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Australian dairy: financial performance of dairy farms, 2014-15 to 2016-17

Overview
This report presents the detailed financial performance estimates of dairy farmers in 2014-15, 2015-16 and 2016-17, and discusses incomes, investment, farm debt, and costs of production in a historical context. The report draws on data from the ABARES annual Australian Dairy Industry Survey (ADIS).

This report is a collation of chapters that have been previously published online.

Farm financial performance (published 18 May 2017) This chapter presents estimates of the incomes, profits, costs and rates of return for dairy farms. Key Issues
Average farm cash income of Australian dairy farms is projected to decrease by around 18 per cent in 2016-17 to $105,000 per farm. Farm cash income in 2016-17 is projected to be an estimated 8 per cent lower than the average between 2000-01 and 2015-16 (in real terms*). The expected decrease in incomes is a result of reduced milk production per farm and lower milk receipts due to low prices.

  • Note: real dollar values are adjusted to remove the effect of inflation.

Farm debt and equity (published 12 July 2017) This chapter presents estimates of the debt, equity, and debt-servicing capacity for dairy farms. Key Issues
Average farm debt of Australian dairy farms is estimate to have increased by around 2 per cent to $956,000 in 2015-16 (in 2016–17 dollars). Average dairy farm debt is projected to decrease by around 6 per cent in 2016-17. The average equity ratio of dairy farms at the national level declined from 85 per cent in 2004-05 to an estimated 79 per cent in 2015-16. The proportion of farm receipts needed to fund interest payments is projected to fall to just under 7 per cent in 2016-17.

Farm capital and investment (published 8 August 2017) This chapter presents estimates of farm capital and farm investment for dairy farms. Key Issues
The total value of capital for Australian dairy farms increased by 40 per cent in real terms from 2000-01 to 2015-16. On a per farm basis, total capital increased by 133 per cent to around $4.5 million per farm in 2015-16. The average value of land and fixed improvements per hectare for dairy farms increased by 76 per cent from 2000-01 to 2015-16, with an average annual return on land appreciation of 3.9 per cent.

Physical characteristics (published 9 November 2017) This chapter presents estimates of physical characteristics for dairy farms. Key Issues
From 2000-01 to 2015-16 the number of Australian dairy farms fell by 45 per cent. Although most of this decline was in Victoria, the largest percentage decline was in Queensland. The concentration of Australian milk production among the states has shifted considerably, with Victoria and Tasmania expanding their milk production and all other states contracting since 2000-01. Total milk production increased in Tasmania from 2000-01 to 2015-16 but decline in all other states.

Data and Resources

Additional Info

Field Value
Title Australian dairy: financial performance of dairy farms, 2014-15 to 2016-17
Type Dataset
Language English
Licence Creative Commons Attribution 4.0 International
Data Status active
Update Frequency never
Landing Page https://data.gov.au/data/dataset/ba149833-8938-4442-a3e5-e28ec80b877c
Date Published 2018-06-05
Date Updated 2018-06-27
Contact Point
Australian Bureau of Agriculture and Resource Economics and Sciences
02 6272 4548
dataman@agriculture.gov.au
Temporal Coverage 2017-11-09
Geospatial Coverage Australia
Jurisdiction Commonwealth of Australia
Data Portal data.gov.au
Publisher/Agency Australian Bureau of Agriculture and Resource Economics and Sciences
Geospatial Topics Farming