Goat levy, industry and producer performance indicators

Summary

This project was conducted to inform industry of progress towards the Meat Industry Strategic Plan (MISP) 2020 and the Goat Industry Strategic Plan 2020 against a 2015/16 baseline. It also provides a better understanding and articulation of the profitability of the goat meat industry.

A financial and production performance assessment was created to develop a data collection template specific to goat enterprises, which was then given to goat producers to demonstrate the benefits of involvement.

On average, rangelands goat production has been more profitable than beef and lamb production in Southern Australia, but not as profitable as wool production over the period from 2016 to 2020. 

Objectives

The main objectives of this project were to:

• deliver data linked to total factor productivity targets for the Australian goat industry 
• perform an industry situational analysis 
• implement a comparative analysis program with a minimum of 40% of participating producers demonstrating their intent to change.  

Key findings

• Rangeland goat enterprises, regardless of management system, have been as profitable or more so than the more mainstream livestock enterprises, which include lamb, beef and wool.
• Comparative data suggests goat enterprise profits had greater volatility than all enterprises, but they generated higher average profits in the poor years than beef.
• Goat production in the higher rainfall zones has not been profitable primarily because it is treated as a hobby. In the higher rainfall zones labour costs exceed income and are 3 times higher than in rangelands enterprises.

Benefits to industry

By identifying the features of the most profitable goat enterprise managers, it has allowed for production and financial targets to be set that can be supported with evidence.

Most of the goat producers who have contributed to the data set had never been exposed to farm financial and production performance analysis previously. This project has given them the opportunity to build financial and farm management skills through their performance assessment and the comparative analysis.

Future research

Future research should include:

• quantifying the costs and benefits, and validating the management techinquies necessary for the introduction of meat breed genetics into Rangeland goat herds
• establishing the costs and benefits associated with controlled joining and compare with conventional uncontrolled joining in the rangelands
• examining the cost and benefit of technological approaches to labour management in remote areas
• identifying the potential benefits of data capture.