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Transport Costs for Australian Agriculture

Transport costs for Australian Agriculture
This research shows that the available statistics estimating than transport only represents  4% of the total Australian agricultural output are a far cry from the reality. This research finds that from the farm to a the foreign customer (delivered to the foreign port of entry of domestic central market), transport cost of Australia's agricultural products represent between 4% and 48.5% of the farm gate value, with an average of 8.75% for domestic delivery and 23.64% for international delivery. These results have been obtained through twelve different case studies and assess all the costs incurred to the different stakeholders of the supply chain (road freight, storage, handling, wharf fee...).
While these results cannot be extrapolated to respective agricultural industries as a whole, they demonstrate that for many products, particularly beef cattle and grain, transport costs are a major part of the total cost to produce and deliver the product to its destination. The work constitutes a benchmark against which changes in transport costs can be assessed and compared over time. It is also hoped that the Australian agricultural transport costs identified, as part of this research, will be able to be compared with transport costs incurred by agricultural producers in other countries.

Full report, pp1-31 (44 pages), December 2011
Australian Farm Institute
Authors: Goucher, G
ISBN 978-1-921808-14-2 (Print)
ISBN 978-1-921808-15-9 (Web)

$77.00


 
 




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Value in Value Chains - Collaborative Business Models and Farm Accreditation Systems Examined


The range of case studies analysed provide a diversity of examples where value chain engagements have benefited farmers, but also highlight that such arrangements are dynamic and evolve over time, and require continual management.

A related issue is the role of farm accreditation systems in consumer-driven value markets. Should Australian agriculture be developing national accreditation systems in order to secure market access, or do such systems simply add cost without delivering value? The research reported here examines these questions in the light of the experiences of those involved in the case studies analysed as part of the
research. Becoming an integrated part of a value chain will not necessarily be the best option for all farm businesses.

However, this research provides some valuable information and lessons for those farmers contemplating closer engagement in value chains, and should assist in ensuring that farmers do secure value from chains.

As Australian agriculture evolves from being a low-cost supplier of bulk commodities to global markets into a supplier of both bulk commodities and more specialised and differentiated products to higher-value markets, the interaction between farmers and the value chain post farmgate will become an increasingly important element of farm business profitability.

While farmers have recognised the need to become part of the value chain, there is a great deal of uncertainty about the extent to which these arrangements deliver increased value to farmers. Many question whether farmers are actually better off being involved in the value chain, and there are a myriad of stories about how such arrangements have worked to the disadvantage of farmers.

Full Report
August 2008, pp. 1 - 72 (72 pages)
Publisher: Australian Farm Institue
Author: Australian Farm Institue - O'Keeffe, M
ISBN: 978-0-9805475-1-1

$77.00


Essential Services in Urban and Regional Australia – a Quantitative Comparison

Over recent decades the Australian economy has largely been deregulated, and governments have progressively reduced direct involvement in the provision of a wide range of services to the community. The trend towards reduced direct government involvement in service delivery commenced during the 1980s, and was accelerated by the National Competition Policy agreement of 1994. Over the past two decades, the direct involvement of governments in the provision of services including telecommunications, public transport, some postal services, education, health and medicine, transport infrastructure and a range of health-related services has been substantially reduced.

One unresolved aspect of these changes is the extent to which governments have an obligation to provide a core set of essential services to all taxpayers, irrespective of their place of residence. This was an issue that remained contentious during the sometimes intense political debates over National Competition Policy, and which regularly resurfaces in debates about the quality of telecommunication, health and education services in rural and regional Australia.

A major weakness in the debates about this issue has been the lack of objective data that enables essential service accessibility to be compared between locations, and over time. The research project reported here has addressed this by utilising census and other data to develop objective measures of essential service accessibility.

The intent in developing this data is not to advance arguments that all Australians should have absolutely equal access to all essential services, but rather to provide a mechanism to enable more objective decision-making to occur. This should assist in ensuring that residents of regional and rural areas maintain equitable access to essential services; that governments innovate to find better ways to efficiently provide essential services to all residents; and that governments consider alternative policy measures in the event that essential services cannot be made universally available.

Newly released research has for the first time quantified the extra costs faced by Australia’s non-metropolitan residents in accessing essential Government services, and highlighted the need to find better ways to deliver essential services in regional Australia.

The research, commissioned by the Australian Farm Institute and carried out by the National Institute of Industry and Economic Research (NIEIR), used census and other objective data to calculate the costs faced by all Australian residents in accessing essential services such as doctors, hospitals, schools, TAFE colleges and universities. These costs were then compared between metropolitan, urban and rural residents.

Full Report

November  2009, pp. 1 - 81 (81 pages)
Publisher: Australian Farm Institute
Author: National Institute of Economic and Industry Research (NIEIR)
ISBN 978-0-9806912-5-2 (Print)
ISBN 978-0-9806912-6-9 (Web)

$77.00


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