tasmanian food and beverage industry scorecard · when packed and processed the value of increased...

Depar tment of Pr imar y Industr ies, Parks, Water and Environment

Tasmanianfood and beverage industry ScoreCard

2008-09

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IntroductionAgriculture, seafood production

and food value adding are very important contributors

to the Tasmanian economy. Government, industry and

communities are continuing to develop economic growth

through sustainable management of our natural resources.

The fi rst food industry scorecard (for the year 2004-05) was developed as a simple way of measuring growth and understanding how value is created along the chain.

This approach has been well accepted by industry and government as a method of describing what is a highly diversifi ed industry which has many market segments. It quantifi es the processed and packaged value of foods and market destinations including interstate trade.

Many years ago Tasmanian foods were largely harvested, packed and marketed by Tasmanian companies. Then it would have been relatively easy to account for the value of production and what markets were being supplied. This is no longer the case because of increasing corporatisation and globalisation in the food industry.

Atlantic Salmon farming – taking advantage of Tasmania’s unique island identity and clean, cool natural environment. Since 2004-05 the value of salmon production has increased by some $244 million in 260 weeks (almost $1 million per week). Salmon trade revenue is now $280 million per year most of which ($235 million) is derived from interstate sales.

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A decade of grow

thMany people might be surprised to see that the value of agriculture (including non-food items such as wool, nursery, poppies) and seafood production has increased over the last 10 years.

Despite the challenges of drought, turmoil in international markets etc, the value of agriculture and seafood production has risen by $684 million over the last 10 years. That equates to an annual increase in value of over 7% ,and points to the reliability of Tasmania as a supplier of quality foods. The rate of growth in the value of production has far exceeded infl ation over that time.

The gross value of the food and beverage value added portion of agriculture and seafoods is estimated to have increased by some $1 billion in the last 10 years. Most of the additional produce is sold in domestic markets – interstate and within Tasmania, as reported in this publication.

Trends in Gross Value of Agricultural and Seafood Production

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

Gross

Value

$m

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Seafood Agriculture


Grow

th SectorsSince the fi rst Scorecard was published (2004-05) there has been real growth – an additional $258 million in agriculture and an additional $216 million in seafood (farmgate and beach sale points). A very positive outcome was achieved in just 4 years.

The drivers of growth are shown in the chart below. Increased salmon production has been a standout performer with production increasing by almost $1 million per week. The dairy and vegetable sectors have shown solid growth. Apple, beef and abalone sales contracted over the 4 years.

When packed and processed the value of increased food and beverage production was $614 million. Salmon, dairy, vegetables and beer production were major contributors to that growth. Beer production rose by 23 ML.

In the 4 years 2004-09, the value of overseas food exports increased by $96 million, but interstate trade increased by $409 million. That was mainly attributed to increased sales of dairy products ($244 million), salmon ($123 million) and beer ($70 million).

0

50

-50

100

150

200

250

Apples Other Fruit Carrots Potatoes Other Vegetables Beef

Milk RockLobster

Abalone Salmon

Cha

nge

in G

ross

Val

ue o

f Far

m a

nd S

eafo

od $

m

Growth Sectors 2004 - 09(4 years)

Dairy$202 m

Salmon$205 m

Beer$87 m

Other foods$40 m Vegetables

$40 m

Growth in Packed and Processed Foods 2004 - 09$614 million


Key Food Facts

2008-09

» 2008-09 was a particularly strong year for food production in Tasmania.

» Value of food at Farm Gate/Beach = $1,416 million

» Value of food once packed & processed = $2,717 million

» Gross Value of Food Sales (overseas exports, net interstate trade & domestic sales) = $4,412 million

» Net Food Revenue (Gross Food Revenue less imports) = $3,848 million

» Overseas Exports = $572 million

» Net Interstate Trade = $1,444 million (2.5 times overseas exports)

» Food Retail & Food Service Sales in Tasmania = $2,312 million

» Tasmania sold 74 % of the food produced (by value) to interstate and overseas customers i.e. a big net surplus.

Creating value along the chain 2008/09 ($ million)

0 500 1000 1500 2000 2500 3000 3500 4000 4500

Total Net Revenue

Packed & Value Added

Farm & Seafood

$ million In 2008-09 195,000 adult sheep; 134,000 lambs and 52,000 cattle were shipped to interstate buyers. These sales are not included in the gross value of agricultural production. However, they are reported as $77 million interstate commodity sales.


Food Industry Scorecard 2008-092008-09 ($ million)

Field Crops Livestock Dairy Fruit Vegetables Seafood Wine Confect’ry Total

Food - Farm Gate / Beach ValueTotal Farm Gate / Beach Value

3.9214.0

253.4329.2

292.6292.6

86.584.5

240.7240.7

526.9526.9

12.512.5

1,416.51,633.4

Processed & Packed Food Value 383.2 366.8 464.2 97.5 432.5 585.3 14.5 373.4 2,717.5

Overseas Trade

Commodity Exports 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Commodity Imports 0.0 0.0 0.0 0.0 0.0 0.0 0.0 88.1 88.1

Food Exports 0.1 148.5 106.8 17.7 26.4 187.8 4.1 56.9 572.3

Food Imports 0.7 0.0 2.6 3.2 4.3 0.5 0.1 24.5

Net Interstate Trade

Net Commodity Exports 0.4 77.7 0.0 0.0 0.0 0.0 5.0 83.1

Net Commodity Imports 6.9 7.9 0.0 0.0 0.0 0.0 0.0 14.8

Net Food Exports 129.1 29.7 347.3 40.8 285.4 320.4 0.0 291.5 1,444.3

Net Food Imports 29.3 66.7 0.6 43.8 0.0 5.4 69.7 436.6

Tasmanian Food Sales

Retail Sales 260.8 500.4 213.2 123.6 296.3 47.8 107.2 25.0 1,734.0

Food Service Sales 235.8 87.6 4.3 28.5 84.3 91.4 95.0 578.0

Net Food Revenue 589.4 769.4 668.4 163.6 688.1 641.5 141.3 285.4 3,847.7

Gross Food Revenue 626.3 844.0 671.7 210.6 692.4 647.4 211.2 373.4 4,411.7

Net interstate trade is calculated as: Total production – Exports + Imports – Domestic Consumption = Net Interstate Trade


Food - Farm Gate / Beach Value $1,416 million Food – Packed & Processed Value $2,717 million

Beef $255 m Sheep $60 m

Other Livestock $52 m

Dairy $464 m

Apples $46 m

Other Hort $52 m

Potatoes $264 m

Onions $49 m

Peas $9 m

Carrots $44 m Other vegetables $66 m

Lobster $75 m Abalone $123 m

Oysters $23 m

Atlantic Salmon $351 m

Other Seafood $13 m

Wine $15 m

Confectionery $373 m

Beer S282 m

Bakery $101 m Beef $255 m

Sheep $60 m


Dairy $464 m

Apples $46 m Other Hort $52 m

Potatoes $264 m

Onions $49 m

Peas $9 m Carrots $44 m

Other vegetables $66 m


Oysters $23 m


Other Seafood $13 m

Wine $15 m


Beer S282 m

Bakery $101 m

Food Production 2008-09

Beef $161 m

Sheep $46 m


Dairy $293 m

Apples $37 m

Other Hort. $50 m Potatoes

$99 m Onions $48 m

Peas $12 m

Carrots $36 m

Other Vegetables $49 m

Lobster $75 m

Abalone $103 m

Oysters $20 m


Other Seafood $10 m

Wine $13 m

Beer, Wine and Confectionery – valueadded products worth $670 million andgenerating $410 million net trade revenue.


Food Trade Revenue 2008-09Overseas Exports $572 million

Other food trade items:Overseas food imports $25 millionO/seas commodity imports $88 million (confectionery ingredients)

Interstate Exports $1,444 million

Other food trade items:Interstate food imports $437 million – wine, chicken meats, citrus, prawns, other fi sh. Interstate commodity exports $83 million – live cattle & sheep, wine grapes. Interstate commodity imports $15 million – live cattle & sheep, wheat.

Beef $129 m

Sheep $12 m

Dairy $107 m

Onions $23 m Fruit $11 m

Lobster $45 m

Abalone $95 m

Other Seafood $7 m

Confectionery $57 m

All other foods $36 m

Abalone generates $126 milliontrade income with China being themajor export destination.

Beef $20 m Sheep $8 m

Dairy $347 m

Fruit $41 m

Potatoes $209 m

Carrots $37 m Other Vegetables $12 m


Oysters $21 m


Other Seafood $6 m


Beer $128 m


Food Sales in Tasmania

2008-09

In 2008-09 food retail sales were $1,734 million and food service sales were $578 million. Combined retail and food service sales for the major product categories are shown in the following chart.

Food retail and food service sales in Tasmania have risen in line with growth in the population, tourism and the popularity of restaurants.

Wine $202 mConfectionery $25 m

Seafood $139 m

Vegetables $381 m

Fruit $152 m

Dairy $217 m

Meat $588 m

Bakery & field crops$208 m

Beer $281 m


2008-09 Food Trade» The vast majority (92%) of Tasmania’s food trade revenue is

generated by just 10 categories - beef, confectionery, salmon, potatoes, dairy, beer, lobster and abalone. All the remaining other foods represent some 8% of trade revenue.

» In recent years interstate food sales have been the major area of market growth. Major contributors to that result were sales of beer, salmon, dairy and vegetables.

» 2008-09 overseas food exports increased by $50 million compared with the previous year.

» Tasmania continues to produce a large net surplus – more than 74% of food production is destined for overseas and interstate customers.

» Trade income in 2008-09 exceeds $2 billion and that underpins a substantial portion of Tasmania’s economy.

Food Trade Revenue 2008-09 $ million

Overseas I’State TotalDairy 107 347 454Confectionery 57 292 348Atlantic Salmon 45 235 280Potatoes 0 209 209Beef 129 20 149Abalone 95 31 126Beer 0 128 128Lobster 45 35 80Carrots 3 37 40Onions 23 24 48All Other Foods 69 86 154Total 572 1444 2016


Information N

eedsWhat is the real value of Tasmania’s food, agriculture and fi shing industries? Given the importance of the sector to the State’s economy it would be expected that there would be a precise answer.

The Food Industry ScoreCard is a method developed by the South Australian Department of Primary Industries for tracking the annual growth in food production, examining the value creation along the chain and identifying which markets predominate.

The value of agricultural and fi sheries production is reported annually. However the packaged and processed value of Tasmanian foods has not been reported for many years. This is due to a number of reasons. Firstly industry data is suppressed in cases where only 2 or 3 companies are dominant players. Secondly it is not possible to segregate the Tasmanian component of national companies.

Similarly exports to overseas countries are reported annually. However the scorecard method makes it possible to quantify the value of interstate trade, which for many food items is a far more important market destination.


The Tasmanian Food Industry ScoreCard is based on existing Australian Bureau of Statistics (ABS) and ABARE data (gross value and quantity of production), export and import data, food retail and food service sales, food consumption data and the Tasmanian population statistics.

Given this information it is possible to calculate the quantity of food available after exports have been deducted. The Tasmanian consumption is estimated using Tasmanian population statistics and food consumption data.

Net interstate trade is calculated as:Total prod’n – Exports + Imports – Domestic Consumption = Net Interstate Trade

At various points in the ScoreCard information is reconciled with other reported data, eg Tasmanian food retail and food service sales against ABS food retail and food service sales. In total it’s a complex system that refl ects the diversifi ed nature of the food industry in Tasmania.

Behind the information in this report lie many individual calculations for all commodities such as: abalone, apples, beef, broccoli, carrots, cheese, ... wine. In total there are more than 60 major product groupings.

Vegetable production worth $241 million ex farm and $432 million

once packed and processed.Interstate sales of vegetables are

worth $285 million net.

How

do we collate inform

ation for the ScoreC

ard?


Sources of information

Australian Bureau of Statistics (ABS):

Agricultural Commodities, small area data – ABS 7125.0

Apparent Consumption of Foodstuffs – ABS 4306.0

Household expenditure survey – ABS 6535.0.55.001

Trade data (international food exports and imports) – purchased from ABS

Australian Demographic Statistics – ABS 3101.0

While the ScoreCard has utilised trade data purchased fromABS, there are many reports that can be accessed from the ABS website free of cost, using the catalogue numbers recorded above.

Website: www.abs.gov.au

Australian Bureau of Agricultural and Resource Economics (ABARE):

Australian Commodity Statistics – an extensive collation of Australia food, agricultural and fi sheries data and world trade information.

Australian Fisheries Statistics

Website: www.abareconomics.com

Department of Agriculture, Fisheries and Forestry (DAFF)

Australian Food Statistics 2010 – a comprehensive data set on Australian food production, value adding, employment and trade.

Website: www.daff.gov.au

Primary Industries and Resources South Australia (PIRSA)

South Australian Food Centre – The Food Scorecard

The contribution of PIRSA in assisting the development of the Tasmanian ScoreCard is gratefully appreciated.

Website: www.safoodcentre.com/scorecard

Department of Primary Industries, Parks, Water and EnvironmentAgricultural Policy Group

GPO Box 44Hobart Tasmania 7001Ph: 1300 368 550Email: [email protected]

For further information on industry sectors – Tasmanian Rural and Marine Industry Profi les, and general industry specifi c information, please visit our website:

Website: www.dpipwe.tas.gov.au

ISBN 978-0-7246-6542-6

This publication is printed on Australian-made 100% recycled paper.

Photography: Graeme Harrington, John Farrow, Tasphoto Services DPIPWE, Peter Whyte,

Hugh Griffi ths, Simon de Salis.


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CONTACT DETAILS

Contact: Hugh Griffi ths

Senior Industry Development Offi cer

Agricultural Policy Group

Dept Primary Industries, Parks,

Water and Environment

Tasmania

GPO Box 44

Hobart Tasmania 7001

Ph: 03 6233 3058

Mob: 0418 599 369

E: Hugh.Griffi [email protected]

website: www.dpipwe.tas.gov.au

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tasmanian food and beverage industry scorecard · when packed and processed the value of increased...

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