Business Commons^™

Diversification In The Woolbelt, John Allen

Journal of the Department of Agriculture, Western Australia, Series 4

The productivity and diversification initiative for wool growers incorporates two leves of diversification.

Greatest emphasis is placed on industry wide increases in cropping intensity and in the range of crop types grown.

The second level involves non-traditional, alternative enterprises, each offering prospects for expansion of a limited number of wool growing businesses, suited to particular parts of the woolbelt.

The alternative enterprises include floriculture, aquaculture, export hay, farm tourism, commercial timber, horticulture and new animal industries.

Tough Times Call For A Review Of Farm Business Performance, Martin Van Bueren, John Young

Journal of the Department of Agriculture, Western Australia, Series 4

Most Australian farm businesses specialising in wool production are operating at a loss at current wool prices. After both short term operating and long term costs of capital depreciation are accounted for, only a small number of wool growers are able to make a profit with the wool market indicator below 500c/kg.

Poor prices have stimulated wool growers to review their operations and look to ways of improving cash flow in the short term, such as diversifying into cropping. The downturn should also prompt growers to address the longer term trends of declining terms of trade and historically poor productivity …