Indigenous Land Corporation gpo box 652 Adelaide sa 5001

Table 18: Agricultural Business Performance Results 2013–14

	2013–14	2012–13	2011–12
Number of head (all livestock) at 30 June	110,914	106,411	109,481
Value of all livestock at 30 June	$37,155,910	$34,459,922	$38,889,415
Natural increase (number of head cattle)	28,087	22,810	27,394
Number of cattle sold	18,037	20,348	20,063
Average value of cattle sold ($/head)	$538.21	$459.62	$492.49
Gross trading profit all livestock	$10,850,603	$4,092,735	$11,883,824
Total cash revenue	$15,917,225	$13,700,864	$14,905,825
Cash operating costs	$15,027,914	$12,875,271	$14,091,222
Livestock purchase costs	$1,507,728	$554,899	$142,120
Actual cash operating result	–$618,417	$270,694	$672,483

At 30 June 2014, the ILC business properties carried 97,501 head of beef cattle, 13,341 sheep, and 99 buffalo (a total of 110,914 head).

During 2013–14, the value of all livestock increased by $2,695,988 to close on 30 June 2014 at $37,155,811 and the gross trading profit for all livestock was $10,850,603².

Total operating costs were budgeted to increase by $999,431 between 2012–13 and 2013–14, but actually increased by $2.79 million with the extra $1.15m in costs, coming mainly from increased feed costs at Roebuck Export Depot ($1,090,774). The increase was offset by an increase in revenue from RED of $1,690,337 as a result of RED handling a record number of 61,665 head of cattle during 2013–14 – 41,944 head for the live export market and 19,721 head for the domestic market.

Business Integration 2013–14

In common with many beef cattle producers in northern Australia, the ILC has developed an integrated breeding and fattening system where calves are bred on one property and the steers are transferred as weaners to another property to be grown to market weight for sale. This system has been established by the ILC in Western Australia, the Northern Territory and Queensland. For the ILC, the system provides increased business efficiencies and improved profitability, and also provides enhanced workplace experiences for Indigenous trainees who are offered the opportunity to work on different properties.

The ILC’s three integrated cattle businesses in the west Kimberley region of WA are Roebuck Plains Station (RPS), Roebuck Export Depot (RED) and Myroodah Station. The four integrated businesses in the NT are Warrigundu Station, Gunbalanya Station, Gunbalanya Meats and Banka Banka West. The five integrated cattle businesses in Queensland are Merepah, Bulimba, Crocodile/Welcome and Mimosa Stations and three smaller fattening properties in the Banana Disctrict.

Under the ILC management system, calves are born on a breeder property and grown to weaning weights of 180–200kg and, following weaning, the steer calves are transported to a fattening property where they are grown over the next 12–14 months to 300–350kg liveweight at which time they are sold to the live export trade in WA and the NT or to Australian feedlots in Queensland. The cattle are transferred between properties at their commercial value to enable the ILC to properly measure the value added as a result of the transfer when the cattle are finally sold.