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									PASTORAL INDUSTRY ECONOMIC
MONITORING


REQUIREMENTS WORKING GROUP


FINAL REPORT      SEPTEMBER 2003




UNOFFICIAL COPY
                                        TABLE OF CONTENTS

LETTER OF COMMITAL FROM CHAIRMAN ............................................................................2

SUMMARY OF RECOMMENDATIONS .....................................................................................5

INTRODUCTION ........................................................................................................................6

TERMS OF REFERENCE ..........................................................................................................7
   Modelling approaches in use in Australia ............................................................................ 10
   Summary of pastoral industry economic models ................................................................. 13
   Review of selected benchmarks in use in Australia ............................................................ 14
   Summary of available benchmark data ............................................................................... 16
   A Sustainability Index - a conceptual format for reporting on triple bottom line „condition
   status‟ for the Western Australian pastoral industry ............................................................ 19
   Sustainability Index – conceptual (nominal indicators only) ................................................ 24
ACKNOWLEDGEMENTS ........................................................................................................ 29
   APPENDIX 1: Viability & Amalgamation of Pastoral Leases ............................................. 30
   APPENDIX 2: Terms of Reference ..................................................................................... 32
   APPENDIX 3: Survey to Determine Current Use of Economic Performance Information . 34
   APPENDIX 4: Pastoral Wool Industry Taskforce 02/03 Update ........................................ 36
   APPENDIX 5: Output from the Regional Relativities Sustainability Index Model .............. 39
   APPENDIX 6: Financial and Production Benchmarking 2000-2001 .................................. 42
   APPENDIX 7: PIEMR Summary 1 ...................................................................................... 47
   APPENDIX 8: Australian Bureau of Statistics .................................................................... 51
   APPENDIX 9: The National Land and Water Resource Audit ........................................... 55
   APPENDIX 10: Meekatharra Annual Financial Information Analysis (MAFIA) .................. 57
   APPENDIX 11: Working Group Submissions ...................................................................... 67
   APPENDIX 12: List Of Common Used Acronyms ............................................................... 68




                                                               -2-
LETTER OF COMMITAL FROM CHAIRMAN
MINISTER FOR PLANNING AND INFRASTRUCTURE
PASTORAL INDUSTRY ECONOMIC MONITORING REQUIREMENTS
The essence of monitoring is to know what you want to monitor. To this end our
working group reviewed the relevant institutional bodies that administer/manage the
pastoral areas and could not clearly identify stated objectives and sets of targets
against which to monitor the pastoral industry‟s economic performance. The lack of
any stated targets is a significant finding in its own right. However it is also
symptomatic of a far wider problem that plagues the institutional administration and
management of Western Australian pastoral lands viz. the lack of a consistent
management framework. What has become obvious is that management of the
pastoral lands is fragmented, chaotic and lacks an integrated strategic plan (a vision)
and a management framework that implements that vision. It is this vision which will
set the objectives, and targets. It is only when these targets are set that a monitoring
cycle can be meaningful. Without the right questions to answer monitoring will
ultimately fail.

Like those of the other working groups many of the recommendations impact on
Government departments outside of the Minister's portfolio and this presents
particular problems for the implementation of this and the other working groups‟
reports.

In developing this report the Working Group members were cognisant of:
(i)     The need for the recommendations to be implemented;
(ii)    The need to bring together the five (5) Working Group reports for consistency
        and avoidance of overlap or conflicting advice;
(iii)   The fact that there did not appear to be a vehicle for this to occur; and
(iv)    The involvement of a number of groups (Environmental Protection Authority
        (EPA), Rangelands Working Group of the Natural Resource Management
        Council (NRMC)) in developing strategies/plans for the broader rangelands
        areas.

To facilitate a way forward the Working Group suggests:
(i)     The five Working Group Chairs or nominees of the Minister form a Writing
        Working Group (WWG) supported by the Pastoral Lands Board
        (PLB)/Department for Planning and Infrastructure (DPI) to consolidate the
        individual working group reports and prepare material for:
        (a)     The Minister; and
        (b)     public consultation;
(ii)    Once accepted by the Minister the consolidated report could be presented to
        the Cabinet Standing Committee (Environment) and ultimately to Cabinet for
        endorsement and implementation.
(iii)   That a process to progress the report recommendations is put in place to
        oversee implementation on behalf of the Minister, Natural Resource
        Management Council (NRMC) and Pastoral Lands Board (PLB).

The diagram attached outlines a proposed process.

Finally, on behalf of the Working Group it is with pleasure that I forward our report.

Mark Lewis
CHAIR
                                     5 working groups

Sustainability       Economic              Access              Tenure              Indigenous



                                             Minister


                                                                      Writing Working Group to
    Consultation                                                      consolidate five reports

                                         Muster (Oct. 03)
                                        Public consultation
   Development of
       policy
                          Cabinet Standing Committee (Environment)




                                             Cabinet

   Policy approval

                                      Implementation Group




                                           Consultation




                                Finalise report and recommendations




   Implementation                       Develop action plan




                          Cabinet Standing Committee (Environment)




                                             Cabinet




    Operational policy by agency/industry
SUMMARY OF RECOMMENDATIONS

Recommendation 1
That a formalised continuous improvement framework be used by the
administrators/managers of pastoral lands.

Recommendation 2
That clear objectives and targets are set (at a range of scales) that when monitored
provide performance information against those targets.

Recommendation 3
There be industry education on the differences between Australian Bureau of
Agriculture and Resource Economics (ABARE) and Australian Bureau of Statistics
(ABS) data.

Recommendation 4
That there be education/communication to encourage pastoralists to provide true and
correct information given policy makers use this information to set the industry‟s
strategic direction.

Recommendation 5
That the ABARE Farm Survey information be routinely collected to at least the
regional scale, i.e. Kimberley, Pilbara, Gascoyne, Murchison, Goldfields/Nullabor.

Recommendation 6
The concept of a Sustainability Index be used as the basis for further refinement as a
triple-bottom line monitoring framework for the pastoral industry of Western Australia.
INTRODUCTION
In April 2002 the Minister for Planning and Infrastructure and the Pastoral Lands
Board (PLB) held a pastoral forum now known and referred to as the Gascoyne
Muster. A range of pastoral industry related matters were discussed at this forum
including a presentation on the pastoral industry‟s economic performance, trends and
benchmarks (Appendix 1). Following the presentation there were some concerns
about the validity of the data that was used to underpin the presentation.

The central concern was that the analysis presented contained data sourced from the
Australian Bureau of Statistics (ABS). Forum participants expressed doubt that the
data accurately represent the industry. The ensuing debate identified a poor
understanding of what needs to be monitored and what information represents
statistically valid data at a range of scales.

The Minister acknowledged these concerns and set up a working group to review the
pastoral industry economic monitoring requirements with the following Terms of
Reference.
TERMS OF REFERENCE
The Pastoral Industry Economic Monitoring Requirements Working Group (PIEMR) is
to investigate and identify the most appropriate economic data model to be utilised by
the Pastoral Lands Board (PLB), Department of Agriculture (DAWA) and the pastoral
industry in monitoring economic indicators and trends.

The Terms of Reference of the Working Group are to:
1. Research and identify the data that is currently collected by the PLB and
   Department of Agriculture in relation to the pastoral businesses;
2. Review and identify what information needs to be collected to assist policy
   development for future beneficial use of the rangelands industries. The triple
   bottom line performance indicators of social, economic and environmental factors
   need to be taken into account;
3. Review economic data modelling, benchmarking and other approaches
   undertaken by other States in Australia;
4. Research and develop recommendations for an economic data model for the
   pastoral industry.

A full description of the Terms of Reference is attached in Appendix 2. The full terms
of reference describes the requirements for reporting, timeframe, process,
membership, profile of members, attendance and consultation.



Terms of Reference 1
Research and identify the data that is currently collected by the PLB and
Department of Agriculture in relation to the pastoral businesses.

Recommendation:
Clear objectives and targets are set (at a range of scales) that when monitored
provide performance information as to whether the targets are being met.


Financial information from pastoral businesses in the rangelands has not been
readily available in the past and is not comparable with similar information from farm
businesses in the South-West Land Division. Government collects information,
usually as a one-off event as a pre-requisite to respond to a looming or existing
crisis.

For example:
 “Report of the Royal Commission on the Pastoral Industry in the Leasehold Areas
  in Western Australia, 1940”, put in place by the Government of the day towards
  the end of what was considered the worst drought to effect the pastoral areas.
 “Report of the Pastoral Leases Committee” March 1963. A committee headed by
  the then Surveyor-General gathered information for potential changes to the Land
  Act 1933 and a review of rents.
 “The Present and Future Pastoral Industry of Western Australia. April 1979”
  probably better known as the “Jennings Report”. The group chaired by Mr Brian
  Jennings reviewed the pastoral industry following a prolonged dry period.
 “Regional relativities of sustainable pastoral production in Western Australia” was
  produced for the Pastoral Wool Industry Task Force (PWITF) in 1993 and has
  been updated as required.
 “The Gascoyne Murchison Rangelands Strategy – a report presented to the
  Rangelands Cabinet Sub Committee, March 1997”, recommending a range of
  strategies to restructure the region following the collapse of the reserve price
  scheme for wool and a coincident period of drought.

While these reports provide snapshots of the industry performance over time they do
not represent a consistent supply of information that provides year-in year-out trend
data. However the most consistent data that is provided each year has been:
 The ongoing information that is commercially available from the Australian
  Bureau of Agriculture and Resource Economics (ABARE) and the Australian
  Bureau of Statistics (ABS).
 The PLB gathers its own specific information through a yearly “Return of
  Livestock and Improvements” statutory declaration process where lessees are
  required to identify stock numbers and infrastructure development.
 Meekatharra Annual Financial Information Analysis (MAFIA) which was collected
  from 1985/86 to 1999/2000 from stations located in the area serviced by the
  Meekatharra office of the Department of Agriculture.
 The Regional Relativities Model (developed for the PWITF identified above)
  which is updated every 2-3 years.

And more recently:
 The Gascoyne Murchison Strategy (GMS) is currently funding Resource
  Consulting Services to provide financial advice to around fifty pastoral businesses
  in the region. As an outcome, in addition to providing very detailed information
  and advice to pastoralists, this project provides industry benchmarks for sheep
  cattle and other businesses.

Of the above five reporting mechanisms only the ABS and ABARE information and
the PLB‟s statutory declaration process provides information for both the Northern
and Southern Rangelands. The other three datasets are geographically focused on
the Southern Rangelands and more particularly the Gascoyne and Murchison
regions.

The terms of reference to be addressed by the working group also included
consideration of both the environmental and social aspects of the pastoral industry in
addition to the economic factors.

With respect to environmental reporting:
 A Rangeland Condition Assessment is presented to the PLB on a schedule of
  reporting that ensure a comprehensive audit is undertaken on each lease once
  every 1-6 years.
 An annual report is presented to the PLB that is sufficient to fulfil the State of
  Environment (SoE) reporting requirements; this is underpinned by
 The Western Australian Rangelands Monitoring System (WARMS) which
  provides trend in rangeland condition at a landscape scale.
With respect to social indicators the working group identified a dearth of social
indicators and the most recent information that has been presented is represented
by:
 The “Rangelands Theme of the National Land and Water Resources Audit” that
  considered “rangeland people” and provided some socio-economic information in
  its most recent report.

As identified in the opening committal statement the working group was unable to
define any predetermined targets that are based on clear objectives or vision that
must be monitored against in a planned monitoring cycle.



Terms of Reference 2
Review and identify what information needs to be collected to assist policy
development for future use of the rangelands industries. The triple bottom line
performance indicators of social, economic and environmental factors need to
be taken into account.
Recommendation:
A formalised continuous improvement framework be used by the institutional
administrators/managers of pastoral lands.


The Working Group considered the need for financial and economic information from
the pastoral industry. In the past, information such as that from MAFIA, the Regional
Relativities of Sustainable Pastoral Production Model and more recently the
Benchmark information through the Gascoyne Murchison Strategy has been
provided to a number of organisations. These include the Pastoral Lands Board,
Agriculture Protection Board, Rural Business and Development Corporation and Soil
and Land Conservation Council.

The working group surveyed the heads of relevant Boards or departments in an
attempt to determine the benefit of such information in the decision making process.
Three main questions were (the full details of the survey is attached at Appendix 3):
 How useful have you found the information to be?
 Have you used any of the information in forming policy decisions?
 What would your group be prepared to pay towards the provision of this data?

The general response was that the information was interesting and had, on
occasions, assisted with decision making in some areas. However there was no
significant evidence of the information being used in a formalised way to change or
set policy. No one suggested the information was essential or even necessary and
there appeared a general lack of commitment towards paying for the information.
Terms of Reference 3
Review economic data modelling, benchmarking and other approaches
undertaken by other States in Australia.

No Recommendation Required.

As a starting point to reviewing this term of reference it is important to understand the
difference between modelling and benchmarks.
Benchmarking shows how industry has performed historically and is based on the
performance of actual businesses.
Models can be used to project how the industry may perform in the future under
various scenarios (or “what ifs”) and can show the impact of various changes (such
as improvements in technology, climate change, policy changes) on the performance
of the industry.
Models are also useful in removing the impact of individual management actions from
historical analysis, particularly when sample size is small and the atypical actions of
one contributor can affect results.

Modelling Approaches in use in Australia
There are few models in use around Australia that look at the economic performance
or sustainability of the pastoral industry. Most of the models use an average farm or
case study approach. That is, they construct a model of an average farm or case
study property for the region/district(s). Performance between districts can then be
compared. The property models are also used to test the impacts of various seasons,
prices or policy decisions on the model farm.

A recent development (in the last 5 years or so) is the linking of bio-physical and herd
models. These models are useful for two reasons: changes in forage production due
to seasonal conditions can be linked to economic performance, and modelling results
can be given both as an economic impact and a bio-physical impact. Linked bio-
physical and herd models are so far only available for grassland production systems,
as it has not yet been possible to create a reliable forage production model for the
shrublands.

The models in use are both static (based on a steady state herd/flock in a typical
year) or dynamic (the model increases/decreases in stock numbers over a run of
seasons). Dynamic models are particularly useful in modelling risk responses.

The inputs for the models are usually found in benchmarking data or data collected
from industry specifically for the purpose of building the model.

The following models were examined:
Regional Relativities Sustainability Index – Department of Agriculture
WA
The Regional Relativities Sustainability Index looks at the economic sustainability of
pastoral businesses in each of the 13 Land Conservation Districts Committees
(LCDCs) in the Southern Rangelands. An average station was constructed for each
of the districts based on surveyed carrying capacity, seasonal information, wool
quality information and property infrastructure. Average MAFIA data was used for
fixed costs and to calculate the average costs per hectare or dry stock equivalent
(DSE) used in the model.

The model can be used to calculate the surplus/deficit of the average station in each
of the LCDCs, or it can be used to calculate a break even business size for each of
the LCDCs.

This model was originally developed in 1993 by the Department of Agriculture WA
(DAWA) for the Pastoral Wool Industry Task Force. Price and cost information has
subsequently been updated for development of the Gascoyne-Murchison Strategy
(GMS) in 1995 and again in June 1999 at the request of the Pastoral Lands Board.
The 1995 update incorporated cattle into the model. The model has been updated
recently based on the data from the GMS benchmarking project, enabling district
specific cost structures to be incorporated into the model for the 1st time.

The analysis produced from the model is included as an excerpt from the PLB
agenda paper “Profitablility of Pastoralism in the Southern Rangelands Region of
Western Australia” – June 1999, Appendix 4; and the Output from the Regional
Relativities Sustainability Index Model” is provided at Appendix 5.

Rangepack Herd-Econ – Commonwealth Scientific and Industrial
Research Organisation (CSIRO)
RANGEPACK was a series of decision support computer programs for pastoral
properties developed and commercialised by CSIRO‟s Centre for Arid Zone
Research in the early 1990s. The programs covered paddock design and climate,
but the most successful one was Herd-Econ – a module dealing with the herd
dynamics and property economics of a grazing enterprise. Herd-Econ was especially
useful for comparing alternative stock management decisions with each other, for
looking at the effects of climatic variability on decision-making, and for tracking the
process of trading from one property state to another over time.

During the DroughtPlan project which ran from 1994 to 1997 a number of regional
case study models were developed to look at responses by pastoralist to seasonal
variability. Among others, five case studies were developed in the Gascoyne-
Murchison region.

RANGEPACK is no longer supplied or supported commercially by CSIRO, but is still
in wide use, particularly for research. Land Use Change in Northern Australia
(LUCNA) and RISKHERD are two spin-off models which utilise HERD-ECON for the
herd modelling component.

Land Use Change in Northern Australia (LUCNA) - CSIRO
The Land Use Change in Northern Australia (LUCNA) models identifies the likely
impacts of changes in underlying primary productivity, in prices and in costs of
production on northern Australian grazing industries. This includes changes driven
by markets, policy and land use in the near term, or by population and climate
changes in the longer term.
As part of the LUCNA project, which ran from 1997-2000, existing and new
biophysical and economic information was collated to parameterise forage production
and herd economics models for four regions including the Kimberley in WA. The
LUCNA model was then used to analyse the sensitivity of economic productivity to
different management strategies under various current climatic conditions and for
different markets.

RISKHerd - CSIRO
RISKHerd models both the biophysical and financial processes of rangeland grazing
enterprises to determine how different policies affect the impact of management
strategies on the profitability, resource base and ecological sustainability of case
study properties. The RISKHerd computer model is primarily used to assess the
effects of policy instrument predominantly different tax structures and instruments.

The RISKHerd project has been implemented since September 1998 under the
guidance of a steering committee comprising of industry and policymaker
representatives. The project has involved the application of the RISKHerd computer
model to case studies from diverse regions of the Australian rangelands.

Equilibrium displacement model of the Australian Beef Industry – NSW
Agriculture, Cooperative Research Centre (CRC) for Quality Beef
This model does not look at the viability/sustainability of the industry but can be used
to analyse the impacts of various interventions such as improvement in agricultural
technology or increased expenditure on market promotion.

The model takes estimation of reductions in costs of production and then using
detailed knowledge of beef industry structures, market demand/supply relationships
and price flows calculates benefits to industry and the community as a whole.

This model differs from the other models presented above in that it can takes into
account price effects of increases or decreases in supply and also includes benefits
to all supply chain members such as feedlotters, exporters and consumers, unlike the
other models which just present impacts on the profitability of pastoral businesses.
Summary of Pastoral Industry Economic Models

Model             Organisation     Description                Purpose of model               Maintenance                    Inputs             Outputs
Regional          Department of    A static model of an       Determines long run            Model is maintained by         Carrying           Cash surplus.
Relativities      Agriculture WA   average station in 13      economic sustainability and    DAWA regional economist in     capacity.          Break even
Sustainability    (DAWA)           LCDs in the Southern       relativities between           Carnarvon. The model has       Climatic.          business size.
Index                              Rangelands of WA.          districts.                     been updated twice since       Wool quality
                                                                                             model was constructed in
                                                                                                                            Price & costs.
                                                                                             1993 most recently in 1999.
                                                                                                                            Productivity
Herd-econ         CSIRO            A dynamic model based      Can look at the effects of     Model is no long maintained    Productive         Annual and
                                   on herd performance over   climatic variability on        commercially but is still in   performance in     accumulated
                                   a run of seasons.          decision-making, and for       use for research purposes.     various season     cash surplus
                                                              tracking the process of                                       types
                                                              trading from one property
                                                              state to another over time.
LUNCA             CSIRO            A dynamic model which      Analyses the sensitivity of    A number of case studies       Forage             Change in
                                   links bio-physical and     economic productivity of       including one for the          production.        profitability
                                   herd economics models.     different management           Kimberleys was constructed     Herd
                                                              strategies.                    for the LUNCA project which    productivity.
                                                                                             ran from 1997-2000.
RISKHerd          CSIRO            A dynamic model which      RISKHerd determines how        Model was used under the       Forage             Change in
                                   links bio-physical and     different policies (e.g.       guidance of a steering         production.        profitability.
                                   herd economics models      taxation policy) affect        committee comprising of        Herd               Changes in
                                   within a risk framework.   profitability, the resource    industry and policymaker       productivity.      resource base.
                                                              base and ecological            representatives from 1999-
                                                              sustainability of case study   2001.
                                                              properties.
Economic          NSW              A partial equilibrium      Models net benefits to         This model was constructed     Demand and         Changes price
displacement      Agriculture &    model where changes are    industry and community of      by the Quality Beef CRC in     supply of beef     and quantities
model of the      Quality Beef     modelled as shifts in      changes such as                December 2000.                 and substitutes    for beef.
Australian Beef   CRC              demand or supply curves.   technology improvements                                       in all markets.    Changes in the
Industry                                                      and expenditure on                                            Supply, demand     value and
                                                              promotion.                                                    and substitution   distribution of
                                                                                                                            elasticities.      economic
                                                                                                                                               surplus.




                                                                              13
Review of Selected Benchmarks in Use in Australia
Profit Probe - Resource Consulting Services
Resource Consulting Services (RCS) is probably the most recognised and most
relevant financial consulting firm currently working with Western Australian
pastoralists. Apart from their presence in WA through the GMS benchmarking
project, RCS conduct fairly regular Grazing For Profit schools and provide a range of
other training products.

From the point of providing information suitable for monitoring the pastoral industry,
RCS-- through their benchmarking project --provide each pastoral client with the
printed copy of the Profit Probe analysis of their business. The document provides
a range of information including “Key Performance Indicators”, the client‟s position in
the group, and a comparison with the group average, the top 20% and the
benchmark.

The process being adopted for the project with GMS is for the consultant, based in
Carnarvon, to visit each property to collect data and provide on the spot advice on a
range of issues. This is followed by a review workshop where each member of the
group is able to discuss their individual performance and identify areas where
improvement is required and achievable. In the first year the consultant conducted
an explanatory workshop prior to collecting the initial round of data.

The pastoralists are not making a financial contribution towards this project. At the
conclusion of GMS support it is hoped and expected enough clients will be prepared
to financially subscribe to ensure the service is retained. This project is costing, on
average around $2,500 per pastoral business. Travel costs are a major component
and it would be expected an annual visit, to collect data, may not be necessary when
clients become more accustomed to what is required.

A consideration for the Working Group could be to have a Profit Probe or a Key
Performance Indicator (KPI) analysis of Top 20%, Group Average and Bottom 20%
for each region (e.g. Kimberly, Pilbara and Southern Rangeland, etc).

A “Group Information and Management Strategies” report is provided for each of the
groups by RCS and also made available as a general report on the performance of
the group.

See Appendix 6 “Financial and Production Benchmarking 2000-2001”
   Appendix 7 “PIEMR Summary 1”

Australian Bureau of Statistics
The Australian Bureau of Statistics requests information on a varying time scale. A
summary of the available information is provided in Appendix 8. The information is
collected by mailed survey to
 every agricultural business every five years; and
 a sample of businesses annually.




                                         -14-
The Australian Bureau of Statistics report provides whole numbers without any
analysis. Whilst this information may be of interest, without some benchmarks the
monitoring of industry performance is not possible. The information is readily
available at little or no cost and it may be possible to acquire more detailed
information.

It is dot point 2 above “a sample of business annually” that drives concern regarding
the use of ABS figures. That is, most industry people think that information that is
sourced to the ABS is based on this annual survey information which in their view is
“rubbery”. This view is based on the experience of having provided this information
themselves and knowingly have not accurately portrayed the real situation and hence
the lack of confidence when they see data being used in public that is sourced to
ABS.

Australian Bureau of Resource Economics
The Australian Bureau of Agriculture and Resource Economics (ABARE) provides a
range of information including a summary of basic financial information (see
Appendix 8). The information provided is fairly generalised and the most recent year,
2001 provides less information than has been provided in previous years. Data is
collected on-property from a representative group of agricultural businesses on an
annual basis.

The Department of Agriculture obtains data for each of its six administrative regions
at a total cost of approximately $400 per year.

National Land and Water Resources Audit
The information collected for the “Rangelands Theme of the National Land and Water
Resources Audit” report on “Rangelands People” is included as Appendix 9.

Meekatharra Annual Financial Information Analysis
The Meekatharra Annual Financial Information Analysis (MAFIA) was collected from
fourteen stations in the wider Murchison area. Through natural attrition in all about
21 businesses provided data for some period during the life of the project. The
original purpose of MAFIA was to provide the Pastoral Lands Board with production
and financial information about pastoral businesses. The then chairman wanted
information that would enable the Board to act on a looming crisis rather than re-act
to that crisis. MAFIA has been superseded by the RCS contract.

A sample of MAFIA is at Appendix 10.




                                          15
Summary of available benchmark data

Project             Owner           Purpose                        Maintained              Input                      Output            Est. Cost
Profit Probe        RCS             Financial advice to pastoral   2 year contract to      Explanatory                Detailed          Depends on
                                    businesses and                 31/08/03                workshops, personal        analysis and      uptake by
                                    Benchmarks                                             data collection,           personal advice   industry.
                                                                                           advice, group              Profit Probe      $10,000 to
                                                                                           workshops                  report,           $50,000
                                                                                                                      benchmarks,
                                                                                                                      KPI‟s
Australian Bureau   Commonwealth    Agricultural statistical       Annual and tri-annual   A range of farm            Averaged          Assumed cost
of Statistics                       information                                            business financial and     business          free
                                                                                           production data            financial and
                                                                                           collected by mail          production data
ABARE               Commonwealth    Agricultural statistical       Annual                  Farm business              Limited           Assumed at
                                    information                                            financial and              averaged          about $1,000
                                                                                           production data            business          per year
                                                                                           collected in person        financial and
                                                                                           mail                       production data
National Land and   Commonwealth    Wide ranging investigation     One-off over about 4    Individual contributions   A range of        Public reports
Water Resources                     including rangeland areas      years.                                             reports
Audit
MAFIA               Department of   Pastoral business financial    Annual 1985-1986 to     Personal data              Data analysis,    $20,000
                    Agriculture     and production data            1999-2000               collection, advice         reports,
                                                                                                                      workshops




                                                                         16
Terms of Reference 4
Research and develop recommendations for an economic data model for the
pastoral industry.

Recommendation:

There be industry education on the differences between ABARE and ABS data.
As part of this education/communication encourages pastoralists to provide
true and correct information given policy makers use this information to set the
industry’s strategic direction.
That the ABARE Farm Survey be routinely collected to at least the regional
scale, i.e. Kimberley, Pilbara, Gascoyne, Murchison, Goldfields/Nullabor.
The concept of a Sustainability Index be used as the basis for further
refinement as a triple-bottom line monitoring framework for the pastoral
industry of Western Australia.

Principles of an Economic Monitoring Model
Before exploring what economic data model/s might be recommended, the group
determined the principles that such a model should cater for. Figure 1 identifies the
key principles.

Figure 1.

 Issues                      Principles
 Uses                        Indicate trends in economic and rangelands profitability
                             Economic comparative performance (KPI input/output) for industry and
                             government
                             Performance benchmarks
                             Identify research, development and extension opportunities/projects
                             Meets PLB viability assessment criteria for 2015.
                             Reporting on performance (Government and Commercial)
                             Planning
                             Target Government investment eg NHT
 Users                       Governments – (3 Tiers) – Specifically the
                             PLB, APB, Govt agencies (DPI, RDO)
                             DAWA Programs and Regions
                             Industry
                             PGA/WAFF
                             Banks, Consultants, Agents
 Scale                       Rangeland
                             Regional (Kim, Pil, GM, NEG/Null)
                             District (LCDC)
                             Enterprise
 Scope                       Economic
                             Environmental
                             Social
  Time                       Annual
  Sample Size                10-20%
  Cost                       Generally less than $50,000 per year
  (Value for money)
* Emphasis on issues highlighted in bold




                                               17
ABS vs ABARE
As indicated earlier, there is an issue with the confidence of ABS-sourced
information. This lack of confidence was likely to be the source of the angst with
respect to the data used at the Gascoyne Muster. There is also confusion between
ABS data and ABARE Farm Survey information and often industry people consider
ABS and ABARE data to be the same data. To this end the industry view both the
ABS and ABARE information with scepticism.

However ABARE staff collects ABARE Farm Survey information from individual farm
businesses based on a farm visit for up to one and a half day per visit and as such
the information collected is by its very nature far more rigorous. To this end ABARE
Farm Survey sourced information is a reliable source of information.

One issue though with ABARE Farm Survey data is that it is intentionally collected at
a broad scale. For example the ABARE Farm Survey information is collected on
statistical division at a national scale, that is, the whole of the WA pastoral area is
within one ABARE Division. While the information is statistically valid when
comparing one division with other divisions nationally, it becomes statistically
unreliable when the data is “stretched” to go below the intended scale and used to
represent inter-regional comparisons, for example the Gascoyne versus the Pilbara
region.

Because there is very little data consistently collected at lower scales (as discussed
in TOR 1) there is a propensity to use the only available data and to “stretch” it to
represent what ought not to be represented. However this was not the case with the
Gascoyne Muster data.

Sustainability Index

While the above recommendations will enhance the appropriate data at the scale
required, the working group was cognisant that this would not meet the TOR
requirements to monitor the triple-bottom line.

In reviewing relevant models for monitoring the triple-bottom line, the working group
was presented with a conceptual framework that Alan Herbert, Senior Economist
from the Department of Agriculture has been developing and refining for some time.
The concept is based on the notion of a “Sustainability Index” and was accepted by
the working group as our preferred model.

The following describes the concept of the sustainability index.




                                          18
A Sustainability Index - a conceptual format for reporting on triple
bottom line ‘condition status’ for the Western Australian pastoral
industry
As highlighted in the committal statement it is important to understand why a
monitoring process is required. If the objectives are understood then a more
appropriate process can be put in place.

Management specialists argue that monitoring is a waste of time unless there is
some responsiveness to results. They believe there needs to be some set targets for
achievement and progress towards those targets is measured by the monitoring
process. The targets themselves need to be in areas in which management can
influence the outcomes.

However, monitoring can also be used for condition status reporting – “How is it
travelling?”, “What does it look like? People can then pick up this picture and judge
what is happening and whether it is satisfactory or whether something different is
required.

Monitoring is always historical. Measurements are taken of a condition status which
has been determined by prior events – and it should be accepted for what it is.
Monitoring is not used to predict future events. If the reason for monitoring is to look
forward, then there are tools available (e.g. regional farm models) into which forward
estimates can be placed to forecast an outcome.

The various stakeholders in any issue will determine appropriate indicators for their
particular interest area – be it economic, environmental or social, or indeed
associated biophysical, institutional, or any other subset. The challenge however, is
to organise/arrange them in some sort of order (a framework) such that all
stakeholders‟ interests are captured and they jointly contribute and participate
towards a desired “sustainability” outcome.

The following presents the concept of a „Sustainability Index‟ as the format for
reporting the condition status of the Western Australian pastoral industry. It is based
on the need to capture measurement of a wide range of indicators to adequately
describe sustainability. The process provides a framework to consider the individual
contributions of each indicator and amalgamate them into a single sustainability
number (an index).

The problems in actually making the index work in a reporting sense are listed but it
still is a useful framework in which to consider and debate the multi-faceted nature of
sustainability.

1. Reporting frameworks – e.g. share market, wool market reporting
A lead for the possibility of a Sustainability Index was taken from the stock market
and how the trading for each day (or week or year) is reported.

The stock market publishes an „All Ordinaries‟ index which is made up of a basket of
individual shares and weighted according to „importance‟ in the market. Sitting below
the All Ordinaries is an „Industrials‟ index, a „Resources‟ index, a „Mining‟ index, a
“Telcos” index, etc. Each contains a basket of individual shares with some sort of
weighting attached to calculate the number appearing as the index.




                                           19
Each index over time is accepted in a reporting function and provides an overview of
the markets. The indices don‟t necessarily mean very much to an individual
shareholder with an investment in (say) an oil company who will want to work his way
down to the actual quote of that particular oil company. Yet such indices are quoted
regularly as a „first pass‟ look at trading for the period.

Similarly, the wool industry publishes a „Western Market Indicator‟ which is made up
of a basket of a wide range of wool types, again weighted to reflect their
representation in the market. The indicator is used to obtain a quick overview of the
market but a farmer with Type 78 wool (for example) really needs to track how that
particular category has been selling.

In the same way, it is appealing to think about a „Sustainability‟ index - a single
number which provides a quick statement of how close to sustainability we might be.
For example, a Sustainability Index = 71 (where 100 is „fully sustainable‟)
immediately says we are part way there but there is still some work to do. However,
to interpret that number properly, we would need to know what the index is for
„Economic‟ sustainability vs „Environmental‟ sustainability vs „Social‟ sustainability vs
etc. The individual stakeholder who is especially interested in a particular aspect
(e.g. ecology) would have to work their way down the hierarchy to have a look at the
„Biodiversity‟ indicator. This would be where some measurement for the current
period would be recorded. People with particular interests could find their own
indicator – the same process as for the shareholder in the stock market or the
woolgrower with Type 78 wool to sell.

With those concepts in mind, a „Sustainability Index‟ framework for reporting the
condition status of the pastoral industry has been developed.

2. Range of Indicators
There is a wide range of stakeholders in the pastoral industry, all with very genuine
interests in sustainability and requiring some sort of indicator to service their own
perspective. A Sustainability Index can capture all of them but places them in
hierarchal context alongside all others. It becomes obvious that the number of
indicators for any level of reporting needs to be limited to key issues - according to
the perspective of the person/group doing it. Government for example might only
need higher order reporting because the „big picture‟ issues might be clouded by
supplying too much detail. Practitioners on the other hand would be more interested
in the individual indicators because that is where their work is. They would get no
satisfaction from a higher order „summary‟ indicator.

3. Sustainability Index - conceptual framework

This framework (see Figure 2) is based on a hierarchial ordering of indicators with
individual items being grouped into the „Triple-bottom line‟ categories which in turn
feed into a single Sustainability Index.




                                           20
It incorporates the capacity to develop a scoring system for each indicator – which
may simply be a „yes/no‟ level of achievement or something a bit more sophisticated
(e.g. sliding scale of achievement in terms of measurement against a set target).
The framework also provides the opportunity to apply different weightings to
individual indicators according to some agreed priority rating. For example, an
economist might argue that the Economic Index is more important than the others
because it is only through profit that Social objectives can be achieved and
Environmental stewardship be afforded. An environmentalist might argue that
without Environmental standards the Economics and Social outcomes are false.

4. Sustainability Index - issues
A series of indicators can be developed for each of the economic, environmental, and
social „triple bottom line‟ components. (Others might argue for the addition of
biophysical and institutional sectors for a „quintuple‟ bottom line). The ordering of
them in a sustainability index structure has a number of requirements and raises a
number of issues:

4.1 Equal numbers
Some people will believe that there needs to be an equal number of indicators in
each of the component areas. For example - if we have 10 economic indicators, we
also need to have 10 environmental and 10 social indicators. This is to avoid an
indicator in one component section attracting greater importance in the way it affects
the result. There is some dispute about this as it can be accommodated in the priority
weightings. Nevertheless, it might be wise initially to have equal numbers in each to
avoid such criticism.

4.2 Regional specificity
It is important to provide a framework where a set of indicators can be developed for
different regions. Specific indicators would be needed according to the different
climatic, geographic, and management systems.

However, a completely open-ended „blank sheet‟ framework would produce a lack of
commonality between regions and the need for interpretation of each regional
indicator might be a problem for State reporting. It makes sense to have some
common „standard‟ indicators which allow regions to be compared and which
collectively will provide good State level information. There should also be provision
for the different regions to add some of their own. Setting this up in a spreadsheet
allows each region to customise their own lists of indicators as well as choose their
own priority weightings, but the standard indicators are already present and forms
part of the regional list.

4.3 Regional comparisons
Regional comparisons would only be possible if the same indicators and priorities
were applied. Otherwise we are not comparing „apples with apples‟. For example
(nominal only), the Gascoyne region might place greater priority on their „river flow‟
indicator compared to the Goldfields who in turn might place higher importance on
„plant density‟. This is not a problem when the regions are treated as discrete
separate units.




                                           21
4.4 Targets for achievement
If monitoring is about measuring progress towards achievement, then targets need to
be set. Those particular targets are probably best considered by each individual
„expert‟ in each field of work but someone needs to collate them. Targets need to be
constantly reviewed. At what level is the target set? Does a high achievement mean
just that or does it mean that the target was set too low?

Ideally, each target should be stated in such a way that measurement can be scored
against a scale of achievement - rather than a + or - score (achieved or not
achieved). We need to be able to say whether we reached 40%, 70%, or 100% - or
any point in between.

5. Problems with sustainability indexes
In the interests of balance, there are a number of arguments against the concept:
    An index hides the more important information which feeds into it. It
     oversimplifies a wide range of decision-making capability related to the
     individual indicators below it. An example of a person visiting the doctor was
     used to demonstrate. If the doctor found that you were 60% fit, it would mean
     very little unless you also found out that the reason for the assessment was
     that your liver was malfunctioning. Why have the unnecessary step in the
     diagnosis when you can find out directly about the liver function? (And the
     performance of all other organs at the same time). It is the complete set of
     indicators which provide all the information.
    The weightings applied will be different for different stakeholders according to
     their individual perspectives. While the debate around the weightings can be
     productive in getting the different stakeholders to see others points of view, it is
     unrealistic to expect consensus to occur.
    Why have weightings at all? It is the indicators themselves which contain the
     important information so why not display them overtly without disguising them
     into an index.
    An index relies on scoring achievements against some predetermined target.
     Given the difficulties of setting targets, a scoring system is only relative to what
     might be an arbitrary target anyway. Why not present the actual result for
     judgement rather than hide it in a score? Even if the target was adequately
     reasoned, the actual result would still need to be accessed for interpretation.
    It takes time for a sustainability index to settle down due to the need for review
     once the initial „ambit claim‟ indicators are put in place. It also takes time for an
     index to be used. People need to become familiar with the concept and
     recognise what the index means and the significance of shifts in it.




                                           22
6. Advantages of a Sustainability Index framework
While there are a number of developmental issues in establishing a sustainability
index, there are a number of advantages in considering the capture of monitoring
requirements in this way:
    It is a useful way of describing what sustainability is and understanding it as a
     complex beast. It becomes obvious that sustainability is multi-faceted and
     made up of a wide range of issues. Any issue thought important by a
     stakeholder can be inserted.
    The framework provides a focus for all stakeholders to get involved at whatever
     level of interest. They can provide input according to their expertise but should
     appreciate that others have something to say elsewhere in the matrix.
    Arguing the priority weightings is a useful exercise in order for each stakeholder
     to appreciate the perspective of others.
    A numbering system forces stakeholders to address the difficult problem of
     setting targets. For example, instead of calling for more trees as a generic
     statement, it will force discussion of how many more (of what type, where in the
     landscape, etc.).
    It forces stakeholders to consider the priorities of individual indicators within
     each component. A long list of indicators might be prepared but their individual
     importance might not be great when it comes time to apply the weightings.
    Development can be cumulative – i.e. first guess selections of indicators can be
     used initially and as each is adapted and proved useful, they can be
     progressively locked in.
    Where available, international standards can be used to be compatible with
     world best practice.
    The same framework can be used for different regions. It allows specific
     indicators to be used to describe the status of that particular region.




                                          23
Sustainability Index – conceptual (nominal indicators only)

Figure 2.
Index                        Priority                   Index        Priority                          Achievement
0-100                         (%)                       0-100         (%)                                0-100

 57         Sustainability     40%      Economics        90           33%       Net worth                   88

                                                                      25%       Profit                      75

                                                                      37%       Income                     100

                                                                       5%       Rate of return              95




                               30%      Environmental    34           55%       Range condition             10

                                                                      10%       Erosion                     85

                                                                      30%       Feral/native animals        65

                                                                       5%       Weeds                       15




                               30%      Social           37           10%       Shire funding               95

                                                                      30%       Race attendance             40

                                                                      15%       Tourists                    90

                                                                      45%       Family                      5




                                                                24
While the working group acknowledges that our TOR is directed at the triple-bottom line
we also recognised the requirement to ensure that the economic indicators would be
highlighted. The following present in more detail the rationale behind the economic
indicators used in the sustainability index. However we acknowledge that in the final
framework this level of detail is required of the environmental and social parameters as
well and would expect that this be done in the implementation phase when and if the
recommendations of this report are accepted.

‘Economic’ indicators
Summary
This section records the thinking and development behind the selection of four
„economic‟ indicators to be used to monitor economic performance for the pastoral
industry. They are put forward as the initial areas for tracking and reporting on the
financial status of pastoral enterprises. If experience in using these 4 indicators as
descriptors shows otherwise, then alternative indicators can be proposed or added.

Suggestions must be consistent with the availability of sources of information from
which to extract the indicator. It is believed there are a number of data bases currently
being maintained which collectively will enable a reasonable representation of the
different pastoral regions. However, interpretation must appreciate that there is a wide
range of business performance as influenced by the different geographic locations,
resources available to the business, management preferences and capabilities. No
single indicator nor group of indicators will fully describe the situation. Indicators are
only guides.

The indicators have been presented as targets so that monitoring is used in the sense
of measuring progress towards achievements. The 4 indicators to implement in a
standard annual collection and analysis procedure are:
 Real increase in pastoral business equity.
 Increasing % of pastoral businesses with positive farm business profit.
 Real increase in annual average net income.
 Annual rate of return maintained above inflation rate.

1. Economic vs financial indicators
There a number of economic indicators which could be monitored – ranging from the
more global whole of industry or whole of region data (e.g. gross value of production)
down to financial ratios at the individual business level (e.g. debt:income ratio). Where
Government (for example) might only be interested in „big picture‟ total values, the
pastoral industry is made up of a number of individual businesses - hence an
appreciation of the status of the industry can be ascertained from assessing the
performance of representative businesses. These are best described as „financial‟
indicators to distinguish them from the higher order „economic‟ indicators.




                                            25
2. Information Sources
For the pastoral regions, information from individual station businesses could be
sourced from a number of alternative data sets.
The annual ABARE Farm Surveys reports are a good source of easily obtainable
information. On request, ABARE can customise their data set and extract „average per
farm‟ information for specified regions. The Department of Agriculture currently pays
around $400 per year to ABARE to obtain this data split up between the southern and
northern rangelands. The sampled population is low – around 15 stations in the
southern and 10 in the northern rangelands representing around 4% and 13%
respectively of the total number of stations. ABARE commences the annual survey in
June each year and results are published around April of the following year. They
endeavour to turn over around 25% of their sample each year. ABARE Farm Survey
information is standardised across Australia and is an established and ongoing
reference for farming organisations and industries.

This information can be supplemented from 3 additional sources:
   Rural Consulting Services are piloting a business performance analysis project in
    the Gascoyne-Murchison where 50 stations are involved in annual financial reviews.
    If this service is on-going, it will provide a good data set for that particular region –
    and is similar to the Bankwest and Planfarm surveys done in the Wheatbelt.
   Land Conservation Districts are involved in benchmarking studies and financial
    indicator information can be extracted.
   Regional economists with the Department of Agriculture in both the southern
    rangelands (Carnarvon) and northern rangelands (Kununurra) keep in touch with
    the industry by close contact with a selected number of station businesses.

3. Financial Indicators and Targets
There is a wide range of financial indicators used by different people (e.g. managers,
banks, consultants) for different purposes. There needs to be a balance between
choosing some key „main message‟ indicators to give a quick overview of the situation
and a complete set to fully analyse it - but the main messages might be lost in the
detail.

In assessing a business at the end of a production year, there are 2 major factors which
determine whether the business has been successful:
 Growth in Net Worth, and
   Maintenance of liquidity.

The former measures whether the business has grown its wealth while the latter refers
to its capability to continue into another production cycle. There are a number of
possible indicators to fully examine these 2 areas but in the interests of compromise
between brevity and detail, 4 indicators are proposed below.




                                             26
3.1 Profit
In general financial terms, if a business is not making profit it is not adding to wealth
and uses up liquidity rather than preserve it. Profit is the key to other things hence it
must be one of the first things to look at as a high order indicator when assessing
business performance.
Establishing a regional or industry-wide target for profit is a little more difficult. What
level of profit is satisfactory? Profit will fluctuate wildly around movements in
commodity prices and seasonal influences - facts of life in extensive
agricultural/pastoral enterprises. Enterprise mixes and managerial capabilities will
mean different pastoral businesses will record profits of different levels at different times
for different reasons.
Profit also means different things to different people. Actual profit is made up of a
combination of both net income and changes in capital values - hence changes in total
net worth (equity) is the major way of recording progress in a business.

Intuitively, there needs to be an indicator which demonstrates that businesses are
making progress from growth in net worth, in conjunction with an indicator which shows
how businesses are actually achieving it. Two „profit‟ targets are therefore proposed:
   Real increase in farm business equity (net worth) last 5 years
Even though nominal equity might be increasing, „real‟ increases are necessary to
demonstrate that inflation is not actually eroding it. Averaging over the last 5 years is
suggested as a way to overcome short-term downturns adversely affecting the result
but building in the high profit years when longer term views are considered.
   Increasing % of farms with positive farm business profit (average last 5 years)
It is reasonable to expect more farmers to be profitable as we progress further towards
financial sustainability. Averaging over the last 5 years avoids the problems of short-
term effects. Note that this indicator is only looking for businesses above the zero profit
line. Some businesses will require more than this on a sustained basis to survive and
some businesses will survive with short-term losses. Setting the target at „positive‟
profit hides some of the detail but is suggested as a reasonable „front end‟ benchmark.

3.2 Components of Profit
Profit is derived from both net income and changes in capital values – both of which are
captured together in the two catch-all high order indicators of „equity‟ and „profit‟ above.
However, the interpretation of these indicators is enhanced by consideration of its
individual components.

3.2.1 Income
Every family business has a basic objective of earning enough (disposable) income to
satisfy the operators‟ need to feed, clothe, house, transport, and educate their family.
Corporate business requires disposable income to pay dividends to shareholders. The
desired level of income will be different according to the number of beneficiaries and
the personal and business goals, but „sufficient‟ disposable income will be a feature of
every business and will determine if it remains in that particular pursuit. (One exception
might be where an operator might be prepared to suffer low income temporarily for
other gains – e.g. capital growth from land appreciation. Perhaps personal income can
be made up from off-farm employment.)




                                             27
It is impossible to accurately measure disposable income and set a target which is
agreeable to all. Perhaps it could be related to the Basic Wage or some other
„standard‟ in the community where the indicator might set a minimum income to be
achieved. However, the following is proposed as an effective and easily obtainable
indicator for income:
   Real increase in annual average net farm income (average last 5 years)

3.2.2 Capital
Changes in capital values of land, machinery, livestock, infrastructure, and cash
reserves are an integral component of calculating profit and need to be considered in
conjunction with net income. ABARE tracks these changes on an annual basis which
can be used as a direct indicator. However, it is suggested that „return on capital‟ is a
better indicator because it has some commonality and relevance with non-rural sectors.
The business of pastoralism needs to compete against all other sectors of the economy
for capital. The industry needs to be profitable and continue to be able to attract
investment funds to remain viable and to allow natural adjustment to occur without
serious dislocation. Interest in a „return on capital‟ indicator for existing participants is in
the possible opportunity cost of relocating capital into an alternative venture with
possible higher rates of return. External potential investors will assess pastoralism
against other industries using common benchmarks.
   Annual rate of return maintained above the inflation rate
The target is linked to inflation rate as a minimum for achievement from the perspective
that return on capital needs to at least keep pace - otherwise capital funds should
rationally be diverted to alternative investments.

An actual minimum rate of return for achievement (for example, “maintained above
5%”) could be proposed but has been avoided for 2 main reasons:
   Historically low rates of return in many extensive agriculture/pastoral businesses
    when expressed in these terms which when quoted might give the wrong
    impression to potential investors that the industry has low profitability.
   Every business sector suffers wide fluctuations in rates of return making it very
    difficult to achieve the target on a sustained basis.

3.3.2 Changes in the capability of the base resource
In conjunction with Profit, we also need to measure physical productivity in high order
indicators. A farming enterprise can show adequate income, adequate return on
capital, and adequate growth in net worth (i.e. adequate profit) - but it is still not
sustainable if the land is being „mined‟ or the resource base is deteriorating to achieve
it. We need conjunctional measures to demonstrate the capacity of that enterprise to
sustain those adequate rewards into the future.

Targets and indicators for the productive capacity area should more logically appear
under a Biophysical or Environmental section (possibly Social if we want to include
„managerial capability‟) - and don‟t need to also be presented under the Economics
section. However, it is an important principle that Financial targets as expressed in the
4 statements above must be considered conjunctionally with biophysical targets.
Achievement of the financial targets means little if there is deterioration in the capability
of the base resource to sustain those financial achievements into the future.




                                              28
ACKNOWLEDGEMENTS
The Working Group would like to thank the following contributors to the process:

Roderick O’Connor – Manager of Rural Adjustment – GMS, Department of
Agriculture.

Alan Herbert – Senior Economist, Department of Agriculture.

Karen White – Regional Economist, Department of Agriculture.

Trevor Blight – Working Group Coordinator, Department for Planning and
Infrastructure.

Lana Harries – Administration Officer, Department for Planning and Infrastructure.

Jeanette Ryder – Administration Officer, Department of Agriculture.

Michael Rowe – Policy Officer, Department of Premier and Cabinet.




                                          29
APPENDIX 1: Viability & Amalgamation of Pastoral Leases
              1               1                  2
*Mark Lewis , Karen White and Rosemary Bartle
1                                                              2
  Department of Agriculture Western Australia, Carnarvon WA        Resource Consulting Services, Carnarvon
WA


The predicament of the pastoral industry in Western Australia is not new. The issues
currently confronting the industry are essentially the same as those identified by the
Jennings Committee (1979), the Pastoral Wool Industry Taskforce (1993) and the
Gascoyne Murchison Rangeland Strategy Steering Group (1996).
     Poor comparative performance of the pastoral industry
On average the pastoral industry performs poorly from an economic point of view
compared to other agricultural regions in Western Australia and other investment
options.

Table 1.          Average performance of selected regions (1990-1999)

                                       Southern             Northern         Northern          South
                                      Rangelands           Rangelands       Agricultural       West
    Farm business profit($’000)           -$41                -$71             $43              $15
    Rate of return on capital (%)          -6%                 -3%             3%                1%
(Source: ABARE farm survey)

     Impacts on triple bottom line performance of industry
Over the last 10 years on average only 33% of pastoral business in the Southern
Rangelands and 42% of pastoral business in the Northern Rangelands have had a
positive farm business profit (Source: ABARE farm survey). This poor profitability
impacts on the triple bottom line performance of the industry through limited ability of
the business to reinvest in capital.
Social :               Limited funds for retirement and schooling.
Economic :             Low level of reinvestment in infrastructure resulting in loss of control
                       of stock and a winding back of animal husbandry and productivity.
Environment :          Low level of reinvestment in infrastructure resulting in loss of control
                       of stock and unmanaged grazing pressure.
     Some businesses still doing well
Benchmarking information from the Southern GMS Region (Cue, Mt Magnet, Yalgoo
and Lower Murchison) show that there are still some individual businesses that perform
strongly. Good ROAM figures in 2001/01 are predominantly driven by higher than
usual commodity prices, however the 1999/2000 figures show that it is still possible to
make money even with normal commodity prices, but management must be good
(Source: GMS benchmarking project).

Table 2.             Return on assets of Southern GMS region benchmarking participants

                                           1999/00                     2000/01
    Average of top 20%                           7.9%                    20.2%
    Average                                      0.4%                    11.0%
    Average of bottom 20%                            -7%                  3.0%




                                                      30
   Business size as a driver of profitability.
The GMS benchmarking project results to date support the notion that business size is
a key driver of profit. The average ROAM of businesses with less than 10,000 DSEs
was 7% compared to those business with more than 15,000 DSEs of 15% (Source:
GMS benchmarking project)
   Enterprise choice as a driver of profitability
However, business size is not the only important driver of profitability, enterprise choice
is also a key. The gross margin for a traditional medium merino wool enterprise in the
Southern Rangelands is $6.85 per DSE compared to $12.84 for a domesticated goat
enterprise or $13.47 for a damara sheep meat enterprise. However limited access to
debt or equity finance limits the ability of incumbent pastoralists shifting quickly between
enterprises (Source: Comparative gross margins – medium Merino versus exotic
breeds, Karen White, Department of Agriculture, 2002).
   Property scale build-up is difficult to achieve
 The Voluntary lease adjustment program under the Gascoyne-Murchison Strategy has
resulted in very little adjustment of land for pastoral land use. Discussions have been
held with 21 stations about the opportunities for them to dispose of their leases through
the VLA program. Of these 21 stations, 6 sold privately, 3 sold to CALM, 7 are currently
for sale outside VLA, 1 rejected VLA, 3 seriously negotiating VLA and 1 lease has
returned to the crown.
A survey of pastoralist in the Gascoyne-Murchison Strategy area in August 2000 asked
the question “If you were to expand pastoral landholding of your business, what would
be the most important factors?”, the top three responses were:
   The contribution the additional land holding will make to the profitability of my
    business.
   An area of suitable quality becoming available.
   Price in line with what I can afford to pay
In the current economic environment the likelihood of responses 1 and 3 are
reasonably low.
More success has been achieved in effecting change in enterprise choice with 37
properties receiving grants under the GMS Industry and Business Development Grants
Program for development of new enterprises.
   Need for a consistent policy framework
Similar enterprise change needs to also occur at the industry and regional scales. This
is only possible through a consistent policy framework agreed by all stakeholders,
agency, industry and community. A key element of this framework needs to be a
multiple land use tenure that supports investment in the rangeland industries.

Summary
   Poor profitability of the pastoral industry is resulting in poor triple bottom line
    performance.
   Industry and Government need to watch trends and set position accordingly.
   Multiple Use Tenure is currently the major institutional priority for the State government.
   The critical success factor of a new institutional framework will be its ability to
    achieve capital investment at all scales, property through to regional.




                                              31
APPENDIX 2: Terms of Reference

The Working Group is to investigate and identify the most appropriate economic data
model to be utilised by the Pastoral Lands Board, Department of Agriculture and the
pastoral industry in monitoring economic indicators and trends.
The Terms of Reference of the Working Group are to:
   Research and identify the data that is currently collected by the PLB and
    Department of Agriculture in relation to the pastoral businesses;
   Review and identify what information needs to be collected to assist policy
    development for future beneficial use of the rangelands industries. The triple
    bottom line performance indicators of social, economic and environmental factors
    need to be taken into account;
   Review economic data modelling, benchmarking and other approaches undertaken
    by other States in Australia;
   Research and develop recommendations for an economic data model for the
    pastoral industry.
Reporting

The Working Group is to provide a report to the Minister for Planning and Infrastructure
with a position and recommendations on the above terms of Reference of the Working
Group in a form suitable for broad consultation with the community of Western
Australia.
Progress reports are to be provided to the Minister.
Timeframe
Commencement of Review
The Working Group is to commence November 2002.
Final Report
A final report is to be provided for the consideration of the Minister for Planning and
Infrastructure by 1 July 2003.
Process
The Working Group will meet approximately every six weeks, or as required, at a venue
to be determined. It may also be necessary to have an intensive full-day session in
august to set the agenda.
The Pastoral Lands Board (PLB) and Department of Land Administration (DOLA) will
support the Working Group. The PLB and DOLA will have responsibility for liaising with
other relevant Government agencies and interest groups and the provision of advice
and research material to the Working Group.
The Working Group is to take into account relevant issues raised in work-sheets and
presentations contained in the Proceedings document for the Gascoyne Muster
Pastoral Industry Forum held 4-5 May 2002.
The Working Group may meet with or take submissions from other interested parties as
required.




                                            32
Membership

          Member                          Name                      Agency/Station
 Chair                          Mark Lewis                   Department of Agriculture
 Indigenous agricultural        Allan Padgett                Manager, Indigenous Land
 representative                                              Corporation
 Pastoralists                   Paul Holmes a Court          Heytesbury Beef
                                Sandy McTaggart              Mt Narryer Station
                                Ken Baston                   Ella Valla Station
 Pastoral Lands Board           Joe de Pledge                Mandora Station
 Department for Planning        Barbara Porter               Manager, PLB
 and Infrastructure
 Department of Land             John Rowe                    Manager Rural, Valuation
 Administration                                              Services


Background of Members
Mark Lewis
Chairman of the PIEMR Working Group
Regional Director, Dept of Agriculture
Director, Gascoyne Murchison Strategy
Allan Padgett
Manager, Indigenous Land Corporation
Paul Holmes a` Court
Executive Director, Heytesbury Holdings Pty Ltd
Sandy McTaggart
Principal, Mt Narryer Station,
Senior Vice President, Pastoralist and Graziers Association (PGA)
Chairman, PGA Pastoral Committee
Ken Baston
Principal, Ella Valla Station
Joe de Pledge
Principal, Mandora Station, Jandawadding Farm
Member Pastoral Lands Board
Barbara Porter
Manager, Pastoral Lands Board
John Rowe
Senior Valuer, Value General‟s Office
Attendees
Working Group Coordinator (PLB/DOLA)
Policy Officer, Office of the Minister for Planning and Infrastructure
Consultant (Economist/Satellite information for monitoring)
Stakeholder Liaison
Department of Local Government and Regional Development
Western Australian Local Government Association
Department for Planning and Infrastructure



                                                33
APPENDIX 3: Survey to Determine Current Use of Economic
           Performance Information

You have been provided with:
1)      The information that is currently presented to policy makers (Pastoral Lands
        Board (PLB), Agriculture Protection Board (APB), Rural Business and
        Development Corporation (RBDC) and Soil and Land Conservation Council
        (SLCC) on the industry‟s current financial and production position. This
        information is also made generally available to industry through the Pastoral
        Memo.
2)      The underlying analysis that underpins this information
(The Department of Agriculture provides the above information)

This following methodology for an open-ended survey of these policy makers was used
to establish the USE of this information and to “get a feel” for the cost the recipients
would pay for this information. The survey also requests from these policy makers what
future information is needed, what is it required for and what is an appropriate level of
costs for this information.
Methodology
Open-ended phone interview to determine the past use (and future requirements) of
economic performance information.
Question 1
In the past and as a member of (APB, PLB, SLCC, RBDC) you have been provided with
the pastoral industry‟s financial and production performance information, for example,
from Meekatharra Annual Financial Information Analysis (MAFIA) and the Regional
Relativities of Sustainable Pastoral Production Model.
How useful have you found the information to be?
    Could you please use a rating score of 1 – 5 where 1 is of low and/or indirect use
     and 5 is of high and /or of direct use.
    If you scored 3 – 5 can you provide examples of how it was used and what the
     benefits of the information were?
    If you scored 1 or 2 was the information inappropriate to assist you or there was no
     further consideration to use the information in a direct way.
Question 2
Providing the information comes at some cost. The Working Group needs to have
some assurance that the industry and the state will benefit from improved decision
making as a result of this information being available.
Have you used any of the information in forming policy decisions?
    Could you please use a rating score of 1 – 5 where 1 is of low and/or indirect use
     and 5 is of high and /or of direct use.
    If you scored 3 – 5 can you provide examples of how it was used and what the
     benefits of the information were?
    If you scored 1 or 2 was the information inappropriate to assist you or there was no
     further consideration to use the information in a direct way.




                                            34
Question 3
Providing the information comes at some cost. For example using Australian Bureau of
Agriculture and Resource Economics (ABARE) information may cost $1000 whereas to
collect a MAFIA or Gascoyne Murchison Strategy Benchmark data from a full sample of
pastoral businesses across the pastoral industry is likely to cost over $50,000.
Given your use of the information what would you be prepared to pay for the
collection and analysis of the information presented to you?
To assist the Pastoral Industry Economic Monitoring Requirements (PIEMR) working
group develop recommendations for the economic monitoring requirements of the
industry in the future your comments would be appreciated in respect to the following;
   what do you require?
   what do you see the information being used for, and
   what do you think this information should reasonably cost?.

The following policy makers where surveyed:
Graeme Robertson (Director General - Agriculture)
Ross Donald (Immediate past Chair RBDC)
Bruce Thorpe (Director RBDC)
Chris Richardson (Chair APB)
Rob Delane (Agriculture‟s Executive Director responsible to the APB)
Max Cameron (Chair PLB)
Garry Crow (Executive Officer to the PLB)
Rex Edmondson (Chair SLCC and current Chair of NRM Council)
Charlie Thorn (Agriculture‟s Executive Director responsible to SLCC)




                                           35
APPENDIX 4: Pastoral Wool Industry Taskforce 02/03 Update
Will Dalton, Regional Economist, Carnarvon.


A review of pastoralism in the Southern Rangelands was recently conducted using the
pastoral wool industry taskforce model (PWITF). This model was initially developed to
define the issues facing the industry and to provide a framework for pastoralists to
pursue options for alternative land uses. The recent analysis examined the profitability
of pastoralism in fifteen land conservation districts (LCDs) under current and future
market conditions. The methodology is predominantly as used in the economic
analysis section of the report Regional Relativities of Sustainable Pastoral Sheep
Production in Western Australia (Holm et. al., October 1995). With the aid of recent
benchmarking data, statutory declarations made to the PLB, MAFIA data, information
from abattoirs, personal communication with pastoralists and relevant Department of
Agriculture publications; the updated version of the model yielded some interesting
results. The updated version now includes cattle, goats and damaras which in some
LCDs represent a significant proportion of DSE carried. A medium-term scenario is
also investigated using expected commodity price scenarios to develop a picture of the
profitability of pastoralism over the medium term (2006/07).
The model concentrates on macroeconomic variables rather than specific production
related parameters such as lambing percentages, adult death rates and wild dogs. In
the past, issues such as worsening terms of trade, wool prices and lease restructuring
have been highlighted as having consequential impacts on the industry. Information
used in the model on long-term stock capability ratings (LTSCR), average lease areas,
and potential business size (DSEs) under respective LCDs was obtained from land
resource information surveys.
Table 1 lists some of this information and provides a summary of the current scenario.

Table 1
                             Profit before     Current     Current     Ave      Potential   Breakeven
             LCD                tax ($)       proportion    steer    price of   business     business
                                               of cattle    price    all wool     size      size (DSEs)
                                                 DSE                  (c/kg)     (DSEs)
 Nullarbor                   $297,048            31%       $635      1026       28,753        7,202
 Kalgoorlie                    $88,483           17%       $635      1006       11,200        5,420
 Lyndon                      $312,217            80%       $635      1001       12,478        3,838
 Gascoyne-Wooramel           $177,795            22%       $635      1005       11,257        2,485
 Murchison                   $125,460            30%       $635       991       11,267        4,682
 Gascoyne-Ashburton          $266,301          100%        $635        n/a      13,859        3,813
 North East Goldfields         $87,306           20%       $635       991       10,684        5,707
 Meekatharra                   $12,749           51%       $635      1003        9,115        7,878
 Shark Bay                     $83,533           33%       $635       988       10,390        5,741
 Mt Magnet                    ($2,589)            2%       $635       991        5,830        6,109
 Wiluna                      $136,628            97%       $635      1003       11,581        4,772
 Sandstone                      ($494)           12%       $635       968        9,243        9,924
 Cue                         ($53,533)            6%       $635       991        5,927       10,865
 Yalgoo                      ($23,766)            7%       $635       989        5,739        7,671
 Upper Gascoyne                $97,465           81%       $635       996        8,012        3,575




                                                  36
The main findings from the update were that;
     Recent climatic events have had a large impact on profitability forcing many
      pastoralists in the Southern Rangelands to de-stock or consider alternative feeding
      strategies.
     11 of the 15 LCDs are profitable under the current model. This is particularly
      evident in the northern fringe of the rangelands due to high proportions of cattle
      DSEs. This represents an additional 4 LCDs that are now profitable under the
      current scenario since the last update of the model in 1999. Drought induced sell-
      off strategies and current high commodity prices are the most likely reasons
      attributable to the increase.
     The most recent update has also seen the break-even business sizes (DSEs) of all
      LCDs lowered since the last update in 1999. Once again this is a result of higher
      than normal turnoffs and buoyant commodity prices.
     8 of the 15 LCDs appear to be financially sustainable over the medium-term (Table
      2). This is compared with 7 in the last report. Upper Gascoyne and Wiluna have
      been the big improvers, whilst the Gascoyne Ashburton dipped slightly since 1999.
     Future cashflow is likely to be negative as pastoralists endure herd rebuilding
      processes. Implications are that many businesses need to alter plans and utilise
      Farm Management Deposit (FMDs).
     Goats and Damaras have become an important part of the pastoral system.
     It seems likely that pastoralists will be faced with continued declining terms of trade
      even in light of positive commodity price outlooks.
Table 2 presents medium-term (sustainable) profit levels at varying business sizes.

Table 2

                                                     Business size (DSEs)
                 LCD          Potential      12000         10000            7000         3500
                               profit
    Kalgoorlie                 $51,447      $62,147        $35,380          ($4,770)   ($51,612)
    Nullarbor                 $224,874      $23,261         ($808)     ($36,910)       ($79,030)
    Gascoyne-Wooramel          $91,465     $100,945        $75,427          $37,150     ($7,506)
    Murchison                  $26,701      $35,000        $12,364     ($21,590)       ($61,203)
    Mt Magnet                 ($19,316)     $61,837        $35,532          ($3,925)   ($49,957)
    Lyndon                      $7,454       $2,772      ($16,822)     ($46,213)       ($80,503)
    North East Goldfields       $2,228      $14,890        ($4,360)    ($33,234)       ($66,920)
    Gascoyne-Ashburton         ($3,843)    ($17,457)     ($32,105)     ($54,076)       ($79,709)
    Meekatharra               ($15,952)     $10,842        ($7,732)    ($35,595)       ($68,101)
    Cue                       ($65,390)    ($10,516)     ($28,589)     ($55,698)       ($56,013)
    Shark Bay                 ($29,874)     $16,810      ($33,035)     ($57,372)       ($85,765)
    Sandstone                 ($35,939)    ($16,782)     ($30,681)     ($51,530)       ($75,853)
    Yalgoo                    ($48,972)      $5,020      ($12,228)     ($38,100)       ($68,285)
    Wiluna                      $9,959      $14,055        ($5,312)    ($34,288)       ($68,093)
    Upper Gascoyne              $4,278      $47,875        $26,013          ($6,781)   ($45,041)




                                              37
Business size still a key driver of profit:
Table 2 shows that at a business size of 10,000 DSEs, five of the 15 LCDs would be
profitable. A typical lease in the Mt Magnet LCD (5,830 DSEs) which doesn‟t appear to
be sustainable (potential losses of $19,316), would be profitable at a business size of
10,000 DSEs. Only the Gascoyne -Wooramel shows a profit at a 7,000 DSE business
size. This comparison further underlies the importance of lease restructuring for
improving the profitability of the pastoral industry in the Southern Rangelands of
Western Australia. This is particularly important in LCDs with good underlying
productivity but small current business sizes.
Enterprise choice as a driver of profitability:
What has become evidently clear from this analysis is that stations which historically
relied on sheep but who have diversified and shifted into beef, particularly in the
northern LCDs are currently in a healthier financial position. This has been further
accentuated by the recent sell-off strategies employed to combat the effects of the
drought.
Given the decreased reliance on wool income, the impact of wool price variability will
not be as profound over the medium-term compared with variability witnessed in
livestock markets. The shift to meatier breeds of sheep along with increases in goat
receipts in many of the pastoral systems also helps to support this trend.

REFERENCES
ABARE (March Qtr 2003). Australian commodities, vol 8. no. 1.

Holm, A. McR., O’Connor, R., Foster, I., Stevens, M., Beeston, G., (Oct 1995) Regional
     Relativities of Sustainable Pastoral Sheep Production in Western Australia – A
     submission to the Pastoral Wool Industry Task Force and Wool Strategy Task
     Force.

Johnson, T., (2001) Finishing rangeland goats in feedlots/on farms in the agricultural
     region. Department of Agriculture, South Perth.




                                              38
APPENDIX 5: Output from the Regional Relativities Sustainability Index Model
(AS PART OF THE REPORT PAPER “OUTLINE OF PASTORAL INDUSTRY ECONOMIC MODELS IN WESTERN AUSTRALIA AND THE OTHER STATES”

OUTPUT FROM THE REGIONAL RELATIVITIES SUSTAINABILITY INDEX MODEL




                                                                                                                                                                                                                          Meekatharra
                                                              Gascoyne-




                                                                                                                                                                                                                                                              Gascoyne-
                                                                                                                                                                                                       Sandstone
                                                                                                                                                                                    North East




                                                                                                                                                                                                                                                              Ashburton
                                                                                                                                       Murchison



                                                                                                                                                          Mt Magnet
                                                                                                Shark Bay



                                                                                                                   Kalgoorlie




                                                                                                                                                                                    Goldfields
                                                              Wooramel




                                                                                                                                                                                                                                                                                           Gascoyne
                           Conservation



                                            Nullarbor




                                                                                Lyndon




                                                                                                                                                                                                                                               Yalgoo




                                                                                                                                                                                                                                                                            Wiluna



                                                                                                                                                                                                                                                                                            Upper
                                                                                                                                                                        Cue
                           District
                           Land




     Lease Area (ha)                      281,783            119,324          138,504         128,832            159,047             164,494            90,361        100,173      190,183           183,943            185,035              118,806         299,355      255,943         178,661
     Proportion of cattle DSE‟s                     0%             2%                8%                     6%              0%                     8%      1%                 6%          0%                       0%          21%                      2%       91%          42%             22%
     TOTAL DSEs                            28,753             11,257           12,478          10,390             11,200              11,267             5,830          5,927       10,684             9,243              9,115                5,739          13,859       11,581           8,012
     Number of Sheep Units                 28,753             10,994           11,480           9,741             11,200              10,365             5,771          5,558       10,684             9,243              7,201                5,625           1,247        6,717           6,249
     Number of Cattle Units                             0            34             128                     83                  0             116                 7           47                 0                  0             245                   15     1,617            624            226
     Fence (km)                                   704             298               347                322                398                 411         226             250            475                  460                 463              297            762           639            446
     Watering Points                                    73                8              9                  11                  20                  9             6            6           12                      12                   10               8           17              19          10
   Average Cattle Numbers                               0            34             128                     83                  0             116                 7           47                 0                  0             245                   15     1,617            624            226
   Steer Turnoff                                    0%           20%              20%               18%                     0%             20%            11%                 8%          0%                       0%          14%                      7%       15%          15%             13%
   Cow Turnoff                                      0%             9%                7%                     4%              0%             10%             3%            11%              0%                       0%               4%           13%               6%                6%         7%
   Average Sheep Numbers                   28,754             10,994           11,480           9,741             11,201              10,365             5,772          5,558       10,685             9,243              7,201                5,625           1,247        6,717           6,249
     Wool Cut (kg/hd)                           4.49             4.36              4.16             3.71                4.75               4.37           4.30           4.02           4.74               4.17                4.63               4.23           4.21          4.18           4.29
     Yield                                      63%              59%              61%               59%                66%                 61%            65%            62%            66%                65%                 64%                  64^          59%          62%             62%
   Clean Fleece Weight                          2.81             2.58              2.52             2.19                3.14               2.66           2.79           2.49           3.14               2.70                2.98               2.71           2.50          2.58           2.66
     Micron                                 22.50              22.70            22.70           22.70              22.90               22.50             22.50          22.50        22.90             22.50              22.50                22.50           22.50        22.50           22.70
     Hauteur                                            69           66                  66                 66                  72                 68         68              68           72                      68                   68              68           67              68          66
     % Fleece Wool in Clip                      71%              60%              60%               60%                69%                 62%            62%            62%            65%                56%                 65%               57%             57%          65%             60%
   Price Fleece Wool (clean)                      798             782               782                782                744                 798         798             798            744                  798                 798              798            798           798            782
   MI=752
   Average Price of non-fleece                    526             516               516                516                491                 526         526             526            491                  526                 526              526            526           526            516
   Wool
   Average Price (all wool)                       719             676               676                676                666                 695         695             695            656                  678                 703              681            681           703            676
   Total Clip – Clean kg                   80,871             28,318           28,914          21,352             35,135              27,590            16,094         13,843       33,542            24,977             21,448               15,246           3,122       17,358          16,624
   Total Clip – Greasy kg                 129,104             47,932           47,756          36,141             53,203              45,297            24,817         22,341       50,645            38,545             33,340               23,792           5,251       28,078          26,809




                                                                                                                                                         39
                                                                                                                                                                                          Meekatharra
                                                        Gascoyne-




                                                                                                                                                                                                                    Gascoyne-
                                                                                                                                                                       Sandstone
                                                                                                                                                        North East




                                                                                                                                                                                                                    Ashburton
                                                                                                                   Murchison



                                                                                                                                 Mt Magnet
                                                                                 Shark Bay



                                                                                               Kalgoorlie




                                                                                                                                                        Goldfields
                                                        Wooramel




                                                                                                                                                                                                                                            Gascoyne
                     Conservation



                                      Nullarbor




                                                                      Lyndon




                                                                                                                                                                                                          Yalgoo




                                                                                                                                                                                                                                  Wiluna



                                                                                                                                                                                                                                             Upper
                                                                                                                                               Cue
                     District
INCOME               Land
    Wool Receipts                   $581,40            $191,42      $195,45    $144,33       $233,98             $191,62       $111,7        $96,142   $219,97       $169,41            $150,70         $103,82    $21,259      $121,96    $112,37
                                          8                  7            1          5             1                   4           78                        5             1                  6               2                       5          7
    Sheep Sales                      $3,194             $5,374       $2,077     $6,122       $10,167              $7,238       $4,836         $3,881    $5,968        $5,809             $4,023          $4,713         $51      $2,345     $1,349
    Steer Sales                                   $0    $4,660      $17,277    $10,398                      $0   $16,120        $578          $2,646           $0                  $0   $23,792            $724    $174,45      $64,075    $19,903
                                                                                                                                                                                                                         7
    Cow Sales                                     $0    $1,641       $4,703     $1,812                      $0    $6,327        $124          $2,856           $0                  $0    $5,325          $1,057    $50,869      $20,018     $8,344
TOTAL INCOME                        $584,60            $203,10      $219,50    $162,66       $244,14             $221,30       $117,3        $105,52   $225,94       $175,22            $183,84         $110,31    $246,63      $208,40    $141,97
                                          2                  2            8          7             8                   9           16              5         4             0                  6               6          7            4          2
COSTS
    Telephone                        $3,025             $3,025       $3,025     $3,025        $3,025              $3,025       $3,025         $3,025    $3,025        $3,025             $3,025          $3,025     $3,025       $3,025     $3,025
    Accountancy                      $2,835             $2,835       $2,835     $2,835        $2,835              $2,835       $2,835         $2,835    $2,835        $2,835             $2,835          $2,835     $2,835       $2,835     $2,835
    Insurance                        $8,836             $8,836       $8,836     $8,836        $8,836              $8,836       $8,836         $8,836    $8,836        $8,836             $8,836          $8,836     $8,836       $8,836     $8,836
    Postage                             $222              $222         $222        $222          $222                $222       $222           $222        $222          $222               $222           $222       $222         $222       $222
    Shire Rates                      $1,628             $1,628       $1,628     $1,628        $1,628              $1,628       $1,628         $1,628    $1,628        $1,628             $1,628          $1,628     $1,628       $1,628     $1,628
    Land Rent                           $748              $748         $748        $748          $748                $748       $748           $748        $748          $748               $748           $748       $748         $748       $748
    Vermin Rates                        $923              $923         $923        $923          $923                $923       $923           $923        $923          $923               $923           $923       $923         $923       $923
    Other                            $4,650             $4,650       $4,650     $4,650        $4,650              $4,650       $4,650         $4,650    $4,650        $4,650             $4,650          $4,650     $4,650       $4,650     $4,650
    Fodder & Agistment               $1,543             $1,543       $1,543     $1,543        $1,543              $1,543       $1,543         $1,543    $1,543        $1,543             $1,543          $1,543     $1,543       $1,543     $1,543
    Veterinary                       $2,875             $1,126       $1,248     $1,039        $1,120              $1,127        $583           $593     $1,068           $924               $912           $574     $1,386       $1,158       $801
    Contract Mustering               $5,070             $2,147       $2,492     $2,318        $2,862              $2,960       $1,626          1,802    $3,422        $3,310             $3,329          $2,138     $5,386       $4,605     $3,215
    Vermin Control                      $163              $163         $163        $163          $163                $163       $163           $163        $163          $163               $163           $163       $163         $163       $163
R&M
    General                          $3,674             $3,674       $3,674     $3,674        $3,674              $3,674       $3,674         $3,674    $3,674        $3,674             $3,674          $3,674     $3,674       $3,674     $3,674
    Plant                            $6,185             $6,185       $6,185     $6,185        $6,185              $6,185       $6,185         $6,185    $6,185        $6,185             $6,185          $6,185     $6,185       $6,185     $6,185
    Vehicles                         $8,888             $8,888       $8,888     $8,888        $8,888              $8,888       $8,888         $8,888    $8,888        $8,888             $8,888          $8,888     $8,888       $8,888     $8,888
    Buildings                        $4,403             $4,403       $4,403     $4,403        $4,403              $4,403       $4,403         $4,403    $4,403        $4,403             $4,403          $4,403     $4,403       $4,403     $4,403
Aircraft Expenses                    $5,791             $2,452       $2,846     $2,648        $3,268              $3,380       $1,857         $2,059    $3,908        $3,780            $$3,803          $2,441     $6,152       $5,260     $3,672
Fuel & Oil                          $29,041            $12,298      $14,274    $13,277       $16,391             $16,953       $9,313        $10,324   $19,600       $18,957            $19,070         $12,244    $30,852      $26,378    $18,413
Wages                               $53,699            $22,739      $26,394    $24,551       $30,309             $31,347       $17,22        $19,090   $36,243       $35,054            $35,262         $22,641    $57,047      $48,774    $34,047
                                                                                                                                    0
Stores                               $9,023             $9,023       $9,023     $9,023        $9,023              $9,023       $9,023         $9,023    $9,023        $9,023             $9,023          $9,023     $9,023       $9,023     $9,023

                                                                                                                                40
General Exp                         $1,172             $1,172       $1,172          $1,172             $1,172              $1,172            $1,172         $1,172       $1,172        $1,172             $1,172               $1,172          $1,172       $1,172          $1,172




                                                                                                                                                                                                           Meekatharra
                                                       Gascoyne-




                                                                                                                                                                                                                                               Gascoyne-
                                                                                                                                                                                        Sandstone
                                                                                                                                                                         North East




                                                                                                                                                                                                                                               Ashburton
                                                                                                                            Murchison



                                                                                                                                               Mt Magnet
                                                                                     Shark Bay



                                                                                                        Kalgoorlie




                                                                                                                                                                         Goldfields
                                                       Wooramel




                                                                                                                                                                                                                                                                            Gascoyne
                    Conservation



                                     Nullarbor




                                                                     Lyndon




                                                                                                                                                                                                                                Yalgoo




                                                                                                                                                                                                                                                             Wiluna



                                                                                                                                                                                                                                                                             Upper
                                                                                                                                                             Cue
                    District
                    Land
Subs                                   $855              $855         $855             $855               $855                $855            $855            $855          $855          $855               $855                $855            $855         $855            $855
Travelling                             $506              $506         $506             $506               $506                $506            $506            $506          $506          $506               $506                $506            $506         $506            $506
Lease Payments                      $3,228             $3,228       $3,228          $3,228             $3,228              $3,228            $3,228         $3,228       $3,228        $3,228             $3,228               $3,228          $3,228       $3,228          $3,228
Interest & Bank Charges            $10,477            $10,477      $10,477         $10,477            $10,477             $10,477            $10,47        $10,477      $10,477       $10,477            $10,477              $10,477         $10,477      $10,477         $10,477
                                                                                                                                                  7
Loan Repayments                                  $0           $0              $0                 $0                  $0                 $0         $0              $0           $0                  $0                   $0              $0           $0              $0          $0
Infrastructure Replacement         $69,989            $18,985      $22,070         $21,953            $29,978             $25,633            $14,39        $15,923      $30,260       $29,291            $28,858              $18,918         $47,370      $42,032         $27,820
                                                                                                                                                  2
Shearing                           $100,35            $38,368      $40,064         $33,998            $39,090             $36,176            $20,14        $19,396      $37,289       $32,260            $25,131              $19,630          $4,353      $23,443         $21,810
                                         0                                                                                                        3
Packs                              $14,377             $5,497       $5,740          $4,871             $5,600              $5,183            $2,886         $2,779       $5,342        $4,622             $3,600               $2,812            $624       $3,359          $3,125
Stock Costs                        $14,377             $5,629       $6,239          $5,195             $5,600              $5,633            $2,915         $2,964       $5,342        $4,622             $4,558               $2,870          $6,930       $5,791          $4,006
Wool Freight                       $18,455             $3,978       $3,677          $3,050             $4,416              $4,290            $1,522         $1,854       $5,119        $3,020             $3,029               $1,646            $508       $3,250          $2,967
TOTAL COSTS                        $387,00            $186,20      $198,02         $185,88            $211,61             $205,66            $145,4        $149,76      $220,57       $208,82            $200,53              $158,89         $233,59      $237,03         $192,85
                                         7                  3            9               3                  9                   6                40              7            8             4                  4                    8               2            2               8
SURPLUS/DEFICIT                    $197,59            $16,900      $21,479         ($23,216           $32,529             $15,643            ($28,1        ($44,242      $5,366       ($33,605           ($16,688             ($48,582        $13,046      ($28,629        ($50,886
                                         5                                                )                                                     24)               )                          )                  )                    )                            )               )
Breakeven Wool Price                 $4.75              $6.39        $6.78           $8.42              $5.73               $7.19             $8.74         $10.54        $6.40         $8.13              $9.16               $10.11          $74.81       $13.52          $11.52
(Clean)
Breakeven Wool Price                 $2.97              $3.77        $4.10           $4.97              $3.79               $4.38             $5.67          $6.53        $4.24         $5.27              $5.89                $6.48          $44.47        $8.36           $7.14
(Greasy)
Breakeven Business Size              7,756              9,140        9,641          15,236              7,747               9,278             9,485         15,051        9,953        17,131             11,817               17,166          11,757       19,956          26,460
(DSEs)




                                                                                                                                              41
APPENDIX 6: Financial and Production Benchmarking 2000-2001
Background
MAFIA has been the database for financial and production information, gathered from the
wider Murchison area, over fifteen years from 1985 to 2000. The group maintained fourteen
contributors on an annual basis with the occasional withdrawal being replaced with a new
business.
Current position
In 2001 the Gascoyne Murchison Strategy (GMS) engaged Resource Consulting Services
(RCS) on a two-year contract to provide a Financial Advisory Service and Benchmarking
project throughout the region.
This contract is able to provide pastoralists with an informed view about the health of their
business and the opportunity to adopt management decisions that can achieve immediate
benefits.
The process involves groups of pastoralists being involved in explanatory workshops prior to
data collection and finally review workshops to consider the analysed information and options
for improved productivity and management.
Pastoralists provide their production and financial information on a one-on-one situation with
the consultant.
Attendance at one or other of the group workshops is not a prerequisite to being able to have
access to the consultant or to provide information for the benchmarking project.
RCS use a rural business analysis system called Profit Probe to analyse and benchmark
property information. This provides clients with a business summary and recommendations
together with a detailed analysis of the performance of the major indicators driving the
business.
In the interests of maintaining some uniformity the fifteen years of MAFIA data, involving over
two hundred years of individual property information has been entered into Profit Probe.
Results
The RCS contract commenced in September 2001, and in order to have the ability to
immediately compare property information, the consultant collected data for both the 1999-
2000 and 2000-2001 years.
In 1999-2000 eight groups, comprising forty-three pastoral businesses were involved and in
2000-2001 forty-six properties provided information.
Comparative gross margins are shown in Table 1 for 1999-2000 and Table 2 for 2000-2001.
Gross Margins are displayed for wool/ sheep (merinos), cattle, and goats.
The gross margin for goats is from primarily ferals and the income derived from these
animals can be seen to be critical to those businesses. Low wool prices are reflected in the
relatively low gross margins for wool and sheep.




                                               42
Table 1. 1999-2000 Gross Margins $ per dry sheep equivalent (dse)

 *                  G/W            Cue      Murch      Lyndon             P Find       R Fibre     U Gas     Yalgoo
 Wool/Sheep            5.49        10.72     7.79           1.05           5.12          6.68       -0.25     8.95
 Cattle             13.05                   10.71          13.51           7.59         -0.22       8.87
 Goats              14.69          17.30    11.76          12.46          11.05        13.22       10.77     11.62

In 2000-2001 Gross Margins are displayed for wool/ sheep (merinos), cattle, damaras and
goats, Table 2.
Improved sheep and wool prices, achieved in most groups, are evident in the higher gross
margins in 2000-2001.
The low input costs able to be applied to the management of exotic meat sheep is
highlighted by the gross margins achieved by some businesses running damaras.

Table 2. 2000-2001 Gross Margins $ per dry sheep equivalent (dse)

 *                G/W          Cue          Murch      Lyndon         P Find           R Fibre     U Gas     Yalgoo
 Wool/Sheep        11.65       12.53        21.82          10.24          12.15         14.50       10.67     15.27
 Cattle            18.69       19.80        15.78          13.48          20.78         14.27       19.99
 Damara            37.37       58.33                                      75.19         28.83                 11.92
 Goats             27.55                    16.38          16.92          15.01         20.46       15.65     13.83

Table 3 shows the improvement in clean wool price received in the 2000-2001 year when
compared to 1999-2000.

Table 3. Wool price received ($kg clean)

 *                G/W          Cue          Murch      Lyndon         P Find           R Fibre     U Gas     Yalgoo
 1999-00            3.85           3.98      4.33          3.47            4.08         3.83        3.98      4.66
 2000-01            5.59           5.05      5.80          4.70            5.20         5.21        5.26      5.84

Table 4 shows an improvement in sheep sale price received in the 2000-2001 year when
compared to 1999-2000.

Table 4. Sheep price received ($ head)

 *                G/W          Cue          Murch      Lyndon         P Find           R Fibre     U Gas     Yalgoo
 1999-00               16                    20             24             20            21          14        24
 2000-01               26           26       27             25             20            27          23        28

Table 5 shows the Beef price received $ per kg liveweight and the Beef cost of production $
per kg liveweight for both 1999-2000 and 2000-2001.

Table 5. Beef price received $ per kg. Beef cost of production $ per kg

 *                       G/W          Cue         Murch       Lyndon         P Find      R Fibre    U Gas     Yalgoo
 Price kg 1999-00           1.14                    1.19           1.11                    1.20       1.04
 Cost kg 1999-00            0.66                    0.96           0.58                    1.35       0.79
 Price kg 2000-01           1.26                    1.24           1.33         1.42                  1.20
     Cost kg 2000-01        0.89                    0.85           0.85         0.60                  0.63



                                                             43
Table 6 compares the Earnings Before Interest and Taxation (EBIT) and the Return On
Assets Managed (ROAM) for 1999-2000 and 2000-2001.
The majority of groups showed a general increase in both EBIT and ROAM in 2000-2001
compared to the earlier year again reflecting the benefit of the higher commodity prices.

Table 6. EBIT ($000) and ROAM (%) for 1999-2000 and 2000-2001

 *                       G/W     Cue       Murch    Lyndon      P Find   R Fibre   U Gas   Yalgoo
     EBIT 1999-00         27        43       3           111        32       5       62      11
     EBIT 2000-01         155       30      189          314        69      87      360      87
     ROAM 1999-00         1.3      5.0      0.2          3.9     -4.8       -1.5    2.8     0.9
     ROAM 2000-01         8.9      2.2      16.1         13.2     8.3     11.8      16.4    11.2

Table 7. Description of Groups

        Abbreviation *                             Group name
     G/W                        Gascoyne Wooramel Land Conservation District
     Cue                        Cue Best Practice Group
     Murch                      Lower Murchison Best Practice Group
     Lyndon                     Lyndon Land Conservation District
     P Find                     Paynes Find Group
     R Fibre                    Rangeland Fibre and Produce Association Inc.
     U Gas                      Upper Gascoyne Land Conservation District
     Yalgoo                     Yalgoo Best Practice Group




                                                    44
MAFIA 1985 to 2000

The following is derived from the MAFIA over the fifteen years and provides information
about some of the production opportunities and how the adoption of better management
practices can influence the gross margins and ultimately the profit of the business.
Graph 1 (Gross Margin Group) is an analysis of gross margins for all the businesses in
MAFIA over the fifteen-year period. The series of graphs that follow relate to sheep
production and in each graph the same Top 20%, Bottom 20%, Best and Worst performer in
the GM group are maintained.


The range in gross margins from $16.80 from the top producer to $9.33 for the lowest
producer. The group averaged $14.74.


Lambings range from 84% from the best producer to 46% from the worst performer. The
group averages 66% and the top 20% averages 73%.


Death rates range from 6% with the top 20% of the group, 12% for the entire group, 8% for
the best station and 15% for the worst performing property.


Sheep sales range from 24% of total sheep shorn by the best station to 13% by the
whole group down to 4% and 5% by the bottom of the group and the worst performing
station, respectively.


Wool production per head is probably the least influential towards improved business
performance when compared with reproduction, death rates and turn-off, shown above.
However the difference between the top 20% and the bottom 20% of producers of 0.6kg per
head (greasy) at 2002 wool prices could have a significant impact.

Summary
The information describing the disparity between production performance of the contributors
to MAFIA has been evident throughout the life of the project.
The evidence is that there is a distinct lack of apparent desire, by many producers, to make
the changes necessary to improve performance. This may be reflective of the reasons why
some people invest in the pastoral industry and in fact, remain in the industry.
As mentioned earlier, the fifteen years of MAFIA information has been entered into Profit
Probe. The data has not yet been subjected to a complete analysis however some
preliminary assessment was made.
One of the functions of Profit Probe is a Sustainability Analysis that compares the annual
result of the business with the income that could be derived from investing the proceeds of
the sale of all livestock and plant and from leasing the property.
The following graph summarises the outcome.


What this is saying is that seven businesses, above the line, have generated an average
annual benefit from agriculture investment ranging from about $47,000 to about $1,100. For
thirteen properties their agriculture investment cost the business amounts ranging from about
-$2,800 to about -$50,000.



                                             45
In theory about two thirds of the pastoralists would be financially advantaged by opting to sell
the moveable assets and lease the property. In nationwide terms this is outcome is probably
not as bad as it looks, however no account has been taken of the value of unpaid labour in
arriving at this result. If the value of unpaid labour were applied, as is the case in the normal
Profit Probe analysis, it is possible few if any businesses would return a positive result.




                                               46
 APPENDIX 7: PIEMR Summary 1

                                                          KPI’s based on additional information from GMS Benchmarking project

                            Gascoyne       Cue Bestprac   Lower Murchison   Lyndon LCD        Paynes Find     Rangeland Fibre Upper Gascoyne Yalgoo Bestprac
                            Wooramel                         Bestprac                                           & Produce          LCD
NUMBER IN GROUP                        8             3                6                4                 4                 8             8               5
AREA (HA) AVERAGE              183339           198541           199214           245025           164057            103207         372869          102649
TOTAL (LSU) AVERAGE              4308             1871             2791             5689              2347             1777           6345            1962
STOCKING RATE (LSU/ HA)           42.6            106.1            71.4              43.1             69.9              58.1           58.8            52.3
ANIMAL PRODUCTION
LAMBING % (SHEEP)                 42.0             69.6            82.6              48.9             64.8              72.5           56.3            73.9
LAMBING % (DAMARA)                75.0            127.9                                                100             116.6                           70.6
CALVING %
DEATHS %(SHEEP)                    14               20                9               16                34               11             10               8
DEATHS %(DAMARA)                       0            1.0                                                  0                 0                            18
DEATHS %(CATTLE)                   1.0                              5.5               5.8                0               4.0            4.2              0
SALES %(SHEEP)
SALES %(DAMARA)
SALES %(CATTLE)
CATTLE
BEEF PRODUCED (KG/ HA)             3.0              0.0             2.0               2.0              3.0               1.0            2.0              0
CATTLE INCOME/ LSU              $79.20           $10.60         $154.64           $81.15            $37.26               $-         $142.05             $-
NET BEEF PRICE ($/KG)            $1.26              $-            $1.24             $1.33            $1.40               $-           $1.20             $-
BEEF $/ KG (SOLD LVE WGT)        $1.26              $-            $1.24             $1.33            $1.42               $-           $1.20             $-
BEEF COST $/ KG (LVE WGT)        $0.89            $1.96           $0.85             $0.85            $0.60             $0.73          $0.63             $-
COST/ LSU ($)                   $96.00          $317.00         $114.00           $76.00            $79.00            $66.00         $92.00             $-
CATTLE GM $/HA                   $3.10            $0.30           $1.50             $2.40            $3.60             $1.30          $2.40             $-
CATTLE GM $/LSU                $130.85          $138.57         $110.45           $94.39           $145.45            $99.87        $139.92             $-




                                                                     47
                                                           KPI’s based on additional information from GMS Benchmarking project

                               Gascoyne     Cue Bestprac   Lower Murchison   Lyndon LCD        Paynes Find     Rangeland Fibre Upper Gascoyne Yalgoo Bestprac
                               Wooramel                       Bestprac                                           & Produce          LCD

SHEEP - WOOL
WOOL PRODUCED (KG/ HA clean)          0.4            0.3             0.3               0.4              0.2               0.3            0.3             0.3
WOOL $/ KG (CLEAN)                  $5.59          $5.05           $5.80             $4.70            $5.20             $5.21          $5.26           $5.84
WOOL INCOME/ DSE                   $14.20         $14.57          $18.87           $14.04            $14.44            $14.57         $12.92          $14.35
SHEEP INCOME/ DSE                   $3.78          $5.39          $11.77             $5.48            $7.52             $6.42          $7.60           $8.01
WOOL COST $/ KG (CLEAN)             $5.17          $3.52           $2.96             $4.07            $5.35             $3.24          $4.83           $3.54
SHEEP - WOOL COSTS $/ DSE          $18.00         $28.00          $22.00           $17.00            $20.00            $19.00         $20.00          $18.00
WOOL/ SHEEP GM $/HA                 $1.80          $1.20           $2.20             $1.40            $1.00             $1.60          $1.20           $2.10
WOOL/ SHEEP GM $/DSE               $11.65         $12.53          $21.82           $10.24            $12.15            $14.50         $10.67          $15.27
SHEEP - MEAT
MEAT PRODUCED (KG/ HA)                4.0            2.0               0                0               1.0               4.0             0              2.0
MEAT PRICE ($/ KG)                  $1.04          $1.71              $-               $-             $1.40               $-             $-            $1.02
MEAT COST ($/ KG)                   $0.84          $2.75              $-               $-             $0.96             $0.46            $-            $0.71
MEAT INCOME $/ DSE                  $2.33         $11.31              $-               $-            $33.96               $-             $-           $10.47
MEAT COST $/ DSE                   $16.60         $54.70              $-               $-            $26.80            $28.30            $-           $16.60
DAMARA GM $/HA                      $6.80          $0.60              $-               $-             $3.40             $4.90            $-            $2.00
DAMARA GM $/DSE                    $37.37         $58.33              $-               $-            $75.19            $28.83            $-           $11.92
GOATS - MEAT
GOAT INCOME/ DSE                   $35.49            $-           $17.47           $19.96            $19.63            $22.39         $19.04          $16.16
GOAT GM $/HA                        $4.98            $-            $1.68             $1.97            $1.56             $4.01          $1.96           $1.72
GOAT GM $/DSE                      $27.55            $-           $16.38           $16.92            $15.01            $20.46         $15.65          $13.83
INCOME SOURCE
% INCOME WOOL                       26.47          64.02           37.14             32.61            31.01             53.14          12.41           54.09
% ICOME SHEEP                        7.05          23.70           23.17             12.74            16.15             23.40           7.31           30.17
% INCOME CATTLE                     18.48           0.45           17.22             51.95            12.51              0.00          67.67            0.00
% INCOME MEAT SHEEP                  0.89           0.60            0.00              0.00            14.45              0.00           0.00            1.15
% INCOME GOATS                      21.84           0.00            6.37              2.70            13.52             21.76           9.26           11.31
% INCOME OTHER BUSINESS             25.28          11.22           16.09              0.00            12.35              1.70           3.36            3.28




                                                                      48
                                                                KPI’s based on additional information from GMS Benchmarking project

                                  Gascoyne       Cue Bestprac   Lower Murchison   Lyndon LCD        Paynes Find     Rangeland Fibre Upper Gascoyne Yalgoo Bestprac
                                  Wooramel                         Bestprac                                           & Produce          LCD

PEOPLE
GROSS PRODUCT ($/ FTE)              $135,521         $106,394        $171,102         $193,211          $116,192         $127,802        $225,577        $149,686
ANIMALS MANAGED (DSE/ FTE)             5,551            4,646           5,684             8,681            4,236             5,054          8,396           5,986
YIELD (T/ FTE)                               0             0                0                0            125.69                 0             0               0
FARM AREA (HA/ FTE)                          0             0                0                0            43,777                 0             0               0
TRAINING (DAYS/ FTE)                     1.0              8.3             3.9               0.6                0               6.2            2.9             9.6
HOLIDAYS (DAYS/ FTE)                    13.1              7.1             7.8              17.4              8.4              11.7            6.6            11.7
RECEIPTS/ COSTS
STOCK INCOME/ HA                       $2.74            $1.23           $2.64             $2.34            $1.56             $2.37          $2.41           $2.83
STOCK INCOME/ LSU                    $116.41          $130.99         $188.70          $100.88           $109.32          $137.85         $141.48         $147.89
TOTAL INC./ HA (all sources)           $3.66            $1.39           $3.15             $2.34            $1.78             $2.41          $2.49           $2.92
TOTAL INC./ LSU (all sources)        $155.80          $147.55         $224.88          $100.88           $124.72          $140.23         $146.39         $152.91
TOTAL COST/ HA (all sources)           $3.27            $1.65           $2.46             $2.26            $1.48             $1.82          $1.55           $2.54
TOTAL COST/ LSU (all sources)        $139.09          $175.42         $175.69           $97.51           $103.66          $105.89          $91.01         $133.13
SURPLUS-LOSS/ HA (all sources)         $0.39           -$0.26           $0.69             $0.08            $0.30             $0.59          $0.94           $0.38
SURPLUS-LOSS/ LSU (all sources)       $16.71          -$27.87          $49.19             $3.37           $21.06            $34.34         $55.38          $19.78
O/H COST/ LSU (Agric Prod)            $57.53          $101.50          $92.25           $60.49            $61.60            $76.60         $53.57          $96.59
O/H COST/ HA (Agric Prod)              $1.35            $0.96           $1.29             $1.40            $0.88             $1.32          $0.91           $1.85
DIRECT COST/ LSU (Agric Prod)         $58.64           $69.38          $69.12           $39.56            $54.58            $48.14         $42.63          $48.53
DIRECT COST/ HA (Agric Prod)           $1.38            $0.65           $0.97             $0.92            $0.78             $0.83          $0.73           $0.93
SURPLUS-LOSS (Agric Prod)            $36,591         -$81,318         $86,621           $4,649           $11,674          $23,724        $318,501         $13,499
SURPLUS-LOSS/ LSU (Agric Prod)         $0.24          -$39.89          $27.33             $0.83           -$6.86            $13.11         $45.28           $2.77
SURPLUS-LOSS/ HA (Agric Prod)          $0.01           -$0.38           $0.38             $0.02           -$0.10             $0.22          $0.77           $0.05
SURPLUS-LOSS/ (Other Bus.)           $35,520          -$6,682         $10,360               $-           $27,781             $413         $31,200          $8,054
SURPLUS-LOSS/ LSU (Other Bus.)         $8.25           -$3.57           $3.71               $-            $11.84             $0.23          $4.92           $4.10
SURPLUS-LOSS/ HA (Other Bus.)          $0.19           -$0.03           $0.05               $-             $0.17             $0.00          $0.08           $0.08




                                                                           49
                                                                           KPI’s based on additional information from GMS Benchmarking project

                                           Gascoyne       Cue Bestprac    Lower Murchison     Lyndon LCD        Paynes Find     Rangeland Fibre Upper Gascoyne Yalgoo Bestprac
                                           Wooramel                          Bestprac                                             & Produce          LCD

FINANCE
FINANCE RATIO (%)                                     3              6                 8                 7                 7                5              4               4
EXPENCE RATIO (%)                                 80               107                78                73                83              77              70              76
ECONOMICS
ASSET TURNOVER RATIO (%)                          34              26.7               50.5              39.7               35             40.5            43.4            39.9
GROSS MARGIN RATIO (%)                            65                55                65                62                67              66              67              69
OVERHEAD RATIO (%)                                49                63                40                41                51              45              42              45
EBIT                                              1.3               0.3               1.0               1.3               0.6             0.9             1.4             0.9
R.O.A.M %                                         8.9               2.2              16.1              13.2               8.3            11.8            16.4            11.2
PROPERTY
DSE DAYS/ HA per 100mm RAIN                       42                 7                21                42                14              14              21              21
ECOLOGICAL STATE INDEX                           11.0             23.0               12.0              21.0               0.0             0.0             0.0             0.0
ECOLOGICAL TREND INDEX                           0.25             4.15              -0.75              2.44               0.0             0.0             0.0             0.0
AVERAGE DSE MANAGED                            19,705            8,456            17,906            39,410             9,828           11,725          31,066          13,468
ENERGY COSTS ($/ '000$ income)                  17.93            28.35             26.20             27.67               9.08           15.98           32.97           21.85


 Description
 FINANCE (DEBT) RATIO (%)                         % of income required to service debt
 EXPENSE RATIO (%)                                Operating expenses as a percentage of Gross Product
 ASSET TURNOVER RATIO (%)                         Gross Product as a percentage of Assets
 GROSS MARGIN RATIO (%)                           Production Gross product as a % of the total Gross Margin
 OVERHEAD RATIO (%)                               Overhead costs as a % of Gross Product
 ROAM = Return On Assets Managed                  Earnings before Interest and Tax as a percentage of Assets
 EBIT = Earnings Before Interest and Tax          Profit before Interest and Tax are deducted
 DSE DAYS/HA per 100mm RAIN                       example – 16,000 dse x 365 days/110,000ha/225/100mm rain = 23.6 DDH per 100mm rain
 ECOLOGICAL STATE INDEX                           Range condition at present
 ECOLOGICAL TREND INDEX                           Trend in range condition
 AVERAGE DSE MANAGED                              Total dse on property
 ENERGY COSTS ($/‟000$ income)                    Expenditure on fossil fuel per $1,000 income
 1 LSU = 7 DSE




                                                                                      50
APPENDIX 8: Australian Bureau of Statistics

                                                             Rangelands
         Australian Bureau of Statistics
                                                     North                South
 Code                 Item             Unit          2000                 2000
  1     Farms                                 N       245                   538
  2     Farm area                     '000HA        39,069                44,702
  3     Wheat, area                          HA          -                47,243
  4     Wheat, prod                           T          -                87,580
  5     Wheat, value                       $'000         -                18,493
  6     Barley, area                         HA          -                15,900
  7     Barley, prod                          T          -                30,033
  8     Barley, value                      $'000         -                 5,692
 12     Triticale, area                      HA          -                  127
 13     Triticale, prod                       T          -                  381
 14     Triticale, value                   $'000         -                   18
 15     Cereals, area                        HA       284                 63,270
 16     Cereals, prod                         T       806             117,994
 17     Cereals, value                     $'000      195                 19,734
 18     Lupins, area                         HA          -                 2,737
 19     Lupins, prod                          T          -                 3,760
 20     Lupins, value                      $'000         -                  500
 21     Legumes, area                        HA       478                  4,140
 22     Legumes, prod                         T      1,077                 5,215
 23     Legumes, value                     $'000      300                   840
 24     Canola, area                         HA          -                 4,262
 25     Canola, prod                          T          -                 6,294
 26     Canola, value                      $'000         -                 1,887
 27     Vegetables, area                     HA      2,650                  566
 28     Vegetables, value                  $'000    33,331                10,637
 29     Fruit, area                          HA       501                   695
 30     Fruit, value                       $'000     8,584                 8,942
 31     Grapes, area                         HA          -                  216
 32     Grapes, value                      $'000         -                  300
 33     Nurseries, area                      HA         7                        5
 34     Nurseries, value                   $'000      256                   189
 36     Cut flowers, value                 $'000        9                         -
 37     Cultivated turf, area                HA         2                        3
 38     Cultivated turf, value             $'000      153                   255
 39     Total crops, value                 $'000    50,972                51,979
 40     Beef cattle, total                    N     82,013                21,399
 41     Cattle sales                          N    185,487                48,397




                                              51
                                                             Rangelands
         Australian Bureau of Statistics
                                                     North                South
Code                 Item              Unit          2000                 2000
42     Cattle sales, value                 $'000    82,013                21,399
43     Sheep                                '000       72                  1,481
44     Lambs                                '000       16                   429
45     Sales of sheep                       '000       77                   325
46     Sales of lambs                       '000       17                   123
47     Sheep sales, value                  $'000     2,385                11,285
48     Pigs                                   N          -                16,256
49     Pig sales                              N          -                29,491
50     Pig sales, value                    $'000         -                 3,714
52     Poultry slaughtered                  '000       20                         -
53     Poultry sales, value                $'000       27                         -
54     Livestock, value                    $'000    84,446                41,302
55     Wool, prod                             T       353                  9,547
56     Wool, value                         $'000     1,709                35,353
57     Ewes mated                           '000       34                   779
58     Lambs marked                         '000       20                   551
59     Milk cows                              N       250                         -
60     Dairy cattle, total                    N       607                         -
61     Milk, value                         $'000      581                         -
62     Layers                               '000     1,382                        -
63     Eggs                                '000D    16,747                        -
64     Eggs, value                         $'000    32,870                        -
65     Animal products, value              $'000     4,341                35,440
66     Total agriculture, value            $'000   139,759            128,721




                                              52
Australian Bureau of Agriculture and Resource Economics

                          Western Australian Region - Southern Rangelands
                                               Year 2001
                      Description of estimate                         Mean        Rse
Components of investment returns:
  Total cash receipts                                       $        389 509       (20)
  less total cash costs                                     $        249 832       (22)
  Farm cash income                                          $        139 677       (24)
  plus buildup in trading stocks                            $
  less depreciation                                         $
  less operator and family labour cost                      $
  Farm business profit                                      $         47 362       (88)
  Profit at full equity                                     $         68 264       (62)
  plus capital appreciation                                 $                 0
  Profit at full equity incl. capital appn.                 $                 0
  Farm capital at 1 July                                    $                 0
  Rate of return - excl capital appreciation               %                3.9    (70)
  Rate of return - incl capital appreciation               %                0.0   -(99)
Other financial items:
  Net capital additions                                     $
  Farm capital at 30 June - excluding leased plant b        $                 0
  Farm business debt at 30 June b                           $        193 742       (21)
  Change in debt over year b                                $         - 9 422     (135)
  Farm business equity at 30 June b                         $                 0
  Equity ratio at 30 June b                                %
  Farm liquid assets at 30 June c                           $
  Off-farm income c                                         $
Distributions:
  Farm cash income
  Less than -$25000                                        %
  -$25000 to Zero                                          %
  Zero to $25000 (% farms positive)                        %                100     (0)
  $25000 to $50000                                         %
  $50000 to $100000                                        %
  Greater than $100000                                     %
  Farm business profit
  Less than -$50000                                        %
  -$50000 to -$25000                                       %
  -$25000 to Zero                                          %
  Zero to $25000 (% farms positive)                        %                 64    (29)




                                                    53
                      Western Australian Region - Southern Rangelands
                                        Year 2001
                    Description of estimate                       Mean        Rse
  $25000 to $50000                                     %
  Greater than $50000                                  %
  Farm capital at 30 June
  Less than $500000                                    %
  $500000 to $750000                                   %
  $750000 to $1000000                                  %
  $1000000 to $1500000                                 %
  $1500000 to $3000000                                 %
  Greater than $3000000                                %
  Farm debt at 30 June
  Nil debt                                             %                  1   (163)
  Less than $50000                                     %                 10   (125)
  $50000 to $100000                                    %
  $10000 to $200000                                    %
  $20000 to $500000                                    %
  Greater than $500000                                 %
  Equity ratio at 30 June
  100                                                  %
  90 to 100                                            %
  80 to 90                                             %
  70 to 80                                             %
  60 to 70                                             %
  Less than 60                                         %


Population                                             no               267
Sample Contributing                                    no                19
% of population sampled                                %                7%




                                              54
APPENDIX 9: The National Land and Water Resource Audit

      Summary of indicators collected for the Rangelands Theme of the
                 National Land and Water Resource Audit

BIODIVERSITY
The National Land and Water Resource Audit identified nine key criteria for monitoring
biodiversity.
(a)    Progress towards a comprehensive, adequate and representative (CAR) reserve
       system.
(b)    Extent of clearing of woody vegetation.
(c)    Landscape function measures.
(d)    native perennial ground cover.
(e)    Exotic plant species cover.
(f)    Status of fire sensitive plant species and communities.
(g)    Status of grazing sensitive plant species.
(h)    Status of susceptible mammal species.
(i)    Status of susceptible bird species.
(j)    Endangered species.

RANGELAND SUSTAINABILITY INDICATORS
(a)    Uniformity.
(b)    Condition of Rangeland.
(c)    Frequency of woody species (number, size, density, spatial distribution).
(d)    Representativeness of land units.
(e)    Soil surface conditions (degradation index of soil, water, wind erosion).
(f)    Potential carrying capacity.
(g)    Record of incidents - fire, drought.
(h)    Land unit/system productivity.
(i)    Topography.
(j)    Position in landscape.
(k)    Distance from water.
(l)    Weed spread/invasion levels.
(m)    Plant and animal pest levels.
(n)    Preparing buffers.
(o)    Amount of intensive land use.
(p)    Minimising salinisation.




                                              55
SOCIO-ECONOMIC INDICATORS
1.     Individual related indicators
     (a)   Age of owner/manager.
     (b)   Formal education.
     (c)   Participation in training.
     (d)   Management experience.
     (e)   Membership of Landcare Group.
2.   Business related indicators
     (a)   Property Management Plan.
     (b)   Family members work on property.
     (c)   Employment of non-family labour.
     (d)   Total property family income.
     (e)   Family off-farm income.
     (f)   Cash income.
     (g)   Profit at full equity.
     (h)   Equity return.
3.     Community related indicators
     (a) Age dependency ratio.
     (b)   Youth involvement.
     (c)   Unemployment vote.
     (d)   Degree of socio economic disadvantage.
     (e)   Accessibility/remoteness.
     (f)   Regional diversification.
     (g)   Social capital.
4.     Institutional related indicators
     (a) Institutional expenditure on resource plan.
     (b)   Share of total expenditure for monitoring of pasture/soil/biodiversity.
     (c)   Share of total Expenditure on „feral animal control‟.
     (d)   Share of total expenditure on weed control.
     (e)   Share of expenditure on conservation and on ground works.
     (f)   Share of expenditure on research.
     (g)   Share of expenditure on „acquisition and management of reserve systems‟.
     (h)   Integration across Government/industry sector with regard to achieving
           sustainability, economic and social targets (triple bottom line).
     (i)   Move to an accredited management system for reporting on progress towards the
           triple bottom line and meeting market expectations.




                                              56
APPENDIX 10: Meekatharra Annual Financial Information Analysis (MAFIA)

1999-2000
  STATION NUMBER       1         2          3          4          5          6           7          8          9         10         11         12         13         14       AVERAGE
TOTAL HECTARES       178000     90000     190000     130000     116000     132000     166000      110000     372400    130000     156000     378000     204000     130552      177354
STOCKED HECTARES     178000     90000     190000     100000     116000     132000     166000      110000     372400    128300     156000     378000     204000     106252      173354
SHEARING MTH               11        7          9          4          9          5           11         5                 10         12         10             5          1        8
LAMBING MTH                6         8          6          8          5          6           5          7                     5          7          6          6          5        6
WOOL MKT INDICATOR     510       472        528         584       495        584         514        472                  470        514        483        525        540         515
AVE FIBRE DIAMETER     23.3      21.9       20.8       21.4       22.7       20.7        23.0       22.0                 22.6       22.0       23.0       21.5       22.6        22.1
CALVING MTH                2                                                                                       9          3                     6          5                   5

SHEEP SCHEDULE
ON HAND AT START      9188      10029     18486        6014      8140      11756       12627       8705            0    6100       8000      21000      12238       6623        9922
STRAGLERS & DBLS           0         0          0       650           0          0           0          0          0          0          0          0     325             0       70
NATURAL INCREASE      3461      3758       5946        3340      3056       4358        4250       3010            0    3573       2620       5201       4468       1234        3448
PURCHASES:
  EWES                     0         0          0          0          0          62          0          0          0          0          0     337             0     200          43
  WETHERS                  0         0          0          0          0          0           0          0          0          0          0          0          0          0        0
  RAMS                     90        73         74         0          67         41          0          50         0          0      25        100         67             0       42
TOTAL PURCHASES            90        73         74         0          67     103             0          50         0          0      25        437         67        200          85
SALES:
  EWES                 916       564       1757            0     1142            0           0      653            0    1932             0    2284       1546             0      771
  WETHERS             2360      1329       2424        1918      1174       3041             0     1211            0    1475       1113       1400        532       1193        1369
  RAMS                     0         16         9          0          0          0           0          50         0      14             0          0      32         25          10
TOTAL SALES           3276      1909       4190        1918      2316       3041             0     1914            0    3421       1113       3684       2110       1218        2151
RATIONS                    50        40         61         20         15         15          50         30         0      21         20        100         43         20          35
DEATHS                 496       811       1500        1982       595        461        2827       1286            0    1189       1512       3136        445        555        1200
ON HAND AT END        8917      11100     18755        6084      8337      12700       14000       8535            0    5042       8000      19718      14500       6264       10139
SUMMER SHEEP          9000      11831     17700        9000      8337      14000       14000       8535            0    5042       7100      20000      15504       6300       10454
CATTLE SCHEDULE
ON HAND AT START       797           0          0          0          0          0           0          0     2603       900             0     173        111             0      327
NATURAL INCREASE       300           0          0          0          0          0           0          0     1351       531             0      80         61             0      166
PURCHASES:
  COWS                     0         0          0          0          0          0           0          0          0     224             0          0          0          0       16
  STEERS                   0         0          0          0          0          0           0          0          0          0          0          0          0          0        0



                                                                                      -57-
  STATION NUMBER      1         2        3        4        5        6        7        8        9         10        11         12        13        14       AVERAGE
  BULLS                   3         0        0        0        0        0        0        0        26         6         0          2         0         0       3
  TOTAL                   3         0        0        0        0        0        0        0        26    230            0          2         0         0       19
SALES:
  COWS                    0         0        0        0        0        0        0        0    523       190            0          4     19            0       53
  STEERS              358           0        0        0        0        0        0        0    441       289            0      39        36            0       83
  BULLS                   0         0        0        0        0        0        0        0    433            0         0          0         5         0       31
  TOTAL               358           0        0        0        0        0        0        0    1397      479            0      43        60            0      167
DEATHS                    6         0        0        0        0        0        0        0    209        55            0          7         7         0       20
ON HAND AT END        736           0        0        0        0        0        0        0    2374     1127            0     205       105            0      325
SUMMER CATTLE         735           0        0        0        0        0        0        0    2374     1127            0     205       172            0      330
MUSTERING DETAILS:
COWS                  396           0        0        0        0        0        0        0    1175      715            0     100       114            0      179
HEIFERS                   69        0        0        0        0        0        0        0    386       217            0      40            0         0       51
HEIFER CALVES         166           0        0        0        0        0        0        0    445       150            0      40        25            0       59
STEER CALVES              91        0        0        0        0        0        0        0    503       150            0      40        36            0       59
STEERS                    32        0        0        0        0        0        0        0    472       129            0      40        39            0       51
BULLS(SCRUB)              0         0        0        0        0        0        0        0    243            0         0          5         4         0       18
BULLS(HERD)               7         0        0        0        0        0        0        0        85     17            0          2         6         0       8
TOTAL MUSTERED        761           0        0        0        0        0        0        0    3309     1378            0     267       224            0      424

GOATS (Domestic)
MUSTERED             1747                                                                                                                                    1747
ON HAND               922                                                                                                                                     922

SHEARING DETAILS
SHORN:
  EWES               4235      4650     6788      3457    3519     5374      4410    3308          0    3093      3000      10358      5488      3024        4336
  E.HOGG              630           0   1929          0   1047     1355      1182     675          0    1344       450       2880      1241            0      910
  E.WEANERS           358      1219     1540      1670    1544     1038      2125    1695          0     769       560       3601      2346       367        1345
  WETHERS            2172      2847     5305       986    2559     4763      2286    1960          0          0   2300       1912      3172      1724        2285
  W.HOGGETS           502           0   1754          0   1039     1242      1172     675          0     489       450             0   1030            0      597
  W.WEANERS           358      1038     1539      1670         0   1039      2125    1695          0     980       560       3600      2122       367        1221
  RAMS                    85    240      187       219     153      207      105          51       0      90        80        237       155        25         131
TOTAL NUMBER SHORN   8340      9994     19042     8002    9861     15018    13405    10059         0    6765      7400      22588      15554     5507       10824
KG WOOL:
  TOTAL              52355     51257    96883    35996    54173    67936    73515    52153         0    31919     36184     103909     91895     30958      55652




                                                                            58
  STATION NUMBER         1          2          3          4          5          6          7          8          9          10         11         12         13         14       AVERAGE
  ADULT                51854      47219      92263      29316      52836      63782      63145      43678            0    28683      34584      89507      79792      29490       50439
  WEANERS                501       4038       4620        6680      1337       4154      10370       8475            0     1749       1600      14402      12103       1468        5107
KG/HD:
  ALL SHEEP               6.3        5.1        5.1        4.5        5.5        4.5          5.5      5.2        0.0        4.7        4.9        4.6        5.9        5.6         5.1
  ADULT SHEEP             6.8        6.1        5.8        6.3        6.4        4.9          6.9      6.5        0.0        5.7        5.5        5.8        7.2        6.2         6.1
  WEANERS                 0.7        1.8        1.5        2.0        0.9        2.0          2.4      2.5        0.0        1.0        1.4        2.0        2.7        2.0         2.0
PRICE.KG/WOOL SOLD       2.35       3.00       3.11       2.58       2.59       3.54       2.66       2.88       0.00       2.16       2.55       2.10       3.83       2.57        2.83
PRICE HD/SH.SOLD        16.23      19.69      19.62      14.71      17.64      23.43       0.00      20.41       0.00      11.24      27.71      21.86      13.75      18.87       18.41
PRICE HD/CAT.SOLD      419.14       0.00       0.00       0.00       0.00       0.00       0.00       0.00     404.51     335.70       0.00     523.88     416.05       0.00      395.14
LAMBING PERCENT              63     100            87         95         93     115            96         91                 80         88         70         99         80          87
CALVING PERCENT              83                                                                                      90      74                    80         64                     84
DEATHS %(SHEEP)              4          6          6          21         5          3          17         11         0       12         14         12             3          7        9
DEATHS %(CATTLE)             1          0          0          0          0          0          0          0          5           3          0          3          4          0        4
SALES %(SHEEP)               38         18         22         24         23         20         0          19         0       51         15         14         13         18          19
SALES %(CATTLE)              47         0          0          0          0          0          0          0          41      18             0      15         27             0       35
EWES LAMBING            5494       3758       6834        3516      3286       3790       4427       3308            0     4466       2977       7430       4513       1542        3953
COWS CALVING             361            0          0          0          0          0          0          0     1501        718             0     100         95             0      198

STATION RECEIPTS
WOOL                   122869     153606     301358     93001      140146     240389     195735     149979           0    68832      92443      218063     351769     79471       157690
SHEEP                  53157      37596      82188      28214      40861      71261            0    39060            0    38463      30836      80537      29021      22989       39585
CATTLE                 150052           0          0          0          0          0          0          0    565098     160799            0   22527      24963             0    65960
GOATS                  45292       6296      11988         828      9867            0    33117       5099            0    37814      107029     110489     36782             0    28900
CAP.INT.&DIVID               0     4761        330      10011       9254            67    6371        901       7093      17300             0   24574             0          0     5762
OTHER                   9780      40430      31595        4387     13427      244761      7073        792      40011       1820      55593      43280      13212       2174       36310
OFF-STATION                  0          0    10692            0          0    12575      58725      45305       3000       3180      22658      11920             0   177045      24650
TOTAL:                 381150     242689     438151     136441     213555     569053     301021     241136     615202     328208     308559     511390     455747     281679      358856
INCOME/DSE SHN.MUST.    24.73      24.28      23.01      17.05      21.66      37.89      22.46      23.97      26.56      20.00      41.70      20.91      26.62      51.15       26.02

STATION PAYMENTS
TELEPHONE               3856        874       5578        1823      3105       4323       4151        825       1438       3355       6472       5795       2672       2041        3308
ACCOUNTANCY            11450       3655       3153        4740      1843       2575       2100       1540        400       6665             0   11880       3200       2440        3974
INSURANCE               7511       8811      17734        2065      7616       4182      10378       7467       1988       8775       7509      18199      20603      10541        9527
SUPERANNUNATION         2163       4057        173            0     1624       1089            0     1042            0     1338             0          0    8441             0     1423
POSTAGE                  347            97         0          86     233        406        127        402        172       1055        328         99        278             0      259
LOAN REPAYMENT               0          0    66400            0          0    241137     40502            0          0    18737       5000             0          0          0    26555


                                                                                         59
   STATION NUMBER     1        2         3         4        5          6        7        8        9         10        11        12        13        14       AVERAGE
INT.& BANK CHGS      47929    5843      23331      8569     620       4123      5571     390      530      6284      32871     85046     2824      26404      17881
SHIRE RATES          1109     2087      2340        650     240       1609      2626     855     3163      1200      2579      2451      1182      2200        1735
LAND RENT             604      597       772        200     496        973      1034     245     1206       816       740      1800       716       336         753
VERMIN RATES          966      955      1256        621     793       1558      920      391     1002      1306      1180      2100      1145       537        1052
VEHICLE LICENCE      1852     5591       919       1744    1050       2891      5251    1256      916      1990      4900      4116      4690      3196        2883
OTHER                     0        0     950           0        0     4921          0        0    450            0         0    200            0    569         506
FODDER & AGISTMENT   1979      249      2143        165    1514       1262      546          0    175      3471      1297      1155       995      1998        1211
VETERINARY                0        0    1372           0        0      778      664              2238      2767       100      1459      4459      4032        1375
STOCK PURCH:
  SHEEP                   0        0         0         0        0     1674          0        0        0          0         0         0         0   3956         402
  CATTLE                  0        0         0         0        0          0        0        0        0   100000           0         0         0         0     7143
  RAMS               4950     12310      620           0   3044       2219          0   2500          0          0   1560      5000      4328            0     2609
  BULLS              6800          0         0         0        0          0        0        0   22877     8500            0   3015            0         0     2942
  GOATS              2773          0         0         0        0      425          0        0        0          0         0         0         0         0      228
SHED & PACK COSTS    5958     6592      8297        554    13567      7539      9245    6000          0    1901      5099      5008      8815      2750        5809
SHEARING             43270    35756     82136     31879    36247     58763     44144    32781         0   25423      27131     87151     55123     19427      41374
CONTRACT MULESING    4223          0    5055           0   2129       5741      2650     830          0    4215      4019      7000            0    562        2602
CONTRACT MUSTERING   23824    5335           0         0        0     3764     19669         0   6450     10747      22268     3533            0   2298        6992
FREIGHT:
  GENERAL            2600          61        0      730    1868        979      1342     165      508      4441            0   4634      3739        72        1510
  WOOL               4256     2804      7261       2000    3328       4688      3410    3728          0    2314      1164      5194      6360            0     3322
  SHEEP              6188     5267      10049          0   6344      13293          0   5076          0    1812      5119      10523     3843      2644        5011
  CATTLE             8997          0         0         0        0          0        0        0   48959    10552            0   1300      1425            0     5088
  GOATS              5982          0         0         0        70         0        0        0        0    4583      6506       168            0         0     1236
SELL.COSTS:
  WOOL               13080    23398     28508      9702    14359     21907     19741    12082         0    8114      9916      24830     28674     8674       15928
  SHEEP              2796     2511      7235       1736    1328       5414          0   2488          0    1923       130      4500      2382      1460        2422
  CATTLE             9666          0         0         0        0          0        0        0   33200     8039            0   1200      2125            0     3874
VERMIN CONTROL            0        0         96     106         0          0        0        0        0          0         0         0   1502        50         125
R&M:
  GENERAL             865     2199       968           0   1307      23879      1787    4850     4511            0   1000            0   4566      15477       4386
  WATER              11861    5237      7009       7500    11211     17484      4885    1760     2764     13576      7000      10290     4581      1591        7625
  FENCES             9499     7512      11279      2100    9195      150576         0        0        0   10783      7526      23421     3444      1832       16941
  PLANT              4448     6275      7274       5882    17558           0    2185         0   1227      8190            0   8964            0     11        4430
  VEHICLES           10698    15429     1041       5000    5847      23417     15920    5123     6337      6470      23900     11301     11640     20885      11643


                                                                               60
  STATION NUMBER             1              2              3              4               5               6              7              8              9               10              11              12              13              14       AVERAGE
  BUILDINGS                  1283            291      15478               2000            1863            6786           1813               0              0           2241             395            1364            7736             640            2992
AIRCRAFT EXP.                    0              0     39936               5366            5332            5762               0          8436               0                0               0          7138            4904                 0          5491
FUEL & OIL              23705          15551          32904          10069           16130           26945          15975          17785          11534           15892           22380           23226           26701                9383       19156
WAGES                   30898          34959               4670           7773       18745           17802                   0          9234           3989       19985           11783           94403           67000                5341       23327
STORES                  19945                   0     15028                   0           7423       10363               4851           7839           6500       24131                     0               0     14211                6676            8355
GENERAL EXP.                     0          1086            678               0           2383            2537           2391               0          236        10087                6000            4440             272             465            2184
SUBSCRIPTIONS                1735            439           1968            138                20          3319            270            242           386              952                 0           325             654             965             815
TRAVELLING                    447               0              0              78              0               0              0              0              95               0               0           100            1102             66              135
LEASE PAYMENTS               8251       10368                  0          1160                 0          6766               0      12501                   0               0          4611        10567               6954                 0          4370
PLANT HIRE                    826               0              0          5412            1155                0              0          5880                0               0               0               0          1739                 0          1072
STAFF TRAINING                   0              0              0               0          1197                0              0              0               0           780                 0           485                 0               0           176
LANDCARE                         0              0           121                0               0              0              0              0      28178                    0               0               0           601                 0          2064
CAPITAL:
  BUILDINGS                      0              0      10759                   0               0              0              0           663           6423                 0      20771                900                 0               0          2823
  PLANT                      1113       20479                  0               0           143                0              0          1129           1538        20330           12200           39832           47671           14747           11370
  VEHICLES                   6490       34822                  0               0          2940            6939               0      11690                   0               0      12000                    0               0               0          5349
  FENCES                         0              0              0              0               0               0              0              0              0                0          1800                 0          3180                 0           356
  AIRCRAFT                       0              0              0              0               0               0              0              0              0                0               0               0               0               0            0
  WATERS                      585               0              0              0               0               0              0              0          7370                 0               0               0          1125                 0           649
  OTHER                      3660               0              0              0           3341                0              0              0          419                  0               0               0     14394                 150            1569
TOTAL PAYMENTS         361438         281497         424491         119848          207208          700808         224148         167195         207179          383740          277254          534112          391996          174416          318336


PER DSE SHORN/MUST.      23.45          28.17          22.29          14.98           21.01           46.66          16.72          16.62              8.94        23.38           37.47           21.84           22.89           31.67           23.08
SURPLUS/DEFICIT         19712          -38808         13660          16593                6347      -131755         76873          73941         408023           -55532          31305           -22722          63751          107263           40520

RECIEPTS PER SHEEP SHORN/CATTLE MUSTERED
WOOL                  14.73          15.37          15.83          11.62           14.21           16.01          14.60          14.91          0.00            10.17           12.49           9.65            22.62           14.43           14.57
SHEEP                 6.37           3.76           4.32           3.53            4.14            4.75           0.00           3.88           0.00            5.69            4.17            3.57            1.87            4.17            3.66
CATTLE                197.18         0.00           0.00           0.00            0.00            0.00           0.00           0.00           170.78          116.69          0.00            84.37           111.44          0.00            155.49
                      218.28         19.13          20.14          15.15           18.36           20.75          14.60          18.79          170.78          132.55          16.66           97.59           135.92          18.61           173.71

PAYMENTS PER SHEEP SHORN/CATTLE MUSTERED
PHONE,POST                   0.27           0.10           0.29           0.24            0.34            0.31           0.32           0.12           0.07            0.27            0.92            0.24            0.17            0.37            0.26
ACCOUNTANT                   0.74           0.37           0.17           0.59            0.19            0.17           0.16           0.15           0.02            0.41            0.00            0.49            0.19            0.44            0.29
INSURANCE                    0.63           1.29           0.94           0.26            0.94            0.35           0.77           0.85           0.09            0.62            1.01            0.74            1.70            1.91            0.79
LOAN,INT,CHARGES             3.11           0.58           4.71           1.07            0.06        16.33              3.44           0.04           0.02            1.52            5.12            3.48            0.16            4.79            3.22


                                                                                                                    61
   STATION NUMBER      1       2       3       4       5       6       7       8      9      10      11      12      13      14      AVERAGE
RATES                  0.17    0.36    0.28    0.18    0.16    0.60    0.34    0.15   0.25    0.20    0.61    0.27    0.18    0.66      0.29
FODDER & AGISTMENT     0.13    0.02    0.11    0.02    0.15    0.08    0.04    0.00   0.01    0.21    0.18    0.05    0.06    0.36      0.09
VETERINARY             0.00    0.00    0.07    0.00    0.00    0.05    0.05    0.00   0.10    0.17    0.01    0.06    0.26    0.73      0.10
STOCK PURCH:
  SHEEP                0.00    0.00    0.00    0.00    0.00    0.11    0.00    0.00   0.00    0.00    0.00    0.00    0.00    0.72      0.03
  CATTLE               0.00    0.00    0.00    0.00    0.00    0.00    0.00    0.00   0.00    6.09    0.00    0.00    0.00    0.00      0.52
  RAMS                 0.32    1.23    0.03    0.00    0.31    0.15    0.00    0.25   0.00    0.00    0.21    0.20    0.25    0.00      0.19
  BULLS                0.44    0.00    0.00    0.00    0.00    0.00    0.00    0.00   0.99    0.52    0.00    0.12    0.00    0.00      0.21
  GOATS                0.18    0.00    0.00    0.00    0.00    0.03    0.00    0.00   0.00    0.00    0.00    0.00    0.00    0.00      0.02
SHED & PACK COSTS      0.39    0.66    0.44    0.07    1.38    0.50    0.69    0.60   0.00    0.12    0.69    0.20    0.51    0.50      0.42
SHEARING               2.81    3.58    4.31    3.98    3.68    3.91    3.29    3.26   0.00    1.55    3.67    3.56    3.22    3.53      3.00
CONTRACT MULESING      0.27    0.00    0.27    0.00    0.22    0.38    0.20    0.08   0.00    0.26    0.54    0.29    0.00    0.10      0.19
CONTRACT MUSTERING     1.55    0.53    0.00    0.00    0.00    0.25    1.47    0.00   0.28    0.65    3.01    0.14    0.00    0.42      0.51
FREIGHT                1.82    0.81    0.91    0.34    1.18    1.26    0.35    0.89   2.14    1.44    1.73    0.89    0.90    0.49      1.17
SELL.COSTS:
  WOOL                 0.85    2.34    1.50    1.21    1.46    1.46    1.47    1.20   0.00    0.49    1.34    1.02    1.67    1.58      1.15
  SHEEP                0.18    0.25    0.38    0.22    0.13    0.36    0.00    0.25   0.00    0.12    0.02    0.18    0.14    0.27      0.18
  CATTLE               0.63    0.00    0.00    0.00    0.00    0.00    0.00    0.00   1.43    0.49    0.00    0.05    0.12    0.00      0.28
VERMIN CONTROL         0.00    0.00    0.01    0.01    0.00    0.00    0.00    0.00   0.00    0.00    0.00    0.00    0.09    0.01      0.01
R&M:
  GENERAL              0.43    0.88    1.25    0.99    2.10    2.04    0.43    0.48   0.25    0.64    0.19    0.42    0.72    2.93      0.86
  WATERS & FENCES      1.39    1.28    0.96    1.20    2.07   11.19    0.36    0.17   0.12    1.48    1.96    1.38    0.47    0.62      1.78
  VEHICLE & PLANE      0.81    2.10    2.20    1.51    1.24    2.14    1.58    1.47   0.31    0.52    3.89    0.92    1.24    4.37      1.45
FUEL & OIL             1.54    1.56    1.73    1.26    1.64    1.79    1.19    1.77   0.50    0.97    3.02    0.95    1.56    1.70      1.39
WAGES                  2.00    3.50    0.25    0.97    1.90    1.19    0.00    0.92   0.17    1.22    1.59    3.86    3.91    0.97      1.69
STORES                 1.29    0.00    0.79    0.00    0.75    0.69    0.36    0.78   0.28    1.47    0.00    0.00    0.83    1.21      0.61
GENERAL/SUBS/TRAIN.    0.14    0.15    0.14    0.03    0.37    0.39    0.20    0.02   0.03    0.72    0.81    0.22    0.12    0.27      0.24
HIRE/LEASE/LNDCARE     0.59    1.04    0.01    0.82    0.12    0.45    0.00    1.83   1.22    0.00    0.62    0.43    0.54    0.00      0.54
CAPITAL:
  GENERAL              0.31    2.05    0.57    0.00    0.35    0.00    0.00    0.18   0.36    1.24    4.46    1.67    3.62    2.71      1.14
  VEHICLE & PLANE      0.42    3.48    0.00    0.00    0.30    0.46    0.00    1.16   0.00    0.00    1.62    0.00    0.00    0.00      0.39
  WATERS & FENCES      0.04    0.00    0.00    0.00    0.00    0.00    0.00    0.00   0.32    0.00    0.24    0.00    0.25    0.00      0.07
                      23.45   28.17   22.29   14.98   21.01   46.66   16.72   16.62   8.94   23.38   37.47   21.84   22.89   31.67     23.08




                                                                      62
  STATION NUMBER       1        2        3        4        5        6        7        8        9       10      11      12       13      14      AVERAGE
RECIEPTS PER 100 HA STOCKED
WOOL                  69.03   170.67   158.61    93.00   120.82   182.11   117.91   136.34     0.00    53.65   59.26   57.69   172.44   74.79     90.96
SHEEP                 29.86    41.77    43.26    28.21    35.22    53.99     0.00    35.51     0.00    29.98   19.77   21.31    14.23   21.64     22.83
CATTLE                84.30     0.00     0.00     0.00     0.00     0.00     0.00     0.00   151.74   125.33    0.00    5.96    12.24    0.00     38.05
                     183.19   212.45   201.87   121.21   156.04   236.10   117.91   171.85   151.74   208.96   79.02   84.95   198.90   96.43    151.85

PAYMENTS PER 100 HA STOCKED
PHONE,POST             2.36     1.08     2.94     1.91     2.88     3.58     2.58     1.12     0.43     3.44    4.36    1.56     1.45    1.92      2.06
ACCOUNTANT             6.43     4.06     1.66     4.74     1.59     1.95     1.27     1.40     0.11     5.19    0.00    3.14     1.57    2.30      2.29
INSURANCE              5.43    14.30     9.42     2.06     7.97     3.99     6.25     7.74     0.53     7.88    4.81    4.81    14.24    9.92      6.32
LOANS,INT,CHARGES     26.93     6.49    47.23     8.57     0.53   185.80    27.75     0.35     0.14    19.50   24.28   22.50     1.38   24.85     25.63
RATES                  1.51     4.04     2.80     1.47     1.32     6.86     2.76     1.36     1.56     2.59    2.88    1.73     1.49    3.43      2.33
FODDER & AGISTMENT     1.11     0.28     1.13     0.16     1.31     0.96     0.33     0.00     0.05     2.71    0.83    0.31     0.49    1.88      0.70
VETERINARY             0.00     0.00     0.72     0.00     0.00     0.59     0.40     0.00     0.60     2.16    0.06    0.39     2.19    3.79      0.79
STOCK PURCH:
  SHEEP                0.00     0.00     0.00     0.00     0.00     1.27     0.00     0.00     0.00     0.00    0.00    0.00     0.00    3.72      0.23
  CATTLE               0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00    77.94    0.00    0.00     0.00    0.00      4.12
  RAMS                 2.78    13.68     0.33     0.00     2.62     1.68     0.00     2.27     0.00     0.00    1.00    1.32     2.12    0.00      1.51
  BULLS                3.82     0.00     0.00     0.00     0.00     0.00     0.00     0.00     6.14     6.63    0.00    0.80     0.00    0.00      1.70
  GOATS                1.56     0.00     0.00     0.00     0.00     0.32     0.00     0.00     0.00     0.00    0.00    0.00     0.00    0.00      0.13
SHED & PACK COSTS      3.35     7.32     4.37     0.55    11.70     5.71     5.57     5.45     0.00     1.48    3.27    1.32     4.32    2.59      3.35
SHEARING              24.31    39.73    43.23    31.88    31.25    44.52    26.59    29.80     0.00    19.82   17.39   23.06    27.02   18.28     23.87
CONTRACT MULESING      2.37     0.00     2.66     0.00     1.84     4.35     1.60     0.75     0.00     3.29    2.58    1.85     0.00    0.53      1.50
CONTRACT MUSTERING    13.38     5.93     0.00     0.00     0.00     2.85    11.85     0.00     1.73     8.38   14.27    0.93     0.00    2.16      4.03
FREIGHT               15.74     9.04     9.11     2.73    10.01    14.36     2.86     8.15    13.28    18.47    8.20    5.77     7.53    2.56      9.33
SELL.COSTS:
  WOOL                 7.35    26.00    15.00     9.70    12.38    16.60    11.89    10.98     0.00     6.32    6.36    6.57    14.06    8.16      9.19
  SHEEP                1.57     2.79     3.81     1.74     1.14     4.10     0.00     2.26     0.00     1.50    0.08    1.19     1.17    1.37      1.40
  CATTLE               5.43     0.00     0.00     0.00     0.00     0.00     0.00     0.00     8.92     6.27    0.00    0.32     1.04    0.00      2.23
VERMIN CONTROL         0.00     0.00     0.05     0.11     0.00     0.00     0.00     0.00     0.00     0.00    0.00    0.00     0.74    0.05      0.07
R&M:
  GENERAL              3.71     9.74    12.48     7.88    17.87    23.23     3.48     4.41     1.54     8.13    0.89    2.73     6.03   15.18      6.81
  WATERS & FENCES     12.00    14.17     9.63     9.60    17.59   127.32     2.94     1.60     0.74    18.99    9.31    8.92     3.93    3.22     14.17
  VEHICLE & PLANE      7.05    23.36    22.05    12.11    10.54    24.30    12.75    13.47     1.95     6.59   18.46    5.97    10.41   22.66     11.55
FUEL & OIL            13.32    17.28    17.32    10.07    13.91    20.41     9.62    16.17     3.10    12.39   14.35    6.14    13.09    8.83     11.05


                                                                           63
   STATION NUMBER       1          2          3          4          5          6          7          8         9         10        11        12        13        14       AVERAGE
WAGES                  17.36      38.84       2.46       7.77      16.16      13.49       0.00       8.39      1.07      15.58      7.55     24.97     32.84      5.03      13.46
STORES                 11.21       0.00       7.91       0.00       6.40       7.85       2.92       7.13      1.75      18.81      0.00      0.00      6.97      6.28       4.82
GENERAL/SUBS/TRAIN.     1.23       1.69       1.39       0.22       3.10       4.44       1.60       0.22      0.19       9.21      3.85      1.42      0.99      1.41       1.91
HIRE/LEASE/LNDCARE      5.10      11.52       0.06       6.57       1.00       5.13       0.00      16.71      7.57       0.00      2.96      2.80      4.56      0.00       4.33
CAPITAL:
  GENERAL               2.68      22.75       5.66       0.00       3.00       0.00       0.00       1.63      2.25      15.85     21.14     10.78     30.42     14.02       9.09
  VEHICLE & PLANE       3.65      38.69       0.00       0.00       2.53       5.26       0.00      10.63      0.00       0.00      7.69      0.00      0.00      0.00       3.09
WATERS & FENCES         0.33       0.00       0.00       0.00       0.00       0.00       0.00       0.00      1.98       0.00      1.15      0.00      2.11      0.00       0.58
                      203.06     312.77     223.42     119.85     178.63     530.92     135.03     152.00     55.63     299.10    177.73    141.30    192.15    164.15     183.63

COMPARATIVE FIGURES (SHEEP:CATTLE 1:7)
SH/MUST.STOCK.RATE      11.5        9.0       10.0       12.5       11.8        8.8       12.4       10.9      16.1        7.8      21.1      15.5      11.9      19.3       12.6
SUMMER STOCK RATE       11.8        7.6       10.7       11.1       13.9        9.4       11.9       12.9      22.4        9.9      22.0      17.6      12.2      16.9       13.6
SHORN\MUSTERED DSE    15414       9994      19042       8002       9861      15018      13405      10059      23163     16411      7400     24457     17122      5507      13793
SUMMER DSE            15067      11831      17700       9000       8337      14000      14000       8535      16618     12931      7100     21435     16708      6300      12760
TOTAL INCOME/HA         2.14       2.70       2.31       1.36       1.84       4.31       1.81       2.19      1.65       2.56      1.98      1.35      2.23      2.65       2.07
TOTAL INCOME /DSE      24.73      24.28      23.01      17.05      21.66      37.89      22.46      23.97     26.56      20.00     41.70     20.91     26.62     51.15      26.02
TOTAL COSTS/HA          2.03       3.13       2.23       1.20       1.79       5.31       1.35       1.52      0.56       2.99      1.78      1.41      1.92      1.64       1.84
TOTAL COSTS/DSE        23.45      28.17      22.29      14.98      21.01      46.66      16.72      16.62      8.94      23.38     37.47     21.84     22.89     31.67      23.08
(SURPLUS/LOSS)/HA       0.11      -0.43       0.07       0.17       0.05      -1.00       0.46       0.67      1.10      -0.43      0.20     -0.06      0.31      1.01       0.23
(SURPLUS/LOSS)/DSE      1.28      -3.88       0.72       2.07       0.64      -8.77       5.73       7.35     17.62      -3.38      4.23     -0.93      3.72     19.48       2.94
WOOL INCOME /DSE        7.97      15.37      15.83      11.62      14.21      16.01      14.60      14.91      0.00       4.19     12.49      8.92     20.54     14.43      11.43
SHEEP INCOME /DSE       3.45       3.76       4.32       3.53       4.14       4.75       0.00       3.88      0.00       2.34      4.17      3.29      1.69      4.17       2.87
CATTLE INCOME /DSE      9.73       0.00       0.00       0.00       0.00       0.00       0.00       0.00     24.40       9.80      0.00      0.92      1.46      0.00       4.78
GOAT INCOME /DSE        2.94       0.63       0.63       0.10       1.00       0.00       2.47       0.51      0.00       2.30     14.46      4.52      2.15      0.00       2.10
SEASONAL CONDITION    GOOD       GOOD       GOOD       GOOD       GOOD        FAIR      GOOD        FAIR      GOOD      GOOD      GOOD      GOOD      GOOD      GOOD

MONTHLY RAINFALL BETWEEN SHEARINGS
  JANUARY                   16         2          5      159            0          35         0          64    243         11           6      15        98           1       47
   FEBRUARY                 13         3          0          11         4          5          43         32        77         6         1      38        11           3       18
   MARCH                137            97         64     207            70     171        107        199       132        116        76       188       151       239        140
   APRIL                    32         6          85         9          28         0          0          8         9       41           0      20           0         7       18
   MAY                      57     117            95         19         89         0          42         0         0       86       122        71           0      95         57
  JUNE                      9          20         11         19         8          8          13         9         0          0      15        11        16        27         12
  JULY                      12     103            25         20         31         15         8          19        12      10        20        16        24        29         25
   AUGUST                   0          17         1          6          2          4          3          5         1          7      12           0         5      14          6


                                                                                        64
  STATION NUMBER           1                  2                  3                  4                  5                  6               7                  8                9                  10                 11                 12                 13                 14           AVERAGE
  SEPTEMBER                    0                  8                  18                 0                  7                  8               0                  5                 0                  9               36                    0               12                 23                  9
  OCTOBER                      0                  2                  13                 9                  23                 2               7                  0                 2                  2                  9                  0                  5                  8                6
  NOVEMBER                     0                  6                  1                  1                  0                  3               8                  3                 7                  0                  4                  0                  0               11                  3
  DECEMBER                     29                 57                 18                 24                 26                 8               94                 18                0               13                 17                 20                 14                 33                 27
  TOTAL                    305                 438                336               484                 288                259            325                 362             483                301                318                379                336                 490               365

GROSS MARGIN
SHEEP
SHEEP/CATTLE     %   54                 100                100                100                100                100             100                100                0                41                 100                92                 91                 100                78
INCOME
WOOL SALES            122869             153606             301358              93001             140146             240389          195735             149979                     0            68832           92443             218063             351769              79471             157690
SHEEP SALES               53157           37596              82188              28214              40861              71261                   0          39060                     0            38463           30836                 80537              29021           22989                 39585
TOTAL INCOME          176026             191202             383546             121215             181007             311650          195735             189039                     0        107295             123279             298600             380790             102460             197275

COSTS
FODDER/AGISTMENT            1071                  249             2143                  165             1514               1262               546                     0                0          1431               1297               1067                   904            1998                950
VETERINARY                          0                  0          1372                       0                  0             778             664                     0                0          1141                   100            1348               4051               4032               1079
PURCHASES:
 SHEEP                              0                  0                  0                  0                  0          1674                    0                  0                0                  0                  0                  0                  0          3956                402
 RAMS                       4950              12310                  620                     0          3044               2219                    0          2500                     0                  0          1560               5000               4328                       0          2609
SHED/PACK COSTS             5958               6592               8297                  554            13567               7539            9245               6000                     0          1901               5099               5008               8815               2750               5809
SHEARING                   43270              35756              82136              31879              36247              58763           44144              32781                     0         25423              27131              87151              55123              19427              41374
CRUTCHING
MULESING                       465             1467               2001               2171               1004               1350            2763               2204                     0          1137                   728            4681               2904                   477            1668
FREIGHT:
 WOOL                       4256               2804               7261               2000               3328               4688            3410               3728                     0          2314               1164               5194               6360                       0          3322
 SHEEP                      6188               5267              10049                       0          6344              13293                    0          5076                     0          1812               5119              10523               3843               2644               5011
SELLING COSTS:
 WOOL                      13080              23398              28508               9702              14359              21907           19741              12082                     0          8114               9916              24830              28674               8674              15928
 SHEEP                      2796               2511               7235               1736               1328               5414                    0          2488                     0          1923                   130            4500               2382               1460               2422
TOTAL COSTS                82034              90354          149622                 48207              80735          118887              80513              66859                     0         45195              52244             149301             117384              45418              80573
GROSS MARGIN          93991.83 100847.95 233923.65                             73008.00 100272.40 192762.95 115222.50 122180.50                                                   0.00      62099.69           71035.00 149299.11 263406.26                             57041.89 116701.56
 PER SHEEP SHORN          $11.27              $10.09             $12.28             $ 9.12             $10.17             $12.84          $ 8.60             $12.15                              $ 9.18             $ 9.60             $ 6.61            $16.93              $10.36            $10.78
 PER HECTARE               $ 0.53             $ 1.12             $ 1.23             $ 0.73             $ 0.86             $ 1.46          $ 0.69             $ 1.11                              $ 0.48             $ 0.46             $ 0.39             $ 1.29             $ 0.54             $ 0.67




                                                                                                                                      65
  STATION NUMBER            1             2              3              4              5              6               7              8               9               10           11              12               13             14        AVERAGE
CATTLE
CATTLE/SHEEP     %   35               0              0              0              0              0              0               0             100             59             0             8                9                0             22
INCOME
CATTLE SALES         150052           0              0              0              0              0              0               0             565098          160799         0             22527            24963            0             65960
TOTAL INCOME         150052           0              0              0              0              0              0               0             565098          160799         0             22527            24963            0             65960
COSTS
FODDER/AGISTMENT                684             0              0              0              0              0               0              0             175          2040              0               88              91              0           261
VETERINARY                       0              0              0              0              0              0               0              0          2238            1626              0              111              408             0           296
PURCHASES:
 CATTLE                          0              0              0              0              0              0               0              0              0         100000              0                0               0              0          7143
 BULLS                      6800                0              0              0              0              0               0              0         22877            8500              0          3015                  0              0          2942
FREIGHT:
 CATTLE                     8997                0              0              0              0              0               0              0         48959           10552              0          1300             1425                0          5088
SELLING COSTS:
 CATTLE                     9666                0              0              0              0              0               0              0         33200            8039              0          1200             2125                0          3874
TOTAL COSTS                26147                0              0              0              0              0               0              0     107449             130758              0          5715             4049                0         19603
GROSS MARGIN         123905.07                0.00           0.00           0.00           0.00           0.00            0.00           0.00 457649.00         30041.45           0.00         16812.24         20913.53          0.00      46356.60
PER CATTLE                $162.82              $-             $-             $-             $-             $-              $-             $-     $138.30            $ 21.80            $-         $ 2.97          $ 93.36              $-        $109.28
MUSTERED
PER HECTARE                $ 0.70         $ 0.00         $ 0.00         $ 0.00         $ 0.00         $ 0.00          $ 0.00         $ 0.00          $ 1.23         $ 0.23        $ 0.00          $ 0.04          $ 0.10          $ 0.00          $ 0.27
PER SHEEP                 $ 23.26              $-             $-             $-             $-             $-              $-             $-         $19.76          $ 3.11            $-         $ 9.00         $ 13.34               $-        $ 15.61
EQUIVALENT




                                                                                                                     66
    APPENDIX 11: Working Group Submissions


  Date         Name of Person          Brief Description                  Organisation
Received
11/09/2002     Donald Watson       Different Types of access      West Australian Association of
                                   wanted on Pastoral Leases      Cordyah Club Inc
23/09/2002     Chris Kloss         Personal Submission            Tour Operator for Derby Shire
10/10/2002     Pilbara Team        Discussion paper on access     Land Administration Services -
                                   to pastoral leases             Department of Land
                                                                  Administration

             Source papers requested and submitted by Working Group Members
  Date              Name               Brief Description            Organisation
Received
10/12/2002     Mark Lewis          Papers from Mark Lewis         Department of Agriculture
11/12/2002     WG Assistant        TOR for all groups             Department of Land
                                                                  Administration
16/12/2002     Garry Crow          Land title newspaper article   Department of Land
                                                                  Administration
19/12/2002     Mark Lewis          ProfitProbe                    Department of Agriculture
19/12/2002     Mark Lewis          Viability & amalgamation of    Department of Agriculture
                                   pastoral lease
19/12/2002     Mark Lewis          Socio-economic information     Department of Agriculture
19/12/2002     Mark Lewis          Viability & amalgamation of    Department of Agriculture
                                   pastoral lease (presentation
                                   from Gascoyne Muster)
19/12/2002     Mark Lewis          GMS group averages             Department of Agriculture
19/12/2002     Mark Lewis          MAFIA                          Department of Agriculture
19/12/2002     Department of Ag    Outback Resource Atlas         Gascoyne Murchison Strategy
4/04/2003      Roderick O'Connor   Agreed process                 Department of Agriculture
4/04/2003      Roderick O'Connor   PIEMR to Economists            Department of Agriculture
4/04/2003      Roderick O'Connor   Economists responses           Department of Agriculture
4/04/2003      Roderick O'Connor   PIEMR Summary                  Department of Agriculture
4/04/2003      Roderick O'Connor   PWITF update 1999 attach       Department of Agriculture
4/04/2003      Roderick O'Connor   ABARE                          Department of Agriculture
4/04/2003      Roderick O'Connor   Mafia Bench Mks                Department of Agriculture
4/04/2003      Roderick O'Connor   Benchmark 00-01                Department of Agriculture




                                             67
APPENDIX 12: List Of Common Used Acronyms

ABARE         Australian Bureau of Agricultural and Resource Economics
ABS           Australian Bureau of Statistics
APB           Agriculture Protection Board
CALM          Department of Conservation and Land Management
CRC           Cooperative Research Centre
CSCE          Cabinet Standing Committee (Environment)
CSIRO         Commonwealth Scientific and Industrial Research Organisation
Cth           Commonwealth
DAWA          Department of Agriculture Western Australian
DOIR          Department of Industry and Resources
DOLA          Department of Land Administration
DSE           Dry Stock Equivalent
EBIT          Earnings Before Interest and Taxation
EPA           Environmental Protection Authority
FMD           Farm Management Deposits
GMS           Gascoyne Murchison Strategy
KPI           Key Performance Indicator
LAA           Land Administration Act 1997
LCDs          Land Conservation Districts
LCDCs         Land Conservation Districts Committees
LTSCR         Long-Term Stock Capability Ratings
LUCNA         Land Use Change in Northern Australia
MAFIA         Meekatharra Annual Financial Information Analysis
NHT           National Heritage Trust
NRMC          Natural Resource Management Council
PGA           Pastoralists and Graziers Association
PIEMR         Pastoral Industry Economic Monitoring Requirements
PLB           Pastoral Lands Board
PWITF         Pastoral Wool Industry Task Force
RBDC          Rural Business and Development Corporation
RCS           Resource Consulting Services
ROAM          Return On Assets Managed
SLCC          Soil and Land Conservation Council
SoE           State of Environment
TOR           Terms of Reference
UCL           Unallocated Crown Land
VLA           Voluntary Lease Adjustment program
WAANTWG       Western Australian Aboriginal Native Title Working Group
WAFF          Western Australian Farmers Federation
WARMS         The Western Australian Rangelands Monitoring System
WWG           Writing Working Group
YIYO          Year In Year Out




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