AUSTRALIA: ESTIMATES OF SUPPORT TO AGRICULTURE
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DEFINITIONS AND SOURCES
Country Total Support Estimate (TSE) and derived indicators in Table 1 cover all agricultural production, i.e., all agricultural commodities produced in the country. Definitions of basic data sets refer to the specific name of the programmes with specific sources indicated in square brackets. For the Producer Support Estimates (PSE) and Consumer Support Estimates (CSE), the description of policy measures indicates the commodities covered by the measures, as well as the method of allocation of the corresponding transfers among commodities. "MPS commodities", which vary across countries, are those for which market price support is explicitly calculated in Table 2.
Market Price Support (MPS) and Consumer Support Estimates (CSE) by commodity in Table 2 are calculated for the following commodities: wheat, barley, oats, rice, sorghum, soybeans, sunflower, rapeseed, sugar, milk, beef and veal, pigmeat, poultry meat, sheep meat, wool, eggs and cotton. Definitions are provided only for basic data sets from which all the other data sets in this table are derived, following the formula indicated in each commodity table. Specific sources are indicated in square brackets.
Producer Support Estimates (PSE) by commodity in Table 3 are calculated only for the commodities produced in the country within a common set of commodities (wheat, other grains, rice, oilseeds, sugar, milk, beef and veal, pig meat, poultry meat, sheep meat, wool and eggs), provided that the value of production of that commodity exceeds 1 per cent of the total value of production in the country concerned. All data sets in the calculation of PSE by commodity come from Tables 1 and 2 where definitions are included.
Definitions of the indicators, criteria of classification of programmes included, and methods of calculation can be seen in OECD, Methodology for the measurement of support and use in policy evaluation [http://www.oecd.org/agr/policy].
Fiscal year: for example, 1 July 2004 - 30 June 2005 is attributed to calendar year 2004.
Crop and livestock years: Vary according to commodities, but for example 2004 – 2005 crop or livestock year is attributed to year2004. Statistics on production, consumption and prices of livestock products refer to the year beginning 1 July, for example: production of wheat in crop year 2004 – 2005 is attributed to the calendar year 2004.
Statistics on production, consumption and prices of crops refer, in the main, to crops sown during the year beginning 1 April. Statistics on wheat, for example, refer to grain sown during the period from April to September and harvested between October and the following February -- i.e., the 2004-05 season (2004 for PSE/CSE purposes) relates to the harvesting period October 2004 to February 2005. Crop years are defined as relating to a 12-month harvest period beginning the first day of the following months: October for wheat, November for barley and oats, March for sorghum and July for sugar.
In the case of rice, the statistics relate to total national production, but the crop years differ by State. That for New South Wales (which accounts for over 90 per cent of national production) refers to rice harvested from April of the following year. The statistics for Queensland refer to the sum of grain harvested in the summer (beginning December) and the following winter (beginning June); thus rice harvested in NSW from April 1990 through June 1990 and in Queensland from June 1990 through August 1990 are included in the statistics for 1989.
Table 2. Market Price Support and Consumer Support Estimates by Commodity
I. Level of production
Cereals: Total production of grain , , . See general notes for crop year definitions.
Rice: Total paddy production , , .
Oilseeds: Total production of oilseeds as received at crushers , , .
Sugar: Total cane sugar acquired by crushers between May and December, multiplied by 0.96. , .
Milk: Total production including milk intake by factories between 1 July and the following 30 June and the wholemilk equivalent of farm cream intake, but excluding milk produced for on-farm use. Quantities in litres are multiplied by 1.031 / 1000, to convert them into tonnes.  
Beef and veal: Total production in carcass weight of slaughterings (including dairy cattle) and for canned meat production.  
Pigmeat: Total production in carcass weight of slaughterings, including for canned meat production.  
Poultry: Total production of poultry meat (chicken, turkeys and ducks) in carcass weight of slaughterings, including for canned meat production.  
Sheepmeat: total production in carcass weight of mutton and lamb slaughterings (including for canned meat production), and sheep exported live.  
Wool: Total production in greasy equivalent weight of shorn wool (includes crutching), dead and fellmongered wool and wool exported on skins.  
Eggs: Commercial egg production, excluding Tasmanian production. For the period 1986-2004, it is calculated by multiplying production in million dozen by 0.665; except for the year 1989, it is estimated by dividing gross value of production by gross unit value .
II. Producer prices
Cereals and oilseeds: Implicit price measured at the farm-gate, obtained by dividing the value of production by the level of production.   
Sugar: Implicit price received by cane growers, obtained by dividing the value of production of raw sugar by the level of production of raw sugar, and by 0.96.   
Milk: Implicit price at the farm-gate, obtained by dividing the average gross return at the farm-gate by the level of production.   
Meats: Implicit price at the farm-gate, obtained by dividing the value of production (intake by abattoirs, valued at the farm gate, plus estimated value of live animal exports) by the level of production.   
Wool: Implicit price measured at the farm-gate, obtained by dividing the value of production by the level of production.   
Eggs: Implicit price measured at the farm-gate, obtained by dividing the value of production by the level of production. Since 1994, OECD Secretariat estimates have been based on the gross value of production reported by ABARE .
IV. Level of consumption
Cereals: Total consumption of grains for food, feed and seed.  
Rice: Total consumption of rice, in paddy weight, derived by multiplying apparent consumption of milled rice by 1.625.   
Oilseeds: T otal consumption of soybeans, sunflower seeds, and rapeseed (including linseed and safflower seed), all uses, calculated as production minus exports .
Sugar: Volume acquired for domestic refining multiplied by 0.96.  
Milk: Consumption of market (fresh) milk -- assumed equal to production; plus the consumption of milk products in milk-equivalent, estimated separately for butter, cheese, condensed whole milk and whole milk powder by multiplying domestic consumption of each product by a specific milk yield factor. , OECD Secretariat estimates.
Beef and veal: Total apparent consumption of beef and veal, carcass weight. , .
Pigmeat:: Total apparent consumption of pigmeat (pork plus bacon and ham), carcass weight , .
Poultry: Apparent consumption, carcass weight equivalent of whole birds, pieces and giblets , .
Sheepmeat: Total consumption of mutton and lamb, carcass weight , .
Wool: Consumption of virgin wool by the wool textile industry (greasy equivalent) . OECD Secretariat estimates.
Eggs: Consumption assumed to be equal to production.
VII. Reference prices
Wheat: Unit value of exports of wheat and flour , .
Rice: In 1986, unit value of exports (f.o.b.) of untreated milled white rice (weighted by domestic disposals of medium and long-grain rice) ; since 1987, weighted average of export prices for medium and long-grained rice , . The MPS is calculated by comparing the reference price to the weighted average of domestic wholesale prices of the same types of rice.
Sugar: The reference price is the net returns to millers from export sales. 1986-1996, based on calculations by the Industry Commission. Estimated according to a formula that converts the price of raw sugar, f.o.b. Caribbean ports into an estimated sugar price, f.o.b. Thai ports. Adding freight and insurance costs to Australia yields a landed price of raw sugar, c.i.f. Queensland. To the latter price is added the per-tonne tariff rate to yield the import parity price to refiners, which is then increased by 2.75% to adjust for the price premium on Australian sugar. From this number is subtracted an estimate of domestic freight and handling costs, and pool expenses, to yield an estimate of the average net return to millers from domestic sales. The returns to millers from export sales is estimated by taking the f.o.b. Thai port price, adjusting it for polarisation differences, and subtracting export and pool expenses. Sugar tariff was removed in 1997 thus eliminating MPS.    [9a]
Milk: the reference price is the difference between the implicit border price of raw milk (including processing margin) and the dairy processing margin.
The implicit border price of raw milk is calculated from the border prices of two dairy products (butter and skimmed milk powder). First, calculate the implicit prices of two components (fat and non-fat) using two border prices and percentages of fat and non-fat of dairy products. Then, using above implicit prices of component and the percentage of component in raw milk, the implicit border price of raw milk are calculated
The dairy processing margin is the difference between the implicit domestic wholesale price of raw milk and the manufacturing milk price. The same methodology with calculating the implicit border price of raw milk is used to calculate the implicit domestic wholesale price of raw milk, using domestic wholesale prices of butter and skimmed milk powder..
Average fat content of raw milk for Australia is supplied by AFFA . Fat content of butter and SMP are assumed to be 81.1% and 0.9% respectively. The border prices of butter, skim milk powder and manufacturing milk price are provided by ABARE . No data on domestic wholesale prices, the border prices are used by proxy as domestic wholesale prices.
 Australian Bureau of Agricultural and Resource Economics (ABARE), "Australian Commodity Statistics", various years, (Canberra: AGPS). Note that prior to 1994 this publication went under the title "Commodity Statistical Bulletin". ABARE, "Commodity Statistical Bulletin" (Canberra: AGPS, various years).
 Australian Bureau of Agricultural and Resource Economics (ABARE), "Australian Commodities – Forecasts and Issues", various years, (Canberra: AGPS, December issue). Note that from 1989 through 1993 this publication went under the title "Agriculture and Resources Quarterly"; prior to that it was published under the title, "Quarterly Review of the Rural Economy".
 Australian Bureau of Agricultural Economics (ABARE), "Crop Report", December issue, various years (Canberra: ABARE).
 Australian Bureau of Statistics, "Value of Agricultural Commodities Produced -- Australia", Catalogue No. 7503.0 (Canberra: AGPS, various years). Australian Bureau of Statistics, "Value of Principal Agricultural Commodities Produced--Australia", Catalogue No. 7501.0 (Canberra: AGPS, latest year).
 AFFA replies to the OECD Agricultural Directorate's "Medium-Term Market Developments and Policies Questionnaire".
 AGLINK model database.
 Industries Assistance Commission, The Rice Industry, Report No. 407 (Canberra: AGPS, 23 October
1987), p. 77.
 Industry Commission, "Annual Report" (various years).
 Productivity Commission, "Trade & Assistance Review 1997-98".
 Supplied by the New Zealand Ministry of Agriculture and Fisheries.