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Final Report: Economic Value of the Crocodile Farming Industry to The Final Report Economic Value of the Crocodile Farming Industry to the Northern Territory Photo: Parks and Wildlife Commission of the NT Notice Ernst & Young (EY) was engaged on the instructions of Department of Trade, Business and Innovation (DTBI) to determine the economic contribution Crocodile Farming Industry, in accordance with the consultancy agreement 2 June 2016. The results of EY’s work, including the assumptions and qualifications made in preparing the report, are set out in EY's report dated 3 March 2017 ("Report"). The Report should be read in its entirety including the applicable scope of the work and any limitations. A reference to the Report includes any part of the Report. The report has been constructed based on information current as of 7 October 2016 (being the date of the economic modelling progress at the Report), and which has been provided by the Client and other stakeholders. Since this date, material events may have occurred since completion, which are not reflected in the Report. EY has prepared the Report for the benefit of DTBI and has considered only the interests of DTBI as set out in the consultancy agreement. EY has not been engaged to act, and has not acted, as advisor to any other party. Accordingly, EY makes no representations as to the appropriateness, accuracy or completeness of the Report for any other party's purposes. No reliance may be placed upon the Report or any of its contents by any recipient of the Report for any purpose and any party receiving a copy of the Report must make and rely on their own enquiries in relation to the issues to which the Report relates, the contents of the Report and all matters arising from or relating to or in any way connected with the Report or its contents. EY disclaims all responsibility to any other party for any loss or liability that the other party may suffer or incur arising from or relating to or in any way connected with the contents of the Report, the provision of the Report to the other party or the reliance upon the Report by the other party. No claim or demand or any actions or proceedings may be brought against EY arising from or connected with the contents of the Report or the provision of the Report to any party. EY will be released and forever discharged from any such claims, demands, actions or proceedings. EY has prepared this independent economic analysis and has relied on information provided by the Client and other stakeholders. We do not imply, and it should not be construed that we have performed audit or due diligence procedures on any of the information provided to us. We have not independently verified, or accept any responsibility or liability for independently verifying, any such information nor do we make any representation as to the accuracy or completeness of the information. We accept no liability for any loss or damage, which may result from your reliance on any research, analyses or information so supplied. It should also be noted that this work does not constitute a Cost Benefit Analysis. Further, it is important to note that the identification of economic impact and contribution is not a precise science. EY have consented to the Report being published electronically on the DTBI website for informational purposes only. EY have not consented to distribution or disclosure beyond this. The material contained in the Report, including the EY logo, is copyright and copyright in the Report itself vests in DTBI. The Report, including the EY logo, cannot be altered without prior written permission from EY. EY’s liability is limited by a scheme approved under Professional Standards Legislation. Northern Territory Crocodile Industry Economic Contribution Analysis EY ÷ i Table of contents 1. Executive Summary ....................................................................................................... 1 1.1 Background ............................................................................................................. 2 1.2 The Economic Contribution of the Crocodile Industry .................................................. 2 1.3 Employment within the Crocodile Industry ................................................................. 4 1.4 Regional and Remote Impacts of the Industry ............................................................. 5 1.5 Broader Economic, Social and Cultural Values ............................................................ 5 1.6 Summary ................................................................................................................ 6 2. Introduction .................................................................................................................. 7 2.1 The Study ............................................................................................................... 7 2.2 Scope of the Report ................................................................................................. 7 2.3 Our Approach .......................................................................................................... 8 2.4 Structure of the Report ............................................................................................ 8 3. Industry Background ...................................................................................................... 9 3.1 Background ............................................................................................................. 9 3.2 The Crocodile Industry to the NT ............................................................................. 10 3.2.1 Stages of the production process ........................................................................ 10 3.2.2 Products ........................................................................................................... 11 3.2.3 Industry Profile .................................................................................................. 12 3.2.4 Tourism ............................................................................................................ 14 3.2.5 Knowledge ........................................................................................................ 14 3.2.6 Remote ............................................................................................................. 15 3.3 Key Stakeholders ................................................................................................... 16 4. Methodology ............................................................................................................... 18 4.2 Define Key Measures .............................................................................................. 18 4.3 Establish Contribution Analysis Geography............................................................... 19 4.4 Collect Data and Define Assumptions ....................................................................... 20 4.5 Estimate the Economic Contribution ........................................................................ 20 4.6 Discuss Intangible Economic Benefits ...................................................................... 21 5. Economic Contribution Analysis .................................................................................... 22 5.1 Summary of Categories .......................................................................................... 23 5.2 Farm Operations .................................................................................................... 24 5.2.1 Operational Expenditure ..................................................................................... 24 5.2.2 Capital Expenditure (1 year)................................................................................ 25 5.2.3 Capital Expenditure (3 year)................................................................................ 26 5.3 Knowledge ............................................................................................................ 27 5.3.1 Veterinarian/Scientific Services .......................................................................... 27 5.3.2 Regulation ......................................................................................................... 28 5.3.3 Research and Development ................................................................................. 29 5.4 Farm Related Tourism ............................................................................................ 30 5.4.1 Visitor Expenditure ............................................................................................ 30 5.4.2 Farm Related Tourism – operational expenditure .................................................. 31 5.4.3 Farm Related Tourism – Capital Expenditure ......................................................... 31 5.4.4 Total Farm Related Tourism ................................................................................ 32 Northern Territory Crocodile Industry Economic Contribution Analysis EY ÷ ii 5.5 Estimation of Regional/Remote Impacts (Regional IO Assessment) ............................. 33 6. Broader Economic, Social and Cultural Values ................................................................ 35 6.1 Outcomes for Aboriginal People .............................................................................. 35 6.2 Environmental Conservation and Species Management ............................................. 37 6.3 Value of Knowledge – Research and Development ..................................................... 37 6.4 Regulation ...........................................................................................................
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