Kingscote Airport Business Case Appendices - Kangaroo Island ...

Kangaroo Island Futures Authority Draft Economic Impact of Agriculture and TourismTable 6.3Value of agricultural production on Kangaroo Island, 2001, 2006, 2011 (nominaldollars)2001 2006 2011Field cropsCereals for grain 4.5 4.0 6.0Legumes for grain 0.9 0.8 0.6Oilseeds 2.0 1.6 6.1Pasture and other crops cut for hay 3.0 4.3 3.1Total Field Crops 10.3 10.8 15.8Fruit, Vegetables & NurseriesWine grapes 0.2 0.2 0.1Other fruit 0.3 0.0 0.1Vegetables and seeds 0.1 0.3 4.6Nurseries & cut flowers & cultivated turf 0.0 0.3 n.p.Total Fruit, Vegetables & Nurseries 0.6 0.8 4.8LivestockCattle and calves 4.6 4.4 5.1Sheep and lambs 11.7 12.6 27.6Other livestock 0.1 0.5 1.7Wool 17.9 5.0 11.2Other livestock products 0.4 0.9 1.2Total Livestock 34.7 23.4 46.8Total Agriculture 45.6 35.0 67.4Source: ABS (2012g) and previous issues6.2 Economic Contribution of AgricultureThe direct value of agricultural output on Kangaroo Island in 2011/12 was estimated to be$69.4m (Table 6.4). This estimate was based on data sourced from ABS (2012g) ($67.4m inTable 6.3) with some modifications based on industry consultation. These modifications werelargely around the value of wool produced, which appeared to be significantly underestimatedin the Agricultural Census 2 .In Table 6.4 adjusted farm gate value of agricultural production is provided as well as eachsector’s direct contribution to gross regional product and employment. It should be noted that2Wool production on Kangaroo Island in 2011/12 was estimated to be 2,600,000 kg. Production bymicron segment was estimated on the basis of the latest year available (2009/10). Clean wool yieldfrom greasy was assumed to average 69%. Production by micron segment was applied to AustralianWool Exchange (AWEX) prices for the southern market. An initial adjustment to prices (7%reduction) was made as the wool clip includes pieces, bellies, locks, etc. and therefore can beexpected to achieve a lower average price than the AWEX MPG for the same micron. Furtheradjustments (9.5% reduction) were made for selling charges including wool tax, testing charges andAWEX levy. Based on these calculations the value of wool production on Kangaroo Island in 2011/12was estimated to be approximately $17.5 million (compared with Agricultural Census estimate of$11.2 million).e c o n s e a r c hPage| 21