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2018-19Victoria | Annual Report

1 Livestock Farm Monitor Project | Victoria 2017-18

Acknowledgements

Authorised and published by the Victorian Government, Department of Jobs, Precincts and Regions 2019.

© The State of Victoria Department of Jobs, Precincts and Regions 2019.

This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.

For more information contact the DJPR Customer Service Centre 136 186

ISSN 2205-8214 (print)

ISSN 2205-8214 (online)

Disclaimer

This publication may be of assistance to you, but the State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication.

Accessibility

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This document is also available in PDF format on the internet at: agriculture.vic.gov.au/livestockfarmmonitor

Participant farmers are gratefully acknowledged for their cooperation, patience and goodwill to willingly supply their farm data, for either the first time or over many years. This report has been funded by Agriculture Victoria.

The diligent work of Agriculture Victoria staff who gathered the final performance data deserve thanks, especially Claire Waterman, Olive Montecillo, Tristan Wardley, Natalie Nelson and Meat and Wool Services Staff, who continued to be actively involved in the report through to its publication.

The project was also made possible this year through the contributions of Lee Beattie, Graham Lean, Norm Tozer and Paul Blackshaw who collected farm data, in addition to data collected by Agriculture Victoria staff, and provided feedback and validation to ensure its accuracy.

Cover photos were provided by Tom Broadhurst at Long Walk Films.

Further information regarding the Livestock Farm Monitor Project may be obtained from:

Sam Henty Agriculture Victoria PO Box 3100, Bendigo DC, Victoria 3400 [email protected]

To find out the latest information on the project, visit the project website at: agriculture.vic.gov.au/livestockfarmmonitor

Livestock Farm Monitor Project | Victoria 2018 -19 2

Contents

List of Figures

List of Tables

About the Report

State summary Commodity Price Overview

South West

Northern Victoria

Gippsland

Appendices South West Victoria appendix tables

Northern Victoria appendix tables

Gippsland appendix tables

Glossary

List of abbreviations

Standard values

3

3

4

510

13

16

19

2223

37

49

59

60

60

3 Livestock Farm Monitor Project | Victoria 2018 -19

Figure 1 Profit Map

Figure 2 Livestock Farm Monitor Project Farm Locations And 2018-19 Annual Rainfall Deciles

Figure 3 2018-19 Modelled Total Cumulative Pasture Growth (Per Cent Of Average)

Figure 4 Regional Enterprise Mix

Figure 5 Regional Quarterly Sales Of Prime Lambs

Figure 6 Regional Quarterly Sales Of Fine Wool

Figure 7 Regional Quarterly Sales Of 1-2-Year-Old Steers

Figure 8 State Distribution Of Farm Size

Figure 9 Average Earnings Before Interest And Tax ($/Ha)

Figure 10 State Distribution Of Farms By Return On Assets And Return On Equity

Figure 11 State Average Return On Assets And Return On Equity

Figure 12 Southern 19- And 21- Micron Wool Prices

Figure 13 Quarterly Prices For Southern 19-Micron Wool

Figure 14 Southern 28- And 32-Micron Wool Prices

Figure 15 Quarterly Prices For Victorian Heavy Trade Lamb

Figure 16 Victorian Trade Steer Prices

Figure 17 Quarterly Prices For Victorian Saleyard Trade Steers

Figure 18 Intra-Annual Price Variability

Figure 19 Quarterly Prices For Victorian Wheat Grain (Delivered On-Farm)

Figure 20 Quarterly Prices For Victorian Cereal Hay (Delivered On-Farm)

Figure 21 South West Earnings Before Interest And Tax ($/Ha)

Figure 22 South West Net Farm Income

Figure 23 South West Return On Assets (%)

Figure 24 South West Return On Equity (%)

Figure 25 Distribution Of South West Farms By Change In Debt

Figure 26 South West Earnings Before Interest And Tax History ($/Ha)

Figure 27 South West Return On Assets And Return On Equity History (%)

Figure 28 Northern Earnings Before Interest And Tax ($/Ha)

Figure 29 Northern Net Farm Income

Figure 30 Northern Return On Assets

Figure 31 Northern Return On Equity

Figure 32 Distribution Of Northern Farms By Change In Debt

Figure 33 Northern Earnings Before Interest And Tax History

Figure 34 Northern Return On Assets And Return On Equity History

Figure 35 Gippsland Earnings Before Interest And Tax ($/Ha)

Figure 36 Gippsland Net Farm Income

Figure 37 Gippsland Return On Assets

Figure 38 Gippsland Return On Equity

Figure 39 Distribution Of Gippsland Farms By Change In Debt

Figure 40 Gippsland Earnings Before Interest And Tax History

Figure 41 Gippsland Return On Assets And Return On Equity History

Table 1 State Physical Data Summary

Table 2 Number Of Specialist And Mixed Farms

Table 3 State Farm Financial Summary

Table 4 State Average Financial Summary 2009-2019

Table 5 South West Whole Farm Physical Summary

Table 6 South West Whole Farm Enterprise Mix

Table 7 South West Whole Farm Financial Summary

Table 8 South West Enterprise Summary

Table 9 Northern Whole Farm Physical Summary

Table 10 Northern Whole Farm Enterprise Mix

Table 11 Northern Whole Farm Financial Summary

Table 12 Northern Enterprise Summary

Table 13 Gippsland Whole Farm Physical Summary

Table 14 Gippsland Whole Farm Enterprise Mix

Table 15 Gippsland Whole Farm Financial Summary

Table 16 Gippsland Enterprise Summary

List of Figures List of Tables


About the report

The Victorian Livestock Farm Monitor Project (LFMP) estimates the economic performance of surveyed sheep and cattle farms by collecting detailed physical and financial farm information.

Principles used to generate the economic performance measures in this report are based on farm management economics and are consistent with previous LFMP reports (Figure 1). The four key farm business performance indicators used in this report are: Earnings Before Interest and Tax (EBIT), Net Farm Income (NFI), Return on Equity

(RoE) and Return on Assets (RoA). These indicators provide information about the profitability and efficiency of the farming business. Figure 1 illustrates how the performance indicators are calculated and the Glossary contains definitions of key terms.

This year, 72 farms participated. Care is needed when comparing results between years and regions. Results published in this report should not be taken to represent the average of the population because farms were not selected for statistical significance.

FIGURE 1. PROFIT MAP

Crop incomeWool income

Lamb income

Cattle income

Hay income

Other farm income

Wool sales, sheep and lamb salesWool and livestock inventory change

Total livestock income Other farm income

Lamb sales, wool and sheep salesWool and livestock inventory change

Cattle sales Cattle inventory change

Crop salesGrain inventory change

Feed inventory change

All other farm income

Gross farm income

Gross margin

Net farm incomeAssets leased

Assets owned

Assets managed

Return on equityReturn on assets

Equity Liabilities

Interest and lease costs

Depreciation

Cash overheads

Animal health

Supplementary feed

All other variable costs

Earnings before interest and tax (EBIT)

Imputed operators'allowance for labour

and management

Overheads

Variable Costs

1 Profit map adapted from Queensland Dairy Accounting Scheme - 2010, with permission from Ray Murphy, Department of Agriculture, Forestry and Fisheries, Queensland.


The annual Livestock Farm Monitor (LFM) survey of 72 Victorian sheep and beef enterprises has been completed for 2018-19. Results show it was a challenging year for sheep and beef farms, particularly those located in Gippsland and Northern Victoria. Below average rainfall across most of the state reduced pasture availability, increased the reliance on supplementary feed, and contributed to higher feed costs. On average, farm profits decreased in 2018-19 compared to the previous year with mixed performance across the regions. Many surveyed farms in Gippsland and Northern Victoria de-stocked to reduce feed costs and ease cashflow deficits while farms in the South West maintained stock numbers and production.

State summary

The physical and financial data from 72 sheep and cattle farms across three regions in Victoria were analysed for economic performance in the 2018-19 year. Participant farms were located in the South West, Northern and Gippsland areas (Figure 2).

In 2018-19, annual rainfall was below average for most of Victoria. Spring 2018 rainfall was generally below average and a dry 12 months leading into summer meant that

feed on offer was reduced across much of the state. Although the 2019 autumn break provided some reprieve to soil moisture conditions, significant areas of the state remained dry. Figure 3 shows annual pasture growth in 2018-19 was average to extremely low compared to historical records. This reduced the ability of many participant farm businesses, specifically in Northern and Gippsland areas, to graze and conserve feed.

Statewide Overview

FIGURE 2. LIVESTOCK FARM MONITOR PROJECT FARM LOCATIONS AND 2018-19 ANNUAL RAINFALL DECILES

FIGURE 3. 2018-19 MODELLED TOTAL CUMULATIVE PASTURE GROWTH (PER CENT OF AVERAGE)

Gippsland Livestock Farm Monitor Project Site

North Livestock Monitor Project Site

South West Livestock Farm Monitor Project Site

Towns / Cities

Rainfall Decile Ranges

Highest on recordVery much above recordAbove averageAverageBelow averageVery much below averageLowest on record

HORSHAM

TRARALGONBAIRNSDALE

WANGARATTA

WODONGA

SHEPPARTON

BENDIGO

PORTLANDWARNAMBOOL

MILDURA

SWAN HILL

GEELONG

HAMILTON MELBOURNE

Pasture Growth Percentile

Extremely highWell below averageAbove averageAverageBelow averageWell below averageExtremely low

Lakes

SOURCE: BOM SOURCE: QDAF


Physical measures

FIGURE 4. REGIONAL ENTERPRISE MIX

Farms that participated in the project represented a variety of different sizes and enterprise mixes. Figure 4 shows the regional enterprise mix of participant farms, including farms with hay/cropping operations. The dominant enterprise in the South West was prime lamb, representing 48 per cent of the regional sample. Beef enterprises were the most common in Gippsland (62 per cent) and Northern Victoria (47 per cent).

Of the 72 farms in the project, 30 farms (42 per cent) were mixed sheep and cattle enterprises; 23 farms (32 per cent) were specialist sheep farms and 19 farms (26 per cent) ran only sheep (Table 2).

South West Northern Gippsland

Pro

po

rtio

n o

f fa

rms

0%

30%

20%

10%

40%

50%

60%

100%

80%

90%

70%

Wool Prime Lamb Beef Hay/Cropping

On average, participant farms across Victoria managed 876 ha (Table 1). Participants in the South West region had larger holdings, averaging 1,064 ha. Gippsland (703 ha) and Northern Victoria (820 ha) were closer to the statewide average. Stocking rate was 15 Dry Sheep Equivalent (DSE) per hectare (DSE/ha), on average across the state, with participants in Northern Victoria recording the lowest average stocking rate of 10 DSE/ha. Gippsland and the South West had similar stocking rates of 18 and 17 DSE/ha, respectively.

The area of land allocated to pasture hay and silage production varied significantly across surveyed farms. On average, 19 ha of pasture hay and 14 ha of silage was cut (Table 1). Participants in Gippsland and Northern Victoria utilised less area for pasture hay and silage and had a higher proportion of farms that did not conserve feed (Appendix Tables 13 for each region).

TABLE 1. STATE PHYSICAL DATA SUMMARY

TABLE 2. NUMBER OF SPECIALIST AND MIXED FARMS

Specialist farmsMixed sheep

and cattle

Sheep Beef cattle

South West 11 1 14

Northern 8 10 8

Gippsland 4 8 8

State 23 19 30

Statewide South West Northern Gippsland

Number of farms in sample (total) 72 26 26 20

Average 2018-19 rainfall (mm) 576 571 525 648

Average Stocking rate (DSE/ha) 15 17 10 18

Average Effective area (ha) 876 1,064 820 703

Area cut for pasture hay (ha)* 19 32 15 10

Area cut for silage (ha)* 14 27 6 10

Labour efficiency (ha/person) 437 422 500 373

Labour efficiency (DSE/person) 6,411 7,406 5,554 6,231

*Average includes zeros


FIGURE 6. REGIONAL QUARTERLY SALES OF FINE WOOL

FIGURE 7. REGIONAL QUARTERLY SALES OF 1-2-YEAR-OLD STEERS

Pro

po

rtio

n o

f to

tal

fin

e w

oo

l sa

les

80%

60%

50%

40%

70%

30%

20%

10%

0%

Northern GippslandSouth West

Jul–Sep Oct–Dec Jan–Mar Apr–Jun

Pro

po

rtio

n o

f to

tal 1

–2

yea

r o

ld s

teer

sa

les

60%

50%

40%

30%

20%

10%

0%



FIGURE 8. STATE DISTRIBUTION OF FARM SIZE

1000-1500 1500-2000 >2000<500 500-1000

Pro

po

rtio

n o

f fa

rms

0%

10%

5%

15%

20%

25%

45%

35%

40%

Farm size (ha)

30%

The monthly selling pattern of prime lamb, wool and beef enterprises is summarised in Figure 5. For each region, monthly lamb (unweaned and weaned), one to two-year-old steers (spring calving) and fine wool (kg greasy) sales are expressed as a percentage of total annual sales for each commodity in each region. There were distinct differences in the pattern of sales across all commodities in each region. This variation was influenced by a variety of factors including, timing of reproduction, time of shearing, availability of pasture, price of supplementary feed, market prices and attitude toward risk.

Northern Victorian and Gippsland participants sold more lambs within a short three-month period, compared to South West farmers who staggered lamb sales across a nine-month period (Figure 5). Northern Victorian participants sold a high proportion of lambs (49 per cent) in the October-December quarter before the drier months of summer. Gippsland participants held on to lambs longer and sales peaked in the January-March quarter. South West farmers sold 40 per cent of lambs in the October-December quarter, 35 per cent in the January-March quarter and 20 per cent in the April-June quarter.

All regions sold a large proportion of fine wool within a three-month period (Figure 6). Northern and Gippsland participants sold most of their wool in the January-March quarter. Whereas farms in the South West held on to wool longer and sold a majority in the April-June quarter.

A large proportion of steer (one and two-year old) sales in each region were in the October-December quarter (Figure 7). Gippsland participants sold most stock before the dry summer months, with 35 per cent of all steers sold before October and 70 per cent before January. Northern farmers spread the majority sales across two periods, with 50 per cent of steers sold in October-December and 30 per cent were sold in April-June. South West farmers sold 55 per cent of their steers in the October-December quarter and 25 per cent in the January-March quarter.

The distribution of farm size is shown in Figure 8. Most participant farms were between 500 ha to 1,000 ha. Average farm size within the three regions ranged from 703 ha in Gippsland, 820 ha in Northern Victoria to 1,064 ha in the South West. Average land values for participants were similar in the Northern and South West regions ($6,500/ha), however the Gippsland average was 38 per cent higher ($10,400/ha) than the value of the other regions (Appendix 11). The average land values are in Appendix Table 11 for each region.

FIGURE 5. REGIONAL QUARTERLY SALES OF PRIME LAMBS

Pro

po

rtio

n o

f to

tal l

am

b s

ale

s 50%

40%

30%

20%

10%

0%




FIGURE 9. AVERAGE EARNINGS BEFORE INTEREST AND TAX ($/HA)

FIGURE 10. STATE DISTRIBUTION OF FARMS BY RETURN ON ASSETS AND RETURN ON EQUITY

In 2018-19 average gross farm income across all surveyed farms decreased by nine per cent from 2017-18. The high gross farm income in the South West partially offset the declines seen in the Northern and Gippsland regions. The combination of successive years of below average rainfall, notably in the Northern and Gippsland regions and high purchased feed prices led to lower farm Earnings Before Interest and Tax (EBIT). In 2018-19, statewide EBIT dropped by 59 per cent from last year’s $251/ha, to $104/ha as shown in Table 3 and Figure 9.

This year there were significant increases in total costs when compared to 2017-18. Statewide variable costs averaged $448/ha in 2018-19, increasing by $151/ha (50 per cent) from the previous year (Table 3). Overhead costs were $355/ha, an increase of $15/ha (seven per cent).

The businesses included in the state top 20 per cent ranked by Return on Assets (RoA) were predominantly South West participants (11 of 15 farms). These farms achieved an average EBIT 3.5 times higher than the average participant. When their gross farm income and cost structure was compared to the statewide average,

the top 20 per cent achieved a higher gross farm income (30 per cent) and maintained lower variable (minus six per cent) and overhead costs (-20 per cent). These farms were efficient in using their assets to generate income with 6.9 per cent RoA compared to the statewide average of 1.1 per cent.

The average RoA decreased to 1.1 per cent from 3.5 per cent (Table 3) in 2017-18. At an individual farm level, a range of returns were observed (Figure 10). The range of RoA was from -12.5 per cent to 9.3 per cent. This year, 35 per cent of the farms (predominantly in the Northern region and Gippsland) recorded a RoA less than zero per cent. In contrast, 21 per cent of farms (mainly in the South West) achieved a RoA greater than five per cent.

The average RoE also decreased to 0.1 per cent from 3.8 per cent in 2017-18. Comparing the RoA and RoE across the state, 56 per cent of farms (40) had a lower RoE than RoA, denoting the return on additional assets was less than the cost of financing it.

Financial Measures

TABLE 3. STATE FARM FINANCIAL SUMMARY

Statewide South West Northern Gippsland

Gross Farm Income $907 $1,151 $680 $884

Variable Costs $448 $479 $335 $554

Overhead Costs $355 $351 $305 $426

Earnings Before Interest & Tax - EBIT $104 $321 $40 -$97

Net Farm Income $39 $254 -$21 -$165

Return on Assets 1.1% 4.0% 0.5% -1.9%

Return on Equity 0.1% 4.0% -0.7% -4.0%

EB

IT ($

/ha

)

350

300

100

200

50

250

150

0

-50

-100

State South West Northern Gippsland

Nu

mb

er o

f fa

rms

35

30

25

20

15

10

5

0

Return on equityReturn on assets

0% to -5% 0% to 5% 5% to 10% > 10%< -10% -5% to -10%


This section discusses the economic results of the project since 2009-10 in real terms, meaning the dollars were adjusted using the consumer price index.

This year average gross farm income ($907/ha) was 22 per cent higher than the 10-year average ($742/ha) (Table 4). The average total variable and overhead costs were $803/ha, the highest level since 2009-10 and 41 per cent higher than the long-term average of $568/ha. In the last five years, gross farm income has increased by 34 per cent while total costs increased by 55 per cent, this represents a decline in terms of trade for surveyed farms within the LFMP.

Relative to 2012-13, where total average costs made up a high proportion of total income (98 per cent) and RoA dropped to 0.7 per cent (Table 4). The 2018-19 results reflected comparable operating conditions. Both years were characterised by low rainfall that impacted pasture availability. The results in both years were then compounded by a relative increase in the cost of supplementary feed.

The highest average statewide measures of efficiency were recorded in 2016-17 when RoA was 5.2 per cent

and RoE was 5.9 per cent (Figure 11). The lowest were in 2012-13 with 0.7 per cent RoA and -1.3 per cent RoE. There were only two periods (2016-17 and 2017-18) in the last 10 years when RoE was higher than RoA, indicating that in those years the return on the additional assets under management generated higher returns than the cost of financing it.

Historical financial measures

FIGURE 11: STATE AVERAGE RETURN ON ASSETS AND RETURN ON EQUITY (%)

200

9-1

0

2010

-11

2011

-12

2012

-13

2013

-14

2014

-15

2015

-16

2016

-17

2017

-18

2018

-19

Re

turn

(%)

0%

7%

6%

5%

4%

3%

1%

2%

-1%

-2%

RoA RoE

TABLE 4. STATE AVERAGE FINANCIAL SUMMARY 2009-2019

Gross Farm Income Variable CostsOverhead Costs

& Owner/operator allowance

Earnings before Interest & Tax - EBIT

Return on Assets Return on Equity

($/HA real) ($/HA real) ($/HA real) ($/HA real) % %

2009-10 $583 $220 $219 $144 2.1% 1.5%

2010-11 $761 $299 $219 $242 3.2% 2.5%

2011-12 $698 $240 $290 $168 2.8% 2.2%

2012-13 $541 $254 $276 $10 0.7% -1.3%

2013-14 $616 $236 $258 $122 1.8% 0.6%

2014-15 $675 $276 $258 $142 2.1% 1.5%

2015-16 $722 $291 $264 $166 2.4% 1.7%

2016-17 $1,009 $295 $333 $381 5.2% 5.9%

2017-18 $907 $302 $350 $255 3.5% 3.8%

2018-19 $907 $448 $355 $104 1.1% 0.1%

10-year average $742 $286 $282 $173 2.5% 1.9%


Wool Prices

Lamb Prices

FIGURE 12. SOUTHERN 19- AND 21- MICRON WOOL PRICES

Sheep producers enjoyed higher wool prices in 2018-19. Figure 12 shows 19-micron wool prices rose to the highest in 10 years, averaging $23/kg clean, up 10 per cent from the previous year. The ongoing dry conditions across south-eastern Australia contributed to reduced flock numbers and wool cut at the national level. The restricted supply and strong global demand helped push up prices for Victorian wool enterprises.

The 2018-19 year saw consistently higher sheep and lamb prices in Australia. Victorian lamb prices have continued to climb, averaging 15 per cent higher when compared with the previous year (Figure 15). The increase in price has consolidated positive market performance in recent years, making it the sixth consecutive year of increasing prices for lamb producers in Victoria.

Heavy trade lamb prices increased across each quarter in 2018-19 (Figure 15). Participant farms sold most of their lambs between October and March (Figure 5). Heavy trade lamb prices increased by 12 per cent from 2017-18 for the October-December quarter and five per cent higher in the January-March quarter compared to the previous financial year. Lambs sold outside of this peak time received premium prices with the April-June quarter increasing 19 per cent and the July-September increasing 24 per cent from the previous year.

Commodity Price Overview

SOURCE: AWEX

SOURCE: AWEX

FIGURE 13. QUARTERLY PRICES FOR SOUTHERN 19-MICRON WOOL

200

9

2010

2011

2012

2013

2014

2015

2017

2016

2018

2019

A$

/kg

cle

an

(re

al)

25

22

19

16

13

10

7

19-micron wool 21-micron wool

A$

/kg

cle

an

(re

al)

25

22

19

16

13

10

7

2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Jul–Sep Full YearOct–Dec Jan–Mar Apr–Jun

+26% y/y+12% y/y +11% y/y-2% y/y+9% y/y

Participant farms in Northern Victoria and Gippsland sold most of their fine wool in the January-March quarter. Southern 19-micron wool prices in the corresponding period was $23.26 kg clean, up nine per cent from 2017-18 (Figure 13). In contrast, South West participants sold a large proportion of fine wool in the April-June quarter, the 19-micron wool price in this period decreased by two per cent compared to the same time in 2017-18. However, the April-June price of $22.16 kg clean remained well above the six-year average for the quarter ($17.84/kg clean).

Farm systems using non-merino ewe base and producing coarser wool saw a positive shift in wool income. Those enterprises producing 28- and 32-micron wool experienced an increase in prices received from the previous year, up 20 per cent to $10.17/ kg clean and 27 per cent to $5.36/kg clean, respectively (Figure 14).

SOURCE: MLA

FIGURE 15. QUARTERLY PRICES FOR VICTORIAN HEAVY TRADE LAMB

A¢/

kg c

wt

(re

al)

800

700

600

500

400

300

2013/14 2014/15 2015/16 2016/17 2017/18 2018/19


+24% y/y

+12% y/y +15% y/y+19% y/y

+5% y/y

SOURCE: AWEX

FIGURE 14. SOUTHERN 28- AND 32-MICRON WOOL PRICES

200

9

2010

2011

2012

2013

2014

2015

2017

2016

2018

2019

A$

/kg

cle

an

(re

al)

12

10

8

6

4

2

28-micron wool 32-micron wool


SOURCE: MLA

SOURCE: MLA

Victorian saleyard cattle prices stabilised in 2018-19. Over-the-hooks (OTH) and saleyards prices remained similar to their respective levels seen the previous year but were higher than ten-year average price. Average saleyard market price decreased three per cent and OTH increased by two per cent (Figure 16). Saleyard premium was the lowest in 10 years. Based on Victorian beef market data, trade steer saleyard prices were 520 c/kg cwt (carcass weight), 10 c/kg cwt lower than the average processor price at 530 c/kg cwt (Figure 16).

Quarterly changes to Victorian cattle prices are shown in Figure 17. In 2018-19 Victorian cattle prices increased in the autumn period compared with 2017-18. However, there was a decline in all other quarterly market results for 2018-19 compared to the same quarterly period in the previous year. The largest price decreases were in the July-September and October-December quarters. Poor spring operating conditions in beef production regions across eastern Australia led to a surge of beef sales resulting in a decline in market prices. The price decreases in the first half of the financial year had the biggest impact on Victorian beef producers who sold cattle between July and December.

Intra-season price variability of lamb and beef prices, measured as variation around the average, gives some insight into market volatility and the importance of time of sale for livestock businesses. Figure 18 shows a significant increase in market volatility for lamb prices in both OTH and saleyard markets in 2018-19. For cattle producers, saleyard price volatility remained comparable with 2017-18, while OTH price volatility reduced to the lowest level in four years.

When intra-season price volatility is high, using a one-year timeframe to compare farm performance can be misleading. High or low economic returns for one year may be due to ‘luck’ of the market and price trends 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 accounted for.

Beef Prices Commodity price variability

FIGURE 16. VICTORIAN TRADE STEER PRICES

FIGURE 17. QUARTERLY PRICES FOR VICTORIAN SALEYARD TRADE STEERS

A¢/

kg c

wt

(re

al)

800

700

600

500

400

200

300

2013/14 2014/15 2015/16 2016/17 2017/18 2018/19


-6% y/y-5% y/y -3% y/y

+3% y/y

-3% y/y

200

9

2010

2011

2012

2013

2014

2015

2017

2016

2018

2019

Ac/

kg c

wt

(re

al)

700

600

500

400

200

300

Trade Steer Cattle Price OTH

Trade Steer Cattle Price Saleyard

FIGURE 18. INTRA-ANNUAL PRICE VARIABILITY

SOURCE: AGRICULTURE VICTORIA

2015-16 2016-17 2017-18 2018-19

Pri

ce V

ola

tilit

y (C

oe

ffici

en

t V

ari

ati

on

) %

0%

15%

12%

9%

6%

3%

Lamb Saleyard Lamb OTH

Beef Saleyard Beef OTH

Time of Sale: increasing importance on individual LFMP results

Time of Sale: decreasing importance on individual

LFMP results


FIGURE 19. QUARTERLY PRICES FOR VICTORIAN WHEAT GRAIN (DELIVERED ON-FARM)

FIGURE 20. QUARTERLY PRICES FOR VICTORIAN CEREAL HAY (DELIVERED ON-FARM)

$/t

(re

al)

500

400

300

200

100

0

2017/18 2018/19


+43% y/y+57% y/y

+44% y/y +18% y/y +39% y/y

$/t

(re

al)

500

400

300

200

100

0

2017/18 2018/19


+109% y/y

+160% y/y+143% y/y

+146% y/y+139% y/y

wheat prices 57 per cent higher and cereal hay 160 per cent higher than the same period in 2017-18. Failed crops and reduced pasture growth from below average spring rainfall across large areas of eastern Australia led to high demand for supplementary feed by livestock farmers and low supply of feed from cropping farmers.

The 2018-19 supplementary feed market was characterised by large increases in the unit price of grain and fodder.

There was a significant increase in wheat grain price and cereal hay price across Victoria in 2018-19 compared with the previous year (Figure 19, Figure 20). The spring quarter (October-December) showed the largest increase, with

Supplementary feed prices

SOURCE: DAIRY AUSTRALIA SOURCE: DAIRY AUSTRALIA


South West

South West

Favourable market prices for lamb and wool increased average gross farm income on surveyed farms to the highest levels recorded by the project in the South West. To take advantage of the good market prices, participants chose to maintain livestock body condition and stock numbers. Livestock diets were supplemented with home-grown and purchased feed to offset reduced pasture availability. Increases in the quantity of supplementary feed and prices paid for purchased feed increased average variable costs to the highest level recorded by the project in the South West. The regional average Return on Assets was 4.0 per cent, with all but one farm recording a positive result.

Average Top 20% #

Sheep (head) 6,591 10,793

Cattle (head) 234 200

Labour efficiency (ha/person) 707 569

Labour efficiency (DSE/person) 11,074 12,137

Effective area (ha) 1,064 1,498

In 2018-19, the 26 farms surveyed in the South West operated an average 1,064 effective hectares (Table 5). Prime lamb production remained the dominant enterprise in the sample (Table 6).

The South West experienced below average spring and summer rainfall and on average participants received 83 per cent of long-term annual rainfall.

Participants responded to dry conditions in September and high grain and fodder prices by increasing fertiliser application (Appendix Tables A2, A9) and utilising residual soil moisture from winter rainfall to focus on early spring hay and silage production. The average number of hectares allocated to pasture hay and silage production increased compared to the previous year by 16 per cent and 49 per cent, respectively.

As the dry conditions persisted over the summer months, low pasture availability was supplemented by increased feeding requirements and costs. Average variable costs increased by 40 per cent compared with 2017-18, with supplementary feed the main component of these costs. Higher fodder and grain prices were compounded by a greater reliance on supplementary feed resulting in large spending increases within this cost category (Table 7).

Despite the reduced pasture availability, South West farmers elected to maintain body condition, production levels and stocking rates of livestock by supplementary feeding. The reward of decade high lamb and fine wool prices gave sheep farmers in the South West the incentive to continue supplementary feeding at elevated grain and fodder prices. Participants received an average gross farm income of $1,151/ha (10 per cent increase), the highest recorded in the South West over 49 years of the project.

TABLE 5. SOUTH WEST WHOLE FARM PHYSICAL SUMMARY

TABLE 6. SOUTH WEST WHOLE FARM ENTERPRISE MIX

Average Top 20% #

Wool 28% 14%

Lamb 48% 79%

Beef 20% 6%

Hay/Cropping 4% 1%

TABLE 7. SOUTH WEST WHOLE FARM FINANCIAL SUMMARY

Average Top 20% #

Gross income ($/ha) $1,151 $1,482

Variable costs ($/ha) $479 $547

Overhead costs and owner/operator allowance ($/ha)

$351 $308

EBIT($/ha) $321 $627

Net farm income ($/ha) $254 $566

Return on assets (%) 4.0% 8.5%

Return on equity (%) 4.0% 9.5%

Equity (%) 83% 81%

# Top 20% ranked by RoA




South West

The average gross farm income of top performing farms was $330/ha higher (30 percent) than the average farm with only minor increases in overhead (eight per cent increase) and variable costs (14 per cent increase). The more profitable farms in 2018-19 were prime lamb producers (Table 8).

Prime lamb, wool sheep and beef cattle gross margins were lower in 2018-19 compared to 2017-18 (Table 8), however all enterprise gross margins remained higher than their respective long-term average.

Average wool sheep gross margin decreased to $31/DSE (35 per cent decrease), the lowest level since 2015-16. Encouraged by high wool prices participants increased average wool cut (kg/ha) by 10 per cent compared to the previous year. Participants sold most wool in the April-June quarter (Figure 6) when the bullish wool prices had flattened (Figure 13) and as a result average wool price received ($/kg clean) decreased by seven per cent from 2017-18 levels. Wool sheep supplementary feed costs increased by 150 per cent from 2017-18 and represented the major component of the enterprise variable cost.

FIGURE 21. SOUTH WEST EARNINGS BEFORE INTEREST AND TAX ($/HA)

FIGURE 22. SOUTH WEST NET FARM INCOME ($/HA)

TABLE 8. SOUTH WEST ENTERPRISE SUMMARY

Wool Average

Stocking rate (DSE/ha) 14.1

Average micron 17.3

Average yield (%) 66%

Lamb marking (%) 67%

Wool price received ($/kg clean) $20.25

Clean wool cut (kg/ha) 35

Clean wool cut (kg/dse) 2.5

Gross margin ($/dse) $31

Gross margin ($/ha/100mm) $79

Lamb Average



Average lamb weight (kg cwt) 20

Average lamb price ($/kg cwt) $7.48

Lamb produced (kg cwt /ha) 131



Beef Average


Calving (%) 94%

Average weight sold (kg lwt) 470

Average beef price ($/kg lwt) $2.54

Beef produced (kg lwt /ha) 433



14 39 43 55 66 87 88 114

512

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Net Farm Income Average NFI

Beef enterprises received the largest decrease with an average gross margin of $26/DSE (63 per cent decrease). Average beef production (kg lwt/ha) increased in 2018-19, however a 17 per cent decrease in sale price coincided with a 57 per cent increase in beef variable costs compared to the previous year. The rise in variable costs was due to large increases (74 per cent increase) in supplementary feed expenditure.

In contrast to wool and beef, prime lamb production (kg cwt/ha) decreased by 15 per cent in 2018-19. However average lamb price received was 17 per cent higher than 2017-18, helping to limit the impact of increases in supplementary feed expenditure (52 per cent increase). Average prime lamb gross margin was $35/DSE, a six per cent decrease from 2017-18.

Figure 21 to Figure 24 show the range of EBIT, NFI, RoA and RoE for participant farms in the South West. The average RoA was four per cent with a range of -3.1 per cent to 9.3 per cent (Figure 23), compared to last year’s range of -2.4 per cent to 13.1 per cent.


South West

FIGURE 26. SOUTH WEST EARNINGS BEFORE INTEREST AND TAX HISTORY ($/HA)

FIGURE 24. SOUTH WEST RETURN ON EQUITY (%)

FIGURE 25. DISTRIBUTION OF SOUTH WEST FARMS BY CHANGE IN DEBT

FIGURE 23. SOUTH WEST RETURN ON ASSETS (%)

FIGURE 27. SOUTH WEST RETURN ON ASSETS AND RETURN ON EQUITY HISTORY (%)

14 39 43 55 66 87 88 114

512

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Return on assets Average RoA

14 39 43 55 66 87 88 114

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Return on equity Average RoE

Pro

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30%

20%

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Increased debt

Reduced debt

No change in debt

No debt at July 1st or June 30th

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Return on assets Return on equity

For South West participants, the average EBIT was $321/ha compared to $389/ha in 2017-18 (17 per cent decrease), with a narrower range of -$163/ha to $827/ha compared to last year’s range of -$159/ha to $1,003/ha. This year was the fourth highest EBIT recorded in 15-years. After accounting for interest and lease costs, four farms returned a negative RoE (Figure 24) an increase from 2017-18 (two farms). The RoE range in 2018-19 was -3.1 per cent to 10.8 per cent.

Positive farm profits in 2018-19 allowed a high proportion (42 per cent) of South West participants to reduce the amount of debt owing (Figure 25). Debt levels increased on 30 per cent of farms. Some farmers used borrowed finance to invest in land and on-farm improvements. Average repairs and maintenance to land and improvements increased by 90 per cent compared to 2017-18 (Appendix Table A10) further highlighting that participants were buoyed by positive farm profits and chose to upgrade farm infrastructure. Debt is a part of business structures for a large proportion (92 per cent) of South West participants. The strategy employed by South West participants to maintain income during a year of high costs was, in part, influenced by finance obligations. The use of debt finance increases the compulsory costs of farm businesses as principal and interest repayments must be paid in good years and poor. This makes South West participants with debt more vulnerable to year-to-year shortfalls in income.

Despite the average RoA declining for the second consecutive year, the average RoA in 2018-19 was close to the long-term average for the region (4.1 per cent). Average EBIT/ha and RoE also dropped for the second year in a row but remained above the long-term average for both measures (Figure 26 and Figure 27).


Northern Victoria

Northern Victoria

Increased variable costs and decreased gross farm income led to reduced farm profits in 2018-19 for Northern Victoria participants. In response to low pasture availability, participant farms utilised feed reserves and sourced supplementary feed at elevated prices. Stock numbers were reduced early in the season to limit the impact of high input costs; however, gross farm income was impacted as less animals were joined, weaned and shorn. On average, RoA was 0.5 per cent with a range of -12.5 per cent to 7.7 per cent.

Average Top 20%#

Sheep (head) 2,722 7,537

Cattle (head) 404 734



Effective area (ha) 820 1,678

Average Top 20%#

Gross income ($/ha) $680 $909



$305 $192

EBIT($/ha) $40 $419

Net farm income ($/ha) -$21 $355

Return on assets (%) 0.5% 5.9%

Return on equity (%) -0.7% 8.1%

Equity (%) 77% 65%

Average Top 20%#

Wool 33% 37%

Lamb 17% 20%

Beef 47% 36%

Hay/Cropping 3% 6%

The 26 participant farmers located in the Northern Victoria region this year managed an average of 820 ha (Table 9) where beef was the dominant enterprise (Table 10). There were minor changes from last year to labour efficiency and enterprise mix across participant farms in the region.

Rainfall in Northern Victoria was variable across the region where the northeast participant farms had a better condition than the rest of the region where rainfall was patchy. On average rainfall for participant farms in 2018-19 was 79 per cent of the long-term average, with the timing of rainfall being an important determinant of success. Summer rain in December 2018 eased the soil moisture constraints for some, however, it was too late in the season to be useful for significant pasture growth. Participant farms depleted on-farm feed reserves, reduced stock numbers and purchased supplementary feed to manage the below average rainfall across the region.

On average, gross farm income was six per cent lower at $680/ha, when compared with the 2017-18 year (Table 11). The range of gross farm income was $155/ha to $1,451/ha, with 30 per cent of participant farms generating less than $500/ha. Variable costs increased substantially (51 per cent), mainly due to the high price of supplementary feed. Overhead costs decreased slightly, however, these costs as a proportion of gross farm income made up 26 per cent, indicating that for every $1 of gross farm income received, $0.26 was spent on overhead costs.

The average RoA was 0.5 per cent with a range of -12.5 per cent to 7.7 per cent. The proportion of participant farms that recorded positive RoA decreased from 79 per cent in 2017-18 to 58 per cent this year.

Northern Victorian wool producers recorded gross margins 47 per cent lower than in 2017-18. Despite participants producing a similar quantity of finer quality wool (Table 12) and increasing stocking rates by eight per cent, these gains were not enough to offset a lower wool price received and increases in supplementary feed costs.

TABLE 9. NORTHERN WHOLE FARM PHYSICAL SUMMARY

TABLE 10. NORTHERN WHOLE FARM ENTERPRISE MIX



TABLE 11. NORTHERN WHOLE FARM FINANCIAL SUMMARY



South WestNorthern Victoria

FIGURE 28. NORTHERN EARNINGS BEFORE INTEREST AND TAX ($/HA)

FIGURE 29. NORTHERN NET FARM INCOME ($/HA)

TABLE 12. NORTHERN ENTERPRISE SUMMARY

The average gross margin in 2018-19 for prime lamb enterprises declined 10 per cent from 2017-18 results (Table 12). Lower stocking rates and lower lamb produced per hectare as measured by kilograms of carcass weight per hectare (kg cwt/ha) were the main indicators impacting farm performance.

The decline in economic performance was greatest for Northern beef participant farms compared to the wool and prime lamb enterprises in the region. Slightly higher stocking rate (11.9 DSE/ha) and lower overhead costs per kilogram of liveweight ($0.68/kg lwt) were not enough to cover the combined effects of lower prices received, lower beef produced (kg lwt/ha) and increased variable costs (78 per cent higher).

The top 20 per cent of farms achieved a higher gross income, spent less on variable costs and were able to spread their overhead costs and owner/operator labour costs over a bigger area than the average of all Northern Victorian participants (Table 11).

Net Farm Income (NFI) for producers in Northern Victoria decreased substantially to -$21/ha in 2018-19 from $125/ha in 2017-18 (Figure 29). The range was -$944/ha to $556/ha in 2018-19. in 2018-19.

On average, Northern participants had 77 per cent equity with the top 20 per cent ranked by RoA having less, at 65 per cent (Appendix Table B11).

Profit and efficiency measures declined for the second consecutive year for Northern participants. Average EBIT fell to $40/ha from $183/ha in 2017-18. This year, the difference between the lowest and highest EBIT was $1,461/ha, compared to $1,014/ha last year (Figure 28)1 . This is the fourth lowest EBIT recorded in the 15 years of the project.

EB

IT ($

/ha

)

-$400

-$100

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EBIT Average EBIT

584

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Wool Average


Average micron 17.7




Clean wool cut (kg/ha) 21.6




Lamb Average



Average lamb weight (kg cwt) 23.3





Beef Average


Calving (%) 88%






1 The axes in Figure 28 to Figure 31, have been modified to allow for better presentation of all Northern farms in the project. A few farms had either much higher or lower EBIT, NFI, RoA or RoE than the rest of the dataset, which the axes did not allow to be represented to the full extent. Appendix Table B1 presents these measures for all participant farms.


Northern Victoria

Average liabilities per hectare decreased by nine per cent from last year (Appendix Table B11). A high proportion of participant farms (46 per cent) reduced their debts in 2018-19 (Figure 32). However, there was no correlation between profit and debt reduction. An equal proportion of farms that reduced their debt had either negative or positive profit. These results indicate that some participant farms minimise their financial risk by reducing liabilities even under challenging economic conditions.

Average EBIT declined to $40/ha this year, the fourth lowest result in the history of the project (Figure 33). The impact of two years receiving below average rainfall, a subsequent decline in pasture production and increased variable costs contributed to negative EBIT and NFI for a large proportion of farms in the region this year. These results contributed to the third lowest RoA and fourth lowest RoE in the 15-year history of the project (Figure 34).

FIGURE 33. NORTHERN EARNINGS BEFORE INTEREST AND TAX HISTORY ($/HA)

FIGURE 31. NORTHERN RETURN ON EQUITY (%)

FIGURE 30. NORTHERN RETURN ON ASSETS (%)

FIGURE 34. NORTHERN RETURN ON ASSETS AND RETURN ON EQUITY HISTORY (%)

584

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-1%


FIGURE 32. DISTRIBUTION OF NORTHERN FARMS BY CHANGE IN DEBT

Pro

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30%

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Increased debt

Reduced debt

No change in debt



Gippsland

Gippsland average farm profit in 2018-19 was the lowest recorded for the region in the history of the project. For farms located in central and eastern parts of the region, dry conditions leading into spring 2018 reduced pasture growth and placed an increased dependence on purchased feed. Many participants elected to de-stock to reduce supplementary feed requirements and costs. Negative livestock trading accounts and increased variable cost impacted business wealth and financial performance. The regional average RoA was -1.9 per cent, with 13 of the 20 farms returning a negative result.

Twenty farms were surveyed in the Gippsland region this year. On average effective land area was 703 ha and there were 597 head of cattle and 2,313 head of sheep run (Table 13). Beef was the dominant enterprise making up 62 per cent of total farm activity, while wool and prime lamb enterprises contributed 27 per cent and nine per cent, respectively (Table 14).

On average, Gippsland participants recorded 80 per cent of the long-term average annual rainfall. Variability in seasonal conditions across the region, however, made direct comparisons between farms difficult. The top 20 per cent of farms (ranked by RoA) received on average 93 per cent of long-term average rainfall, while other farms received 76 per cent. All farms that recorded a positive EBIT received at or above 87 per cent of their long-term average rainfall.

Farm performance was mixed across Gippsland. All top performing farms were in south and west Gippsland where rainfall was more consistent. These farms were able to take advantage of homegrown feed opportunities and had, on average, a higher proportion of land area cut for hay and silage (Appendix Table C13) and applied more fertiliser per hectare (Appendix Table C2).

Increases in variable costs and negative livestock trading accounts influenced enterprise gross margins (Table 15). Farms that received below average rainfall in spring and summer had reduced pasture production that contributed to an increased dependence on supplementary feed. Average variable costs increased by 63 per cent compared to 2017-18, to $554/ha, this was mainly due to increased fodder and grain prices (Figure 20 and Figure 21). When seasonal conditions began to deteriorate, many farms elected to de-stock to reduce supplementary feed requirements and costs. A high proportion of stock were sold early in the year coinciding with softening beef prices (Figure 17). Reduced income and high costs put pressure on EBIT and further contributed to net losses.

TABLE 13. GIPPSLAND WHOLE FARM PHYSICAL SUMMARY

TABLE 14. GIPPSLAND WHOLE FARM ENTERPRISE MIX


Average Top 20%#

Sheep (head) 2,313 775

Cattle (head) 597 1,276



Effective area (ha) 703 659

Average Top 20%#

Wool 27% 0%

Lamb 9% 10%

Beef 62% 90%

Hay/Cropping 2% 1%


Gippsland


Gippsland

Average gross farm income for top performing farms was $1,358/ha, 67 per cent higher than the average farm. This higher gross farm income compensated for the higher overhead costs (31 per cent higher) while there was little difference in variable costs.

Wool enterprises produced an average of 24 kg clean/ha, down six kg/ha from the previous year (Table 16). While wool price remained historically high at $19/kg, average gross margin for wool producers in Gippsland decreased by 81 per cent in the 2018-19 to $10/DSE.

Prime lamb production indictors remained consistent in 2018-19 when compared to the previous financial year. However, average gross margin declined by 23 per cent, from the previous financial year to $29/DSE.

Similar to prime lamb enterprises, beef production indicators remained consistent and gross margins declined as compared with the previous financial year (Table 16). Beef gross margins reduced by 57 per cent to $12/DSE.

Average EBIT in 2018-19 was -$97/ha, which was $187/ha below the long-term average for the region and ranged from -$588/ha to $483/ha (Figure 35 and Figure 40). Results for NFI, RoA and RoE were also impacted by the challenging season with returns of -$165/ha, -1.9 per cent and -4.0 per cent respectively (Figure 36, Figure 37, Figure 38 and Figure 41).

TABLE 15. GIPPSLAND WHOLE FARM FINANCIAL SUMMARY

FIGURE 35. GIPPSLAND EARNINGS BEFORE INTEREST AND TAX ($/HA)

FIGURE 36. GIPPSLAND NET FARM INCOME ($/HA)


TABLE 16. GIPPSLAND ENTERPRISE SUMMARY

Average Top 20%#

Gross income ($/ha) $884 $1,358



$426 $493

EBIT($/ha) -$97 $317

Net farm income ($/ha) -$165 $178

Return on assets (%) -1.9% 1.9%

Return on equity (%) -4.0% 1.3%

Equity (%) 80% 73%

553

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Wool Average


Average micron 17.7




Clean wool cut (kg/ha) 24




Lamb Average



Average lamb weight (kg cwt) 21.1





Beef Average


Calving (%) 92%







Gippsland

FIGURE 40. GIPPSLAND EARNINGS BEFORE INTEREST AND TAX HISTORY ($/HA)

FIGURE 38. GIPPSLAND RETURN ON EQUITY (%) FIGURE 41. GIPPSLAND RETURN ON ASSETS AND RETURN ON EQUITY HISTORY (%)

Re

turn

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Re

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(%)

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FIGURE 39. DISTRIBUTION OF GIPPSLAND FARMS BY CHANGE IN DEBT

Pro

po

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f fa

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45%

30%

35%

20%

25%

40%

10%

5%

15%

0%

Increased debt

Reduced debt

No change in debt


FIGURE 37. GIPPSLAND RETURN ON ASSETS (%)

Re

turn

(%)

-12%

-10%

-8%

4%

2%

0%

-2%

-4%

-6%


553

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1022

Relative to other surveyed regions in Victoria, Gippsland has a higher proportion of farms with no financial obligations. Figure 39 indicates the movement of the financial position of businesses during the year. In 2018-19, 40 per cent of surveyed farms increased their total debt position, 25 per cent reduced debt, five per cent had no change and 30 per cent of participants had no financial obligations. Borrowed finance was used on a high proportion of farms to help cover the operating costs of the business.

Appendices


Appendices : South West

Main Financial Indicators 2018-19 South WestTABLE A1

Farm No Gross Farm Income Variable Costs Overhead Costs Cost Structure O/O Allowance EBIT (Operating

income)Net Farm Income

Return on Assets Debt Ratio Return on

Equity

$/HA $/HA $/HA % $/HA $/HA $/HA % % %

14 $1,073 $640 $115 70% $119 $199 $176 3.1% 2% 2.9%39 $1,120 $567 $123 62% $53 $378 $234 3.9% 13% 3.3%43 $1,344 $482 $322 60% $50 $489 $370 8.0% 9% 10.0%55 $1,325 $461 $355 62% $7 $503 $503 5.5% 0% 5.5%66 $680 $475 $311 116% $57 -$163 -$163 -3.1% 0% -3.1%87 $646 $302 $163 72% $69 $111 $101 1.7% 2% 1.5%88 $1,065 $485 $244 68% $82 $253 $182 4.7% 7% 4.4%114 $603 $245 $155 66% $77 $126 $123 2.3% 1% 2.3%512 $1,423 $699 $154 60% $183 $387 $369 7.0% 1% 7.0%522 $904 $302 $184 54% $27 $392 $357 7.5% 4% 7.8%627 $478 $240 $169 86% $48 $21 -$56 0.4% 16% -1.6%628 $1,729 $622 $255 51% $26 $827 $729 9.3% 6% 10.8%659 $933 $349 $91 47% $137 $355 $286 6.0% 7% 7.8%693 $1,116 $554 $156 64% $252 $153 $91 1.9% 6% 1.5%715 $1,348 $357 $365 54% $169 $457 $396 4.5% 4% 4.8%751 $1,752 $824 $250 61% $68 $609 $559 8.8% 3% 9.9%754 $529 $188 $128 60% $152 $60 $32 0.6% 5% 0.3%758 $1,245 $494 $181 54% $177 $394 $238 3.6% 12% 4.3%759 $780 $246 $59 39% $77 $397 $342 6.0% 7% 6.2%761 $1,683 $506 $185 41% $176 $816 $813 9.1% 0% 9.1%807 $948 $578 $200 82% $128 $41 -$23 0.4% 7% -0.2%809 $1,657 $528 $251 47% $347 $531 $446 5.6% 5% 5.8%1006 $1,244 $437 $421 69% $225 $160 -$29 1.4% 15% -0.5%1016 $1,444 $744 $234 68% $176 $289 $269 2.9% 1% 2.9%1017 $1,480 $660 $315 66% $327 $179 $77 1.2% 7% 0.6%1018 $1,385 $473 $380 62% $143 $389 $186 2.7% 15% 1.6%

Average $1,151 $479 $222 63% $129 $321 $254 4.0% 6% 4.0%Top 20% # $1,482 $547 $239 53% $69 $627 $566 8.5% 4% 9.5%Top 20% * $1,629 $588 $259 52% $125 $657 $610 7.7% 3% 8.2%

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



Wool Sheep Production 2018-19 South West

Key Physical Data 2018-19 South West

TABLE A3

TABLE A2

Farm No Average Rainfall

2018-19 Rainfall Stocking Rate S.R. - RF S.R. - RF July Stocking

Rate P Applied P Applied P Nutrient Change

K Nutrient Change

S Nutrient Change

MM MM DSE/HA DSE/HA/ 100MM

DSE/HA/ 25MM OVER

250MMDSE/HA $/HA

KG P/GRAZED

HA/100MMKG/HA KG/HA KG/HA

14 687 557 17 3.1 1.4 13 14 2.6 14 19 1539 673 603 20 3.4 1.4 82 11 1.8 11 34 2343 600 517 17 3.2 1.6 12 20 3.8 19 7 1055 624 577 12 2.2 1.0 20 43 7.5 37 -10 4066 557 451 11 2.5 1.4 10 0 0.1 2 8 -187 653 581 13 2.3 1.0 13 5 0.9 3 -1 -188 654 575 18 3.1 1.4 11 15 2.6 13 27 16114 592 514 10 1.9 0.9 10 7 1.3 5 -1 2512 619 516 16 3.2 1.5 12 14 2.7 13 57 21522 610 579 14 2.5 1.1 14 6 1.0 5 11 3627 610 530 11 2.0 0.9 11 14 2.6 14 3 17628 652 641 28 4.4 1.8 18 17 2.6 15 33 2659 631 513 12 2.4 1.2 12 10 2.0 9 3 11693 570 532 15 2.9 1.4 14 13 2.4 11 4 -1715 744 654 23 3.5 1.4 22 17 2.5 15 21 12751 657 506 24 4.8 2.4 25 15 2.9 13 8 9754 572 582 13 2.2 1.0 11 10 1.7 8 -1 11758 750 629 20 3.1 1.3 21 15 2.3 13 25 17759 664 538 12 2.3 1.1 11 11 2.0 6 -6 -4761 840 688 19 2.8 1.1 15 16 2.3 13 11 2807 611 581 19 3.2 1.4 22 20 3.5 20 69 47809 630 513 15 3.0 1.5 21 11 2.1 7 20 10

1006 718 654 23 3.6 1.4 19 5 0.7 2 4 31016 718 655 20 3.1 1.3 15 3 0.4 0 -2 -31017 752 577 23 3.9 1.7 21 19 3.3 16 17 111018 697 589 15 2.5 1.1 11 96 16.4 91 -1 103

Average 657 571 17 3.0 1.3 18 16 2.8 14 14 14Top 20% # 672 586 21 3.5 1.6 17 15 2.5 13 14 5Top 20% * 680 585 20 3.4 1.5 20 20 3.5 17 12 13

Farm No Stocking Rate

Adult Clean Wool

Cut

Clean Wool Cut

Clean Wool Cut

Clean Wool Cut

Net Clean Wool Price

Average Wool

Micron

Average Wool Yield

Ave Sale Price

Gross Margin

Gross Margin

Gross Margin

Lamb Marking

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

HA/100MM $/DSE %

14 17.1 3.5 39.2 2.3 7.0 $19.06 17.2 65% $112 $380 $68 $22 70%39 20.4 3.6 52.1 2.6 8.6 $20.88 17.8 68% $79 $653 $108 $32 50%55 12.4 3.1 28.1 2.3 4.9 $20.45 17.3 68% $87 $470 $81 $38 85%66 11.2 2.7 22.6 2.0 5.0 $21.06 16.9 63% $109 $176 $39 $16 72%88 17.8 3.9 54.2 3.0 9.4 $21.39 19.2 70% $68 $251 $44 $14 0%114 10.0 3.2 25.6 2.6 5.0 $16.99 18.1 65% $85 $204 $40 $20 68%512 16.3 3.6 48.8 3.0 9.5 $16.77 17.0 61% $106 $662 $128 $41 105%522 14.3 3.5 36.9 2.6 6.4 $21.98 17.4 61% $72 $695 $120 $49 75%627 10.5 3.0 24.7 2.4 4.7 $21.79 16.7 73% $78 $219 $41 $21 50%659 12.4 3.6 30.6 2.5 6.0 $20.74 17.3 67% $93 $472 $92 $38 79%759 12.3 2.7 27.1 2.2 5.0 $21.67 15.8 66% $80 $570 $106 $47 82%

Average 14.1 3.3 35.4 2.5 6.5 $20.25 17.3 66% $88 $432 $79 $31 67%

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



Prime Lamb Production 2018-19 South WestTABLE A4

Farm No Ewe Breed Net Greasy Wool Price Gross Margin Gross Margin Gross Margin Lamb Marking Ewe

$/KG $/HA $/HA/100MM $/DSE % % OF DSE

43 Xbred $2.91 $772 $149 $47 144% 65%87 Xbred $6.50 $262 $45 $20 94% 64%88 Xbred $10.22 $572 $99 $32 104% 68%512 Merino $11.99 $353 $69 $22 96% 65%522 Xbred $6.91 $382 $66 $27 119% 93%627 Xbred $6.85 $461 $87 $44 100% 85%628 Xbred $3.49 $1,047 $163 $37 116% 66%659 Xbred $6.48 $465 $91 $38 126% 66%715 Xbred $0.72 $980 $150 $43 122% 60%751 Xbred $3.42 $538 $106 $22 131% 56%754 Xbred $5.49 $301 $52 $24 103% 58%758 Xbred $5.96 $475 $76 $24 88% 99%761 Xbred $3.65 $1,167 $170 $60 154% 81%807 Xbred $10.29 $268 $46 $14 117% 64%809 Xbred $5.83 $1,157 $226 $76 123% 93%1006 Xbred $850 $130 $37 106% 57%1016 Xbred $8.15 $220 $34 $11 94% 72%1017 Xbred $8.00 $1,116 $193 $49 148% 67%1018 Xbred $4.78 $500 $85 $35 123% 78%

Average $6.20 $626 $107 $35 116% 71%

Farm No. Stocking Rate Lamb Produced

Lamb Produced

Lamb Produced

Ave Lamb Weight

Ave Lamb Price

Ave Lamb Price

Adult Gr. Wool Cut

Greasy Wool Cut

Average Wool Micron

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

43 16.6 274 126 24 16 $8.86 $143 3.0 18 3287 13.2 165 74 13 22 $6.53 $146 4.1 28 2888 17.8 293 132 23 22 $7.60 $170 2.3 18 25512 16.3 147 66 13 16 $7.11 $114 5.4 36 18522 14.3 217 98 17 21 $5.92 $125 4.3 17 29627 10.5 233 105 20 20 $6.36 $129 3.5 14 29628 28.1 480 216 34 23 $7.70 $176 3.4 35 33659 12.4 226 102 20 23 $6.33 $142 4.9 18 30715 22.8 195 88 13 10 $14.93 $156 4.4 38 34751 24.4 373 163 32 21 $7.60 $160 3.7 27 32754 12.6 248 112 19 19 $6.36 $121 4.8 36 28758 19.6 113 51 8 21 $7.71 $160 2.4 12 28761 19.4 404 182 26 24 $7.54 $181 6.6 46 30807 18.7 206 93 16 16 $7.42 $117 2.3 25 22809 15.3 435 196 38 26 $6.68 $173 3.8 27 301006 23.2 455 205 31 17 $6.68 $114 0 01016 20.4 290 131 20 21 $6.78 $140 3.7 38 271017 22.7 510 229 40 24 $7.18 $174 4.0 31 291018 14.5 273 123 21 22 $6.91 $153 4.2 28 29

Average 18.0 291 131 23 20 $7.48 $147 3.9 26 27



Beef Cattle Production 2018-19 South WestTABLE A5

Farm No Stocking Rate Beef Produced Beef Produced Beef Sold Average Sale Price Average Lwt Sales Average Sale Price

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

39 20.4 227 37.6 393 $1,186 352 $3.3787 13.2 241 41.5 250 $914 375 $2.4488 17.8 526 91.4 1712 $1,158 448 $2.59114 10.0 216 42.0 308 $1,101 521 $2.12522 14.3 215 37.2 335 $1,432 589 $2.43627 10.5 206 39.0 254 $909 389 $2.34693 15.4 333 62.6 303 $1,549 500 $3.10715 22.8 783 119.7 666 $1,021 399 $2.56751 24.4 957 189.1 1604 $938 387 $2.43754 12.6 231 39.7 234 $903 422 $2.14758 19.6 493 78.5 473 $1,363 527 $2.59807 18.7 621 106.8 943 $679 434 $1.57809 15.3 425 82.9 366 $2,378 627 $3.79

1016 20.4 307 46.9 354 $1,469 526 $2.791017 22.7 699 121.1 2174 $1,088 494 $2.20

1017 22.7 451 78.2 405 $1,167 530 $2.20Average 17.6 433 75.9 673 $1,203 470 $2.54

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

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

39 -$721 -$120 -$35 Oct 9% Other87 $351 $60 $27 Mar 103% 26% Autumn88 $297 $52 $17 Mar 103% 1% Autumn114 $333 $65 $33 Oct 45% Other522 $196 $34 $14 Aug 61% 18% Spring627 $221 $42 $21 Apr 96% 31% Autumn693 $387 $73 $25 Aug 93% 100% Spring715 $721 $110 $32 Oct 100% 4% Other751 $2,213 $437 $91 Aug 98% 11% Autumn754 $377 $65 $30 Aug 88% 66% Spring758 $668 $106 $34 Sep 85% 83% Spring807 $139 $24 $7 Sep 98% 17% Spring809 $740 $144 $49 Mar 97% 52% Autumn1016 $323 $49 $16 Jul 96% 30% Autumn1017 $1,156 $200 $51 Apr 2% Autumn

1017 $264 $46 $12 Sep 100% 40% SpringAverage $479 $87 $26 94% 33%



Wool Sheep Variable Costs 2018-19 South WestTABLE A6

Farm No Animal Health Contract Services

Supp Feed & Agistmt Pasture Casual Labour Freight/

CartageShearing Supplies Other Selling Costs Total Var.

Costs

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

14 $2.81 $9.68 $15.89 $7.47 $1.00 $0.47 $0.24 $0.72 $3.14 $41.4139 $2.11 $8.07 $10.45 $7.36 $0.00 $0.38 $0.37 $0.09 $0.08 $28.9155 $6.28 $8.28 $7.47 $4.00 $0.14 $0.39 $0.50 $0.20 $3.65 $30.9066 $3.03 $8.03 $28.67 $2.27 $0.00 $0.00 $0.14 $0.93 $4.09 $47.1788 $4.36 $4.81 $16.85 $11.57 $2.64 $0.00 $0.22 $0.51 $7.82 $48.79114 $2.43 $7.91 $17.65 $4.39 $1.28 $0.10 $0.31 $0.03 $2.09 $36.20512 $5.32 $7.83 $29.91 $9.09 $0.27 $0.49 $0.47 $0.50 $5.53 $59.40522 $1.26 $9.50 $10.73 $0.00 $0.00 $0.66 $0.00 $0.56 $1.06 $23.76627 $4.47 $13.18 $0.00 $5.48 $0.00 $0.20 $0.24 $0.26 $3.32 $27.15659 $2.36 $8.13 $19.82 $5.14 $0.00 $0.33 $0.45 $0.27 $3.44 $39.93759 $3.68 $6.69 $7.15 $9.47 $0.13 $0.66 $0.32 $0.69 $3.29 $32.08

Average $3.46 $8.37 $14.96 $6.02 $0.50 $0.33 $0.30 $0.43 $3.41 $37.79




Costs

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

14 $48 $166 $272 $128 $17 $8 $4 $12 $54 $70939 $43 $164 $213 $150 $0 $8 $8 $2 $2 $58955 $78 $103 $93 $50 $2 $5 $6 $2 $45 $38466 $34 $90 $321 $25 $0 $0 $2 $10 $46 $52888 $78 $86 $300 $206 $47 $0 $4 $9 $139 $868114 $24 $79 $176 $44 $13 $1 $3 $0 $21 $361512 $87 $128 $488 $148 $4 $8 $8 $8 $90 $969522 $18 $136 $154 $0 $0 $9 $0 $8 $15 $340627 $47 $138 $0 $57 $0 $2 $3 $3 $35 $284659 $29 $100 $245 $64 $0 $4 $6 $3 $42 $494759 $45 $82 $88 $116 $2 $8 $4 $8 $40 $393

Average $48 $116 $213 $90 $8 $5 $4 $6 $48 $538



Prime Lamb Variable Costs 2018-19 South WestTABLE A7




Costs


43 $2.82 $2.41 $11.18 $11.46 $0.00 $0.05 $0.08 $1.37 $0.07 $29.4487 $1.19 $5.54 $8.54 $9.98 $0.00 $0.74 $0.17 $0.25 $2.81 $29.2388 $2.79 $3.08 $6.24 $11.57 $1.69 $0.00 $0.14 $0.33 $1.89 $27.73

512 $3.11 $3.56 $13.71 $9.09 $0.12 $0.24 $0.22 $0.23 $6.50 $36.78522 $0.00 $0.00 $11.04 $0.00 $0.00 $0.86 $0.00 $0.00 $6.18 $18.09627 $3.85 $6.21 $0.00 $5.48 $0.00 $0.11 $0.11 $0.22 $2.05 $18.03628 $1.49 $3.50 $9.73 $6.72 $0.00 $0.00 $0.09 $0.82 $0.76 $23.11659 $1.40 $2.92 $11.73 $5.14 $0.00 $0.33 $0.16 $0.16 $1.33 $23.16715 $1.59 $3.39 $1.72 $6.68 $0.00 $0.40 $0.25 $2.10 $5.32 $21.44751 $1.37 $2.83 $21.75 $5.90 $0.26 $1.55 $0.07 $0.57 $3.03 $37.33754 $2.53 $8.74 $7.37 $4.22 $0.32 $2.73 $0.57 $0.29 $5.94 $32.69758 $0.60 $1.25 $0.00 $4.18 $0.00 $0.00 $0.01 $0.16 $4.75 $10.95761 $3.38 $7.65 $6.90 $4.81 $0.79 $1.21 $0.25 $1.56 $1.55 $28.10807 $2.92 $6.51 $14.41 $6.11 $0.00 $0.61 $0.00 $0.06 $1.17 $31.79809 $1.64 $3.42 $1.85 $6.69 $0.00 $0.13 $0.02 $0.28 $7.94 $21.99

1006 $0.00 $0.78 $5.31 $5.58 $0.00 $3.95 $0.00 $3.22 $3.75 $22.581016 $1.51 $2.05 $28.91 $7.08 $0.00 $0.14 $0.26 $0.00 $1.02 $40.971017 $3.61 $1.29 $9.88 $10.46 $0.00 $0.90 $0.12 $1.26 $1.36 $28.891018 $3.46 $3.87 $9.65 $8.49 $0.00 $0.74 $0.18 $0.63 $5.50 $32.51

Average $2.07 $3.63 $9.47 $6.82 $0.17 $0.77 $0.14 $0.71 $3.31 $27.10




Costs


43 $47 $40 $185 $190 $0 $1 $1 $23 $1 $48887 $16 $73 $113 $132 $0 $10 $2 $3 $37 $38588 $50 $55 $111 $206 $30 $0 $3 $6 $34 $494

512 $51 $58 $224 $148 $2 $4 $4 $4 $106 $600522 $0 $0 $158 $0 $0 $12 $0 $0 $89 $259627 $40 $65 $0 $57 $0 $1 $1 $2 $21 $189628 $42 $98 $273 $189 $0 $0 $3 $23 $21 $650659 $17 $36 $145 $64 $0 $4 $2 $2 $16 $286715 $36 $77 $39 $152 $0 $9 $6 $48 $121 $489751 $33 $69 $532 $144 $6 $38 $2 $14 $74 $912754 $32 $110 $93 $53 $4 $34 $7 $4 $75 $412758 $12 $25 $0 $82 $0 $0 $0 $3 $93 $215761 $66 $149 $134 $93 $15 $23 $5 $30 $30 $546807 $55 $122 $270 $114 $0 $11 $0 $1 $22 $596809 $25 $52 $28 $102 $0 $2 $0 $4 $121 $336

1006 $0 $18 $123 $130 $0 $92 $0 $75 $87 $5251016 $31 $42 $591 $145 $0 $3 $5 $0 $21 $8371017 $82 $29 $224 $237 $0 $20 $3 $29 $31 $6561018 $50 $56 $140 $123 $0 $11 $3 $9 $80 $471

Average $36 $62 $178 $124 $3 $15 $2 $15 $57 $492



Beef Cattle Variable Costs 2018-19 South WestTABLE A8

Farm No Enterprise Animal Health Contract Services

Supp Feed & Agistmt Pasture Casual Labour Freight/ Cartage Other Selling Costs Total Var. Costs

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

39 Other $1.45 $0.00 $0.00 $7.36 $0.00 $2.37 $0.00 $0.39 $11.5787 Autumn $1.52 $0.00 $0.00 $9.98 $0.26 $0.60 $0.07 $3.68 $16.1288 Autumn $6.41 $0.00 $69.95 $11.55 $7.34 $0.00 $0.00 $16.73 $111.99114 Other $0.67 $0.00 $4.16 $4.39 $0.43 $2.24 $0.04 $0.37 $12.30522 Spring $0.85 $0.00 $18.00 $0.00 $0.00 $1.09 $0.00 $0.55 $20.48627 Autumn $0.00 $0.00 $17.12 $5.48 $0.00 $0.00 $0.17 $4.20 $26.97693 Spring $2.21 $1.24 $18.83 $8.44 $4.77 $0.06 $1.15 $0.62 $37.32715 Other $0.00 $4.18 $0.00 $6.68 $0.00 $0.00 $0.00 $4.18 $15.04751 Autumn $0.53 $0.00 $0.00 $5.90 $0.00 $2.20 $0.00 $7.53 $16.17754 Spring $1.72 $0.02 $1.50 $4.22 $0.00 $1.43 $0.00 $3.07 $11.96758 Spring $1.81 $0.00 $19.74 $4.18 $0.00 $0.36 $0.16 $2.10 $28.35807 Spring $1.48 $1.48 $25.02 $6.11 $0.00 $1.20 $0.00 $0.00 $35.28809 Autumn $1.42 $1.78 $37.52 $6.69 $0.00 $0.10 $4.16 $3.42 $55.09

1016 Autumn $0.72 $0.00 $16.26 $7.08 $0.00 $1.68 $0.00 $0.37 $26.111017 Autumn $0.00 $0.00 $0.00 $10.46 $0.00 $0.00 $0.00 $9.26 $19.721017 Spring $4.02 $0.00 $13.04 $10.46 $0.00 $1.40 $0.93 $1.39 $31.24

Average $1.55 $0.54 $15.07 $6.81 $0.80 $0.92 $0.42 $3.62 $29.73

Farm No Animal Health Contract Services Supp Feed & Agistmt Pasture Casual Labour Freight/ Cartage Other Selling Costs Total Var. Costs

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

39 $29 $0 $0 $150 $0 $48 $0 $8 $23687 $20 $0 $0 $132 $3 $8 $1 $48 $21288 $114 $0 $1,248 $206 $131 $0 $0 $298 $1,997114 $7 $0 $41 $44 $4 $22 $0 $4 $123522 $12 $0 $258 $0 $0 $16 $0 $8 $293627 $0 $0 $179 $57 $0 $0 $2 $44 $282693 $34 $19 $290 $130 $74 $1 $18 $10 $576715 $0 $95 $0 $152 $0 $0 $0 $95 $343751 $13 $0 $0 $144 $0 $54 $0 $184 $395754 $22 $0 $19 $53 $0 $18 $0 $39 $151758 $36 $0 $388 $82 $0 $7 $3 $41 $557807 $28 $28 $469 $114 $0 $22 $0 $0 $661809 $22 $27 $573 $102 $0 $1 $63 $52 $841

1016 $15 $0 $332 $145 $0 $34 $0 $8 $5341017 $0 $0 $0 $237 $0 $0 $0 $210 $4471017 $91 $0 $296 $237 $0 $32 $21 $32 $709

Average $28 $11 $256 $124 $13 $17 $7 $68 $522



Pasture Costs Per Grazed Hectare 2018-19 South WestTABLE A9

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

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

14 $10 $3 $10 $116 $2 $14139 $12 $3 $0 $129 $0 $15243 $13 $11 $45 $116 $0 $19455 $9 $3 $5 $23 $0 $4066 $5 $5 $11 $4 $0 $2587 $17 $1 $30 $55 $19 $13488 $34 $14 $33 $144 $0 $225114 $3 $2 $3 $28 $0 $44512 $0 $7 $0 $147 $0 $166522 $0 $0 $0 $0 $0 $0627 $0 $0 $1 $56 $0 $57628 $50 $5 $9 $100 $34 $199659 $0 $6 $0 $63 $0 $68693 $19 $1 $56 $60 $2 $138715 $7 $18 $1 $128 $0 $152751 $20 $12 $3 $113 $8 $157754 $0 $8 $3 $44 $0 $54758 $0 $0 $0 $88 $0 $88759 $14 $9 $25 $29 $0 $81761 $46 $28 $45 $0 $3 $122807 $14 $7 $0 $107 $0 $128809 $37 $3 $0 $84 $0 $1251006 $27 $0 $0 $103 $0 $1301016 $17 $9 $0 $94 $40 $1611017 $50 $22 $0 $148 $29 $2491018 $19 $9 $3 $57 $18 $106

Average $16 $7 $11 $78 $6 $121Top 20% # $26 $11 $21 $66 $9 $134Top 20% * $32 $10 $12 $64 $9 $129


Overhead Costs Per Hectare 2018-19 South WestTABLE A10

Farm No Paid Labour Fuel & Vehicle Insurance R&M - Plant and Equip.

R&M - Land and Improv. Admin Rates & Rents Sundries Depreciation Total Overheads

$/HA $/HA $/HA $/HA $/HA $/HA $/HA $/HA $/HA $/HA14 $8 $7 $11 $9 $19 $33 $15 $0 $13 $11539 $36 $10 $6 $1 $6 $24 $19 $0 $21 $12343 $97 $25 $8 $16 $84 $29 $14 $0 $48 $32255 $187 $8 $13 $14 $61 $14 $26 $0 $32 $35566 $130 $20 $11 $13 $54 $13 $23 $4 $43 $31187 $61 $18 $7 $8 $29 $16 $12 $2 $12 $16388 $43 $28 $27 $22 $30 $43 $16 $0 $35 $244114 $29 $22 $17 $3 $38 $18 $14 $3 $12 $155512 $14 $14 $17 $8 $17 $23 $16 $8 $37 $154522 $49 $15 $6 $3 $58 $10 $15 $0 $28 $184627 $10 $17 $20 $24 $47 $10 $19 $0 $23 $169628 $140 $8 $14 $10 $5 $38 $25 $0 $15 $255659 $0 $19 $6 $6 $8 $9 $17 $0 $25 $91693 $1 $22 $11 $21 $6 $28 $23 $4 $41 $156715 $25 $62 $15 $22 $49 $59 $103 $5 $24 $365751 $55 $2 $14 $25 $60 $28 $20 $0 $46 $250754 $1 $14 $9 $2 $31 $22 $14 $1 $33 $128758 $4 $35 $13 $4 $75 $23 $12 $1 $14 $181759 $1 $1 $8 $5 $3 $12 $10 $0 $20 $59761 $41 $0 $10 $39 $17 $25 $24 $0 $31 $185807 $16 $32 $18 $13 $3 $29 $25 $1 $62 $200809 $15 $41 $38 $40 $25 $24 $11 $1 $56 $251

1006 $76 $0 $3 $42 $142 $95 $22 $11 $30 $4211016 $42 $15 $17 $22 $52 $40 $17 $10 $20 $2341017 $0 $12 $23 $46 $24 $55 $22 $2 $131 $3151018 $10 $10 $22 $19 $84 $78 $14 $7 $136 $380

Average $42 $18 $14 $17 $40 $31 $21 $2 $38 $222Top 20% # $71 $6 $11 $19 $35 $25 $21 $0 $30 $218Top 20% * $87 $12 $18 $26 $34 $26 $21 $0 $36 $259



Capital Structure 2018-19 South WestTABLE A11

Farm Labour Efficiency and Enterprise Mix 2018-19 South WestTABLE A12

Average Top 20% # Top 20% *FARM AREA (HA)

Freehold Area 1,067 1357 1292

Area Leased In 89 286 1

Area Leased Out 0 0 0

Effective Area 1,064 1,498 1,099

LAND VALUES

Total Land Value per Effective Hectare $6,335 $5,274 $6,424

Total Land Value per DSE $386 $262 $361

Owned Land Value per Hectare $6,079 $5,266 $5,655

Leased Land Value per Hectare $3,354 $0 $4,878

OTHER ASSETS (per Effective Hectare)

Plant & Vehicles $373 $393 $473

Livestock $1,317 $1,488 $1,583

Hay & Grain on Hand $60 $25 $58

Other Assets $245 $42 $136

Total Assets $8,330 $7,221 $8,674

LIABILITIES

Liabilities per Effective Hectare $1,154 $1,301 $1,021

EQUITY

Equity per Effective Hectare $6,828 $5,920 $7,631

Average Equity % 83% 81% 88%

RATIOS

Debt Ratio 6% 4% 3%

Plant & Equipment Ratio 4.1 4.1 3.7

Average Top 20% # Top 20% *

SHEEP ENTERPRISES

Average Sheep Number 6,591 10,793 8,408

Sheep Labour Efficiency (ha/person) 499 558 356

Sheep Labour Efficiency (DSE/person) 8,016 10,632 7,379

BEEF ENTERPRISES

Average Cattle Number 234 200 73

Cattle Labour Efficiency (ha/person) 707 569 428

Cattle Labour Efficiency (DSE/person) 11,074 12,137 10,155

TOTAL LABOUR EFFICIENCY

Hectares per person 422 451 328

DSE per person 7,406 9,544 7,421

ENTERPRISE MIX

Wool Sheep (%) 28% 14% 15%

Prime Lambs (%) 48% 79% 66%

Beef (%) 20% 6% 12%

Hay/Cropping (%) 4% 1% 7%






Supplementary Feed Data 2018-19 South WestTABLE A13

Yield (Wet T/HA)

Amount Fed to Sheep (Average wet KG/DSE)

Amount Fed to Cattle (Average wet KG/DSE)

Area Cut (HA)

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

14 3.3 25.7 0.0 16.7 100 039 2.8 0.5 0.0 20.4 0.0 0.0 0.0 25 043 5.0 6.8 0.0 12.2 32 055 2.8 1.9 0.0 15.1 0 7566 43.8 0.0 31.4 0 087 6.0 0.0 23.6 9.8 0.0 30.4 0.0 0 10088 4.7 6.4 5.9 22.8 0.9 139.5 104.6 0.0 60 47114 4.7 0.0 30.4 29.2 0.0 1.8 0.0 0 45512 7.8 4.5 21.8 32.3 21.8 24 70522 3.4 5.9 0.0 0.0 21.3 16.5 0.0 23.8 40 107627 2.6 0.0 0.0 0.0 81.9 0.0 0.0 3 0628 7.5 0.0 14.6 21.0 0 50659 3.1 34.3 0.0 7.1 87 0693 5.1 46.5 0.0 0.0 28 0715 0.0 0.0 0.8 0.0 0.0 0.0 0 0751 17.0 0.0 71.3 17.9 0.0 0.0 0.0 0 100754 1.6 2.4 0.0 2.5 16.8 0.0 0.0 0.0 16 5758 3.2 0.0 0.0 0.0 33.3 0.0 0.0 46 0759 0.0 0.0 17.9 0 0761 7.2 2.8 17.3 5.7 0 49807 2.3 22.2 0.0 16.0 49.2 0.0 0.0 80 0809 3.5 5.4 5.2 0.0 0.0 73.2 41.7 0.0 41 161006 14.8 0.0 0.0 0 01016 11.0 70.9 0.0 0.0 45.3 0.0 0.0 204 01017 6.3 0.0 0.0 12.8 0.0 28.3 1.8 0 121018 4.6 6.3 14.3 8.6 7.0 56 16

Average 4.3 6.3 10.8 8.9 12.1 32.4 13.8 1.7 32 27



Average Whole Farm Economic Performance – South WestTABLE A14

Note: ‘Real’ dollar values are the nominal values converted to 2018-19 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.

Year Gross Income Variable Costs Overhead Costs Net Income EBIT (Operating Profit)

Return on Assets

Return on Equity

NOMINAL ($/HA)

REAL($/HA)

NOMINAL ($/HA)

REAL($/HA)

NOMINAL ($/HA)

REAL($/HA)

NOMINAL ($/HA)

REAL($/HA)

NOMINAL ($/HA)

REAL($/HA) % %

1970-71 $46 $516 $15 $168 $10 $112 $20 $225 2.9% 3.3%1971-72 $46 $485 $12 $126 $11 $116 $22 $232 3.8% 3.2%1972-73 $86 $838 $14 $136 $12 $117 $60 $585 12.6% 14.4%1973-74 $111 $944 $20 $170 $18 $153 $73 $621 12.6% 15.3%1974-75 $66 $480 $16 $116 $17 $124 $33 $240 3.1% 4.8%1975-76 $68 $442 $21 $136 $19 $123 $27 $175 2.7% 3.1%1976-77 $90 $515 $23 $132 $21 $120 $46 $263 6.6% 6.8%1977-78 $94 $498 $30 $159 $23 $122 $40 $212 4.7% 4.6%1978-79 $137 $668 $32 $156 $31 $151 $74 $361 6.3% 6.4%1979-80 $167 $734 $40 $176 $30 $132 $97 $427 6.7% 6.9%1980-81 $156 $631 $58 $235 $33 $134 $65 $263 2.9% 3.7%1981-82 $130 $475 $49 $179 $38 $139 $42 $153 1.0% 0.4%1982-83 $122 $401 $53 $174 $39 $128 $30 $99 -0.1% -0.2%1983-84 $188 $594 $48 $152 $43 $136 $97 $307 5.1% 4.0%1984-85 $191 $566 $54 $160 $46 $136 $91 $270 4.4% 3.5%1985-86 $197 $538 $51 $139 $45 $123 $101 $276 3.8% 3.3%1986-87 $235 $587 $53 $132 $49 $122 $133 $332 6.1% 5.4%1987-88 $335 $782 $75 $175 $59 $138 $200 $467 9.5% 9.3%1988-89 $343 $744 $80 $174 $61 $132 $202 $438 7.7% 7.2%1989-90 $326 $657 $90 $181 $66 $133 $170 $342 5.8% 4.6%1990-91 $221 $431 $73 $142 $57 $111 $91 $177 2.1% -0.5%1991-92 $190 $366 $68 $131 $55 $106 $67 $129 1.0% -2.2%1992-93 $198 $374 $67 $127 $54 $102 $77 $145 1.5% -1.1%1993-94 $220 $409 $85 $158 $54 $99 $82 $151 1.8% 0.1%1994-95 $278 $494 $104 $184 $84 $149 $91 $162 2.5% 0.9%1995-96 $273 $471 $98 $169 $82 $141 $93 $161 2.6% 0.8%1996-97 $287 $493 $113 $194 $76 $131 $97 $167 2.7% 1.1%1997-98 $302 $515 $117 $200 $80 $137 $104 $177 2.6% 1.3%1998-99 $285 $481 $116 $197 $79 $133 $90 $151 1.8% 0.3%1999-00 $308 $504 $126 $206 $80 $131 $102 $166 2.1% 0.8%2000-01 $418 $645 $125 $193 $95 $146 $198 $306 5.4% 5.2%2001-02 $536 $805 $150 $224 $102 $154 $284 $427 7.6% 8.7%2002-03 $515 $752 $200 $292 $106 $154 $209 $305 4.7% 4.9%2003-04 $519 $740 $183 $260 $85 $122 $251 $358 5.0% 5.7%2004-05 $501 $697 $206 $287 $92 $128 $203 $282 $137 $191 3.0% 2.3%2005-06 $453 $606 $202 $271 $91 $122 $160 $214 $80 $107 1.6% 1.2%2006-07 $429 $562 $239 $313 $103 $135 $87 $114 $27 $35 0.0% -2.9%2007-08 $636 $798 $260 $326 $122 $153 $255 $320 $189 $237 3.1% 2.4%2008-09 $602 $744 $274 $339 $130 $161 $199 $246 $82 $101 2.2% 1.0%2009-10 $658 $788 $259 $310 $121 $145 $278 $333 $210 $252 3.2% 2.5%2010-11 $793 $917 $214 $248 $137 $158 $442 $511 $366 $423 5.7% 5.7%2011-12 $696 $795 $341 $389 $137 $157 $293 $335 $225 $257 3.7% 3.3%2012-13 $547 $610 $285 $318 $141 $157 $121 $135 $60 $67 1.0% -1.2%2013-14 $608 $659 $252 $273 $150 $163 $206 $223 $142 $154 2.2% 0.8%2014-15 $698 $745 $319 $341 $158 $169 $221 $236 $153 $163 2.3% 1.8%2015-16 $764 $808 $306 $323 $159 $168 $299 $316 $228 $241 3.4% 2.9%2016-17 $752 $780 $221 $229 $180 $187 $179 $186 $457 $474 6.9% 8.0%2017-18 $1,061 $1,078 $344 $350 $194 $197 $317 $322 $389 $395 5.5% 5.8%2018-19 $1,151 $1,151 $479 $479 $222 $222 $254 $254 $321 $321 4.0% 4.0%

Long Term Average $639 $217 $139 $271 $228 4.1% 3.5%2018-19 vs LT avg $512 $262 $82 -$16 $94 0.0% 0.5%




Year Wool Sheep Prime Lambs Beef Cattle

NOMINAL ($/DSE)

REAL ($/DSE)

NOMINAL($/HA)

REAL($/HA)

NOMINAL ($/DSE)

REAL ($/DSE)

NOMINAL($/HA)

REAL($/HA)

NOMINAL ($/DSE)

REAL ($/DSE)

NOMINAL($/HA)

REAL($/HA)

1970-71 $2 $17 $18 $202 $2 $25 $31 $348 $3 $31 $40 $449 1971-72 $2 $23 $27 $285 $3 $27 $31 $327 $3 $31 $35 $369 1972-73 $8 $82 $96 $935 $8 $77 $96 $935 $3 $29 $34 $331 1973-74 $9 $75 $105 $893 $9 $79 $108 $918 $5 $44 $60 $510 1974-75 $5 $37 $53 $385 $6 $42 $67 $487 $1 $10 $16 $116 1975-76 $5 $33 $63 $409 $7 $46 $98 $636 -$0 -$2 -$3 -$19 1976-77 $7 $40 $85 $486 $9 $54 $115 $658 $1 $6 $12 $69 1977-78 $7 $35 $83 $440 $8 $42 $100 $530 -$1 -$5 -$12 -$64 1978-79 $9 $45 $114 $556 $9 $43 $98 $478 $8 $38 $100 $487 1979-80 $10 $45 $122 $537 $10 $44 $128 $563 $8 $36 $91 $400 1980-81 $8 $31 $86 $348 $8 $32 $116 $469 $3 $14 $41 $166 1981-82 $7 $26 $78 $285 $6 $20 $69 $252 $2 $7 $21 $77 1982-83 $6 $20 $64 $210 $7 $25 $96 $316 -$3 -$9 -$27 -$89 1983-84 $12 $37 $121 $382 $9 $27 $99 $313 $9 $27 $79 $250 1984-85 $12 $35 $129 $382 $9 $26 $118 $350 $10 $30 $110 $326 1985-86 $12 $33 $131 $358 $13 $35 $159 $434 $10 $28 $107 $292 1986-87 $15 $37 $157 $392 $20 $50 $255 $637 $11 $28 $125 $312 1987-88 $25 $59 $262 $612 $21 $49 $251 $586 $10 $22 $112 $261 1988-89 $24 $51 $249 $540 $23 $49 $264 $573 $10 $22 $110 $239 1989-90 $19 $37 $196 $395 $17 $34 $212 $427 $9 $17 $100 $201 1990-91 $10 $20 $106 $206 $12 $23 $139 $271 $11 $22 $147 $286 1991-92 $8 $16 $85 $164 $11 $22 $110 $212 $10 $20 $110 $212 1992-93 $9 $16 $86 $162 $13 $25 $174 $329 $13 $24 $142 $268 1993-94 $9 $16 $85 $158 $13 $24 $158 $294 $13 $23 $133 $247 1994-95 $14 $25 $139 $247 $14 $25 $201 $357 $7 $13 $83 $148 1995-96 $12 $20 $118 $203 $20 $35 $250 $432 $6 $11 $77 $133 1996-97 $12 $21 $143 $245 $17 $30 $282 $485 $3 $5 $42 $71 1997-98 $12 $21 $139 $237 $17 $29 $228 $390 $7 $11 $91 $155 1998-99 $9 $15 $108 $182 $15 $25 $204 $345 $11 $18 $140 $236 1999-00 $12 $20 $144 $236 $12 $19 $173 $283 $10 $17 $131 $215 2000-01 $17 $26 $221 $341 $17 $26 $251 $388 $21 $32 $292 $450 2001-02 $23 $35 $284 $427 $28 $41 $421 $632 $23 $34 $335 $502 2002-03 $16 $23 $232 $339 $20 $29 $346 $506 $11 $16 $190 $277 2003-04 $16 $23 $243 $347 $25 $35 $380 $542 $21 $30 $339 $484 2004-05 $13 $18 $201 $279 $20 $28 $314 $436 $20 $28 $309 $430 2005-06 $8 $10 $119 $159 $15 $20 $247 $330 $11 $15 $179 $239 2006-07 $8 $11 $112 $147 $11 $14 $139 $182 $9 $12 $177 $232 2007-08 $14 $18 $236 $296 $13 $16 $257 $322 $14 $18 $268 $336 2008-09 $12 $15 $179 $221 $18 $22 $271 $335 $20 $24 $312 $385 2009-10 $17 $21 $267 $320 $30 $36 $459 $550 $16 $19 $243 $291 2010-11 $37 $43 $550 $636 $41 $47 $628 $726 $32 $37 $538 $622 2011-12 $28 $32 $382 $437 $28 $32 $453 $517 $22 $25 $322 $368 2012-13 $12 $14 $166 $185 $15 $17 $232 $259 $16 $18 $237 $264 2013-14 $12 $13 $158 $171 $27 $30 $428 $464 $19 $21 $287 $311 2014-15 $14 $15 $188 $201 $25 $27 $394 $421 $30 $32 $414 $442 2015-16 $18 $19 $210 $222 $32 $34 $497 $525 $42 $44 $618 $653 2016-17 $42 $44 $362 $376 $53 $55 $496 $515 $47 $49 $484 $502 2017-18 $47 $47 $670 $680 $38 $39 $722 $734 $70 $71 $1,279 $1,300 2018-19 $31 $31 $432 $432 $35 $35 $626 $626 $26 $26 $479 $479

Long Term Average $29 $353 $34 $462 $23 $311 2018-19 vs LT avg $1 $79 $1 $163 $3 $168

Historical Gross Margins For Livestock EnterprisesTABLE A15


Historical Data For Selected Average Profitability Indicators - South West

TABLE A16

Year Stocking Rate Wool Sheep

Micron Wool Cut (Gr.)

Net Wool Price Average Sale Price Lamb

DSE/HA (KG/HA) NOMINAL ($/KG) GR.

REAL ($/KG) GR.

NOMINAL($/HD)

REAL($/HD) %

1970-71 15.3 42 $0.71 $7.97 $3 $30 78%1971-72 14.0 43 $0.83 $8.75 $3 $26 66%1972-73 12.2 42 $2.25 $21.92 $7 $65 64%1973-74 12.5 47 $1.84 $15.64 $12 $103 81%1974-75 12.1 51 $1.30 $9.45 $4 $31 81%1975-76 13.6 51 $1.43 $9.28 $4 $25 84%1976-77 12.9 47 $1.88 $10.75 $9 $49 77%1977-78 14.0 46 $1.96 $10.38 $10 $52 79%1978-79 12.7 48 $2.05 $9.99 $16 $78 80%1979-80 13.0 42 $2.58 $11.35 $18 $80 85%1980-81 12.8 40 $2.60 $10.52 $17 $68 77%1981-82 12.0 36 $2.71 $9.90 $12 $44 72%

1982-83 11.7 38 $2.66 $8.74 $8 $27 79%

1983-84 11.7 42 $2.84 $8.98 $16 $51 83%1984-85 13.1 45 $3.17 $9.40 $14 $41 83%1985-86 12.0 44 $3.48 $9.51 $12 $33 84%1986-87 12.2 43 $4.02 $10.05 $17 $41 79%1987-88 11.8 43 $7.03 $16.41 $17 $41 82%1988-89 12.1 43 $6.84 $14.84 $19 $41 82%1989-90 12.4 45 $5.99 $12.07 $11 $22 77%1990-91 11.8 21.3 41 $4.30 $8.38 $5 $10 75%1991-92 11.4 21.3 38 $3.67 $7.06 $8 $16 71%1992-93 11.6 21.7 44 $2.95 $5.57 $13 $25 71%1993-94 11.3 21.3 37 $3.59 $6.67 $13 $25 72%1994-95 11.1 21.2 38 $5.60 $9.96 $15 $26 76%1995-96 12.4 21.3 45 $3.70 $6.38 $21 $36 77%1996-97 13.9 20.9 46 $4.50 $7.73 $19 $32 77%1997-98 13.3 20.7 42 $4.63 $7.91 $20 $35 75%1998-99 14.2 20.8 51 $3.45 $5.83 $17 $28 81%1999-00 14.4 20.4 52 $4.44 $7.26 $13 $21 84%2000-01 14.9 20.2 52 $5.57 $8.60 $26 $39 77%2001-02 15.2 20.1 55 $5.78 $8.68 $43 $65 77%2002-03 15.6 19.5 51 $6.90 $10.09 $35 $51 73%2003-04 16.0 19.4 54 $5.73 $8.17 $43 $62 72%2004-05 15.8 19.2 55 $5.32 $7.40 $41 $57 78%2005-06 15.5 18.9 43 $5.45 $7.29 $35 $47 76%2006-07 14.6 18.7 51 $6.40 $8.39 $30 $40 74%2007-08 17.5 18.4 52 $6.26 $7.85 $40 $50 79%2008-09 16.2 18.3 49 $6.28 $7.76 $44 $54 75%2009-10 16.0 18.2 48 $6.53 $7.82 $69 $83 73%2010-11 15.8 18.6 48 $9.51 $11.00 $104 $120 72%2011-12 15.3 18.4 44 $8.81 $10.07 $69 $79 84%2012-13 15.4 17.7 45 $7.85 $8.76 $42 $47 76%2013-14 15.0 17.5 44 $7.54 $8.17 $48 $52 67%2014-15 14.8 17.7 45 $7.60 $8.11 $64 $68 76%2015-16 14.0 17.8 38 $8.58 $9.07 $66 $70 81%2016-17 9.9 17.8 31 $11.70 $12.14 $104 $108 75%2017-18 17.8 17.4 49 $14.74 $14.97 $86 $87 79%

2018-19 17.0 17.3 54 $13.39 $13.39 $88 $88 67%

Long Term Average 13.7 19.4 45 $9.72 $50 77%

2018-19 vs LT avg 3.3 -2.0 8 $3.66 $38 -10%



Historical Data For Selected Average Profitability Indicators - South West

TABLE A16 [CONTD.]

Year Prime Lamb Beef Cattle

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

KG/HA NOMINAL ($/KG) GR.

REAL ($/KG) GR.

NOMINAL ($/HD)

REAL ($/HD) % % NOMINAL

($/HD)REAL($/HD)

1970-71 28 $0.68 $7.63 $4 $46 100% 93% $93 $1,044 1971-72 46 $0.74 $7.80 $4 $40 87% 89% $90 $949 1972-73 35 $1.95 $19.00 $7 $66 90% 89% $97 $945 1973-74 39 $1.23 $10.46 $14 $122 88% 92% $134 $1,139 1974-75 43 $0.94 $6.84 $6 $44 99% 92% $56 $407 1975-76 45 $1.33 $8.64 $7 $42 105% 91% $40 $260 1976-77 42 $1.66 $9.50 $10 $58 101% 87% $55 $315 1977-78 45 $1.66 $8.79 $13 $66 104% 84% $69 $365 1978-79 32 $1.89 $9.21 $17 $81 96% 91% $188 $916 1979-80 31 $2.07 $9.10 $21 $91 96% 90% $263 $1,157 1980-81 32 $1.90 $7.69 $19 $77 94% 90% $235 $951 1981-82 30 $2.39 $8.73 $13 $49 69% 90% $172 $628

1982-83 40 $1.99 $6.54 $11 $36 94% 93% $180 $592

1983-84 41 $1.93 $6.10 $19 $59 97% 95% $332 $1,049 1984-85 40 $2.20 $6.52 $15 $45 102% 88% $322 $955 1985-86 36 $2.30 $6.28 $18 $48 103% 87% $362 $989 1986-87 44 $2.92 $7.30 $25 $62 104% 89% $363 $907 1987-88 37 $4.79 $11.18 $25 $57 108% 90% $371 $866 1988-89 41 $4.24 $9.20 $26 $55 101% 86% $389 $844 1989-90 43 $3.39 $6.83 $24 $48 106% 89% $406 $818 1990-91 41 $1.79 $3.49 $21 $40 115% 89% $381 $742 1991-92 26 $2.82 $5.43 $19 $37 95% 88% $352 $678 1992-93 43 $2.53 $4.78 $33 $62 97% 88% $416 $786 1993-94 41 $2.64 $4.91 $37 $69 100% 84% $454 $843 1994-95 43 $3.67 $6.52 $32 $57 96% 88% $390 $693 1995-96 38 $3.23 $5.57 $48 $82 92% 88% $421 $725 1996-97 38 $3.84 $6.60 $39 $67 98% 89% $311 $535 1997-98 34 $3.49 $5.95 $38 $64 95% 90% $330 $563 1998-99 36 $2.48 $4.18 $33 $56 98% 91% $411 $694 1999-00 36 $2.85 $4.67 $30 $49 101% 91% $461 $755 2000-01 41 $3.32 $5.13 $38 $58 100% 92% $616 $951 2001-02 41 $4.25 $6.38 $61 $92 102% 89% $729 $1,094 2002-03 36 $5.28 $7.72 $62 $91 98% 90% $546 $798 2003-04 35 $3.95 $5.64 $71 $101 97% 88% $661 $942 2004-05 33 $3.62 $5.04 $67 $93 99% 88% $715 $994 2005-06 32 $2.96 $3.96 $56 $75 107% 86% $655 $876 2006-07 32 $3.94 $5.16 $56 $73 98% 89% $502 $658 2007-08 33 $3.57 $4.48 $62 $78 101% 85% $586 $735 2008-09 34 $3.13 $3.87 $74 $92 110% 88% $732 $904 2009-10 36 $4.10 $4.91 $91 $109 104% 90% $702 $841 2010-11 34 $5.74 $6.64 $123 $143 101% 87% $853 $987 2011-12 32 $4.49 $5.14 $95 $109 112% 84% $774 $885 2012-13 30 $4.19 $4.68 $70 $78 108% 85% $666 $743 2013-14 28 $5.15 $5.58 $95 $103 102% 88% $732 $793 2014-15 31 $4.81 $5.14 $95 $101 116% 87% $794 $848 2015-16 32 $5.15 $5.44 $101 $107 117% 93% $1,126 $1,190 2016-17 19 $6.60 $6.85 $134 $139 113% 85% $1,576 $1,635 2017-18 32 $4.94 $5.02 $129 $131 115% 91% $1,373 $1,395

2018-19 26 $6.20 $6.20 $147 $147 116% 94% $1,203 $1,203

Long Term Average 36 $6.70 $75 101% 89% $849

2018-19 vs LT avg -10 -$0.50 $72 15% 5% $355




Appendices : Northern Victoria

Main Financial Indicators 2018-19 NorthernTABLE B1

Farm No Gross Farm Income Variable Costs Overhead Costs Cost Structure O/O Allowance EBIT (Operating

income) Net Farm Income


Equity

$/HA $/HA $/HA % $/HA $/HA $/HA % % %

584 $1,451 $700 $198 62% $25 $527 $366 4.4% 11% 6.4%

585 $302 $88 $87 58% $92 $36 $15 0.7% 7% 0.3%

586 $467 $211 $188 85% $111 -$43 -$43 -0.6% 0% -0.6%

588 $670 $182 $82 39% $61 $345 $316 6.2% 4% 7.2%

589 $470 $179 $148 70% $150 -$7 -$89 -0.1% 17% -1.2%

599 $904 $413 $76 54% $143 $272 $195 4.0% 9% 5.3%

614 $400 $126 $94 55% $79 $100 $61 1.3% 10% 1.5%

630 $613 $115 $123 39% $161 $214 $198 3.3% 3% 3.3%

678 $364 $258 $110 101% $201 -$205 -$295 -2.5% 25% -6.2%

683 $460 $124 $381 110% $31 -$77 -$77 -0.6% 0% -0.6%

688 $679 $111 $152 39% $16 $399 $399 7.7% 0% 8.0%

706 $618 $262 $338 97% $178 -$160 -$297 -1.9% 22% -4.2%

707 $990 $248 $101 35% $33 $608 $556 5.6% 5% 6.8%

708 $671 $221 $153 56% $49 $248 $248 2.3% 0% 2.3%

709 $583 $85 $78 28% $205 $214 $173 2.9% 7% 2.5%

711 $765 $309 $204 67% $235 $18 $4 0.3% 2% 0.1%

744 $755 $245 $193 58% $101 $215 $140 5.6% 10% 12.3%

745 $894 $556 $151 79% $90 $97 $61 1.3% 4% 1.2%

756 $600 $289 $121 68% $113 $77 -$76 1.0% 26% -2.3%

757 $1,438 $800 $448 87% $0 $189 $166 1.4% 2% 1.3%

800 $612 $441 $344 128% $0 -$173 -$174 -1.4% 0% -1.4%

802 $794 $910 $176 137% $177 -$469 -$735 -7.5% 34% -32.7%

803 $511 $339 $109 88% $114 -$51 -$62 -0.8% 2% -1.0%

1012 $155 $209 $91 193% $174 -$319 -$319 -4.9% 0% -4.9%

1013 $1,042 $703 $338 100% $151 -$150 -$336 -1.4% 18% -4.8%

1015 $473 $575 $190 162% $561 -$853 -$944 -12.5% 19% -17.7%

Average $680 $335 $180 81% $125 $40 -$21 0.5% 9% -0.7%

Top 20% # $909 $297 $145 47% $47 $419 $355 5.9% 6% 8.1%

Top 20% * $939 $331 $122 46% $56 $430 $366 5.6% 6% 6.7%

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



Key Physical Data 2018-19 NorthernTABLE B2



2018-19 Rainfall Stocking Rate SR-RF SR-RF July Stocking

Rate P Applied P Applied P Nutrient Change

K Nutrient Change

S Nutrient Change


DSE/HA/ 25MM OVER

250MMDSE/HA KG P/

GRAZED HA

KG P/GRAZED


584 705 700 19 2.8 1.1 17 19 2.7 18 8 20585 775 568 9 1.5 0.7 7 0 0.0 -1 2 -1586 518 417 7 1.7 1.0 6 0 0.0 0 1 -1588 570 408 9 2.1 1.4 8 5 1.2 4 4 11589 579 502 13 2.6 1.3 12 0 0.0 0 2 -1599 695 510 13 2.6 1.3 10 2 0.3 1 1 -2614 468 433 7 1.7 1.0 8 0 0.0 -1 -2 -1630 729 547 11 2.0 0.9 12 6 1.0 4 -1 5678 521 385 8 2.2 1.6 8 7 1.8 8 10 8683 669 425 7 1.7 1.0 10 2 0.4 1 0 2688 695 464 11 2.4 1.3 10 7 1.6 6 1 1706 439 332 3 0.7 0.8 5 8 2.3 7 16 37707 950 911 14 1.5 0.5 12 9 1.0 6 -3 9708 845 640 14 2.2 0.9 15 9 1.5 9 5 11709 755 638 10 1.5 0.6 8 1 0.1 -2 -1 -3711 586 615 7 1.1 0.5 12 6 1.0 3 -4 2744 457 332 4 1.2 1.2 6 13 4.0 10 -4 1745 853 594 15 2.6 1.1 12 12 2.1 12 1 13756 770 473 10 2.0 1.1 7 3 0.6 2 6 6757 669 542 18 3.3 1.6 15 12 2.3 9 2 7800 707 575 11 2.0 0.9 11 2 0.3 1 3 -1802 547 341 10 3.1 2.9 9 19 5.7 24 53 9803 519 518 6 1.1 0.5 7 7 1.4 8 4 8

1012 625 391 4 1.1 0.7 9 4 1.1 4 1 51013 797 775 21 2.7 1.0 2 18 2.3 16 12 -11015 840 602 11 1.8 0.8 10 0 0.0 1 12 1

Average 665 525 10 2.0 1.1 9 7 1.3 6 5 6Top 20% # 675 563 11 2.0 1.1 11 11 2.1 9 1 8Top 20% * 723 599 13 2.3 1.1 11 8 1.4 7 2 8



Prime Lamb Production 2018-19 NorthernTABLE B4

Farm No Stocking Rate Lamb Produced

Lamb Produced

Lamb Produced

Ave Lamb Weight

Ave Lamb Price

Ave Lamb Price

Adult Gr. Wool Cut

Greasy Wool Cut

Average Wool Micron


588 8.7 203 91 22 21 $7.14 $152 4.6 17 21599 13.4 251 113 22 22 $6.67 $147 4.4 25 27614 7.3 150 67 16 36 $4.07 $146 0 0 0630 10.8 216 97 18 22 $6.38 $139 4.5 20 29688 11.1 218 98 21 21 $6.14 $130 2.8 14 27744 4.0 152 68 21 26 $7.73 $204 5.3 18 29756 9.7 148 67 14 20 $6.58 $132 4.9 19 20757 18.1 325 146 27 20 $7.64 $157 4.0 29 26803 5.8 99 45 9 21 $7.94 $164 9.0 27 19

Average 9.9 196 88 19 23 $6.70 $152 4.4 19 22


$/KG $/HA $/HA/100MM $/DSE % % fo DSE

588 Merino $10.60 $582 $143 $67 136% 82%599 Xbred $7.25 $461 $90 $34 131% 71%614 Merino $0.00 $165 $38 $23 80% 72%630 Xbred $6.85 $603 $110 $56 123% 89%688 Xbred $13.84 $791 $171 $71 130% 85%744 Xbred $4.36 $237 $71 $59 116% 97%756 Merino $12.65 $345 $73 $36 112% 60%757 Xbred $6.93 $515 $95 $28 120% 69%803 Merino $13.51 $324 $63 $56 74% 90%

Average $8.44 $447 $95 $48 114% 79%

Wool Sheep Production 2018-19 NorthernTABLE B3


Adult Clean Wool Cut

Clean Wool Cut

Clean Wool Cut

Clean Wool Cut


Average Wool Micron

Average Wool Yield

Ave Sale Price

Gross Margin

Gross Margin

Gross Margin

Lamb Marking

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

100MM $/DSE %

584 19.4 3.6 45.3 2.3 6.5 $21.14 17.2 68% $99 $886 $127 $46 81%586 6.9 3.6 17.7 2.6 4.3 $18.54 17.2 71% $79 $257 $62 $37 105%588 8.7 3.9 21.2 2.4 5.2 $20.09 18.0 69% $115 $439 $108 $50 80%589 13.0 2.2 19.3 1.5 3.8 $17.42 17.1 73% $108 $235 $47 $18 92%599 13.4 3.3 28.2 2.1 5.5 $24.73 17.3 69% $68 $504 $99 $38 81%614 7.3 4.1 28.4 3.9 6.6 $15.84 18.5 71% $63 $249 $57 $34 0%711 6.5 3.0 12.9 2.0 2.1 $18.88 18.2 67% $139 $349 $57 $54 97%744 4.0 3.8 8.2 2.0 2.5 $18.23 20.2 64% $160 $234 $71 $58 95%745 15.4 3.1 28.2 1.8 4.7 $20.64 15.0 72% $51 $248 $42 $16 71%803 5.8 5.2 21.6 3.7 4.2 $20.14 19.0 67% $123 $133 $26 $23 86%

1012 4.2 3.2 6.1 1.5 1.6 $18.66 17.5 66% $77 -$49 -$13 -$12 81%Average 9.5 3.5 21.6 2.3 4.3 $19.48 17.7 69% $98 $317 $62 $33 79%



Beef Cattle Production 2018-19 NorthernTABLE B5



584 19.4 455 65.0 427 $1,505 533 $2.83585 8.6 122 21.4 152 $880 345 $2.55588 8.7 117 28.6 135 $701 325 $2.16630 10.8 188 34.4 223 $970 424 $2.29678 8.4 152 39.4 176 $683 328 $2.08683 7.0 72 17.0 258 $1,133 413 $2.74688 11.1 118 25.5 107 $1,027 387 $2.66707 13.5 316 34.7 341 $1,286 441 $2.91708 14.2 218 34.1 236 $1,054 390 $2.70709 9.6 316 49.5 293 $958 565 $1.70745 15.4 140 23.6 305 $1,057 212 $4.98756 9.7 192 40.6 224 $829 428 $1.94757 18.1 409 75.5 338 $1,250 442 $2.83800 11.2 214 37.2 332 $618 329 $1.88802 10.4 296 86.8 288 $1,942 701 $2.77803 5.8 89 17.3 96 $993 396 $2.56

1013 20.6 469 60.5 333 $1,201 482 $2.501015 11.0 128 21.2 265 $1,351 434 $3.11

Average 11.9 223 39.6 252 $1,080 421 $2.62


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

584 $469 $67 $24 Sep 81% 44% Spring585 $216 $38 $25 Aug 94% 100% Spring588 $219 $54 $25 Aug 100% 5% Spring630 $241 $44 $22 Apr 100% 29% Autumn678 $81 $21 $10 Apr 83% 100% Autumn683 $206 $48 $29 Oct 100% Other688 $136 $29 $12 Aug 102% 34% Spring707 $707 $78 $52 Aug 80% 100% Spring708 $376 $59 $26 Jul 83% 100% Spring709 $530 $83 $55 Sep 88% 100% Spring745 $346 $58 $23 Sep 95% 23% Spring756 $31 $7 $3 Sep 88% 14% Spring757 $70 $13 $4 Mar 87% 48% Autumn800 -$33 -$6 -$3 Oct 77% 100% Other802 -$106 -$31 -$10 Aug 93% 100% Spring803 $4 $1 $1 Mar 90% 51% Autumn

1013 $281 $36 $14 Jul 79% 100% Spring1015 -$40 -$7 -$4 Oct 74% 100% Other

Average $207 $33 $17 88% 69%



Wool Sheep Variable Costs 2018-19 Northern

Prime Lamb Variable Costs 2018-19 Northern

TABLE B6

TABLE B7


Supp Feed & Agistmt Pasture Casual Labour Freight/ Cartage Shearing

Supplies Other Selling Costs Total Var. Costs


584 $4.36 $7.27 $7.70 $9.04 $0.00 $0.51 $0.26 $0.89 $2.55 $32.57586 $1.63 $5.58 $22.21 $0.00 $0.00 $0.20 $0.47 $0.47 $5.98 $36.55588 $0.92 $3.49 $8.56 $4.75 $0.00 $0.48 $0.14 $0.70 $4.21 $23.25589 $1.02 $2.67 $8.03 $1.54 $0.00 $0.19 $0.00 $0.25 $2.12 $15.81599 $3.14 $11.21 $12.33 $1.67 $0.18 $0.56 $0.27 $0.72 $2.68 $32.75614 $2.76 $7.76 $1.22 $1.80 $0.00 $1.41 $0.48 $3.59 $1.66 $20.67711 $2.39 $4.47 $12.72 $4.29 $0.00 $0.76 $0.83 $0.12 $5.98 $31.56744 $2.11 $8.57 $22.28 $3.23 $0.26 $0.06 $0.37 $1.91 $7.34 $46.12745 $4.97 $9.81 $10.51 $6.30 $2.64 $0.16 $0.34 $0.81 $2.11 $37.64803 $3.09 $3.43 $63.15 $6.54 $0.00 $0.00 $1.31 $3.66 $6.10 $87.29

1012 $3.05 $2.40 $13.80 $25.73 $0.00 $0.17 $0.12 $4.37 $11.66 $61.31Average $2.68 $6.06 $16.59 $5.90 $0.28 $0.41 $0.42 $1.59 $4.76 $38.68


Supp Feed & Agistmt Pasture Casual Labour Freight/ Cartage Shearing

Supplies Other Selling Costs Total Var. Costs


584 $85 $141 $150 $176 $0 $10 $5 $17 $50 $633586 $11 $39 $153 $0 $0 $1 $3 $3 $41 $252588 $8 $30 $74 $41 $0 $4 $1 $6 $37 $202589 $13 $35 $105 $20 $0 $2 $0 $3 $28 $206599 $42 $150 $165 $22 $2 $7 $4 $10 $36 $440614 $20 $56 $9 $13 $0 $10 $3 $26 $12 $150711 $16 $29 $83 $28 $0 $5 $5 $1 $39 $205744 $8 $34 $89 $13 $1 $0 $1 $8 $29 $185745 $76 $151 $162 $97 $41 $2 $5 $12 $32 $579803 $18 $20 $367 $38 $0 $0 $8 $21 $35 $507

1012 $13 $10 $58 $108 $0 $1 $1 $18 $49 $258Average $28 $63 $129 $51 $4 $4 $3 $11 $35 $329



CartageShearing Supplies Other Selling Costs Total Var. Costs


588 $0.84 $2.73 $20.30 $4.75 $0.00 $0.37 $0.11 $0.69 $8.48 $38.28599 $3.01 $7.53 $18.54 $1.67 $0.12 $0.58 $0.18 $0.62 $6.04 $38.29614 $0.00 $0.00 $13.30 $1.80 $0.00 $0.00 $0.00 $0.00 $2.75 $17.84630 $1.39 $2.91 $0.61 $4.88 $0.00 $0.35 $0.27 $0.15 $7.22 $17.79688 $1.06 $1.65 $0.65 $2.85 $0.00 $0.00 $0.25 $1.58 $4.58 $12.63744 $2.79 $9.69 $32.85 $3.23 $0.87 $2.63 $0.48 $2.09 $17.43 $72.07756 $2.01 $4.00 $7.75 $10.54 $1.34 $1.03 $0.29 $2.31 $4.60 $33.85757 $3.20 $4.89 $19.90 $4.89 $0.00 $1.19 $0.54 $0.00 $3.73 $38.34803 $2.43 $2.70 $56.44 $6.54 $0.00 $0.00 $1.03 $2.88 $9.69 $81.71

Average $1.86 $4.01 $18.93 $4.57 $0.26 $0.68 $0.35 $1.15 $7.17 $38.98



CartageShearing Supplies Other Selling Costs Total Var. Costs


588 $7 $24 $177 $41 $0 $3 $1 $6 $74 $333599 $40 $101 $249 $22 $2 $8 $2 $8 $81 $514614 $0 $0 $96 $13 $0 $0 $0 $0 $20 $129630 $15 $31 $7 $52 $0 $4 $3 $2 $78 $191688 $12 $18 $7 $32 $0 $0 $3 $18 $51 $140744 $11 $39 $132 $13 $4 $11 $2 $8 $70 $289756 $19 $39 $75 $102 $13 $10 $3 $22 $44 $327757 $58 $89 $360 $89 $0 $22 $10 $0 $67 $694803 $14 $16 $328 $38 $0 $0 $6 $17 $56 $475

Average $20 $40 $159 $45 $2 $6 $3 $9 $60 $344



Beef Cattle Variable Costs 2018-19 NorthernTABLE B8


Supp Feed & Agistmt Pasture Casual Labour Freight/ Cartage Other Selling Costs Total Var. Costs


584 $13 $5 $582 $176 $0 $22 $10 $36 $844585 $4 $3 $76 $0 $0 $3 $3 $27 $115588 $5 $0 $25 $41 $0 $17 $6 $8 $102630 $13 $0 $48 $52 $0 $3 $1 $53 $171678 $8 $0 $172 $48 $0 $0 $18 $30 $276683 $11 $0 $0 $110 $0 $5 $4 $86 $217688 $4 $1 $110 $32 $0 $0 $8 $22 $176707 $36 $0 $50 $98 $0 $37 $20 $15 $254708 $2 $4 $125 $76 $0 $11 $1 $16 $234709 $17 $16 $0 $3 $0 $4 $20 $37 $98745 $9 $0 $367 $97 $35 $3 $11 $103 $625756 $23 $0 $171 $102 $0 $13 $16 $95 $419757 $38 $0 $855 $89 $0 $15 $0 $49 $1,045800 $34 $7 $275 $88 $0 $19 $21 $61 $506802 $13 $47 $667 $134 $6 $25 $18 $39 $949803 $11 $0 $179 $38 $0 $0 $9 $20 $256

1013 $29 $0 $350 $232 $0 $16 $8 $39 $674

1015 $3 $0 $480 $0 $0 $53 $31 $50 $617Average $15 $5 $252 $79 $2 $14 $11 $44 $421

Farm No Enterprise Animal Health

Contract Services

Supp Feed & Agistmt Pasture Casual

LabourFreight/ Cartage Other Selling Costs Total Var.

Costs


584 Spring $0.67 $0.26 $29.91 $9.04 $0.00 $1.15 $0.51 $1.85 $43.40585 Spring $0.42 $0.36 $8.89 $0.00 $0.00 $0.30 $0.30 $3.13 $13.40588 Spring $0.62 $0.00 $2.85 $4.75 $0.00 $1.96 $0.71 $0.87 $11.76630 Autumn $1.19 $0.00 $4.48 $4.88 $0.00 $0.32 $0.11 $4.92 $15.90678 Autumn $0.94 $0.00 $20.50 $5.74 $0.00 $0.00 $2.12 $3.59 $32.90683 Other $1.52 $0.00 $0.00 $15.68 $0.00 $0.76 $0.62 $12.29 $30.88688 Spring $0.33 $0.10 $9.88 $2.85 $0.00 $0.00 $0.73 $1.96 $15.85707 Spring $2.64 $0.00 $3.67 $7.21 $0.00 $2.71 $1.45 $1.12 $18.81708 Spring $0.14 $0.26 $8.75 $5.36 $0.00 $0.80 $0.06 $1.09 $16.46709 Spring $1.72 $1.70 $0.00 $0.33 $0.00 $0.47 $2.10 $3.87 $10.18745 Spring $0.61 $0.00 $23.85 $6.30 $2.30 $0.18 $0.68 $6.72 $40.64756 Spring $2.39 $0.00 $17.64 $10.54 $0.00 $1.33 $1.62 $9.83 $43.35757 Autumn $2.12 $0.00 $47.20 $4.89 $0.00 $0.81 $0.00 $2.68 $57.70800 Other $3.01 $0.64 $24.52 $7.87 $0.00 $1.71 $1.90 $5.40 $45.05802 Spring $1.26 $4.53 $64.02 $12.88 $0.57 $2.43 $1.69 $3.74 $91.13803 Autumn $1.86 $0.00 $30.78 $6.54 $0.00 $0.00 $1.53 $3.41 $44.12

1013 Spring $1.43 $0.00 $16.99 $11.25 $0.00 $0.75 $0.41 $1.89 $32.731015 Other $0.29 $0.00 $43.69 $0.00 $0.00 $4.83 $2.81 $4.57 $56.19

Average $1.29 $0.44 $19.87 $6.45 $0.16 $1.14 $1.08 $4.05 $34.47



Pasture Costs Per Grazed Hectare 2018-19 NorthernTABLE B9



584 $11 $5 $13 $129 $0 $181585 $0 $0 $0 $0 $0 $0586 $0 $0 $0 $0 $0 $0588 $0 $0 $5 $27 $0 $42589 $12 $6 $2 $0 $0 $20599 $5 $7 $0 $8 $2 $22614 $7 $3 $0 $3 $0 $13630 $0 $0 $19 $33 $0 $52678 $3 $0 $0 $46 $4 $53683 $4 $30 $34 $9 $0 $110688 $4 $0 $4 $20 $4 $32706 $3 $0 $0 $182 $4 $189707 $9 $3 $27 $60 $1 $100708 $1 $0 $9 $69 $0 $79709 $0 $0 $0 $2 $1 $3711 $0 $0 $0 $23 $1 $24744 $3 $4 $0 $2 $1 $10745 $8 $5 $2 $63 $10 $100756 $19 $3 $7 $73 $0 $102757 $40 $18 $0 $62 $0 $120800 $19 $12 $2 $60 $5 $96802 $30 $1 $29 $74 $0 $134803 $0 $4 $0 $30 $6 $391012 $8 $1 $1 $15 $0 $1081013 $65 $17 $8 $126 $21 $2441015 $0 $0 $0 $0 $0 $0

Average $10 $5 $6 $43 $2 $72Top 20% # $5 $2 $10 $47 $1 $73Top 20% * $6 $3 $10 $49 $1 $75




Overhead Costs Per Hectare 2018-19 NorthernTABLE B10

Farm No Paid Labour Fuel & Vehicle Insurance R&M - Plant and Equip.

R&M - Land and Improv. Admin Rates & Rents Sundries Depreciation Total Overheads


584 $105 $19 $4 $3 $10 $30 $10 $4 $13 $198585 $0 $7 $5 $6 $21 $18 $13 $0 $17 $87586 $0 $5 $19 $10 $40 $27 $27 $1 $59 $188588 $0 $7 $2 $8 $13 $11 $12 $2 $28 $82589 $1 $30 $11 $0 $37 $21 $28 $2 $19 $148599 $0 $5 $7 $7 $8 $14 $11 $1 $23 $76614 $0 $2 $7 $13 $20 $22 $8 $0 $23 $94630 $42 $7 $8 $5 $10 $20 $14 $1 $17 $123678 $0 $4 $7 $5 $12 $12 $16 $2 $53 $110683 $147 $21 $11 $12 $98 $44 $46 $0 $3 $381688 $62 $6 $7 $1 $26 $21 $26 $0 $5 $152706 $1 $45 $24 $34 $25 $84 $101 $25 $0 $338707 $0 $4 $15 $4 $1 $10 $24 $0 $43 $101708 $56 $12 $5 $13 $13 $13 $29 $1 $12 $153709 $0 $0 $13 $0 $0 $49 $12 $0 $4 $78711 $0 $21 $23 $26 $2 $42 $25 $0 $64 $204744 $52 $20 $14 $37 $6 $27 $13 $2 $24 $193745 $21 $16 $17 $8 $24 $49 $13 $3 $0 $151756 $23 $29 $9 $10 $8 $20 $5 $0 $17 $121757 $169 $44 $42 $39 $35 $42 $44 $0 $34 $448800 $181 $18 $10 $2 $31 $12 $24 $15 $52 $344802 $0 $12 $13 $0 $8 $73 $22 $2 $46 $176803 $15 $22 $4 $5 $2 $20 $31 $1 $9 $109

1012 $0 $11 $6 $0 $22 $16 $32 $0 $4 $911013 $32 $80 $18 $90 $48 $47 $23 $0 $0 $3381015 $0 $17 $22 $15 $5 $42 $24 $0 $66 $190

Average $35 $18 $12 $13 $20 $30 $24 $2 $24 $180Top 20% # $44 $11 $8 $10 $11 $20 $17 $1 $23 $145Top 20% * $33 $8 $7 $4 $12 $17 $17 $1 $22 $122




Farm Labour Efficiency and Enterprise Mix 2018-19 NorthernTABLE B12


SHEEP ENTERPRISES

Average Sheep Number 2,722 7,537 8,363



BEEF ENTERPRISES

Average Cattle Number 404 734 734





DSE per person 5,554 9,133 9,632

ENTERPRISE MIX

Wool Sheep (%) 33% 37% 39%

Prime Lambs (%) 17% 20% 24%

Beef (%) 47% 36% 36%


Capital Structure 2018-19 NorthernTABLE B11

Average Top 20% # Top 20% *FARM AREA (HA)

Freehold Area 631 1101 1097



Effective Area 820 1,678 1,623

LAND VALUES




Leased Land Value per Hectare $4,211 $5,505 $6,021



Livestock $890 $947 $1,108



Total Assets $8,166 $7,498 $8,108

LIABILITIES

Liabilities per Effective Hectare $611 $511 $298

EQUITY



RATIOS

Debt Ratio 9% 6% 6%






Supplementary Feed Data 2018–19 NorthernTABLE B13

Yield (Wet T/HA)



Area Cut (HA)


584 5.1 15.1 0.0 0.0 17.2 25.1 4.4 0.0 90 6585 0.0 0.0 0.0 0 0586 0.0 0.0 55.0 0 0588 1.6 0.0 9.0 7.9 0.0 0.0 0 0589 9.9 0.0 11.6 0 0599 0.0 0.0 32.9 0 0614 3.8 0.0 0.0 13.6 40 0630 0.0 0.0 0.0 8.2 0.0 0.0 0 0678 2.4 48.9 55.0 0.0 57 0683 0.0 0.0 0.0 0 0688 1.1 0.0 10.5 20.7 0.0 0.0 0 0706 0.0 0.0 5.5 0 0707 0.0 0.0 0.0 0 0708 2.5 23.9 5.7 0.0 0 44709 0.0 0.0 0.0 0 0711 0.0 0.0 28.9 0 0744 7.3 0.0 0.0 29.6 0 44745 5.1 6.9 1.1 6.4 12.7 51.4 5.4 0.0 25 13756 0.0 0.0 16.5 7.3 0.0 0.0 0 0757 4.1 6.4 0.0 3.9 12.9 54.0 49.5 0.0 55 40800 5.1 42.9 6.4 0.0 100 0802 0.0 28.4 5.7 0 0803 10.2 0.0 43.8 0.0 0.0 0.0 0 01012 0.0 0.0 0.0 0 01013 1.4 8.0 30.8 7.6 0.0 19 101015 0.0 4.1 3.3 0 0

Average 3.9 7.7 1.5 0.6 18.7 17.8 9.2 0.5 15 6



Year Wool Sheep Prime Lamb Beef Cattle

NOMINAL($/DSE)

REAL ($/DSE)

NOMINAL($/HA)

REAL ($/HA)

NOMINAL($/DSE)

REAL ($/DSE)

NOMINAL($/HA)

REAL ($/HA)

NOMINAL($/DSE)

REAL ($/DSE)

NOMINAL($/HA)

REAL ($/HA)

2004-05 $14.18 $19.73 $126 $175 2005-06 $11.15 $14.91 $107 $143 2006-07 $10.99 $14.40 $95 $124 2007-08 $15.55 $19.50 $123 $154 $10.52 $13.19 $90 $113 2008-09 $12.94 $15.98 $106 $131 $16.10 $19.89 $137 $169 2009-10 $24.06 $28.84 $202 $242 $24.79 $29.70 $225 $270 $29.47 $35.31 $350 $419 2010-11 $43.62 $50.45 $396 $458 $45.66 $52.82 $401 $464 $31.36 $36.27 $365 $422 2011-12 $33.04 $37.76 $332 $379 $28.03 $32.03 $250 $285 $25.09 $28.67 $285 $326 2012-13 $17.67 $19.72 $172 $192 $24.58 $27.44 $190 $212 $23.25 $25.95 $247 $276 2013-14 $22.62 $24.51 $234 $254 $31.56 $34.20 $319 $346 $25.83 $27.99 $317 $344 2014-15 $26.33 $28.11 $279 $298 $28.28 $30.19 $291 $311 $25.02 $26.71 $282 $301 2015-16 $24.89 $26.31 $217 $229 $31.61 $33.41 $221 $234 $38.75 $40.96 $434 $459 2016-17 $42.42 $44.00 $362 $376 $52.94 $54.92 $496 $515 $46.98 $48.73 $484 $502 2017-18 $62.47 $63.47 $501 $509 $53.44 $54.29 $517 $525 $40.81 $41.46 $448 $455 2018-19 $32.91 $32.91 $317 $317 $47.81 $47.81 $447 $447 $17.16 $17.16 $207 $207

Long Term Average $29.37 $265 $35.82 $324 $32.92 $3712018-19 vs LT avg +$3.54 +$51 +$12 +$123 -$15.76 -$164

Average Whole Farm Economic Performance – NorthernTABLE B14

Historical Gross Margins For Livestock Enterprises – NorthernTABLE B15

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

Return on Equity

NOMINAL($/HA)

REAL($/HA)

NOMINAL($/HA)

REAL($/HA)

NOMINAL($/HA)

REAL($/HA)

NOMINAL($/HA)

REAL($/HA)

NOMINAL($/HA)

REAL($/HA)

2004-05 $272 $378 $107 $149 $57 $79 $108 $150 $53 $74 1.1% -0.2%2005-06 $272 $364 $111 $149 $63 $84 $99 $132 $45 $60 1.5% 0.0%2006-07 $275 $360 $164 $215 $66 $86 $46 $60 $0 $0 0.2% -1.8%2007-08 $293 $367 $114 $143 $65 $82 $114 $143 $62 $78 2.4% 1.5%2008-09 $263 $325 $121 $149 $72 $89 $69 $85 $8 $10 0.3% -1.3%2009-10 $340 $407 $103 $123 $83 $99 $154 $185 $82 $98 2.5% 2.0%2010-11 $499 $577 $112 $130 $108 $125 $279 $323 $183 $212 4.5% 4.9%2011-12 $436 $498 $132 $150 $106 $121 $199 $228 $118 $135 2.9% 2.6%2012-13 $383 $428 $168 $187 $106 $118 $110 $122 $25 $28 0.6% -1.8%2013-14 $433 $469 $151 $164 $104 $113 $178 $193 $102 $111 2.0% 0.9%2014-15 $461 $492 $181 $193 $120 $128 $160 $171 $86 $92 1.9% 1.0%2015-16 $513 $542 $207 $219 $145 $153 $161 $170 $77 $81 1.4% 0.5%2016-17 $752 $780 $221 $229 $180 $187 $179 $186 $251 $260 4.3% 4.4%2017-18 $720 $732 $222 $226 $188 $191 $125 $127 $183 $186 2.7% 2.7%2018-19 $680 $680 $335 $335 $180 $180 -$21 -$21 $40 $40 0.5% -0.7%

Long Term Average $493 $184 $122 $150 $98 1.9% 1.0%

2018-19 vs LT avg +$187 +$151 +$57 -$171 -$57 -1.4% -1.7%

Note: ‘Real’ dollar values are the nominal values converted to 2018-19 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.

Note: ‘Real’ dollar values are the nominal values converted to 2018-19 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.



Micron Wool Cut (Gr.) Net Wool Price Ave Sale Price Lamb

DSE/HA KG/HA NOMINAL ($/KG) GR.

REAL ($/KG) GR.

NOMINAL($/HD)

REAL($/HD) %

2004-05 9.3 19.2 33.0 $4.86 $6.76 $46 $64 75%2005-06 9.8 18.8 30.0 $5.09 $6.81 $41 $55 79%2006-07 9.7 18.3 30.0 $6.94 $9.10 $33 $43 69%2007-08 8.2 18.8 29.0 $6.12 $7.68 $41 $52 72%2008-09 8.5 18.4 29.0 $5.71 $7.06 $45 $55 80%2009-10 8.8 18.3 27.0 $6.07 $7.28 $72 $86 77%2010-11 9.4 18.6 32.0 $8.79 $10.17 $102 $118 78%2011-12 9.3 18.5 29.3 $8.43 $9.63 $80 $91 84%2012-13 9.4 18.5 30.1 $7.47 $8.34 $56 $62 80%2013-14 9.8 18.0 32.5 $7.25 $7.86 $63 $68 77%2014-15 10.2 18.1 36.3 $8.22 $8.78 $76 $81 78%2015-16 8.8 17.8 28.0 $8.81 $9.31 $71 $75 85%2016-17 9.9 17.8 30.7 $11.73 $12.17 $104 $108 75%2017-18 10.7 18.0 31.7 $14.56 $14.79 $108 $109 89%2018-19 10.4 17.7 31.3 $13.41 $13.41 $98 $98 79%

Long Term Average 9.5 18.3 30.7 $9.28 $78 78%2018-19 vs LT avg 1.0 -0.6 0.7 $4.13 $21 0.5%


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

KG/HA NOMINAL ($/KG) GR.

REAL ($/KG) GR.

NOMINAL($/HD)

REAL($/HD) % % NOMINAL

($/HD)REAL($/HD)

2004-052005-062006-072007-08 18.0 $4.40 $5.52 $53 $66 87%2008-09 16.0 $3.24 $4.00 $68 $84 98%2009-10 18.0 $3.27 $3.92 $95 $114 111% 87% $640 $767 2010-11 20.0 $4.34 $5.02 $127 $147 105% 87% $847 $980 2011-12 18.7 $4.78 $5.46 $102 $116 107% 87% $815 $931 2012-13 21.5 $5.00 $5.58 $78 $88 111% 87% $814 $908 2013-14 22.8 $5.08 $5.50 $90 $98 109% 93% $698 $756 2014-15 22.2 $6.27 $6.69 $101 $108 112% 90% $937 $1,000 2015-16 18.0 $6.35 $6.71 $102 $108 119% 90% $1,189 $1,257 2016-17 19.4 $6.55 $6.79 $134 $139 113% 85% $1,576 $1,635 2017-18 21.9 $8.49 $8.63 $139 $141 118% 89% $1,292 $1,312 2018-19 18.7 $8.44 $8.44 $152 $152 114% 88% $1,080 $1,080

Long Term Average 19.6 $6.02 $113 109% 88% $1,0632018-19 vs LT avg -0.9 $2.42 $39 5% -0.5% $17


Historical Data For Selected Average Profitability Indicators – Northern

TABLE B16



Appendices : Gippsland

Main Financial Indicators 2018-19 GippslandTABLE C1

Farm No Gross Farm Income

Variable Costs

Overhead Costs

Cost Structure

O/O Allowance

EBIT (Operating

income)

Net Farm Income


Equity

$/HA $/HA $/HA % $/HA $/HA $/HA % % %

553 $647 $511 $177 106% $114 -$154 -$205 -2.0% 8% -2.7%555 $614 $711 $146 139% $83 -$326 -$354 -5.0% 5% -7.0%556 $498 $746 $326 215% $14 -$588 -$650 -10.3% 12% -13.6%574 $884 $495 $190 78% $128 $71 -$123 0.8% 22% -16.2%636 $591 $788 $193 166% $50 -$440 -$440 -6.9% 0% -6.9%638 $1,169 $512 $376 76% $93 $187 $187 0.9% 0% 0.9%643 $830 $329 $219 66% $91 $191 $32 1.4% 19% 0.4%653 $366 $378 $108 133% $122 -$242 -$286 -5.4% 12% -7.0%663 $851 $590 $291 104% $243 -$273 -$278 -1.8% 1% -2.2%664 $1,216 $369 $489 70% $88 $271 $116 1.4% 13% 0.8%667 $1,666 $594 $363 57% $226 $483 $482 3.2% 0% 3.2%698 $1,267 $734 $372 87% $368 -$207 -$207 -1.0% 0% -1.0%755 $1,157 $719 $421 99% $82 -$65 -$119 -0.3% 5% -0.7%804 $1,803 $1,088 $599 94% $437 -$322 -$395 -0.9% 4% -1.3%1014 $570 $420 $299 126% $161 -$310 -$435 -3.4% 22% -13.3%1017 $277 $247 $110 129% $152 -$232 -$235 -5.8% 1% -5.9%1018 $657 $475 $292 117% $170 -$281 -$395 -3.5% 17% -6.8%1019 $441 $218 $114 75% $185 -$76 -$103 -1.8% 6% -2.6%1021 $447 $256 $79 75% $56 $56 $32 1.1% 5% 0.7%1022 $1,721 $905 $291 69% $204 $321 $81 1.7% 14% 0.9%

Average $884 $554 $273 104% $153 -$97 -$165 -1.9% 8% -4.0%Top 20% # $1,358 $549 $341 66% $152 $317 $178 1.9% 12% 1.3%Top 20% * $1,358 $549 $341 66% $152 $317 $178 1.9% 12% 1.3%

Key Physical Data 2018-19 GippslandTABLE C2


2018-19 Rainfall

Stocking Rate SR-RF SR-RF

July Stocking

RateP Applied P Applied P Nutrient

ChangeK Nutrient

ChangeS Nutrient Change


DSE HA/25MM

OVER 250MMDSE/HA $/HA

KG P/GRAZED


553 670 490 15 3.0 1.5 19 4 0.8 5 10 1555 646 468 13 2.8 1.5 13 0 0.0 4 9 0556 595 410 13 3.0 2.0 12 0 0.0 3 8 2574 619 572 22 3.9 1.7 23 9 1.6 8 26 0636 653 448 10 2.3 1.3 11 4 0.8 7 11 2638 1,018 814 28 3.4 1.2 21 16 2.0 13 31 17

643 875 776 19 2.5 0.9 16 16 2.0 14 28 17

653 646 310 9 3.0 3.8 12 3 0.9 3 3 0663 1,094 1,032 27 2.7 0.9 20 37 3.6 35 5 3664 1,021 983 21 2.1 0.7 18 35 3.5 31 -2 -2667 1,032 974 21 2.1 0.7 17 23 2.4 18 20 25698 669 472 20 4.1 2.2 15 30 6.3 25 12 -4755 1,011 946 27 2.9 1.0 153 3 0.4 3 9 28804 899 546 23 4.2 1.9 24 25 4.5 21 13 6

1014 841 571 17 2.9 1.3 13 7 1.3 6 11 81017 583 390 7 1.8 1.2 11 1 0.3 1 3 -11018 778 460 13 2.9 1.6 12 6 1.4 5 4 31019 773 708 10 1.4 0.5 8 0 0.0 -1 2 -11021 673 588 12 2.0 0.9 12 10 1.7 9 1 -11022 1,097 1,000 36 3.6 1.2 29 32 3.2 29 23 38

Average 809 648 18 2.8 1.4 23 13 1.8 12 11 7Top 20% # 1,006 933 24 2.6 0.9 20 27 2.8 23 17 20Top 20% * 1,006 933 24 2.6 0.9 20 27 2.8 23 17 20

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




Wool Sheep Production 2018-19 GippslandTABLE C3


Adult Clean

Wool Cut

Clean Wool Cut

Clean Wool Cut

Clean Wool Cut


Average Wool

Micron

Average Wool Yield

Ave Sale Price

Gross Margin

Gross Margin

Gross Margin

Lamb Marking

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

/100MM $/DSE %

553 15 2.6 26 1.8 5.4 $20.99 17.7 71% $80 $124 $25 $9 62%555 13 3.0 34 2.6 7.3 $21.62 16.9 66% $52 -$82 -$18 -$6 53%556 13 2.6 29 2.3 7.1 $17.50 17.3 68% $77 -$234 -$57 -$19 63%574 22 2.7 41 1.8 7.1 $16.73 18.0 69% $65 $165 $29 $7 99%636 10 2.8 26 2.5 5.7 $18.16 17.6 74% $69 -$214 -$48 -$21 86%653 9 3.0 16 1.7 5.0 $24.18 17.0 68% $98 $7 $2 $1 20%

1017 7 2.9 12 1.7 3.1 $17.55 18.5 71% $52 $14 $4 $2 79%1018 13 1.7 14 1.0 3.0 $21.25 18.8 69% $81 $737 $160 $56 85%1019 10 4.4 23 2.3 3.2 $19.85 17.9 70% $72 $612 $86 $62 96%

Average 12 2.9 24 2.0 5.2 $19.76 17.7 70% $72 $125 $20 $10 71%

Prime Lamb Production 2018-19 GippslandTABLE C4

Farm No Stocking Rate Lamb Produced

Lamb Produced Lamb Produced Ave Lamb

WeightAve Lamb

PriceAve Lamb

PriceAdult Gr. Wool Cut

Greasy Wool Cut

Average Wool Micron


553 14.6 194 87 18 17 $6.33 $108 4.0 29 24555 13.3 297 134 29 27 $2.34 $63 4.5 29 17556 12.5 134 60 15 25 $5.55 $139 4.0 29 21574 22.4 504 227 40 20 $6.77 $138 3.1 61 24638 27.9 381 172 21 20 $6.23 $125 5.0 44 28643 19.3 386 174 22 20 $7.34 $145 3.9 43 291018 13.2 614 276 60 23 $6.43 $145 19 221019 9.8 68 31 4 16 $7.51 $123 7.1 31 261022 35.9 829 373 37 22 $7.23 $159 2.7 58 32

Average 18.8 379 170 27 21 $6.19 $127 4.3 38 25


$/KG $/HA $/HA/100MM $/DSE % % of DSE

553 Xbred $9.18 $218 $45 $15 103% 87%555 Xbred $13.21 -$169 -$36 -$13 80% 97%556 Merino $12.50 $53 $13 $4 61% 78%574 Xbred $6.33 $1,417 $248 $63 96% 89%638 Xbred $5.70 $457 $56 $16 118% 69%643 Xbred $6.06 $947 $122 $49 133% 86%

1018 Merino $8.98 $199 $43 $151019 Xbred $8.50 $327 $46 $33 76% 74%1022 Xbred $2.24 $2,739 $274 $76 134% 86%

Average $8.08 $688 $90 $29 100% 83%



Beef Cattle Production 2018-19 GippslandTABLE C5



553 14.6 256 52.3 269 $954 407 $2.34556 12.5 297 72.5 496 $659 453 $1.45574 22.4 93 16.3 66 $926 405 $2.29638 27.9 445 54.7 429 $1,048 358 $2.93643 19.3 244 31.5 207 $1,042 391 $2.67663 27.4 308 29.8 486 $1,193 427 $2.80664 20.9 407 41.4 353 $1,283 467 $2.75667 20.7 573 58.8 1098 $1,866 645 $2.89698 19.5 475 100.6 565 $994 429 $2.32698 19.5 442 93.6 590 $1,021 436 $2.37755 27.3 227 24.0 272 $882 376 $2.34755 27.3 215 22.7 256 $665 317 $2.10804 22.7 524 95.9 536 $1,500 527 $2.85

1014 16.6 389 68.1 344 $603 487 $1.241014 16.6 113 19.7 143 $1,135 365 $3.111018 13.2 89 19.4 392 $918 394 $2.331019 9.8 148 20.9 104 $591 360 $1.641021 11.8 178 30.3 231 $821 334 $2.461022 35.9 1013 101.3 1412 $619 304 $2.041022 35.9 9 0.9 656 $1,417 440 $3.22

Average 21.1 322 47.7 445 $1,007 416 $2.41


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

553 $15 $3 $1 Aug 92% 28% Spring556 -$405 -$99 -$33 Sep 69% 39% Spring574 -$271 -$47 -$12 Sep 91% 58% Spring638 $727 $89 $26 Sep 87% 56% Spring643 $300 $39 $16 Aug 90% 70% Spring663 $281 $27 $10 Sep 91% 100% Spring664 $781 $79 $37 Sep 94% 100% Spring667 $872 $89 $42 Oct 100% Other698 $489 $103 $25 May 94% 42% Autumn698 $421 $89 $22 Aug 85% 55% Spring755 $129 $14 $5 Mar 94% 63% Autumn755 -$238 -$25 -$9 Sep 95% 37% Spring804 $582 $107 $26 Apr 90% 100% Autumn

1014 $304 $53 $18 Mar 100% 29% Autumn1014 $54 $9 $3 Sep 100% 71% Spring1018 -$41 -$9 -$3 Aug 91% 65% Spring1019 $28 $4 $3 Sep 97% 66% Spring1021 $190 $32 $16 Aug 94% 100% Spring1022 $1,535 $153 $43 Sep 93% 34% Spring1022 $45 $5 $1 Oct 56% Other

Average $290 $36 $12 92% 63%



Wool Sheep Variable Costs 2018-19 GippslandTABLE C6

Farm No Animal Health

Contract Services


LabourFreight/ Cartage

Shearing Supplies Other Selling Costs Total Var.

Costs


553 $1.60 $5.56 $21.20 $2.17 $0.00 $0.72 $0.15 $0.64 $3.15 $35.18555 $2.35 $8.07 $43.02 $0.43 $0.00 $0.00 $0.25 $0.76 $2.82 $57.70556 $4.59 $7.72 $51.20 $5.72 $0.00 $1.32 $0.27 $0.49 $2.28 $73.59574 $2.16 $3.42 $13.67 $8.11 $0.00 $0.00 $0.00 $0.97 $4.85 $33.19636 $2.80 $6.05 $57.58 $4.15 $0.00 $4.87 $0.00 $1.07 $5.39 $81.91653 $1.30 $3.98 $31.00 $0.45 $0.00 $1.69 $0.28 $2.65 $0.00 $41.35

1017 $2.72 $4.54 $21.44 $2.43 $0.00 $4.08 $0.00 $0.22 $4.03 $39.461018 $3.28 $1.36 $0.00 $5.76 $0.00 $0.60 $0.00 $0.27 $1.64 $12.911019 $0.00 $0.00 $5.02 $4.01 $0.00 $0.00 $0.00 $0.00 $2.76 $11.79

Average $2.31 $4.52 $27.13 $3.69 $0.00 $1.48 $0.11 $0.79 $2.99 $43.01


Contract Services



Shearing Supplies Other Selling Costs Total Var.

Costs


553 $23 $81 $309 $32 $0 $11 $2 $9 $46 $513555 $31 $107 $571 $6 $0 $0 $3 $10 $37 $766556 $57 $96 $638 $71 $0 $16 $3 $6 $28 $917574 $48 $77 $306 $182 $0 $0 $0 $22 $109 $743636 $29 $62 $593 $43 $0 $50 $0 $11 $55 $843653 $12 $36 $284 $4 $0 $16 $3 $24 $0 $378

1017 $19 $32 $149 $17 $0 $28 $0 $2 $28 $2751018 $43 $18 $0 $76 $0 $8 $0 $4 $22 $1711019 $0 $0 $49 $39 $0 $0 $0 $0 $27 $116

Average $29 $57 $322 $52 $0 $14 $1 $10 $39 $525

Prime Lamb Variable Costs 2018-19 GippslandTABLE C7


Contract Services



Shearing Supplies Other Selling

CostsTotal Var.

Costs


553 $1.17 $6.77 $23.03 $2.17 $0.00 $2.12 $0.18 $1.87 $5.20 $42.52555 $1.82 $6.27 $32.65 $0.43 $0.00 $0.00 $0.20 $0.59 $5.86 $47.82556 $2.80 $4.72 $31.27 $5.72 $0.00 $0.80 $0.17 $0.30 $5.79 $51.57574 $1.40 $4.30 $15.87 $8.11 $0.00 $0.00 $0.00 $0.66 $6.80 $37.14638 $1.36 $3.72 $0.00 $9.02 $0.00 $1.50 $0.20 $1.05 $0.95 $17.81643 $3.57 $2.10 $0.00 $8.41 $2.18 $2.47 $0.00 $1.37 $4.69 $24.781018 $4.22 $7.76 $92.18 $5.76 $0.00 $15.43 $0.00 $0.00 $25.64 $150.991019 $2.12 $0.00 $6.17 $4.01 $0.00 $0.00 $0.00 $2.27 $2.40 $16.971022 $0.00 $3.64 $0.00 $3.69 $0.00 $0.00 $0.00 $0.00 $0.00 $7.33

Average $2.05 $4.36 $22.35 $5.26 $0.24 $2.48 $0.08 $0.90 $6.37 $44.10


Contract Services



Shearing Supplies Other Selling

CostsTotal Var.

Costs


553 $17 $99 $336 $32 $0 $31 $3 $27 $76 $620555 $24 $83 $433 $6 $0 $0 $3 $8 $78 $635556 $35 $59 $390 $71 $0 $10 $2 $4 $72 $643574 $31 $96 $356 $182 $0 $0 $0 $15 $152 $832638 $38 $104 $0 $251 $0 $42 $6 $29 $26 $496643 $69 $40 $0 $162 $42 $48 $0 $26 $90 $477

1018 $56 $103 $1,220 $76 $0 $204 $0 $0 $339 $1,9991019 $21 $0 $60 $39 $0 $0 $0 $22 $24 $1661022 $0 $131 $0 $132 $0 $0 $0 $0 $0 $263

Average $32 $79 $311 $106 $5 $37 $1 $15 $95 $681


Beef Cattle Variable Costs 2018-19 Gippsland TABLE C8

Farm No Enterprise Animal Health

Contract Services


LabourFreight/ Cartage Other Selling Costs Total Var.

Costs


553 Spring $2.21 $0.00 $32.33 $2.17 $0.00 $1.26 $1.41 $3.08 $42.46556 Spring $0.67 $0.53 $45.28 $5.72 $0.00 $1.16 $0.00 $3.15 $56.51574 Spring $0.84 $0.00 $16.13 $8.11 $0.00 $0.00 $1.00 $0.43 $26.52638 Spring $1.48 $1.00 $6.65 $9.02 $0.00 $1.09 $0.62 $0.88 $20.74643 Spring $1.34 $0.00 $2.69 $8.41 $0.92 $1.28 $0.56 $1.67 $16.87663 Spring $1.96 $0.88 $1.11 $14.89 $0.00 $1.77 $0.72 $2.96 $24.28664 Spring $1.27 $0.00 $5.68 $6.60 $0.00 $1.27 $0.75 $0.33 $15.89667 Other $1.16 $0.00 $9.13 $10.41 $0.54 $4.64 $0.64 $0.52 $27.04698 Autumn $0.70 $0.00 $25.22 $7.58 $0.00 $0.05 $0.00 $4.36 $37.90698 Spring $1.46 $0.00 $21.68 $7.58 $0.00 $1.75 $0.00 $6.79 $39.25698 Other $1.31 $0.00 $5.91 $7.58 $0.00 $0.00 $0.00 $0.00 $14.80755 Autumn $5.88 $0.00 $16.91 $6.19 $0.00 $1.57 $0.00 $2.60 $33.16755 Spring $4.62 $0.00 $33.80 $6.19 $0.00 $1.75 $0.00 $3.15 $49.50804 Autumn $3.49 $0.00 $26.39 $8.71 $0.34 $0.63 $3.78 $0.15 $43.48

1014 Autumn $1.33 $3.34 $5.46 $6.46 $0.00 $4.00 $0.83 $4.01 $25.431014 Spring $0.93 $2.27 $7.67 $6.46 $0.00 $2.79 $0.52 $3.28 $23.921018 Spring $1.31 $0.00 $12.66 $5.76 $0.00 $3.07 $0.00 $5.15 $27.961019 Spring $0.16 $0.00 $23.77 $4.01 $0.00 $0.68 $0.03 $1.75 $30.401021 Spring $0.79 $0.00 $12.25 $5.96 $0.00 $1.36 $0.93 $2.61 $23.901022 Spring $2.60 $0.00 $0.00 $3.69 $0.00 $0.00 $0.78 $0.00 $7.071022 Other $0.00 $0.00 $30.67 $3.69 $0.00 $3.85 $1.16 $0.00 $39.36

Average $1.69 $0.38 $16.26 $6.91 $0.09 $1.62 $0.65 $2.23 $29.83



Cartage Other Selling Costs Total Var. Costs


553 $32 $0 $471 $32 $0 $18 $21 $45 $619556 $8 $7 $564 $71 $0 $15 $0 $39 $704574 $19 $0 $361 $182 $0 $0 $22 $10 $594638 $41 $28 $185 $251 $0 $30 $17 $25 $578643 $26 $0 $52 $162 $18 $25 $11 $32 $325663 $54 $24 $30 $408 $0 $49 $20 $81 $665664 $27 $0 $119 $138 $0 $27 $16 $7 $333667 $24 $0 $189 $215 $11 $96 $13 $11 $559698 $14 $0 $493 $148 $0 $1 $0 $85 $740698 $29 $0 $423 $148 $0 $34 $0 $133 $767698 $26 $0 $115 $148 $0 $0 $0 $0 $289755 $161 $0 $462 $169 $0 $43 $0 $71 $907755 $126 $0 $924 $169 $0 $48 $0 $86 $1,353804 $79 $0 $599 $198 $8 $14 $86 $3 $9871014 $22 $56 $91 $107 $0 $67 $14 $67 $4231014 $15 $38 $128 $107 $0 $46 $9 $55 $3981018 $17 $0 $168 $76 $0 $41 $0 $68 $3701019 $2 $0 $233 $39 $0 $7 $0 $17 $2981021 $9 $0 $144 $70 $0 $16 $11 $31 $2811022 $93 $0 $0 $132 $0 $0 $28 $0 $2541022 $0 $0 $1,102 $132 $0 $138 $42 $0 $1,415

Average $39 $7 $326 $148 $2 $34 $15 $41 $612



Pasture Costs Per Grazed Hectare 2018-19 GippslandTABLE C9



553 $8 $1 $0 $23 $1 $33555 $0 $3 $0 $3 $0 $6556 $0 $6 $7 $27 $32 $71574 $61 $17 $3 $54 $4 $145636 $12 $1 $16 $13 $0 $43638 $0 $1 $0 $261 $5 $267643 $0 $1 $0 $149 $7 $165653 $0 $0 $0 $4 $0 $4663 $0 $0 $0 $416 $0 $416664 $3 $1 $0 $137 $7 $148667 $0 $8 $0 $224 $0 $233698 $44 $16 $20 $23 $69 $172755 $35 $9 $13 $160 $0 $217804 $73 $45 $94 $318 $0 $5301014 $11 $0 $0 $105 $0 $1161017 $9 $3 $0 $5 $0 $171018 $45 $6 $0 $28 $0 $781019 $6 $31 $0 $5 $0 $421021 $5 $4 $4 $57 $0 $701022 $5 $2 $23 $103 $0 $132

Average $16 $8 $9 $106 $6 $145Top 20% # * $2 $3 $6 $153 $3 $170Top 20% * $2 $3 $6 $153 $3 $170

Overhead Costs Per Hectare 2018-19 GippslandTABLE C10

Farm No Paid Labour Fuel & Vehicle Insurance R&M - Plant

and Equip.R&M - Land and Improv. Admin Rates &

Rents Sundries Depreciation Total Overheads


553 $6 $17 $15 $30 $16 $22 $32 $1 $37 $177555 $65 $6 $10 $5 $6 $22 $23 $1 $8 $146556 $110 $14 $17 $20 $46 $44 $17 $16 $44 $326574 $68 $2 $17 $0 $25 $36 $8 $6 $28 $190636 $105 $2 $8 $5 $9 $15 $21 $3 $24 $193638 $170 $3 $29 $6 $57 $34 $50 $0 $27 $376643 $49 $3 $12 $11 $67 $20 $25 $0 $31 $219653 $0 $0 $17 $13 $24 $3 $27 $0 $24 $108663 $2 $0 $21 $21 $83 $67 $39 $15 $44 $291664 $142 $42 $33 $0 $136 $33 $53 $10 $41 $489667 $176 $4 $24 $28 $57 $44 $45 $2 -$17 $363698 $0 $57 $33 $26 $18 $101 $70 $7 $62 $372755 $176 $36 $30 $0 $82 $13 $20 $3 $62 $421804 $0 $17 $55 $154 $21 $58 $83 $0 $211 $599

1014 $44 $39 $10 $32 $101 $36 $27 $0 $10 $2991017 $22 $11 $6 $10 $26 $15 $16 $1 $5 $1101018 $72 $48 $12 $13 $15 $33 $21 $10 $70 $2921019 $30 $14 $9 $14 $6 $42 $0 $0 $0 $1141021 $31 $5 $5 $5 $2 $20 $7 $0 $4 $791022 $113 $45 $13 $7 $11 $20 $23 $0 $60 $291

Average $69 $18 $19 $20 $40 $34 $30 $4 $39 $273Top 20% # $120 $23 $20 $12 $67 $29 $37 $3 $29 $340Top 20% * $120 $23 $20 $12 $67 $29 $37 $3 $29 $340





Capital Structure 2018-19 GippslandTABLE C11

Farm Labour Efficiency and Enterprise Mix 2018-19 GippslandTABLE C12


FARM AREA (HA)

Freehold Area 762 661 661



Effective Area 703 659 659

LAND VALUES




Leased Land Value per Hectare $8,994 $12,492 $12,492



Livestock $1,416 $2,063 $2,063



Total Assets $12,459 $16,700 $16,700

LIABILITIES

Liabilities per Effective Hectare $982 $2,526 $2,526

EQUITY



RATIOS

Debt Ratio 8% 12% 12%



SHEEP ENTERPRISES

Average Sheep Number 2,313 775 775



BEEF ENTERPRISES

Average Cattle Number 597 1,276 1,276





DSE per person 6,231 6,983 6,983

ENTERPRISE MIX

Wool Sheep (%) 27% 0% 0%

Prime Lambs (%) 9% 10% 10%

Beef (%) 62% 90% 90%






Supplementary Feed Data 2018-19 GippslandTABLE C13


Yield (Wet T/HA)



Area Cut (HA)


553 5.1 0.0 29.6 29.0 74.4 27.5 0.0 0 47555 0.0 0.0 135.4 0 0556 0.0 0.0 83.3 5.6 0.0 14.6 0 0574 27.3 0.0 8.2 40.0 0.0 0.0 0 0636 40.4 7.1 76.2 0 0638 3.0 0.0 0.0 0.0 18.5 0.0 0.0 40 0643 3.0 9.5 0.0 0.0 0.0 1.5 6.7 0.0 13 10653 24.7 0.0 0.0 0 0663 2.0 1.6 0.0 0.0 5 0664 5.5 7.1 7.7 9.6 0.0 25 17667 9.9 10.8 15.0 19.6 0.0 17 13698 8.4 0.0 0.0 0 0755 5.0 4.6 47.4 39.1 0.0 30 44804 1.9 3.4 15.7 108.3 0.0 8 351014 4.7 2.1 14.9 7.3 0.0 30 121017 0.0 0.0 0.0 0 01018 2.0 1.0 0.0 0.0 9.2 6.3 3.3 0.0 10 101019 3.1 2.4 0.0 0.0 0.0 48.1 7.0 0.0 20 201021 0.0 0.0 0.0 0 01022 0.0 0.0 0.0 0.0 0.0 0.0 0 0

Average 4.0 5.1 7.7 3.1 28.4 19.1 14.3 0.9 10 10


Year Gross Income Variable Costs Overhead Costs Net Income EBIT (Operating Profit)

Return on Assets

Return onEquity

NOMINAL($/HA)

REAL($/HA)

NOMINAL($/HA)

REAL($/HA)

NOMINAL($/HA)

REAL($/HA)

NOMINAL($/HA)

REAL($/HA)

NOMINAL($/HA)

REAL($/HA)

2004-05 $344 $479 $114 $159 $74 $103 $156 $217 $92 $128 3.0% 4.0%

2005-06 $282 $377 $144 $193 $78 $104 $60 $80 -$22 -$29 -0.4% -1.6%

2006-07 $293 $384 $140 $183 $85 $111 $67 $88 -$27 -$35 -0.7% -2.2%

2007-08 $604 $757 $251 $315 $105 $132 $248 $311 $148 $186 2.1% 1.0%

2008-09 $392 $484 $240 $297 $116 $143 $36 $44 -$52 -$64 -1.6% -5.0%

2009-10 $456 $546 $187 $224 $117 $140 $152 $182 $59 $71 0.4% -0.5%

2010-11 $697 $806 $202 $234 $164 $190 $330 $382 $178 $206 2.6% 2.1%

2011-12 $690 $788 $226 $258 $196 $224 $268 $307 $90 $103 1.9% 0.7%

2012-13 $536 $599 $236 $264 $207 $231 $93 $104 -$68 -$76 0.3% -0.8%

2013-14 $695 $753 $259 $281 $415 $450 $21 $23 $86 $93 1.2% -0.1%

2014-15 $776 $828 $259 $277 $204 $218 $313 $334 $168 $179 2.0% 1.5%

2015-16 $795 $840 $325 $344 $200 $211 $270 $285 $152 $161 2.2% 3.2%

2016-17 $1,192 $1,236 $371 $385 $283 $293 $320 $332 $362 $376 3.6% 4.5%

2017-18 $920 $934 $339 $345 $256 $260 $95 $96 $143 $145 1.8% 2.4%

2018-19 $884 $884 $554 $554 $273 $273 -$165 -$165 -$97 -$97 -1.9% -4.0%

Long Term Average $713 $287 $206 $175 $90 1.1% 0.3%

2018-19 vs LT avg $170 $267 $67 -$339 -$187 -3.0% -4.4%


Historical Gross Margins For Livestock Enterprises – GippslandTABLE C15

Year Wool Sheep Prime Lamb Beef Cattle

NOMINAL($/DSE)

REAL ($/DSE)

NOMINAL($/HA)

REAL ($/HA)

NOMINAL($/DSE)

REAL ($/DSE)

NOMINAL($/HA)

REAL ($/HA)

NOMINAL($/DSE)

REAL ($/DSE)

NOMINAL($/HA)

REAL ($/HA)

2004-05 $15 $21 $162 $225

2005-06 $8 $11 $91 $122

2006-07 $9 $12 $99 $130

2007-08 $18 $23 $243 $305 $17 $21 $277 $347

2008-09 $4 $4 $48 $59 $15 $19 $221 $273

2009-10 $15 $18 $145 $174 $25 $30 $353 $423 $18 $21 $249 $298

2010-11 $34 $39 $327 $378 $41 $48 $710 $821 $24 $28 $418 $483

2011-12 $29 $33 $324 $371 $35 $40 $627 $716 $19 $21 $344 $394

2012-13 $23 $26 $259 $290 $20 $23 $435 $486 $13 $15 $220 $245

2013-14 $52 $57 $664 $720 $38 $41 $636 $689 $28 $30 $605 $656

2014-15 $20 $21 $246 $263 $34 $36 $710 $758 $25 $27 $480 $512

2015-16 $37 $39 $449 $475 $33 $35 $475 $502 $30 $32 $472 $499

2016-17 $40 $42 $450 $467 $40 $42 $651 $676 $44 $46 $816 $846

2017-18 $52 $53 $664 $675 $38 $38 $636 $646 $28 $28 $605 $615

2018-19 $10 $10 $125 $125 $29 $29 $688 $688 $12 $12 $290 $290

Long Term Average $27 $318 $33 $585 $26 $484

2018-19 vs LT avg -$17 -$193 -$4 $103 -$14 -$194


Average Whole Farm Economic Performance – GippslandTABLE C14

Note: ‘Real’ dollar values are the nominal values converted to 2018-19 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.



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

KG/HA NOMINAL($/KG) GR.

REAL($/KG) GR.

NOMINAL($/HD)

REAL($/HD) % % NOMINAL

($/HD)REAL($/HD)

2004-052005-062006-072007-08 32.0 $3.80 $4.76 $72 $91 103%2008-09 24.8 $3.42 $4.23 $79 $97 99%2009-10 30.5 $3.61 $4.32 $99 $119 103% 89% $652 $781 2010-11 35.0 $4.30 $4.97 $132 $153 103% 88% $780 $902 2011-12 35.9 $4.65 $5.31 $108 $123 111% 90% $783 $895 2012-13 43.1 $4.72 $5.26 $79 $88 109% 90% $682 $761 2013-14 38.0 $5.08 $5.50 $103 $112 100% 91% $677 $734 2014-15 41.0 $5.69 $6.07 $105 $112 106% 89% $854 $912 2015-16 38.0 $6.83 $7.22 $96 $101 102% 91% $1,053 $1,113 2016-17 31.7 $5.23 $5.43 $129 $134 111% 89% $1,285 $1,333 2017-18 29.2 $7.65 $7.77 $130 $132 102% 90% $1,063 $1,080 2018-19 38.0 $8.08 $8.08 $127 $127 100% 92% $1,007 $1,007

Long Term Average 34.5 $5.53 $115 104% 90% $9522018-19 vs LT avg 3.5 $2.55 $12 -4% 2% $55


Micron Wool Cut (Gr.) Net Wool Price Ave Sale Price Lamb

DSE/HA KG/HA NOMINAL ($/KG) GR.

REAL ($/KG) GR.

NOMINAL ($/HD)

REAL ($/HD) %

2004-05 11.4 19.0 36 $5.33 $7.42 $41 $57 74%2005-06 11.7 18.8 37 $5.38 $7.19 $31 $41 73%2006-07 11.2 18.4 36 $6.47 $8.47 $23 $30 74%2007-08 15.3 18.8 43 $6.86 $8.60 $42 $53 79%2008-09 13.0 18.5 34 $5.62 $6.95 $37 $46 70%2009-10 13.0 18.2 31 $6.28 $7.53 $62 $75 62%2010-11 15.4 18.6 34 $8.79 $10.17 $92 $106 66%2011-12 17.2 18.4 37 $7.92 $9.05 $72 $82 84%2012-13 17.0 18.7 44 $7.81 $8.72 $54 $61 81%2013-14 18.0 18.6 43 $7.88 $8.54 $48 $52 80%2014-15 18.2 18.2 48 $7.71 $8.23 $58 $62 77%2015-16 0.2 17.7 51 $9.10 $9.62 $72 $76 81%2016-17 17.4 18.0 43 $11.42 $11.84 $92 $95 59%2017-18 16.9 18.1 42 $14.19 $14.41 $91 $93 67%2018-19 18.1 17.7 35 $13.74 $13.74 $72 $72 71%

Long Term Average 14.3 18.4 40 $9.37 $67 73%2018-19 vs LT avg 3.8 -0.6 -4 $4.38 $5 -2%


Historical Data For Selected Average Profitability Indicators – Gippsland

TABLE C16



Glossary

Cost structure

Variable costs as a percentage of total costs, where total costs equal variable costs, overhead costs and owner/operator allowance.

Debt ratio

Interest 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 hectares

All 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).

Equity

Total assets minus total liabilities. Equal to the total value of capital invested in the farm business by the owner/ operator(s).

Grazed hectares

Effective 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 income

Income 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 margin

Gross income minus variable costs for a specific enterprise.

Net Income

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

Net farm income

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

Overhead costs

All 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.

Owner/operator allowance

Allowance for the owner/operator’s own labour. Set at $87,349 per year (pro rata for actual time worked) for 2018-19. In addition, an allowance of $45,973 per year (pro rata for actual time worked) is provided for other unpaid family labour.

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 under management (owned and leased).

Return on equity (RoE)

Net farm income divided by the equity value. RoE gives an indication of efficiency 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 costs

Variable 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

ABARES Australian Bureau of Agricultural and Resource Economics and Sciences

AWEX Australian Wool Exchange

BoM Bureau of Meteorology

cwt Carcass weight

DJPR Department of Jobs, Precincts and Regions, 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

ML Megalitre

MLA Meat and Livestock Australia

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

NFI Net Farm Income

OTH Over the hook

RoA Return on assets

RoE Return on equity

t Tonne = 1,000 kg

yrs Years old

Standard values

Standard values are used to calculate changes in value of stock on hand. The main standard values used in 2018-19 are shown below.

WOOL SHEEP ($/HEAD) 2018-19

Ewes $109

Weaners $98

Wethers $109

Rams $71

CATTLE ($/HEAD) 2018-19

Cows $1,190

Heifers $892

Weaners $340

Steers 1-2 yrs $960

Steers 2+ yrs $1,458

Bulls $1,778

CROPS ($/TONNE WET) 2018-19

Pasture hay $359

Silage $190

Wheat $414

Oats $460

Barley $399

Canola $512

PRIME LAMBS ($/HEAD) 2018-19

Ewes $169

Weaners $177

Wethers $101

Rams $227

Customer Service Centre 136 186 www.agriculture.vic.gov.au

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