Agriculture

Introduction

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Agriculture is the dominant economic activity in the Murray-Darling Basin. Further, the Basin is Australia's most important agricultural region, accounting for just over 41 per cent of the nation's gross value of agricultural production. For some of the huge range of commodities produced, the figures are even higher. The MDB dominates Australian irrigated agriculture (see Irrigation). The Basin has been termed Australia's agricultural heartland, its 'food basket', but it is much more than that, as its agricultural output makes a major contribution to the national economy. Agriculture provides the raw materials for most of the MDB's manufacturing activity, as well as many processing companies beyond the Basin (see Manufacturing Industry). The Basin has the potential to make a major contribution to the expansion of Australia's food exports, provided that this is undertaken in a way that is consistent with sustainable land management. The problems of agricultural resource management were high-lighted by the drought conditions that affected almost all parts of the MDB to varying degrees through the early to mid-1990s, resulting in the reduced output of many commodities. It is for such reasons that this page and the one on Irrigation make use of of Australian Bureau of Statistics (ABS) data for the 1991-92 year (the agricultural census year ending March 31), unless otherwise stated.

It is impossible to present information on all of the Murray-Darling Basin's agricultural activities. Following an overview of the main features of the Basin's agriculture, details are given on some of the major agricultural activities. The final parts of this page take a look at some of the many minor commodities and at the future of agriculture in the MDB.

Overview

The dominance of agriculture in the economy of the Murray-Darling Basin is clearly indicated by a number of parameters. A national study indicated that 4.6 per cent of Australia's workforce was engaged directly in agriculture, with a further 27 per cent in agriculture-related industries (Ferguson & Simpson 1995). Directly comparable data for the MDB are not available, but the 1991 Census indicated an average figure for the Basin of over 16 per cent of the workforce directly engaged in agriculture, reaching over 20 per cent in North Western Statistical Division (SD) of NSW, the Wimmera and Mallee SDs in Victoria and the Murray Lands SD in South Australia.

Commercial agriculture is undertaken on some 51,672 farms in the MDB*. This is 42.3 per cent of Australia's total of 122,053 farms. Those in the MDB cover an area of 84,625,433 hectares, 18.2 per cent of the Australian total of 465,953,718 hectares. The average farm size is 1,638 hectares (compared with the Australian average of 3,818 hectares), but this varies significantly from one location to the other, from the small horticultural properties in some of the intensive irrigation areas to the large grazing properties in the semi-arid western parts of the Basin. Land in farms occupies some 79.7 per cent of the total area of the Basin.

The value of agricultural production is indicated as the gross value of agricultural commodities produced, defined as "the value of recorded production at the wholesale prices realised in the market place" (ABS 1996, 399). For the Basin as a whole, the gross value of agricultural production in 1991-92 was estimated as $8,555,983,514, 41.04 per cent of the Australian total of $20,848,019,725**. In terms of the gross value of agricultural production, the highest figure for any statistical local area (the units used by the ABS) in Australia is $459,414,318 in the Moree Plains Shire in northern New South Wales. Of course, figures vary significantly from year to year, due to such factors as prevailing weather conditions, access to markets and commodity prices, especially on export markets.

* :  A farm is defined as an establishment which is engaged in agricultural activity regardless of the establishment's predominant activity, and on which the estimated value of agricultural operations is $22,500 or more in the 1991-92 census year (to March 31, 1992).

** : The Australian Bureau of Agricultural  and Resource Economics put the gross value of agricultural production in the MDB for 1993-94 at $9.4 billion, 39.6 per cent of the Australian total.

Some major agricultural commodities

The vast area of the Basin and its latitudinal extent mean that it encompasses a range of climatic conditions, making possible the production of a wide diversity of agricultural commodities, from sub-tropical to cool temperate. This page is essentially concerned with some of the major crop and livestock commodities that are produced by dryland and irrigation farming.

Crops, pastures and grasses

The total area devoted to sown crops, pastures and grasses in the MDB is 7,891,260 hectares. This is 44.6 per cent of the Australian crop area of 17,700,807 hectares and 9.3 per cent of the total farm area in the MDB. Crops, pastures and grasses are grown on 39,319 farms, 76.1 per cent of the Basin's farms, and 43.5 per cent of the 90,450 farms in Australia with crops, pastures and grasses.

The total gross value of production of crops, pastures and grasses in the Murray-Darling Basin is $4,273,694,030, which is 50.0 per cent of the total gross value of agricultural production in the Basin. It is 43.3 per cent of the Australian gross value of crops, pastures and grasses of $9,865,709,957***. For Australia as a whole, the gross value of production of crops, pastures and grasses is 47.3 per cent of the total gross value of agricultural production.

*** : The pastures and grasses component covers pastures and grasses (including lucerne) which are cut for hay and harvested for seed. Their estimated value is approximately 6.5 per cent of the total value of crops, pastures and grasses.

Crop production

The total area devoted to crops in the MDB is 7,137,303 hectares. This is 43.5 per cent of the Australian crop area of 16,404,332 hectares and 8.4 per cent of the total farm area in the MDB. Crops are grown on 31,164 farms, 60.3 per cent of the Basin's farms, and 42.0 per cent of the 74,290 farms in Australia that grow crops. The available indicators suggest that crop production is relatively more important in the MDB than for Australian agriculture as a whole.

A large part of Australia's major arable farming area, long known as the wheat-sheep belt, is located within the Murray-Darling Basin. It extends from southern Queensland through New South Wales and Victoria (to the west and north of the Great Dividing Range) into South Australia. Much of the area has a mean annual rainfall of under 600 mm, its unreliable nature being a major determinant of crop yield. A large number of crops are grown in the MDB and it is possible to give detailed consideration here of only a few of them, namely wheat, barley, rice, oilseeds, cotton, and a number of horticultural commodities. Among the other crops grown are other cereals and pulses (such as lupins, field peas, chickpeas, lentils, mung beans, faba beans, navy beans, and vetch). Some of these crops are grown mainly for livestock feed, though others supply niche markets for human consumption, especially in the health foods sector.

There is much specialisation by individual producers, with some going beyond the actual crop-growing stage to being their own processors, such as the grower of a popcorn-variety of maize at Spring Ridge, south of Gunnedah, processing the corn at his own factory in Sydney and then marketing the popcorn (Lyon 1996), and Yandilla Mustard Oil Enterprises at Wallendbeen, near Cootamundra.

Cereals

Apart from wheat, barley and rice, other cereal crops grown include oats, maize, grain sorghum, and triticale. Cereals are produced on 21,915 farms in the MDB, 54.8 per cent of the Australian total of 39,960 farms****. The area devoted to cereals is 5,279,826 hectares, 43.9 per cent of the Australian total of 12,021,023 hectares. Cereal production is 8,823,937 tonnes, 44.8 per cent of the Australian total of 19,715,440 tonnes, with a gross value of $1,505,740,773, 43.9 per cent of the Australian total of $3,429,662,646.

Cereals are grown primarily for milling and human consumption, but also for stockfeed. For most growers, the sale of cereals for stockfeed is a fall-back position for grain that does not meet milling and human consumption standards. Given that the livestock industries now consume almost one-third of all grain produced in Australia, feed grains to meet market requirements merit much more direct attention by local growers. Without such attention, the feed grain demand will be increasingly met by imports, as was the case during the 1994-95 drought.

Associated with the on-farm production of cereals is an extensive collection, storage and transport network (road and rail) that is responsible for moving grain from the farms to markets within Australia and to storage terminals at ports for export overseas. In NSW, the extensive network of silos and storage facilities is operated by GrainCorp, which has a storage capacity of some 12 million tonnes at 270 country storage sites and export terminals at Port Kembla and Newcastle. GrainCorp handles wheat, barley, oats, peas, oilseeds and rice. Vicgrain, which is jointly owned by the Victorian Farmers' Federation, GrainCorp and the Australian Barley Board, has 233 country storages in Victoria and southern New South Wales, sub-terminals at Murtoa and Dunolly, export terminals at Portland and Geelong and the sub-terminal at Sunshine in Melbourne, which serves the domestic market. Its total storage capacity is 5.6 million tonnes.

**** : For Australia as a whole, while 39,960 farms were recorded as producing cereals, 41,335 were recorded as growing cereals, a difference of 1,375 farms.

Wheat

Wheat is the major crop in the MDB. It covers 2,696,101 hectares, 37.5 per cent of the Australian total of 7,182,928 hectares, and is grown on 14,583 farms, 34.5 per cent of the Australian total of 26,115. Production is 3,637,232 tonnes, 34.5 per cent of the Australian total of 10,557,400 tonnes, with a value of $725,472,314, 34.6 per cent of the Australian total of $2,097,237,846.

Wheat production extends from Central Queensland south through New South Wales (to the west of the Great Dividing Range) and north-western Victoria into South Australia (Figure 1).

Figure 1: Locations of wheat growing in the MDB

A number of types of wheat are grown, depending upon soil and climatic conditions. On the Darling Downs of southern Queensland and adjoining areas in northern New South Wales, Prime Hard and Hard wheats are produced, with a minimum protein contents over 13 and 11.5 per cent respectively (used for flour. bread and noodles). Also grown in northern New South Wales is hard grained Durum wheat (used for the making of pasta products). To the south, in the central-west of New South Wales and extending to the southern parts of the state, medium protein Hard and Australian Standard White (ASW) (10 per cent protein) wheats are produced (used for flour and bread). In southern New South Wales and through into the mallee areas of north-western Victoria and adjoining areas of South Australia, medium to low protein ASW wheats are produced. Low protein soft grained varieties of wheat used for biscuits are also grown in southern New South Wales and adjoining areas of Victoria. The standard wheats account for about 70 per cent of total production. In a normal year, up to 85 per cent of the crop is exported: no other wheat producing country in the world is so dependent on exports.

Most wheat growing areas in the MDB receive between 400 and 600 mm of rain per annum, with the variations in rainfall being largely responsible for the annual fluctuations in production, moisture and protein content. When allowance is made for the annual fluctuations, production per hectare has shown very little increase in the last 20 years. In many areas, yields and soil fertility are both declining or showing only marginal increase (see Land Degradation). In fact, the rates of yield increase are among the lowest in the world and less than any of Australia's major competitors (Walquist 1996).

Barley

Barley is second only to wheat as the most widely grown cereal in the MDB. It covers 1,358,090 hectares, 49.5 per cent of the total Australian area of 2,744,165 hectares, and is grown on 10,716 farms, 51.9 per cent of the Australian total. Production is 1,906,303 tonnes, 42.1 per cent of the Australian total of 4,529,797 tonnes, valued at $301,404,428, 44.3 per cent of the Australian total of $680,937,356. Barley is grown in similar areas to wheat, but with the Victorian Mallee and northern Wimmera, the southern part of the South Australian Murray Lands, and the Lachlan Valley being among the main growing areas (Figure 2).

Figure 2: Locations of barley growing in the MDB

Barley is the most important of the coarse grains, others being maize, oats, rye, sorghum, and triticale. These are grown mainly for livestock feed, though some supply niche markets for human consumption. Barley is used for stock feed (often with other cereals) and malting for the production of alcoholic drinks. For feed, barley must have high protein and starch content (for intensive livestock production); for malting, it requires a lower protein range, but also a low moisture content at harvest and a 95 per cent or more germination capacity. Barley for malting is an important export commodity, especially from South Australia, due in part to the fact that barley can be grown on the lighter and more alkaline soils.

Rice

Except for a small quantity grown in Queensland and the Northern Territory, all of the Australian rice crop is grown in the MDB*****. In the MDB, rice is grown on 1,288 farms, with a total area of 109,186 hectares, 95.8 per cent of the Australian total of 114,000 hectares, producing 928,533 tonnes, 97.0 per cent of the Australian total of 957,000 tonnes. The crop was was valued at $176.0 million, 96.1 per cent of the national total of $183.1 million.

Rice is the major irrigated cereal crop and, apart from an extremely small area, is grown entirely in the Murrumbidgee and Murray valleys of southern New South Wales. Commercial rice growing started in the Murrumbidgee Irrigation Area in 1924, but the industry's rapid expansion occurred in the 1970s and 1980s, largely through the increase in the area sown and through improved yields (Humphreys et al. 1994; Lewis 1994). A record crop of 1,284,000 tonnes was harvested in 1995-96. Once the rice has been grown, its storage, processing and marketing is almost entirely in the hands of the Ricegrowers Co-operative Ltd., which operates numerous facilities throughout the irrigation areas in the Murrumbidgee and Murray valleys (Figure 3).

The future expansion of the industry is constrained by two factors. Firstly, as over half of the crop is exported, access to overseas markets is crucial (Phillips et al. 1994). The recent opening of the Japanese market is very important, but the realisation of the full potential of such markets will require not only continuous access, but also the production of new rice varieties to meet customer demands. Secondly, there are resource constraints, not only in terms of the availability of irrigation water, but also because of the environmental consequences of the large quantities of water and flood irrigation methods that are used. Up to half of the water that percolates down to groundwater from irrigated areas in southern NSW comes from rice production. This represents some 200,000 ML of water every year, worth over $2m. Not only is this water wasted, it is an undesirable addition to already high watertables. Reduction of deep drainage from rice is essential if environmental degradation caused by rising water tables is to be contained, and the rice industry is to have a secure future (CSIRO 1990, 23). Increased production is being sought through varieties that give higher yields and require less water.

Rice can be grown only on land approved for the crop by the NSW Department of Land and Water Conservation. Then, within the Murrumbidgee Irrigation Area and Districts (MIA&D) and Coleambally Irrigation Area, there are limits to the maximum area that can be sown to rice each year on each property. These regulations have reduced the maximum area per farm that can be sown to rice in the MIA&D over the past five years. However, rice growing has expanded westward along the Murrumbidgee: for example, in the Hay Shire, the area increased from 400 hectares in 1991-92 to some 10,000 hectares in 1994-95. The intensity of rice growing in the Murray region is much less than in the Murrumbidgee due to the relatively lower availability of water.

***** : Rice is no longer grown in Queensland, while only an extremely small quantity continues to be grown in the Northern Territory.

Oilseeds

A great variety of oilseed crops is grown, but the major ones, canola, cotton seed (a by-product of cotton fibre production), soybean, sunflower, and rape, account for 90 per cent of total production. Other oilseeds include linseed, peanuts and safflower. Oilseeds cover 207,717 hectares, 68.1 per cent of the total Australian area of 304,823 hectares, and are produced on 2,358 farms, 65.7 per cent of the Australian total of 3,591 farms*^. Production is 253,204 tonnes, 72.7 per cent of the Australian total of 348,304 tonnes, valued at $75,399,272, 68.6 per cent of the Australian total of $109.9 million.

Oilseeds are grown mainly in parts of New South Wales, the Darling Downs in Queensland, and the Wimmera district in Victoria (Figure 4).

Figure 4: Locations of oilseed growing in the MDB

Oilseeds constitute a relatively new group of crops, canola being particularly important. Canola, a derivative of rapeseed, also provides a dependable and valued rotation crop with wheat. The production of canola has increased rapidly over recent years and it is now the major oilseed crop, especially in the grain belt of Queensland and New South Wales. Largely because of this, the Australian oilseeds crop was valued at $386.9 million in 1993-94. A record Australian canola crop of up to 641,000 tonnes was estimated for 1996-97 (ABARE 1997; see also Graham 1995), out of an oilseeds total of over 1.82 million tonnes, most of it from the MDB.

Production of oilseeds other than canola and cotton seed is highly variable, due to seasonal conditions and fluctuations in prices between years. New varieties of sunflowers and soybeans will result in some expansion, but there is still room for more, both for exports and to replace imports.

Oilseeds are crushed for their oil and meal. The meal is important for livestock feed, with soybean meal being more valuable than others. The unsaturated oils are used for human consumption. Total oilseed crushing capacity will soon reach some 1 million tonnes per year, with major facilities located within the MDB at Narrabri, Moree, and Numurkah (see Manufacturing Industry).

*^ : For Australia as a whole, while 3,591 farms were recorded as producing oilseeds, 3,701 were recorded as growing oilseeds, a difference of 110 farms.

Cotton

The area under cotton in the MDB is 289,605 hectares, 92.7 per cent of the total Australian area of 312,288 hectares. It is grown on 797 farms, 87.7 per cent of the Australian total of 909 farms. Production of raw cotton is 435,923 tonnes, 93.0 per cent of the Australian total of 468,660 tonnes, and its value is $812,999,068, 92.5 per cent of the Australian total of $878,656,904.

The major growing areas are along the Darling and especially its tributaries in northern New South Wales and southern Queensland (Figure 5).

Figure 5: Locations of cotton growing in the MDB

About 80 per cent of the crop is grown under irrigation. Limitations on the availability of irrigation water are contributing to an increase in the production of dryland cotton and also to the spread of irrigated cotton production to other parts of the MDB, such as along the lower Darling and Murrumbidgee rivers.

From the growth of the first crop in 1961-62 near Wee Waa in the Namoi Valley, cotton production has expanded rapidly to become one of Australia's major agricultural industries. It now makes a major contribution to the economies of the growing areas and to the Australian economy as a whole. Australia accounts for about 2.4 per cent of world cotton production, but 6.9 per cent of world exports, the latter being valued at some $945 million in 1992. By international standards, Australian cotton is of high quality. After the decline in production and exports in the early to mid-1990s as a result of drought conditions, a record crop of 607,400 tonnes of lint valued at $1.22 million was estimated for
1996-97 (ABARE 1997).

Horticultural crops

The Murray-Darling Basin is a major producer of a large number of horticultural crops, particularly within the irrigation areas (AHC 1996). The primary ones considered here are citrus, stone fruits, pome fruits, grapes, and vegetables. These are the commodities most associated with irrigation in the MDB and the intensive irrigation schemes, especially the South Australian Riverland, Sunraysia, parts of the Murrumbidgee Irrigation Area, and the Shepparton-Cobram district. A great variety of particular commodities is produced, but with considerable variation from one location to another, such as the dominance of stone fruits and pears in the Shepparton district, vines in Sunraysia, and the vines, citrus and stone fruits in the Riverland.

The total area devoted to horticultural production in the MDB is 133,198 hectares, of which 97,665 hectares are fruit crops. Total fruit production in the MDB is valued at $973,623,587, which is 56.1 per cent of the total Australian figure of $1,737,146,345*^^.

*^^ : Unfortunately, areal data are not available from the ABS for tree fruits such as citrus, stone and pome fruits.

Citrus

The major citrus fruits are oranges, mandarins, grapefruit, and lemons. There are 7,602,827 citrus trees in the MDB, 81.9 per cent of the Australian total of 9,288,269. Citrus fruit is produced on 2,052 farms, 74.7 per cent of the total Australian number of 2,747 farms (there are 3,026 farms with citrus trees). Production is 496,943 tonnes, 86.4 per cent of the Australian total of 575,088 tonnes, and is valued at $212,247,430, 78.0 per cent of the total Australian value of $272,250,780. Oranges account for almost 74 per cent of the total citrus crop value.

The main growing areas are the Riverland (the irrigation areas along the Upper Murray of South Australia), Sunraysia (the irrigation areas around Mildura in north-west Victoria and the adjoining areas of New South Wales), and the Murrumbidgee Irrigation Area (Figure 6).

Figure 6: Locations of citrus and  stone fruits growing in the MDB

Stone fruits

The main stone fruits include apricots, cherries, nectarines, peaches, plums and prunes. There are 4,368,755 stone fruit trees in the Basin, 71.4 per cent of the national total of 6,121,000. Of these, 32.4 per cent are peaches (grown on 1,342 farms), 22.5 per cent are plums and prunes (1,193 farms), 18.1 per cent are apricots (1,505 farms), 14.0 per cent are nectarines (845 farms), and 13.1 per cent are cherries (305 farms). Production totalled 109,779 tonnes, 81.9 per cent of the national total of 134,003 tonnes, and was valued at $120,608,255, 75.6 per cent of the Australian value of $159,449,283.

For stone fruits overall, the main producing areas are the Murray Lands, Goulburn, Murrumbidgee, South Eastern, and Darling Downs Statistical Divisions (Figure 6).

However, there is significant regional specialisation. For example, well over half of the production of particular fruits are produced in particular districts, such as apricots in South Australia's Riverland (which accounts for some 90 per cent of Australia's dried apricots) and peaches in Victoria's Goulburn SD.

One of the most striking examples of regional specialisation is cherry growing. In the MDB as a whole, there are 568,839 cherry trees, 71.1 per cent of the Australian total number of 799,655. Cherries are grown on 295 farms, 61.8 per cent of the Australian total of 477. Production is 2,793 tonnes, 58.7 per cent of the Australian total of 4,761 tonnes, and is valued at $11,816,015, 58.5 per cent of the total Australian value of $20,190,510. The major centre of production is Young, where cherries have been grown since the late 1840s and which is now known as the cherry (and prune) capital of Australia. The trees are grown over a relatively small area, about 2,600 hectares on a ridge about 10 km wide and 30 km long. In 1991-92, the Young Shire had 335,984 cherry trees (59.1 per cent of the MDB figure), grown on 73 farms (24.7 per cent), which produced 1,489 tonnes of fruit (53.3 per cent), valued at $6,548,039 (55.4 per cent). As well as providing fresh fruit, a local company makes jam and is experimenting with canning cherries. Young also accounts for a large proportion of the NSW prune production.

Pome fruits

A variety of pome fruits are grown in the MDB, but the main ones are apples and pears.

There are 3,387,164 apple trees in the MDB, 47.0 per cent of the Australian total of 7,206,261. Apples are produced on 819 farms, 53.5 per cent of the Australian total of 1,531 farms (1,624 farms have apple trees). Production is 159,739 tonnes, 50.5 per cent of the Australian total of 316,101 tonnes, and is valued at $142,938,050, 53.1 per cent of the value of the total Australian crop of $269,416,474.

The main apple growing areas are in the Central West, Murrumbidgee, Goulburn and Darling Downs SDs (Figure 7).

Figure 7: Locations of pome fruits growing in the MDB

One of the more well-known apple growing districts is Batlow, in south-east NSW (part of the Murrumbidgee SD), where the combination of location, altitude, and environmental conditions are ideal for high-quality apple production. Not only are long-established varieties grown, such as Red Delicious, Jonathan, and Granny Smith, but also new ones, such as Bonza, Red Fuji, Royal Gala and Pink Lady. The large Batlow Fruit Co-operative provides packing and controlled atmosphere storage for the steady release of apples to market for at least 10 months of the year. Mountain Maid apple juice is also an important outlet for local apples. The Batlow district produces over 8 per cent of the Australian apple crop and 17.2 per cent of the Murray-Darling Basin crop.

Pears (excluding Nashi) present a rather different picture. There are 1,366,256 pear trees in the MDB, 83.0 per cent of the Australian total of 1,645,492. They are grown on 687 farms, 62.7 per cent of the Australian total of 1,096 farms. Production is 159,735 tonnes, 90.9 per cent of the Australian total of 175,698 tonnes, valued at $109,732,220, 90.3 per cent of the Australian total of $121,577,417. In terms of location, pear growing is dominated by Victoria's Goulburn Statistical Division, which accounts for 86.4 per cent of the Basin's trees, 42.2 per cent of the farms, 94.1 per cent of the production, and 93.8 per cent of the crop by value (Figure 7).

Grapes

The total area under grapes in the MDB is 40,281 hectares, 66.1 per cent of the total Australian area of 60,900 hectares. Grapes are produced on 3,660 farms, 79.2 per cent of the Australian total of 4,621 farms (4,786 farms grow grapes). Production is 815,646 tonnes, 82.7 per cent of the Australian total of 986,252 tonnes, with a value of $345,659,367, 79.8 per cent of the total value of the Australian harvest of $433,018,733.

Grapes are grown for the fresh or table market, for drying (for dried vine fruits) and winemaking. Grapes for winemaking and drying account for 95.0 per cent of total Australian production, the balance being primarily for domestic and export fresh markets.

Grapes for drying are valued at $129,819,498, 99.4 per cent of the Australian total value of $130,637,047. Production is limited to the Mallee, Murray and Murray Lands Statistical Divisions, particularly the Sunraysia district (Figure 8).

Total Australian production is overwhelmingly of the sultana variety, producing 82,079 tonnes of dried vine fruits from 372,935 tonnes of fresh grapes. Grapes for drying are grown on 2,093 farms.

Production of grapes for winemaking totalled 397,448 tonnes, 48.7 per cent of total grape production in the MDB This is 70.5 per cent of the Australian total of grapes for winemaking of 563,612 tonnes. Grapes for winemaking are produced on 2,350 farms (55.8 per cent of the Basin's farms growing grapes), 72.2 per cent of the Australian total of 3,253 farms. Production is valued at $151,148,724, 66.2 per cent of the Australian total of $228,257,607. The major producing areas are the South Australian Riverland (Murray Lands SD accounts for 45.5 per cent of the Basin's production) and the Mallee and Murrumbidgee Statistical Divisions. In addition to these major wine producing areas, where the relatively small number of large producers are dominant (for example, Southcorp has some 30 per cent of the domestic wine market), there are numerous areas of small but high quality wine production, including Mudgee, the Lachlan Valley, Murrumbateman, the Avoca-Great Western district, Rutherglen, and Glenrowan. Under the Geographical Indications Program of the Australian Wine and Brandy Corporation, wines are now being described by the location of their production. Planting by the large winemaking companies are primarily responsible for the industry's growth over recent years.

Figure 8: Locations of grapes and vegetables growing in the MDB

Vegetables

A large number of different types of vegetables for human consumption are grown in many parts of the MDB. They are grown for the fresh market (mainly the domestic market but also for export), for freezing, for canning and for other forms of processing. The vegetables include peas and green beans (especially for freezing), cabbages and cauliflowers for the fresh market, pumpkins, carrots (Robinvale and Griffith), onions (Griffith and the South Australian Lower Murray), asparagus (near Cowra and Jugiong), and tomatoes for the fresh market and various forms of processing. New vegetables and new varieties of established ones are being introduced, especially for export to Asian markets.

The total area under vegetables is 29,669 hectares, 25.3 per cent of the Australian total of 117,464 hectares. There are 1,522 farms growing vegetables, 22.2 per cent of the Australian total of 6,867. Production is valued at $264,542,920, 21.3 per cent of the Australian total of $1,242,355,924 (Figure 8).

The largest individual vegetable crop is potatoes, with different varieties being produced for the table, freezing and other processing markets. Potatoes cover an area of 10,223 hectares, 34.5 per cent of the area under vegetables in the MDB, and 25.3 per cent of the total Australian area under potatoes of 117,464 hectares. Potatoes are produced on 373 farms, 16.3 per cent of the Australian total of 2,282 (potatoes are grown on 2,318 farms). Production is 238,435 tonnes, 20.7 per cent of the Australian total of 1,150,141 tonnes, and is valued at $82,128,894, 24.2 per cent of the total Australian value of $339,400,422. The fresh market’s move to washed potatoes has resulted in a shift of production to areas of light sandy soils, where potatoes are grown under irrigation, as in the Murray, Murrumbidgee and Murray Lands SDs. The other main growing area is the Central Highlands of Victoria.

Livestock production

Whilst crop production is of critical importance to the MDB's agriculture, it occupies only a relatively small proportion of the area of land in farms. Most of the agricultural land in the MDB is devoted to grazing, supporting very large livestock industries. There is great variation in the types of grazing lands, from the improved pastures of the high-rainfall areas on the Basin's eastern margins, to the semi-arid and arid native vegetation used for very extensive grazing in rangeland areas of south-west Queensland and the Western Division of NSW, with their saltbush, mulga and grassy plains (NRMWG 1996). The latter have major problems of land degradation, largely due to over-grazing and competition from kangaroos, which could form the basis of a viable livestock industry (see Land Degradation) (Barson et al 1993, 19-31; Stephens & McGuckian 1995).

Sown pastures are used for grazing and hay production. Many consist of introduced plants, such as subterranean clovers (Trifoilium subterraneum L. cultivars), annual medics (Medicago species), serradella (Ornithopis compressus), and lucerne (Medicago sativa) (much of it produced under irrigation), and various perennial grasses. Much more attention is now being given to native grass species, partly as a result of recent extended droughts. This is just one of a number of important changes taking place in Australian agriculture.

Just as there are many types of grazing lands in the Basin, so there are many different types of livestock, quite apart from the main ones, sheep, cattle, pigs and poultry, that are considered below. Others include goats, deer, bees, ostriches, alpacas, and horses. In the arid lands to the south of Broken Hill and in south-west Queensland, as elsewhere in Australia’s rangelands, there are very large numbers of feral goats ("millions of them"), which are being crossed with stud goats to produce meat for export. Australia is the world's largest exporter of goat meat (Curkpatrick 1996). At Cowra, Awassi sheep are providing milk for the manufacture of sheep dairy products at Leeton.

Paralleling the many types of grazing and livestock, are the different types of livestock production systems, from the very extensive arid and semi-arid pastoral lands of the western and north-western parts of the basin, to dryland pastures, to intensive irrigated pastures, to beef feedlots, to the highly intensive industrialised production of poultry, eggs, and pigs. These non-grazing intensive livestock operations are supported by the Basin's cereal and fodder production.

Total livestock products, defined as wool, milk, eggs, and honey, are valued at $2,146,068,321 in the MDB, 41.0 per cent of the Australian total of $5,238,595,937. To this must be added the figures for livestock slaughtering for meat.

Among the major livestock marketing centres are Wagga Wagga, Forbes, Dubbo, Tamworth, Gunnedah, Wodonga and Toowoomba.

Sheep

Australia has more sheep than any other country in the world, though in 1991-92 the number was the smallest for some years. As with many crops, weather conditions and prices for wool and meat are major factors in the size of the total flock, and drought and low wool prices have contributed to a further significant decline since 1991-92.

There are 66,838,574 sheep and lambs in the MDB, 45.1 per cent of the total Australian flock of 148,202,899 animals. Sheep are kept on 30,983 farms, 52.0 per cent of the Australian number of 59,589 farms with sheep.

As indicated above, sheep are grazed in a wide range of climatic and environmental conditions. Most are located in the wheat-sheep belt (see above), where they are run in conjunction with cropping and also often with beef cattle (Figure 9).

Figure 9: Locations of sheep in the MDB

Numbers fluctuate considerably with seasonal conditions, wool and meat prices, and the relative profitability of other commodities. Sheep are produced primarily for their wool and meat, together with associated products such as skins. Merinos are the dominant breed, especially for their wool, with other breeds important for their meat and particular types of wool (Douglas 1997).

(a) Sheep for meat production

Sheep and lamb slaughterings are valued at $185,975,366, 40.4 per cent of the Australian total of $460,633,460, produced on 24,828 farms, 51.4 per cent of the Australian total of 48,328 farms. As with most agricultural commodities, sheep slaughterings vary with seasonal conditions, especially in terms of mutton. In terms of sheep for meat, lamb production predominates. Much of it comes from the slopes and tablelands of New South Wales and Victoria, areas with higher rainfall and improved pastures. Prime lamb production is also found in some of the irrigation areas. In the other sheep producing areas, mutton and wool predominate (Douglas 1997, 157-162).

The production of sheepskins and other products is also associated with sheep for meat production.

(b) Sheep for wool production

Wool is one of the most important commodities produced in Australia. Over recent years, however, the industry has gone through a very difficult period. The termination of the Reserve Price Scheme in 1991 brought to an end some twenty years of relatively stable prices. Now, the wool market is a deregulated one. In the longer term, however, the changes should result in the development of a more diverse range of wool selling options, further improvements in the quality of the Australian wool clip, and higher returns to wool growers.

Wool production in the MDB is 332,675 tonnes, 45.2 per cent of the Australian total of 736,209 tonnes, and is valued at $1,452,639,066, which is 48.8 per cent of the Australian total of $2,979,455,314. Wool is produced on 30,173 farms in the MDB, which is 51.9 per cent of the total number of 58,151 farms producing wool in Australia. Among the areas in the Basin noted for their fine and superfine wools are the Northern Tablelands, Mudgee and Yass districts of New South Wales and the Western districts of Victoria.

Most of the Basin's wool clip is exported, with only a small portion undergoing even initial processing within the MDB or at other locations in Australia (see Manufacturing Industry).

Cattle

Cattle numbers in the MDB, excluding house cows, total 6,880,117, some 28.8 per cent of the Australian total. Cattle are present on 29,760 farms, 42.0 per cent of all Australian farms with cattle.

(a) Dairy cattle

There are 720, 071 dairy cattle in the MDB, 29.6 per cent of the Australian total of 2,432,453. There are 4,744 farms with dairy cattle, 31.2 per cent of the Australian total of 15,229 farms. In the Basin, there are 4,433 farms that produce milk, 31.2 per cent of the Australian total of 14,223. Milk production is valued at $559,719,824, 28.6 per cent of the Australian total value of $1,959,970,836. Of the total value, 39.4 per cent is accounted for by milk for human consumption.

There are three main dairying areas within the MDB (Figure 10). Two are primarily concerned with the fresh milk market, namely the Darling Downs and South Australia's Lower Murray, supplying Brisbane and Adelaide respectively. Of much greater importance are the Riverine Plains of northern Victoria and some of the adjoining areas of NSW, where, based on irrigated pastures, milk is produced mainly (though not entirely) for manufacturing. The Basin's dairy industry is the major livestock activity dependent on irrigation.

Figure 10: Locations of dairy cattle, beef cattle and pigs in the MDB

(b) Beef cattle

There are 6,187,381 beef cattle in the MDB, 28.9 per cent of the Australian total of 21,447,230. Beef cattle are present on 28,287 farms, 43.2 per cent of the Australian number of 65,466. Beef cattle slaughterings are valued at $1,425,085,033, 37.5 per cent of the Australian total of $3,801,937,585. Hides, leather and other commodities are produced in addition to meat. In 1991-92, Australian beef and veal exports were valued at $2.75 million, 84.7 per cent of the total value of meat exports, $3.246 million.

Beef cattle production is yet another agricultural industry where seasonal conditions and international commodity prices are of critical importance. Beef is Australia's largest single rural export, worth some $3.2 billion in 1993-94. As with sheep, beef cattle are grazed under a variety of pastoral and environmental conditions, though in the MDB they are grazed mainly on improved pastures (Figure 10). Since the mid-1980s, there has been a major expansion of the feedlot industry, intensive beef cattle production, that makes use of grains and other fodder crops, many of which are produced in the MDB. Much of the industry is foreign owned. Feedlots produce high quality meat for domestic and export markets, including those with very specific requirements (such as Japan). A survey undertaken in 1990-91 indicated just over 260 feedlots in the MDB, with a total pen capacity of some 300,000 head, accounting for the major portion of Australia's feedlot industry (SSCRRA 1992, 3). A rapidly changing industry has seen the closure of many small feedlots and the expansion of the larger ones, with the result that the 26 feedlots listed in Table 1 have a capacity of nearly 400,000 head. Most are located close to sources of feed, that is, the main grain growing areas, with almost 80 per cent of the total located in Queensland and northern NSW in catchments of the Darling River and its tributaries (Figure 11) (GHD 1992, 8-4).

Figure 11: Locations of feedlots in the MDB

More recently, there has been the expansion of feedlots in the same areas and also the Riverina. Feedlots are an expanding sector of the beef industry, but given their dependence on grain and other feed prices, they are not immune from seasonal conditions. The high prices for feed grains, which more than doubled between 1993-94 and 1994-95, reduced cattle numbers in feedlots to the end of 1995 and into 1996.

There are significant environmental concerns relating to feedlots (together with other intensive livestock operations) because of the effluent they produce and the potential impacts on surface and groundwaters (GHD 1992) (see Water Quality and Land Degradation).

Pigs

Pig production was once a side line to dairying, but is now a specialised intensive activity, where the requirements are very demanding. As a result, recent years have seen a major decline in the numbers of producers. However, numbers of pigs (sows) have remained fairly constant and slaughterings have increased.

There are 1,336,231 pigs in the MDB, 52.0 per cent of the Australian total of 2,569,649. The 2,734 farms with pigs is 45.4 per cent of the Australian total of 6,023. The value of slaughterings is $387,951,157, 58.9 per cent of the Australian total of $658,610,511. It is estimated that there are over 500 piggeries of significant size in the MDB with a combined capacity of about 1.1 million pigs (GHD 1992, 8-8). There are a number of very large operations, such as Corowa (157,000 pigs), Albury (22,000), Young (19,000), and Grong Grong (12,000) (Figure 10). Over recent years, as a result of imported pork products, especially from Canada, there has been a significant decline in the numbers of both pigs and pig farms.

Poultry

Poultry production is mainly concerned with chickens for eggs and meat, but also includes turkeys and ducks.

(a) Egg production

Egg production is located close to low cost feed sources and more especially to the markets, the major urban areas. Australia-wide, the industry is now dominated by about 1,000 producers, with large scale battery operations with an average of some 10,000 hens each. Egg production in the MDB is 57,360,655 dozen from 254 farms. The main areas of production are in the Goulburn, Northern, and Murrumbidgee SDs.

(b) Poultry meat production

As with eggs, poultry meat production is also a large-scale, intensive and largely mechanised production. Apart from operations near the capital cities, major locations are Tamworth, Griffith, Bendigo and Murray Bridge. Poultry slaughterings in the MDB are valued at $131,580,338, 16.9 per cent of the Australian total of $777,957,649.

Other agricultural commodities

Apart from the major ones outlined above, a tremendous variety of agricultural commodities are produced in the Murray-Darling Basin. Many are produced on a much smaller but specialised scale and are very important at the local or regional level. Again, it is only possible to provide illustrations of the variety and local specialisation.

At Narromine, citrus production and horticulture are important, the latter including Swain's major propagation nursery, including some 5,000 roses. In parts of Victoria's Ovens Valley, tobacco and hops are grown and both make a distinct visual impact on the landscape. Almonds are grown in the Riverland. At Biniguy, near Moree, there is a 700 hectare pecan nut plantation. At Eulo, to the west of Cunnamulla on the Paroo River, dates are grown.

Some commodities are not associated with particular locations in quite the same way as the ones covered above, for example, honey, horse studs, alpacas, and angora goats.

The Future of Agriculture in the Murray-Darling Basin

The data presented in this page indicate the critical importance of agriculture in the MDB, for the Basin itself and for Australia as a whole. This page and others also indicate that, in many respects, the Basin is not an ideal environment for many agricultural activities. In particular, the unpredictable weather and seasonal conditions make farming extremely difficult, especially in terms of the availability of moisture. This situation is now further complicated by likely climate change. Higher temperatures and changes to 'normal' rainfall patterns (the amounts and seasonality) would inevitably result in changes to the distribution of crop and livestock production. Such a scenario gives added emphasis to the critical importance of moisture availability and soil conditions, for both dryland and irrigated farming.

Generalised best estimates for climate change in the Murray-Darling Basin suggest an increase in rainfall in the northern summer-dominant rainfall areas of the region, and a decrease in rainfall in the south. A possible increase in temperature of 1°C to 3°C across the Basin is also suggested. The implications of such changes are widespread for areas under irrigation and for specific irrigation enterprises. Irrigation water supplies could be under threat in some parts of the region, while in others, the need for irrigation could decline. The growing conditions for particular plants could also be affected, especially for horticultural crops, because of the impact of increased temperatures on their chilling requirements (Pigram et al. 1992, vi).

The above comments also apply to dryland farming and to livestock production (Cocks 1992, 142-144) (Figure 12).

Figure 12: Possible shifts in agricultural production under climate change

Higher temperatures can also increase the incidence of parasites, pests and diseases of both plants and animals, as well as increasing heat stress. More recent predictions suggest smaller increases in temperatures, from 0.5 to 1.5°C, by the year 2030, along with varying reductions in precipitation.

The likely impacts of possible climate change only serve to reinforce the need for sustainable farm practices that will ensure the long-term maintenance of the Basin's agricultural resource base (Williams 1991). This is essential if the MDB is to continue to provide food and other agricultural commodities for current domestic and international markets, quite apart from any expansion of these markets (OCS 1995). "Agriculture must avoid the solving of one problem by the creation of another" (Williams 1991). For example, new farming methods, such as conservation tillage, are often associated with the use of more chemicals, which can contaminate the soils and produce runoff to streams and groundwater. Things that have been done in the past to support agriculture are now creating problems, such as the contribution of legume pastures to soil acidity. With or without climate change, these issues need to be addressed (see Land Degradation, Water and Land Salinity and Water Quality).

References

ABARE (1997): Australian Commodity Statistics 1997. Australian Bureau of Agricultural and Resource Economics, Canberra.

ABS (1996): Year Book Australia 1996. Australian Bureau of Statistics, Canberra.

AHC (1996): The Australian Horticultural Statistics Handbook: 1995-96 edition. Australian Horticultural Corporation, Sydney.

Barson, M. et al. (1993): Opportunities for Regional Rural Adjustment. Bureau of Resource Sciences, Canberra.

Cocks, D. (1992): Use with Care: managing Australia's natural resources in the twenty first century. New South Wales University Press, Sydney.

CSIRO (1990): Seeking Solutions: CSIRO Division of Water Resources. Division of Water Resources, CSIRO, Canberra.

Curkpatrick, R. (1996): "'Goatie's' empire strikes back". Australian Farm Journal, 6(1), 10-11.

Douglas, F. (Editor)(1997): Australian Agriculture: the complete reference on rural industry. Sixth edition. Morescope Publishing, Melbourne.

Ferguson, J. & Simpson, R. (1995): The Australian Rural Labour Market. National Focus, Volume 9. National Farmers Federation, Canberra.

GHD (1992): Investigation of Nutrient Pollution in the Murray-Darling River System. Gutteridge Haskins & Davey Ltd. for the Murray-Darling Basin Commission, Canberra.

Graham, V. (1995): "Going for gold: Canola a solution for Australia's struggling grainbelt". Australian Farm Journal, (June), 31-37.

Humphreys, L. et al. (1994): "The development of on-farm restrictions to minimise recharge from rice in New South Wales". Australian Journal of Soil and Water Conservation, 7(2), 11-20.

Lewis, G. (1994): An Illustrated History of the Riverina Rice Industry. Ricegrowers Co-operative Ltd., Leeton.

Lyon, N. (1996): "Pop goes the farm". Australian Farm Journal, 6(2), 10-11.

NRMWG (1996): Draft National Strategy for Rangeland Management. National Rangeland Management Group. Department of Environment, Sport and Territories, Canberra.

OCS (1995): Sustaining the Agricultural Resource Base. Office of the Chief Scientist, Department of the Prime Minister and Cabinet, Canberra.

Phillips, B. et al. (1994): "Rice: opening North East Asian rice markets: implications for Australia". Australian Commodities: forecasts and issues, 1, 234-246.

Pigram, J.J. et al. (1992): Climate Change and Irrigated Agriculture: implications for the Murray-Darling Basin. Centre for Water Policy Research, University of New England, Armidale.

Stephens, M. & McGuckian, N. (1995): Rewards from Change: rural adjustment in Australia. Australian Government Publishing Service, Canberra.

SSCRAA (1992): Beef Cattle Feedlots in Australia. Report of the Senate Standing Committee on Rural and Regional Affairs. Parliament of Australia, Canberra.

Walquist, A. (1996): "Blood of the land ..." The Bulletin, (January 16), 70-71.

Williams, J. (1991): "Search for sustainability: agriculture and its place in the natural ecosystem". Agricultural Science, 4(2), 32-39.

Table 1: Major cattle feedlots in the MDB1 (source: GHD 1992, 8-3 and various media reports)

1 Based on December 1990 data with later revisions

2 First stage only; initially planned to increase to 60,000 head capacity

na- not available