A dairy supply model incorporating the concept of livestock as investment inputs : a thesis presented in partial fulfilment of the requirements for the degree of Master of Agricultural Science in Agricultural Economics and Marketing at Massey University
The New Zealand dairy industry is an important contributor to the New Zealand economy. The industry earns approximately 20 percent of New Zealand's export income from the sale of milk related products. It also earns a substantial proportion of the meat export income from surplus calves and cull cows. The industry is organised on a cooperative basis with each farmer supplying milk (or cream) to his cooperative factory. The factories process the milk into a variety of products which are sold locally, to the New Zealand Dairy Board, or, in a few special circumstances, directly overseas. The export market dominates the industry, taking approximately 80 percent of batter production, 90 percent of cheese production, 90 percent of milk powder production and more than 99 per-cent of casein production * The references are listed in the Bibliography. The New Zealand Dairy Board controls the export marketing of milk related products and some of the products from surplus calves. The cooperative factories influence the Dairy Board through their representatives on the Board and the farmers control the factories through their shareholding in the factories.