Longitudinal analysis of dairy farm income and expenditure in New Zealand: A review of 25 years of adjustment.
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The cost-price squeeze in dairy farming has forced farmers to become more
competitive in the market place. This has primarily occurred through increased herd
size and productivity gains associated with labour-saving technology. The cost and
revenue structures and changes in the contribution of key dairy production inputs to
total cash expenditure and farm income over the 1972/73-1996/97 period were
analysed. Data were taken from the annual publications of the Livestock Improvement
Corporation and the New Zealand Dairy Board. Implications for the future growth of
dairy farms and the industry are drawn from the analysis.