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The intensification of the NZ Dairy Industry – Ferrari cows being run on two-stroke fuel on a road to nowhere?

Author

Listed:
  • Fraser, P.J.
  • Ridler, B.J.
  • Anderson, W.J.

Abstract

This paper applies an economic lens to the argument that dairy farmers should increase production via supplements, which has led to concerns regarding the environmental impact of intensification. This paper finds: 1. Intensification has led to farms producing at levels incompatible with profit maximisation 2. Claims that de-intensification will result in lower farm profitability are unconvincing 3. The current suite of assessment and planning tools are likely to be causing systemic overstocking 4. Failing to recognise the difference between marginal and average costs is likely to be leading to expensive mitigation measures that treat symptoms rather than address causes.

Suggested Citation

  • Fraser, P.J. & Ridler, B.J. & Anderson, W.J., 2014. "The intensification of the NZ Dairy Industry – Ferrari cows being run on two-stroke fuel on a road to nowhere?," 2014 Conference, August 28-29, 2014, Nelson, New Zealand 187491, New Zealand Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:nzar14:187491
    DOI: 10.22004/ag.econ.187491
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    Keywords

    Agribusiness; Land Economics/Use; Productivity Analysis;
    All these keywords.

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