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Agriculture

Agriculture is an important contributor to the Tasmanian economy and lifestyle.

Large scale production of meat, vegetables, dairy products, poppies and fruit for local and export markets are the backbone of the agriculture sector. On another level, boutique cheese makers, wineries and award-winning beers enhance the States reputation as a food lover's paradise.

Tasmanian agriculture is characterised by its great diversity.

The State's temperate climate, reliable rainfall, clean air, and productive soils are the basis for its diverse and efficient agricultural sector. An absence of many major pests and diseases found in other parts of Australia complement the natural advantage Tasmania enjoys.

Tasmania along with places such as South Africa, New Zealand and Chile is able to supply fresh, temperate produce out-of-season to the Northern Hemisphere.

The variation in climate and soils throughout the state has contributed to the development of its diverse agricultural sector. On a broad scale that diversity includes the following animal and plant industries:

Animal Industries

• Dairy
• Wool
• Beef
• Lamb
• Poultry
• Apiary (honey bees)

Plant Industries

• Vegetables
• Cereals
• Poppies
• Pyrethrum
• Pome fruit
• Stone fruit
• Grapes
• Berries
• Essential Oils

In recent years there has been expansion in traditional, commodity-based agriculture such as dairy, beef and cropping, and also in higher value, niche products, such as apricots, cherries, grapes, game meat, nuts, truffles, wasabi, essential oils, buckwheat and saffron.

At the farm level, agriculture contributes around five per cent of gross state product and six per cent of all employment. However, much of the agricultural product is further value added within the state. When agriculture and its related input and output sectors are combined the contribution to the economy is 16 per cent of gross state product and 20 per cent of all employment

The gross value of agriculture is in recent years has been around has increased strongly from $700 million to around $900 million. There has been strong growth over a long period of time (see graph below).

The peak in output in the late 1980's was mainly associated with high production and prices for wool. Output fell rapidly with the demise of the Reserve Price Scheme.

The peak in the early 2000's was due to high milk and poppy values on top of steadily increasing livestock sale values. Milk output and livestock slaughterings have both increased in the last few years.

Livestock slaughterings, vegetables and milk make up around 70 per cent of the total farm-gate value.

Much of Tasmania’s agricultural produce is further processed within the state:

• Processed vegetables
• Dairy products (cheese, milk powders, butter)
• Confectionary (chocolate)
• Beef & lamb
• Beer
• Poppies
• Pyrethrum

Tasmania produces around 80 per cent of Australia's processed vegetable production, particularly potatoes, peas and beans. There are vegetable processing plants at Devonport and Ulverstone (Simplot) and at Smithton (McCains).

Milk is value-added as various dairy products plus chocolate. There are factories and processing plants at Devonport and Wynyard (Fonterra), Burnie (National Foods, Betta Milk, and Cadbury Schweppes), Edith Creek (Classic Foods), King Island (National Foods/King Island Dairies) and Hobart (Cadburys and National Dairies).

Beef dominates the Tasmanian red meat industry, with the lamb industry being about a fifth of the value of the beef industry. There are processing plants operating at Smithton (H W Greenham) and Longford, King Island and Devonport (Tasman Group).

Tasmania produces high quality malting barley used in beer production. There are breweries in Launceston and Hobart (Boags & Cascade).

The medicinal poppy industry has been operating in Tasmania for over 30 years, and the State produces approximately half of the world's legal poppy crop. There are two companies operating in Tasmania - Glaxo Smith Kline at Latrobe and Tasmanian Alkaloids at Westbury.

The pyrethrum industry covers the growing of pyrethrum daisies to enable pyrethrin oils to be extracted. Tasmania is the second largest producer in the world after East African countries such as Kenya and supplies around 30 per cent of the global pyrethrin market. Botanical Resources Australia (BRA) has crop receival and processing plant at Ulverstone.

Further information on Tasmania's agricultural sector is available from the Department of Primary Industries, Water and Environment: Tasmanian Rural and Marine Industry Profiles, August 2004