9%700 $314 $85 $105 61% $2 $121 $74 2.4% 15% 1.7%701 $2,112 $548 $498 50% $361 $705 $705 2.4% 0% 2.4%720 $925 $160 $194 38% $121 $449 $430 4.9% 2% 4.9%726 $1,905 $939 $216 61% $128 $622 $618 4.1% 0% 4.1%742 $475 $71 $193 56% $121 $89 $89 1.5% 0% 1.4%755 $1,081 $513 $458 90% $186 ($76) ($120) -0.4% 4% -0.8%804 $2,070 $1,162 $560 83% $243 $106 $36 0.3% 3% 0.1%805 $765 $217 $201 55% $78 $269 $242 5.1% 4% 5.1%806 $1,299 $401 $219 48% $131 $548 $368 5.6% 14% 6.2%810 $1,326 $189 $326 39% $122 $689 $684 5.6% 0% 5.7%

Average $1,192 $371 $283 54% $176 $362 $320 3.6% 5% 4.5%Top 20%# $994 $247 $181 43% $77 $489 $379 6.2% 12% 10.4%Top 20%* $1,707 $497 $345 49% $169 $696 $694 4.0% 0% 4.0%

TABLE C2

Key Physical Data 2016–17 Gippsland

Average Actual StockingJuly

P Nutrient K Nutrient S NutrientFarm No S.R. - Rf S.R. - Rf Stocking P Applied P AppliedRainfall Rainfall Rate Change Change ChangeRate

MM MM DSE/HA DSE/HA/ DSE KG P/ KG P/HA/25MM DSE/HA GRAZED KG/HA KG/HA KG/HA

100MM GRAZED HAOVER 250MM HA/100MM

541 600 452 14 3.1 1.7 20 16 3.5 14 -2 15553 670 535 15 2.8 1.3 13 8 1.5 5 -7 2555 600 527 14 2.7 1.3 14 10 1.9 9 1 10574 619 546 12 2.2 1.0 16 6 1.0 2 -1 -0638 1,018 945 23 2.4 0.8 19 16 1.7 12 44 16639 800 933 26 2.8 1.0 22 13 1.3 8 26 11653 563 520 12 2.2 1.1 16 43 8.3 42 25 15

663 1,000 964 18 1.9 0.6 19 33 3.4 30 20 11667 850 1,016 19 1.9 0.6 15 24 2.3 20 26 27694 600 573 7 1.2 0.5 7 3 0.6 1 -4 -1698 669 619 28 4.5 1.9 20 18 2.9 11 15 17700 655 710 6 0.8 0.3 6 2 0.3 1 -1 0701 794 646 21 3.2 1.3 24 19 2.9 12 34 17720 846 690 14 2.0 0.8 14 13 1.8 10 3 14726 985 773 28 3.7 1.4 24 9 1.2 5 20 17742 652 590 9 1.4 0.6 7 4 0.6 2 1 3755 1,011 884 18 2.1 0.7 105 11 1.3 0 0 0804 899 835 28 3.4 1.2 32 11 1.3 5 28 8805 625 580 10 1.7 0.7 7 3 0.4 1 6 1806 960 930 24 2.6 0.9 23 9 1.0 5 3 8810 925 801 20 2.5 0.9 19 16 2.1 12 12 17

Average 778 718 17 2.4 1.0 21 14 2.0 10 12 10Top 20%# 741 660 15 2.3 1.0 17 10 1.6 7 2 8Top 20%* 930 791 23 3.0 1.1 22 15 2.0 9 23 15

# Gippsland Top 20% ranked by RoA.* Gippsland Top 20% ranked by EBIT/ha.



TABLE C3

Wool Sheep Production 2016–17 Gippsland

StockingAdult

Clean Clean CleanNet Clean Average Average

Ave Sale Gross Gross GrossLamb

Farm No. Clean Wool Wool Wool MarkingRate Wool Cut Wool Cut Wool Cut Price Margin Margin MarginWool Cut Price Micron Yield %


$/KG $/HD $/HA$/HA

$/DSE/100MM /100MM

541 14 4.3 39 2.8 8.5 $18.1 17.0 75% $105 $669 $148 $48 89%553 15 3.4 33 2.2 6.2 $16.7 18.5 72% $96 $450 $84 $30 54%555 14 4.2 44 3.1 8.4 $15.1 18.5 71% $71 $515 $98 $36 62%574 12 3.8 23 1.9 4.3 $17.6 18.0 67% $80 $590 $108 $49 115%653 12 3.4 25 2.2 4.8 $14.1 18.0 72% $98 $445 $86 $38 92%694 7 4.1 23 3.4 4.0 $13.2 17.8 74% $95 $164 $29 $24 0%700 6 4.1 33 5.5 4.6 $13.2 17.8 74% $95 $278 $39 $47 0%805 10 4.2 28 2.9 4.9 $18.6 18.5 72% $92 $488 $84 $50 63%

Average 11 3.9 31 3.0 5.7 $15.8 18.0 72% $92 $450 $84 $40 79%Top 20%* 13 4.1 31 2.4 6.4 $17.9 17.5 71% $93 $630 $128 $49 102%

TABLE C4

Prime Lamb Production 2016–17 Gippsland

Farm No. Stocking RateLamb Lamb

Lamb ProducedAv Lamb Av Lamb Av Lamb Adult Gr. Greasy Average

Produced Produced Weight Price Price Wool Cut Wool Cut Wool Micron



553 15.0 260 117 22 25 $5.1 $127 5.1 30 27555 14.3 119 54 10 18 $6.3 $113 5.0 37 20574 12.0 290 130 24 23 $5.7 $129 4.4 11 27638 22.5 410 185 20 19 $6.1 $116 4.5 41 28639 26.2 524 236 25 20 $6.3 $126 6.6 50 30694 6.7 143 64 11 26 $6.7 $170 4.2 13 29806 24.4 326 147 16 18 $6.9 $123 4.8 41 34

Average 17.3 296 133 18 21 $6.1 $129 4.9 32 28Top 20%* 19.1 407 183 25 21 $6.0 $128 5.5 31 29

Farm NoEwe Net Greasy Wool

Gross Margin Gross Margin Gross MarginLamb Ewe %

Breed Price Marking % of dse


553 Xbred $4.7 $422 $79 $28 89% 90%555 Merino $10.1 $422 $80 $29 63% 78%574 Xbred $6.6 $664 $122 $55 118% 65%638 Xbred $4.5 $944 $100 $42 126% 77%639 Xbred $3.2 $1,054 $113 $40 148% 93%694 Xbred $5.3 $389 $68 $58 120% 45%806 Xbred $2.3 $664 $71 $27 111% 69%

Average $5.2 $651 $90 $40 111% 74%Top 20%* $4.9 $859 $117 $48 133% 79%




TABLE C5

Beef Cattle Production 2016–17 Gippsland

Farm No. Stocking Rate Beef Produced Beef Produced Beef Sold Average Sale Price Average Wt Sales Average Sale Price

DSE/HA KG LWT/HA KG LWT/HA/100MM KG LWT/HA $/HD KG LWT $/KG LWT

694 6.7 163 28 167 $1,789 557 $3.21698 27.8 1174 189 761 $1,188 401 $2.96701 20.7 499 77 618 $1,161 412 $2.83720 13.9 295 43 248 $1,309 439 $2.98755 18.1 153 17 166 $1,122 367 $3.12804 28.2 462 55 465 $1,986 530 $3.75553 15 224 42 372 $1,256 461 $2.74667 19.4 433 43 1122 $1,908 619 $3.08805 9.8 256 44 280 $1,132 386 $2.93541 13.9 186 41 279 $1,157 373 $3.12638 22.5 487 52 398 $1,361 375 $3.63639 26.2 674 72 728 $1,478 506 $2.92663 18.1 373 39 500 $1,284 426 $3.01698 27.8 803 130 769 $1,185 410 $2.90700 6 104 15 102 $849 324 $2.62720 13.9 288 42 220 $990 319 $3.10726 28.3 547 71 588 $1,256 478 $2.63742 8.5 190 32 182 $868 354 $2.45755 18.1 181 21 145 $1,196 364 $3.28806 24.4 389 42 571 $1,218 336 $3.63810 20 356 44 366 $1,293 379 $3.41

Average 18.4 392 54 431 $1,285 420 $3.06Top 20%* 24.7 741 112 637 $1,224 400 $3.08

Farm No Gross Margin Gross Margin Gross MarginTime of

Calving % Cow %Beef

Calving Enterprise


694 $523 $91 $78 Apr 94% 42% Autumn698 $2,838 $458 $102 May 71% 27% Autumn701 $896 $139 $43 Mar 93% 100% Autumn720 $707 $102 $51 Mar 98% 66% Autumn755 $311 $35 $17 Apr 98% 64% Autumn804 $728 $87 $26 Feb 89% 100% Autumn553 $258 $48 $17 Oct 76% 20% Other667 $867 $85 $45 Oct 100% Other805 $658 $113 $67 Oct 96% 33% Other541 $448 $99 $32 Aug 91% 21% Spring638 $1,464 $155 $65 Sep 94% 47% Spring639 $1,169 $125 $45 Sep 94% 57% Spring663 $852 $88 $47 Sep 77% 100% Spring698 $1,798 $290 $65 Aug 94% 73% Spring700 $182 $26 $30 Sep 92% 84% Spring720 $692 $100 $50 Aug 99% 34% Spring726 $462 $60 $16 Aug 92% 100% Spring742 $398 $67 $47 Aug 74% 100% Spring755 $16 $2 $1 Oct 95% 36% Spring806 $844 $91 $35 Sep 81% 77% Spring810 $1,024 $128 $51 Sep 91% 100% Spring

Average $816 $114 $44 89% 66%Top 20%* $1,749 $261 $69 88% 62%




TABLE C6

Wool Sheep Variable Costs 2016–17 Gippsland

Farm No.Animal Contract Supp Feed &

PastureCasual Freight/ Shearing


Health Services Agistmt Labour Cartage Supplies Costs


541 $4.3 $8.5 $4.2 $5.2 $0.5 $0.4 $0.3 $0.7 $3.3 $27553 $2.7 $5.0 $3.2 $3.4 $0.0 $0.5 $0.2 $0.3 $2.2 $17555 $3.5 $7.6 $1.6 $5.1 $0.1 $0.9 $0.3 $1.1 $2.3 $22574 $0.9 $2.2 $6.6 $4.1 $0.0 $0.6 $0.2 $0.6 $2.0 $17653 $1.6 $5.3 $0.4 $2.1 $0.2 $0.3 $0.6 $1.3 $3.3 $15694 $4.4 $7.5 $0.1 $1.6 $0.0 $0.4 $0.3 $0.0 $2.9 $17700 $4.6 $9.8 $0.1 $2.0 $0.0 $1.1 $0.3 $0.0 $5.7 $24805 $4.0 $2.2 $3.6 $8.4 $0.1 $0.3 $0.3 $4.6 $4.6 $28

Average $3.3 $6.0 $2.5 $4.0 $0.1 $0.6 $0.3 $1.1 $3.3 $21Top 20%* $2.6 $5.3 $5.4 $4.6 $0.2 $0.5 $0.2 $0.7 $2.7 $22

Farm No.Animal Contract Supp Feed &



Health Services Agistmt Labour Cartage Supplies Costs


541 $60 $118 $59 $72 $6 $6 $3 $10 $46 $380553 $40 $75 $47 $50 $0 $7 $3 $5 $32 $259555 $51 $109 $23 $73 $1 $12 $4 $16 $33 $322574 $11 $26 $80 $49 $0 $8 $2 $7 $25 $208653 $19 $62 $5 $24 $3 $4 $6 $15 $39 $176694 $30 $50 $1 $11 $0 $2 $2 $0 $20 $115700 $28 $58 $1 $12 $0 $6 $2 $0 $34 $141805 $40 $21 $35 $83 $1 $3 $3 $45 $45 $276

Average $35 $65 $31 $47 $1 $6 $3 $12 $34 $235Top 20%* $36 $72 $69 $61 $3 $7 $3 $9 $35 $294


TABLE C7

Prime Lamb Variable Costs 2016–17 Gippsland

Farm No.Animal Contract Supp Feed


OtherSelling Total Var.

Health Services & Agistmt Labour Cartage Supplies Costs Costs


553 $2.2 $4.5 $7.0 $3.4 $0.0 $1.7 $0.2 $0.4 $5.0 $24555 $2.7 $6.7 $2.1 $5.1 $0.0 $1.9 $0.2 $1.0 $4.9 $25574 $1.1 $2.5 $3.5 $4.1 $0.0 $2.9 $0.2 $0.5 $3.5 $18638 $1.2 $5.0 $0.0 $7.8 $0.1 $0.6 $0.0 $1.4 $2.4 $18639 $4.8 $5.7 $0.0 $6.6 $0.0 $1.2 $0.0 $0.4 $3.6 $22694 $2.3 $3.7 $0.0 $1.6 $0.0 $2.8 $0.0 $0.0 $3.9 $14

806 $0.8 $3.2 $3.1 $3.0 $1.1 $2.4 $0.2 $0.1 $3.5 $17Average $2.2 $4.5 $2.2 $4.5 $0.2 $1.9 $0.1 $0.5 $3.8 $20

Top 20%* $2.9 $4.1 $1.7 $5.3 $0.0 $2.1 $0.1 $0.4 $3.6 $20

Farm No.Animal Contract Supp Feed


OtherSelling Total Var.

Health Services & Agistmt Labour Cartage Supplies Costs Costs


553 $33 $68 $105 $50 $0 $25 $2 $5 $75 $363555 $39 $96 $30 $73 $0 $28 $3 $14 $70 $353574 $13 $30 $41 $49 $0 $35 $2 $6 $42 $218638 $27 $111 $0 $175 $1 $13 $0 $30 $55 $413639 $127 $150 $0 $173 $0 $32 $0 $10 $95 $587694 $15 $25 $0 $11 $0 $19 $0 $0 $26 $96806 $19 $79 $75 $74 $28 $58 $5 $1 $86 $424

Average $39 $80 $36 $86 $4 $30 $2 $10 $64 $351Top 20%* $70 $90 $21 $111 $0 $33 $1 $8 $68 $403




TABLE C8

Beef Cattle Variable Costs 2016-17 Gippsland

Farm No. EnterpriseAnimal Contract Supp Feed &

PastureCasual Freight/


Health Services Agistmt Labour Cartage Costs


694 Autumn $0.9 $0.0 $0.0 $1.6 $0.0 $1.0 $0.0 $4.9 $8698 Autumn $2.1 $0.0 $14.6 $2.6 $0.0 $0.0 $0.1 $6.7 $26701 Autumn $2.8 $0.0 $6.9 $8.8 $0.0 $1.4 $0.6 $6.5 $27720 Autumn $2.4 $0.9 $0.7 $5.5 $0.3 $0.8 $0.8 $4.0 $16755 Autumn $0.5 $0.0 $21.9 $7.4 $0.0 $1.1 $2.9 $4.4 $38804 Autumn $3.7 $0.0 $16.3 $12.5 $1.7 $0.3 $2.1 $3.4 $40553 Other $1.6 $0.0 $6.4 $3.4 $0.0 $1.7 $0.0 $4.8 $18667 Other $1.8 $0.0 $0.0 $6.3 $0.0 $4.9 $1.2 $0.6 $15805 Other $2.0 $0.0 $6.0 $8.4 $0.0 $0.6 $4.3 $6.5 $28541 Spring $1.2 $0.7 $3.9 $5.2 $0.0 $1.3 $0.5 $4.8 $18638 Spring $0.7 $1.7 $0.0 $7.8 $0.0 $0.7 $0.6 $3.9 $15639 Spring $3.7 $0.0 $18.6 $6.6 $0.0 $0.9 $0.0 $4.5 $34663 Spring $1.8 $0.0 $2.0 $7.2 $0.5 $2.3 $0.6 $5.6 $20698 Spring $1.6 $0.0 $14.1 $2.6 $0.0 $0.0 $0.1 $6.6 $25700 Spring $0.7 $0.0 $8.5 $2.0 $0.0 $0.1 $0.0 $0.5 $12720 Spring $1.9 $1.2 $1.3 $5.5 $0.0 $0.4 $1.3 $1.4 $13726 Spring $1.4 $0.0 $22.4 $6.1 $0.0 $1.8 $0.0 $2.9 $35742 Spring $0.6 $0.0 $1.6 $2.7 $0.5 $2.5 $0.5 $4.3 $13755 Spring $0.6 $0.0 $43.2 $7.4 $0.0 $0.5 $1.9 $3.7 $57806 Spring $0.8 $0.0 $10.6 $3.0 $0.0 $1.8 $0.0 $4.7 $21810 Spring $0.6 $0.0 $1.1 $6.3 $0.0 $0.5 $0.1 $4.4 $13

Average $1.6 $0.2 $9.5 $5.7 $0.1 $1.2 $0.8 $4.2 $23Top 20%* $1.8 $0.4 $8.9 $5.4 $0.0 $0.5 $0.3 $5.9 $23


Pasture Casual LabourFreight/


Services Agistmt Cartage Costs


694 $6 $0 $0 $11 $0 $7 $0 $33 $57698 $58 $0 $405 $72 $0 $0 $2 $185 $722701 $58 $0 $143 $183 $0 $28 $12 $135 $558720 $34 $13 $9 $77 $4 $12 $12 $56 $216755 $10 $0 $398 $134 $0 $20 $52 $79 $693804 $103 $0 $458 $353 $47 $7 $58 $96 $1,123553 $23 $0 $95 $50 $0 $25 $0 $72 $265667 $34 $0 $0 $123 $0 $96 $24 $11 $288805 $20 $0 $58 $83 $0 $6 $42 $64 $273541 $16 $9 $55 $72 $0 $18 $7 $67 $245638 $16 $39 $0 $175 $1 $15 $14 $87 $346639 $96 $0 $489 $173 $0 $24 $0 $117 $898663 $33 $0 $35 $130 $9 $42 $11 $101 $362698 $44 $0 $391 $72 $0 $0 $2 $184 $692700 $4 $0 $51 $12 $0 $0 $0 $3 $70720 $26 $17 $17 $77 $0 $5 $18 $19 $179726 $39 $0 $634 $171 $0 $51 $1 $83 $979742 $5 $0 $14 $23 $4 $21 $4 $37 $108755 $10 $0 $784 $134 $0 $9 $34 $68 $1,039806 $19 $0 $258 $74 $0 $44 $0 $115 $510810 $12 $0 $22 $126 $0 $10 $3 $88 $259

Average $32 $4 $206 $111 $3 $21 $14 $81 $471Top 20%* $44 $10 $235 $125 $0 $11 $7 $148 $580




TABLE C9

Pasture Costs Per Grazed Hectare 2016–17 Gippsland

Farm No. Seed Chemicals Contract ServicesFert & Soil

Other Total Pasture CostConditioners

$/GRAZED HA $/GRAZED HA $/GRAZED HA $/GRAZED HA $/GRAZED HA $/GRAZED HA

541 $5 $8 $0 $59 $1 $72553 $0 $3 $0 $54 $0 $57555 $0 $12 $0 $40 $0 $73574 $8 $5 $0 $23 $1 $45638 $0 $1 $0 $174 $0 $175639 $0 $10 $0 $116 $47 $173653 $0 $2 $0 $22 $0 $24663 $0 $0 $0 $136 $0 $136667 $0 $0 $0 $123 $0 $123694 $0 $4 $0 $5 $0 $10698 $0 $1 $0 $87 $0 $89700 $0 $3 $0 $9 $0 $12701 $0 $25 $0 $254 $0 $279720 $0 $0 $11 $65 $0 $77726 $44 $33 $0 $134 $0 $211742 $0 $4 $16 $2 $0 $23755 $24 $0 $0 $110 $0 $134804 $108 $64 $0 $520 $113 $805805 $0 $23 $10 $42 $10 $85806 $0 $2 $0 $77 $0 $79810 $0 $0 $0 $141 $0 $141

Average $9 $10 $2 $104 $8 $134Top 20%# $3 $4 $0 $61 $0 $69Top 20%* $11 $15 $0 $175 $0 $201

TABLE C10

Overhead Costs Per Hectare 2016–17 Gippsland

Fuel & Insurance R&M - PlantR&M - Land

Admin Rates & Sundries TotalFarm No Paid Labour & Improv. DepreciationVehicle & Equip. Rents Overheads


541 $47 $1 $5 $15 $24 $12 $11 $1 $11 $126553 $11 $19 $11 $16 $33 $18 $30 $0 $44 $181555 $57 $7 $9 $8 $11 $21 $23 $0 $9 $145574 $2 $8 $18 $24 $13 $29 $18 $0 $43 $155638 $140 $3 $25 $8 $74 $28 $51 $0 $10 $338639 $159 $0 $44 $79 $33 $36 $56 $0 $133 $540653 $7 $6 $12 $12 $45 $17 $31 $0 $1 $132663 $108 $12 $12 $27 $26 $84 $48 $8 $68 $393667 $133 $13 $11 $11 $14 $56 $45 $0 $33 $317694 $37 $7 $1 $10 $0 $3 $6 $0 $18 $80698 $10 $67 $31 $8 $124 $162 $70 $5 $81 $558700 $60 $9 $1 $13 $0 $3 $8 $0 $11 $105701 $0 $47 $34 $31 $5 $38 $128 $79 $135 $498720 $0 $23 $24 $14 $37 $34 $36 $12 $14 $194726 $24 $34 $21 $9 $34 $22 $32 $2 $38 $216742 $0 $31 $15 $60 $42 $18 $21 $2 $5 $193755 $180 $10 $16 $83 $71 $19 $33 $0 $46 $458804 $0 $17 $64 $71 $99 $70 $69 $0 $170 $560805 $21 $0 $13 $36 $16 $14 $14 $10 $77 $201806 $60 $18 $8 $11 $51 $30 $13 $0 $30 $219810 $0 $50 $37 $36 $28 $42 $39 $1 $92 $326

Average $50 $18 $20 $28 $37 $36 $37 $6 $51 $283Top 20%# $29 $17 $14 $19 $23 $23 $17 $0 $39 $181Top 20%* $41 $34 $29 $21 $35 $33 $63 $21 $69 $344

# Gippsland Top 20% ranked by RoA.* Gippsland Top 20% ranked by EBIT/ha



TABLE C11

Wool Sheep Profitability Per Kilogram of Clean Wool Produced 2016–17 Gippsland

Net WoolSheep

Variable CoOverhead

O/O Interest & **Cost ofEarnings Net Farm Earnings Net Farm

Farm No Trading Costs Before Int/ Income Before Int/ IncomeIncome sts Allowance Lease ProductionProfit Tax - EBIT Tax - EBIT


541 $18.8 $8.2 $9.8 $3.2 $0.4 $2.3 $13.5 $13.5 $11.2 $523 $433553 $17.5 $4.0 $7.9 $4.3 $1.7 $2.3 $13.8 $7.7 $5.4 $253 $178555 $15.7 $3.0 $7.3 $3.3 $1.4 $0.8 $12.0 $6.7 $5.8 $294 $258574 $18.6 $15.5 $8.9 $5.0 $2.1 $9.9 $16.1 $18.0 $8.1 $419 $189653 $14.9 $9.3 $7.0 $5.5 $4.4 $0.5 $16.9 $7.3 $6.8 $183 $170694 $14.0 -$1.9 $5.0 $3.8 $0.4 $2.1 $9.2 $2.9 $0.8 $66 $18700 $14.0 -$1.2 $4.3 $2.9 $0.0 $1.4 $7.2 $5.6 $4.2 $183 $136805 $19.6 $5.9 $9.8 $7.9 $3.0 $1.0 $20.7 $4.9 $3.9 $138 $110

Average $16.6 $5.3 $7.5 $4.5 $1.7 $2.5 $13.7 $8.3 $5.8 $257 $187

TABLE C12

Prime Lamb Profitability Per Kilogram Carcass Weight Produced 2016-17

Net WoolNon-Lamb

Variable Overhead O/O Interest & **Cost ofLamb Earnings

Net FarmEarnings Net Farm

Farm No Sheep Price Before Int/ Before Int/ IncomeIncome Costs Costs Allowance Lease Production IncomeTrading Received Tax - EBIT Tax - EBIT


553 $1.2 -$0.3 $2.5 $1.2 $0.5 $0.6 $4.2 $5.2 $1.9 $1.3 $227 $151555 $6.9 -$1.7 $5.1 $2.7 $1.2 $0.7 $8.9 $7.7 $4.0 $3.4 $267 $222574 $0.6 $2.0 $1.3 $0.9 $0.4 $1.8 $2.6 $3.9 $3.8 $2.0 $335 $179638 $1.0 $0.3 $1.8 $2.2 $0.5 $0.0 $4.4 $5.6 $2.5 $2.5 $426 $426639 $0.7 $0.7 $2.1 $2.6 $0.8 $0.0 $5.5 $5.2 $1.1 $1.1 $214 $214694 $1.1 -$2.1 $1.1 $1.4 $0.2 $0.8 $2.6 $8.2 $4.5 $3.8 $358 $298806 $0.6 -$0.2 $2.3 $2.0 $2.0 $1.2 $6.3 $6.4 $0.5 -$0.7 $71 -$96

Average $1.7 -$0.2 $2.3 $1.8 $0.8 $0.7 $4.9 $6.0 $2.6 $1.9 $271 $199




TABLE C13

Beef Cattle Profitability Per Kilogram Liveweight Produced 2016–17 Gippsland

Farm No. Trading Profit Variable Costs Overhead Costs O/O Allowance Interest & Lease **Cost of Production

$/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT $/KG LWT

694 $0.2 $0.2 $0.3 $0.1 $0.3 $0.5698 -$0.1 $0.5 $0.5 $1.0 $0.0 $2.0701 -$0.2 $0.9 $1.0 $0.8 $0.0 $2.6720 -$0.1 $0.5 $0.7 $0.4 $0.1 $1.6755 -$0.0 $2.2 $2.7 $1.0 $0.3 $5.9804 $0.1 $2.2 $1.2 $0.6 $0.2 $4.0553 -$1.5 $0.5 $0.4 $0.3 $0.2 $1.2667 -$2.1 $0.3 $0.3 $0.1 $0.0 $0.7805 -$0.1 $0.7 $0.6 $0.2 $0.1 $1.5541 $0.2 $1.0 $0.7 $0.3 $0.5 $2.0638 -$0.1 $0.5 $0.6 $0.1 $0.0 $1.2639 -$0.0 $1.2 $0.7 $0.2 $0.0 $2.1663 -$0.0 $0.7 $1.0 $0.9 $0.0 $2.7698 -$0.0 $0.6 $0.7 $1.5 $0.0 $2.8700 -$0.2 $0.7 $0.9 $0.0 $0.5 $1.6720 -$0.2 $0.6 $0.7 $0.4 $0.1 $1.6726 -$0.1 $1.6 $0.4 $0.2 $0.0 $2.3742 $0.0 $0.4 $1.0 $0.6 $0.0 $2.0755 -$0.4 $2.9 $2.3 $0.9 $0.2 $6.1806 -$0.4 $1.0 $0.5 $0.2 $0.5 $1.7810 -$0.1 $0.5 $0.9 $0.4 $0.0 $1.7

Average -$0.3 $0.9 $0.9 $0.5 $0.1 $2.3

Farm No.Beef Price

Earnings before Int/Tax Net Farm Income Earnings before Int/Tax Net Farm Income Beef EnterpriseReceived

$/KG LWT $/KG LWT $/KG LWT $/HA $/HA

694 $3.2 $2.9 $2.6 $469 $421 Autumn698 $3.0 $0.9 $0.9 $1,019 $1,019 Autumn701 $2.8 $0.0 $0.0 $7 $7 Autumn720 $3.0 $1.3 $1.2 $387 $367 Autumn755 $3.1 -$2.8 -$3.1 -$428 -$472 Autumn804 $3.8 -$0.2 -$0.4 -$111 -$181 Autumn553 $2.7 -$0.0 -$0.2 -$2 -$47 Other667 $3.1 $0.4 $0.4 $159 $159 Other805 $2.9 $1.3 $1.2 $336 $311 Other541 $3.1 $1.4 $0.9 $251 $160 Spring638 $3.6 $2.3 $2.3 $1,133 $1,133 Spring639 $2.9 $0.8 $0.8 $531 $531 Spring663 $3.0 $0.3 $0.3 $111 $107 Spring698 $2.9 $0.0 $0.0 $30 $30 Spring700 $2.6 $0.8 $0.4 $88 $40 Spring720 $3.1 $1.3 $1.2 $363 $343 Spring726 $2.6 $0.2 $0.2 $125 $120 Spring742 $2.5 $0.5 $0.4 $85 $84 Spring755 $3.3 -$3.2 -$3.5 -$580 -$624 Spring806 $3.6 $1.5 $1.0 $577 $398 Spring810 $3.4 $1.6 $1.6 $584 $579 Spring

Average $3.1 $0.5 $0.4 $244 $214




TABLE C14

Capital Structure 2016–17 Gippsland


FARM AREAS

Freehold Area 929 1,600 480



Effective Area 939 1,833 383

LAND VALUES




Leased Land Value per Hectare $7,014 $6,155 $6,879



Livestock $1,570 $1,330 $2,151



Total Assets $13,082 $8,298 $19,304

LIABILITIES

Liabilities per Hectare $673 $998 $124

EQUITY



RATIOS

Debt Ratio 5% 12% 0.7

Plant & Equipment Ratio 5.1 4 6.1

TABLE C15

Farm Labour Efficiency and Enterprise Mix 2016–17 Gippsland


SHEEP ENTERPRISES

Average Sheep Number 3,344 7,095 855


Sheep Labour Efficiency (DSE/person) 4,025 7,290 1,250

BEEF ENTERPRISES



Cattle Labour Efficiency (DSE/person) 6,865 9,208 9,506



DSE per person 5,838 7714 7,948

ENTERPRISE MIX

Wool Sheep (%) 23% 30% 0%

Prime Lambs (%) 10% 18% 13%

Beef (%) 64% 47% 84%




TABLE C16

Supplementary Feed Data 2016–17 Gippsland

Yield Amount Fed to Sheep Amount Fed to Cattle Gross Margins Area Cut(wet tonnes per ha) (average wet kgs per DSE) (average wet kgs per DSE) ($ per ha) (ha)

Farm No Pasture Hay Silage Pasture Hay Silage Grain Pasture Hay Silage Grain Pasture Hay Silage Pasture Hay Silage

541553 4.8 7.5 10.4 7.4 13.0 17.9 0.0 $739 $1,419 65 44555 8.7574 3.0 11.5 14.2 -$56 20638639653663 7.5 7.5 2.1 1.7 $1,261 $853 4 4667694 11.6 29.3 $2,506 33698 5.9 38.5 $327 17700 0.3701 4.2 4.8 29.7 8.2 $429 $445 28 11.75720 5.1726 11.6 6.3 91.2 $2,378 125742 9.7755 51.2 37.6804 3.9 4.1 29.2 37.9 $255 $573 19 19805 8.0 7.0 19.2 1 35.4 $1,331 $1,635 50 5806 5.9 8.2 6.7 9.3 $672 $1,568 33 26810 6.2 5.1 $878 24

Average 5.5 7.8 15.3 10.4 7.8 19.3 29.1 0.15 $648 $1,422 29 33

TABLE C17

Average Whole Farm Economic Performance - Gippsland

Year Gross Income Variable Costs Overhead Costs Net IncomeEBIT Return on Return on

(Operating Profit) Assets Equity

NOMINAL REAL NOMINAL REAL NOMINAL REAL NOMINAL REAL NOMINAL REAL($/HA) ($/HA) ($/HA) ($/HA) ($/HA) ($/HA) ($/HA) ($/HA) ($/HA) ($/HA)

2004-05 $344 $461 $114 $153 $74 $99 $156 $209 $92 $123 3.0% 4.0%2005-06 $282 $364 $144 $186 $78 $101 $60 $77 -$22 -$28 -0.4% -1.6%2006-07 $293 $370 $140 $177 $85 $107 $67 $85 -$27 -$34 -0.7% -2.2%2007-08 $604 $730 $251 $303 $105 $127 $248 $300 $148 $179 2.1% 1.0%2008-09 $392 $467 $240 $286 $116 $138 $36 $43 -$52 -$62 -1.6% -5.0%2009-10 $456 $527 $187 $216 $117 $135 $152 $176 $59 $68 0.4% -0.5%2010-11 $697 $777 $202 $225 $164 $183 $330 $368 $178 $198 2.6% 2.1%2011-12 $690 $760 $226 $249 $196 $216 $268 $296 $90 $99 1.9% 0.7%2012-13 $536 $577 $236 $254 $207 $223 $93 $100 -$68 -$73 0.3% -0.8%2013-14 $695 $726 $259 $271 $415 $434 $21 $22 $86 $90 1.2% -0.1%2014-15 $776 $799 $259 $267 $204 $210 $313 $322 $168 $173 2.0% 1.5%2015-16 $795 $810 $325 $331 $200 $204 $270 $275 $152 $155 2.2% 3.2%2016-17 $1,192 $1,192 $371 $371 $283 $283 $320 $320 $362 $362 3.6% 4.5%

Long term Average $658 $253 $189 $199 $96 1.3% 0.5%2016-17 vs LT Avg +$533 +$118 +$94 +$121 +$266 +2.3% +4.0%

Note: ‘Real’ dollar values are the nominal values converted to 2016-17 dollar equivalents by the C.P.I. to allow for inflation. The data in the above table from 2004-05 to 2008-09 has been obtained from the Sheep Farm Monitor Project. Data from 2009 -10 onwards has been obtained from the Livestock Farm Monitor Project.Early figures for prime lamb and beef cattle enterprises were not reported in the old Sheep Farm Monitor Projects and are therefore not shown in the above table.



TABLE C18

Historical Gross Margins For Livestock Enterprises – Gippsland

Years Wool Sheep Prime Lambs Beef Cattle


2004-05 $15 $20 $162 $2172005-06 $8 $10 $91 $1172006-07 $9 $12 $99 $1252007-08 $18 $22 $243 $294 $17 $20 $277 $3352008-09 $4 $4 $48 $57 $15 $18 $221 $2632009-10 $15 $17 $145 $167 $25 $29 $353 $408 $18 $20 $249 $2882010-11 $34 $38 $327 $365 $41 $46 $710 $792 $24 $27 $418 $4662011-12 $29 $32 $324 $357 $35 $39 $627 $691 $19 $21 $344 $3802012-13 $23 $25 $259 $279 $20 $22 $435 $468 $13 $14 $220 $2372013-14 $22 $23 $292 $305 $25 $26 $519 $542 $20 $21 $354 $3702014-15 $20 $20 $246 $253 $34 $35 $710 $731 $25 $26 $480 $4942015-16 $37 $37 $449 $458 $33 $34 $475 $484 $30 $31 $472 $4812016-17 $40 $40 $450 $450 $40 $40 $651 $651 $44 $44 $816 $816

Long Term$23 $265 $31 $536 $25 $441Avg

2016-17+$17 +$185 +$9 +$115 +$19 +$375vs LT Avg




TABLE C19

Historical Data For Selected Average Profitability Indicators - Gippsland

YearsStocking

Wool SheepRate

Micron Wool Net Wool Price Ave Sale Price Lamb

DSE/HA KG/HANOMINAL REAL NOMINAL REAL

%($/KG) GR. ($/KG) GR. ($/HD) ($/HD)

2004-05 11.4 19.0 36 $5.3 $7.2 $41 $55 74%2005-06 11.7 18.8 37 $5.4 $6.9 $31 $40 73%2006-07 11.2 18.4 36 $6.5 $8.2 $23 $29 74%2007-08 15.3 18.8 43 $6.9 $8.3 $42 $51 79%2008-09 13.0 18.5 34 $5.6 $6.7 $37 $44 70%2009-10 13.0 18.2 31 $6.3 $7.3 $62 $72 62%2010-11 15.4 18.6 34 $8.8 $9.8 $92 $103 66%2011-12 17.2 18.4 37 $7.9 $8.7 $72 $79 84%2012-13 17.0 18.7 44 $7.8 $8.4 $54 $58 81%2013-14 18.0 18.6 43 $7.9 $8.2 $48 $50 80%2014-15 18.2 18.2 48 $7.7 $7.9 $58 $60 77%2015-16 15.7 17.7 51 $9.1 $9.3 $72 $73 81%2016-17 17.4 18.0 43 $11.4 $11.4 $92 $92 79%

Long Term Avg 15.0 40 $8.3 $62 74%2016-17 vs LT Avg +2.4 +3 +$3.1 +$30 -15%

Years Prime Lambs Beef Cattle

Wool Cut (Gr.) Net Wool Price Ave Sale Price Lamb Calving Av Sale Price


% %NOMINAL REAL


2004-052005-062006-072007-08 32 $3.8 $4.6 $72 $87 103%2008-09 25 $3.4 $4.1 $79 $94 99%2009-10 31 $3.6 $4.2 $99 $115 103% 89% $652 $7532010-11 35 $4.3 $4.8 $132 $148 103% 88% $780 $8702011-12 36 $4.6 $5.1 $108 $119 111% 90% $783 $8632012-13 43 $4.7 $5.1 $79 $85 109% 90% $682 $7332013-14 38 $5.1 $5.3 $103 $108 100% 91% $677 $7072014-15 41 $5.7 $5.9 $105 $108 106% 89% $854 $8792015-16 38 $6.8 $7.0 $96 $98 102% 91% $1,053 $1,0732016-17 32 $5.2 $5.2 $129 $129 111% 89% $1,285 $1,285

Long Term Avg 35 $5.1 $109 105% 90% $8952016-17 vs LT Avg -3 +$0.1 +$20 +6% -0% +$390

Note: ‘Real’ dollar values are the nominal values converted to 2016-17 dollar equivalents by the C.P.I. to allow for inflation. The data in the above table from 2004-05 to 2008-09 has been obtained from the Sheep Farm Monitor Project. Data from 2009 -10 onwards has been obtained from the Livestock Farm Monitor Project.Early figures for prime lamb and beef cattle enterprises were not reported in the old Sheep Farm Monitor Projects and are therefore not shown in the above table.


Glossary

Cost structureVariable costs plus overhead costs as a percentage of gross income.

Debt ratioInterest and lease costs as a percentage of gross farm income.

Earnings before interest and tax (EBIT)Previously reported as operating profit.

EBIT is calculated by subtracting variable costs, overhead costs and owner/operator allowance from gross farm income. EBIT is the return from all the capital used in the business.

Effective hectaresAll figures expressed per hectare are per effective hectare unless otherwise stated.

Total hectares minus the area of land which is of little or no value for livestock or crop production (e.g. house and shed area).

EquityTotal assets minus total liabilities.

Grazed hectaresEffective hectares minus two thirds of the cropped area-assumes that a third of the cropped area is grazed at some time during the year.

Gross farm incomeIncome from each enterprise, wool, lamb and beef, etc., and is calculated by multiplying price received per unit by the number of units. Non-cash income such as changes in inventory of livestock or stocks of other inputs/ output such as feed produced and conserved are also included.

Gross marginGross income minus variable costs for a specific enterprise.

Net IncomeGross farm income minus variable and overhead costs, not including owner/operator labour.

Net farm incomeEBIT minus interest and lease charges. The amount of profit available for capital investment, loan principal repayments and tax.

Owner/operator allowanceAllowance for the owner/operator’s own labour. Set at $67,300 per year (pro rata for actual time worked) for

2016-17. In addition an allowance of $44,850 per year (pro rata for actual time worked) is provided for other unpaid family labour.

Overhead costsAll fixed costs that cannot be easily allocated to a specific enterprise (e.g. fuel, permanent labour, rates, administration, depreciation, etc) but excluding interest, leases, capital expenditure, principal repayments and tax.

Return on assets (RoA)EBIT divided by the value of total assets. RoA gives an indication of how efficiently a business generates profit from its assets.

Return on equity (RoE)Net farm income divided by the equity value. RoE gives an indication of profitability by measuring the return on the farmers’ equity. If RoE is lower than RoA, the cost of the capital invested is greater than the profit generated on the additional assets.

Variable costsVariable costs are costs that are specific to an enterprise, such as animal health and supplementary feed costs, and vary directly in relation to the size of the enterprise. Subtracting specific variable costs, i.e. wool variable costs, from specific enterprise income, i.e. wool income, gives a wool gross margin.


List of abbreviations

ABS Australian Bureau of Statistics

AWEX Australian Wool Exchange

BoM Bureau of Meteorology

cwt Carcass weight

DEDJTR Department of Economic Development,Jobs, Transport and Resources, Victoria

DSE Dry Sheep Equivalent

LFMP Livestock Farm Monitor Project

EBIT Earnings before interest and tax

ha Hectare(s)

kg Kilograms

lwt Live weight

M Million

MLA Meat and Livestock Australia

mm Millimetres. 1 mm is equivalent to 4 points or 1/25th of an inch of rainfall

RoA Return on assets

RoE Return on equity

t Tonne = 1,000 kg

y/y Year-on-year

Standard values

Standard values are used to calculate changes in value of stock on hand. The main standard values used in 2016- 17 are shown below.

WOOL SHEEP ($/HEAD) 2015-16 2016-17

Ewes $86 $88

Weaners $84 $86

Wethers $95 $97

Rams $100 $103

PRIME LAMBS ($/HEAD) 2015-16 2016-17

Ewes $177 $182

Weaners $130 $134

Wethers $130 $134

Rams $278 $284

CATTLE ($/HEAD) 2015-16 2016-17

Cows $1,300 $1,330

Heifers $1,200 $1,225

Weaners $520 $535

Steers 1-2yrs $1,240 $1,270

Steers 2+ yrs $1,700 $1,745

Bulls $2,650 $2,715

CROPS ($/TONNE WET) 2015-16 2016-17

Pasture Hay $177 $168

Silage $51 $41

Wheat $280 $240

Oats $246 $177

Barley $255 $194

Canola $531 $520



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