Presentation by Tim Acker to the CAEPR Seminar Series, 4 March 2015.

1. The Art Economy
of Remote Australia
CRC for Remote Economic Participation
Aboriginal and Torres Strait Islander Art Economies Project
Tim Acker, Curtin University

2. Introduction
 Ninti One: research, innovation and community
development in remote Australia.
 Ninti One manages the CRC-REP.
 Aboriginal and Torres Strait Islander Art Economies
Project: 2011 > 2016
• 8 researchers/students
2

3. Who?
 Value chains: Dr Alice Woodhead
 Art Centre sustainability: PhD – Kim Petersen
 Art Centre enabling environment: PhD – Susan
Congreve
 Buyer behaviour: Masters – Jessica Booth
 E-commerce in Art Centres: Honours – Iris Bendor
 Art Centre human resources: Honours – Michelle
Whittle
 Art Outside Art Centres: Dr Lisa Stefanoff and others
3

4. Where?
4

5. Art Economies Value Chain Project (AEVC)
 Understand production and sale of remote-area art.
 Aim: enable change and inform artists + art business.
 Senate inquiry recommendation.
 Value chain analysis: economic not cultural focus.
 Primary market focus.
 Complicated value chain + cross cultural factors.
 Incorporate variability.
 Six reports reflecting remote Aboriginal and Torres Strait
Islander art supply chain.
5

6. Value Chain Focus
6
Artist Public Art Business Private Art Business Customers Customers
Art Centre
Freelance
Art Centre
Cultural Centre
Gallery
Gallery
Mixed business
Agent
Tourist
General public
Private collector
Public & private
institutions
Government Agencies
• State/Territory
• Commonwealth
Auction houses
Collections
Public & private
institutions
Boundaries of Value Chain analysis:
Visual Art Funding, Production, Sales and Markets
Primary Market Secondary Market

7. Value Chain Reports
7
Art Centre
finances
Art business
trading practices
and policy views
Methodology and
art regions
Art Centre
production
Synthesis

8. AEVC: Data collection and Methodology
 Art Centres:
• 73 provided production and sales data
 Art Businesses:
• 126 participated in survey
 Government:
• Local, state and Federal agencies (2000 > 2012)
 Timescales of two x five years: 2003 > 07 and 2008 > 2012
 Art: all mediums – merchandise separate (art products).
 Data gaps and variability.
8

9. Key Findings: Art Centre Finances
 Highly effective funding model: over 90% of artists
reached.
 Increased funding has seen growth in artists, art
centres and production.
 Sales are around $30million p/a – fairly static
 Increased funding = increased funding dependency.
 New funding is for employment outcomes.
 Fall in retained earnings.
 Select art centres make most of the sales.
 Sales are improving.
9

10. Key Findings: Art Centre Funding
10
$-
$5
$10
$15
$20
$25
Millions
Federal Art+Culture Other Federal Federal Employment State/Territory

11. Key Findings: Mean Art Centre Income
11
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
Average Sales Average Grants

12. $-
$100,000
$200,000
$300,000
$400,000
Wages
Artist Payments
Key Findings: Mean Art Centre Expenses

13. $-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
Average Sales
Average Retained Earnings
Key Findings: Sales and Earnings

14. Key Findings: Art Centre Finances
14
0%
10%
20%
30%
40%
50%
60%
70%
80%
-$90,000
-$40,000
$10,000
$60,000
$110,000
$160,000
2005 2006 2007 2008 2009 2010 2011 2012 2013
Mean profit Mean loss % Art Centres with a retained profit

15. Key Findings: Art Region Mean Sales
15
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
A WD APY K T FNQ CD WC TSI C ED OB

16. Key Findings: Production and Sales
 14,107 artists: 13,196 working with art centres; 70%
female and 30% over 55 years old. Male artists earn
more than female artists.
 Growth in sales and production, but production has
grown faster than sales = oversupply.
 Average price for artworks is falling.
 Paintings dominate: 64% of production, 91% of value
 Big, expensive works have seen the greatest falls.
16

17. Key Findings: Art Centre and Freelance Artists
17
1578 693
584 934
308 316
1272
134
430
234
432
6281
145
25
100 120
75 65
75
90
20
80
45
35
0%
20%
40%
60%
80%
100%
A APY C CD ED FNQ K OB T TSI WC WD
Artist numbers
Art Centre Freelance

18. Key Findings: Artist Gender
18
916
86
8
101
406
34
89
134
17
157
477
WD
WC
TSI
T
K
FNQ
ED
CD
C
APY
A
275
25
17
58
180
14
5
29
2
33
343
800 600 400 200 0 0 200 400
Female Artists Male Artists

19. Key Findings: Over Production
19
11,470
16,339
19,135 20,210
22,667
24,772
27,779 28,966
25,526
17,890
$5.9
$7.7
$9.5
$10.4
$12.6
$11.6
$11.0
$11.7
$9.2
$6.8
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Millions
Number of Products Total value of products

20. Key Findings: Mean Value of Products
20
$862
$821
$885
$838
$786
$651
$544
$558
$453
$449
$515
$472
$499 $513
$555
$469
$395
$405
$359
$383
$0
$200
$400
$600
$800
$1,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Mean value of paintings Mean value of all products

21. Key Findings: Pricepoints
21
12.6%
24.8%
41.2%
12.2%
9.3%
64.2%
23.1%
9.2%
0.8% 0.3%0%
10%
20%
30%
40%
50%
60%
70%
$2 to $249 $250 to $999 $1000 to $4999 $5000 to $9999 $10000 and
higher
% Value of products % Number of Products

22. Key Findings: Gender gap
22
$512
$740
$0
$10
$20
$30
$40
$50
$60
$70
$80
F M
Millions
Value of art products Mean value of art products
144,312
Products
46,370
Products

23. Key Findings: Art Businesses
 Private art businesses more impacted than public art
businesses.
 Some optimism: sales expected to grow.
 Western desert art dominates sourcing of works.
 Australian customers dominate.
 Europe and US are main international markets.
 Provenance issues and importance of quality control.
 Perceptions + attitudes: buyer / supplier relationships
 Business barriers and challenges.
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24. Key Findings: Market Summary
24
Painting
Sculpture
Works on
paper
Textiles
and
Fashion
New
Media
Australian
Collectors
Australian
Private
Buyers
International
Collectors
International
Private
Buyers
Other

25. Key Findings: International Markets
25
0%
5%
10%
15%
20%
25%
USA/Canada France Germany Rest of
Europe
UK Asia NZ
%oftotalmarket
2008/ 12 2012/16

26. Key Findings: Policy Perceptions
26
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Self Managed Super
Funds
Resale Royalty Indigenous Art Code Cultural Heritage
Dissatisfied Neither or unsure Satisfied

27. Value Chain Project: Informing and Advocating
 Outreach for end-users.
 Recommendations/Implications
 For artists
 For art centres
 For other art businesses
 For peak bodies
 For policy makers/funders
 For the research community
27

28. Project Outputs
 Reports and other publications:
• http://crc-rep.com/research/enterprise-
development/aboriginal-and-torres-strait-islander-
art-economies/project-outputs
 Art Atlas:
• http://www.users.on.net/~s.moyle/Art_Atlas_Financi
als/atlas.html
28

29. Other Research Topics
 Art Centre sustainability: Kim Petersen
 Art Centre enabling environment: Susan
Congreve
 Buyer behaviour: Jessica Booth
 E-commerce in Art Centres: Iris Bendor
 Art Centre human resources: Michelle Whittle
 Artsworker employment: various.
 Art Outside Art Centres: Dr Lisa Stefanoff and
others
29

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