NEW ZEALAND ARABLE SECTOR:
FOREIGN EXCHANGE IMPLICATIONS
R .D.Lough
W.A.N.
Brown
RESEARCH REPORT NO. 141
Bgricultural Economics Research Unit
Lincoln College
OCTOBER 1983
A A I Y
1 1 V A \ ~ v V I -V^.^^-
I---.
-_ __
^_
Lincoln College, Canterbury, N.Z.
The Agricultural Economics Research Unit (AERU) was established in 1962 at Lincoln
College, University of Canterbury. The aims of the Unit are to assist by way of economic
research those groups involved in the many aspects ofNew Zealand primary production
and product processing, distribution and marketing.
Major sources of funding have been annual grants from the Department of Scientific
and Industrial Research and the College. However, a substantial proportion of the
Unit's budget is derived from specific project research under contract to government
departments, producer boards, farmer organisations and to commercial and industrial
groups.
The Unit is involved in a wide spectrum of agricultural economics and management
research, with some concentration on production economics, natural resource
economics, marketing, processing and transportation. The results of research projects
are published as Research Reports or Discussion Papers. (For further information
regarding the Unit's publications see the inside back cover). The Unit also sponsors
periodic conferences and seminars on topics of regional and national interest, often in
conjunction with other organisations.
The Unit is guided in policy formation by an Advisory Committee first established in
1982.
The AERU, the Department of Agricultural Economics and Marketing, and the
Department of Farm Management and Rural Valuation maintain a close working
relationship on research and associated matters. The heads of these two Departments
are represented on the Advisory Committee, and together with theDirector, constitute
an AERU Policy Committee.
UNIT ADVISORY COMMITTEE
G.W. Butler, M.Sc., Fil.dr., F.R.S.N.Z.
(Assistant Director-General, Department of Scientific & Industrial Research)
B.D. Chamberlin
Uunior Vice-President, Federated Farmers of New Zealand Inc.)
P.D. Chudleigh, B.Sc. (Hons), Ph.D.
(Director, Agricultural Economics Research Unit, Lincoln College) (ex officio)
J. Clarke, C.M.G.
(Member, New Zealand Planning Council)
J.B. Dent, B.Sc., M.Agr.Sc., Ph.D.
(Professor & Head of Department of Farm Management & Rural Valuation, Lincoln College)
E.J. Neilson, B.A.,B.Com., F.C.A., F.C.I.S.
(Lincoln College Council)
B.J. Ross, M.Agr.Sc.,
(Professor & Head of Department of Agricultural Economics & Marketing, Lincoln College)
P. Shirtcliffe, B.Com., ACA
(Nominee of Advisory Committee)
Professor Sir James Stewart, M.A., Ph.D., Dip. V.F.M., FNZIAS, FNZSFM
(Principal of Lincoln College)
E.J. Stonyer, B.Agr. Sc.
(Director, Economics Division, Ministry of Agriculture and Fisheries)
UNIT RESEARCH STAFF: 1983
Director
P.D. Chudleigh, B.Sc. (Hons), Ph.D.
Research Fellow in Agrz'cuhral Policy
J.G. Pryde, O.B.E., M.A., F.N.Z.I.M.
Senior Research Economists
A.C. Beck, B.Sc.Agr., M.Ec.
R.D. Lough, B.Agr.Sc.
R.L. Sheppard, B.Agr. Sc.(Hons), B.B.S.
Research Economist
R.G. Moffitt, B.Hort.Sc., N.D.H.
Assistant Research Economists
L.B. Bain, B. Agr., LL.B.
D.E.FowIer, B.B.S., Dip. Ag. Econ.
G. Greer, B.Agr.Sc.(Hons) (D.S.1.R Secondment)
S.A. Hughes, B.Sc.(Hons), D.B.A.
G.N. Kerr, B.A., M.A. (Hons)
M.T. Laing, B.Com.(Agr), M.Com.(Agr) (Hons)
P.J. McCartin, B. Agr.Com.
P.R. McCrea, B.Com. (Agr)
J.P. Rathbun, B.Sc., M.Com.(Hons)
Post Graduate Fellows
C.K.G. Darkey, B.Sc., M.Sc.
Secretary
C.T. Hill
CONTENTS
Page
LIST
(iii)
TABLES
PREFACE
CHAPTER 1
INTRODUCTION
CHAPTER 2
B A S I S FOR ASSESSING THE FOREIGN EXCHANGE
COMPONENT O F ON-FARM PRODUCTION COSTS
CHAPTER 3
CHAPTER 4
CHAPTER 5
2.1
Export Performance Taxation
Incentive ( E P T I )
2.2
Deriving Import Content from Input-Output
Tables
TRE ARABLE SECTOR
3.1
V o l u m e and V a l u e of A r a b l e Production
3.2
Land Use
3.3
A r a b l e Sector's L a b o u r R e q u i r e m e n t
FOREIGN EXCHANGE REQUIREMENT OF '6HE MAJOR CROPS
AND LIVESTOCK ENTERPRISE I N THE ARABLE SECTOR
4.1
Crop Enterprise Analysis
4.2
R e l a t i v e I m p o r t a n c e of t h e Foreign E x c h a n g e
R e q u i r e m e n t of V a r i o u s C r o p I n p u t s
4.3
Livestock Enterprise Analysis
GROSS FOFU3IGN EXCHANGE GENERATED BY THE MAJOR
CROP AND LIVESTOCK ENTERPRISES IN THE ARABLE
SECTOR
5.1
C r o p Production
5.2
Value of Arable Sector C r o p s
5.3
G r o s s Foreign E x c h a n g e E a r n i n g s per H e c t a r e
of C r o p
5.4
F.O.B.
V a l u e of Sheep Products
CHAPTER 6
NET FOREIGN EXCHANGE EARNING CAPACITY OF A W E E
SECTOR EMTERPRISES
6.1
Wet F o r e i g n E x c h a n g e E n t e r p r i s e C o m p a r i s o n
33
6.2
Gross M a r g i n A n a l y s i s
33
6.3
Return to the Grmer and F o r e i g n -change
Generation C o m p a r e d
36
Land, U s e and G e n e r a t i o n of N e t F o r e i g n
Exchange
36
6-4
CHAPTER 7
3%
CONCLUSIONS
APPENDICES
P
Pf
%%I
C r o p G r o s s Margin and F o r e i g n E x c h a n g e
Wna%ysis
43
L i v e s t o c k G r o s s Margin and F o r e i g n E x c h a n g e
Analysis
55
Inter-Industry I n p u t - O u t p u t R e v i s i o n
61
LIST OF TABLES
Table
Page
Overseas Exchange Transactions
Receipts from Exports
Economic End Use C l a s s i f i c a t i o n of Imports
New zealand's Terms of Trade
Domestic Value Added Component
Sector C l a s s i f i c a t i o n
Import Contents,1971/72 Table
Import Contents, 1976/77 Table
Gross A g r i c u l t u r a l Production : Volume and Value
Arable Sector Land Use
crop Acreage
V a r i a t i o n i n Cropping I n t e n s i t y Within t h e Arable Sector
Labour Wages : Arable Farms
Foreign Exchange Requirement f o r Crops
Relative Importance of D i f f e r e n t Inputs
Foreign Exchange Requirement For Livestock
Foreign Exchange Requirement per Hectare of Livestock
Crop Production
F.O.B.
Value of Arable Sector Exports
Value (C.I.F.
) of Wheat Imports
Gross Foreign Exchange Earnings per Hectare of Crop
F.O.B.
Value of Sheep Products
Net Foreign Exchange E n t e r p r i s e Analysis
Gross Margin Comparison
25- Gross Margin and Foreign Exchange Comparison
26.
Land Use Policies 1980-81
27.
Land Use and Foreign Exchange Generation
28.
Foreign Exchange Earnings and Import:Eqsr$ Earning
Ratios
PREFACE
The continuing balance of payments d e f i c i t is often
regarded a s t h e major c o n s t r a i n t on economic growth i n New
Zealand. Various government p o l i c i e s t o s t i m u l a t e exports
have been i n existence f o r some time.
The a r a b l e s e c t o r of N e w Zealand farming is small i n
comparison t o t h e l a r g e p a s t o r a l s e c t o r on which most p o l i c i e s
have been focussed.
Also, t h e a r a b l e s e c t o r i s usually
regarded a s r e q u i r i n g a higher foreign exchange component i n
i t s inputs than t h e p a s t o r a l sector.
E i t t f e a t t e n t i o n has
been given, however, t o t h e net foreign exchange earnings of
t h e a r a b l e s e c t o r compared with t h e p a s t o r a l s e c t o r .
This report i d e n t i f i e s t h e foreign exchange inputs and
outputs of t h e New Zealand a r a b l e sector. Much of t h e data
used has been drawn from t h e Annual Economic Survey of
wheatgrowing farms c a r r i e d out by t h e A.E.R.U.
for the
Wheatgrowers Sub-section of Federated Farmers of N e w Zealand
(Incl.
I t is hoped t h a t t h e q u a n t i t a t i v e m a t e r i a l contained
i n t h e report w i l l be h e l p f u l i n f u t u r e a g r i c u l t u r a l policy
formation.
This p r o j e c t was c a r r i e d out by R.D. Lough, Senior
with a s s i s t a n c e from Brown,
Research Economist i n the A.E.R.U.
Copeland & Co. Ltd., Consulting Economists, Christchurch.
P.D. Chudleigh
Director
ABBREVIATIONS USED IN 'IIMIS REPORT
Cost, insurance, freight
Foreign Exchange
Free on Board
Free on Rail
Hectare
Machine Dressed
Not Available
Stock Unit
CHAPTER 1
INTRODUCTION
I n r e c e n t y e a r s , t h e r e has been an i n c r e a s i n g emphasis i n
f i s c a l p o l i c y on s t r u c t u r a l changes i n t h e N e w Zealand
economy. This has been geared n o t only toward encouragement
of i n d u s t r i e s which a r e i n t e r n a t i o n a l l y competitive, b u t a l s o
toward s t i m u l a t i n g t h e s e c t o r s
which
generate
foreign
exchange, w i t h p a r t i c u l a r emphasis on export commodities which
have a high p r o p o r t i o n of domestic value added.
It i s
p e r t i n e n t , t h e r e f o r e , t o c r i t i c a l l y examine t h e a g r i c u l t u r a l
s e c t o r i n N e w Zealand, t o determine t h e e x t e n t t o which
d i f f e r e n t forms of land u s e c o n t r i b u t e t o n e t earnings of
f o r e i g n exchange.
The o b j e c t i v e of t h e study reported h e r e is t o evaluate
t h e e x t e n t t o which New z e a l a n d ' s a r a b l e s e c t o r c o n t r i b u t e s t o
t h e f o r e i g n exchange balance, e i t h e r through d i r e c t generation
of f o r e i g n exchange o r through import s u b s t i t u t i o n . Such
information i s important when a s s e s s i n g t h e i m p l i c a t i o n s of
a l t e r n a t i v e p o l i c y o p t i o n s f o r t h e a r a b l e and p a s t o r a l s e c t o r s
of N e w Zealand a g r i c u l t u r e .
A s background t o t h e study, it is r e l e v a n t t o summarise
t h e r e l a t i v e importance of a g r i c u l t u r e t o t h e New Zealand
economy and t r e n d s i n exports and imports.
N e w Zealand's
overseas exchange t r a n s a c t i o n s f o r t h e p e r i o d 1977 t o 1982 a r e
summarised i n Table 1. During t h e period from 1977 t o 1982
New Zealand' S t o t a l merchandise export r e c e i p t s doubled from
NZS3120.9 m i l l i o n t o N2$6707.8 m i l l i o n y e t t h e d e f i c i t balance
on t h e c u r r e n t account d e c l i n e d from NZS590.5 m i l l i o n i n 1977
t o NZS1140.5 m i l l i o n i n 1982, due t o a t h r e e f o l d i n c r e a s e i n
t h e d e f i c i t on i n v i s i b l e t r a n s a c t i o n s from ~ ~ $ 6 3 3 .m
3i l l i o n t o
NZ$1808.7 million. The f i n a n c i n g of t h i s c u r r e n t account
d e f i c i t has r e q u i r e d s u b s t a n t i a l e x t e r n a l borrowing. Despite
t h i s borrowing, o f f i c i a l overseas reserves were allowed t o
f a l l from NZS938.5 m i l l i o n i n 1978 t o NZ$759.7 m i l l i o n i n
1981. Heavy e x t e r n a l borrowing i n 1982 reversed t h i s decline.
A NZS708.1 m i l l i o n i n c r e a s e i n t h e balance on C a p i t a l Account
between 1981 and 1982 saw o f f i c i a l overseas r e s e r v e s i n c r e a s e
by $67.9 m i l l i o n a f t e r allowing f o r I .M.F. t r a n s a c t i o n s .
There is t h e r e f o r e considerable p r e s s u r e on New zealand' S
t r a d e balances and a need t o s t i m u l a t e n e t export r e c e i p t s .
Data on t h e sources of gross export earnings a r e summarised i n
Table 2. Primary produce accounts f o r 80% of t o t a l r e c e i p t s ,
In
and a g r i c u l t u r e ( i n c l u d i n g h o r t i c u l t u r e ) 69% of r e c e i p t s .
gross terms, t h e r e f o r e , a g r i c u l t u r e is t h e dominant s e c t o r i n
generation of export earnings. Manufactured exports have been
r i s i n g r a p i d l y over r e c e n t y e a r s , averaging a growth of 20%
annually s i n c e 1978, b u t t h e i r t o t a l c o n t r i b u t i o n is s t i l l
small r e l a t i v e t o a g r i c u l t u r e . I n a d d i t i o n , it i s important
t o consider t h e n e t c o n t r i b u t i o n t o export earnings of both
TABLE 1
Overseas Exchanqe T r a n s a c t i o n s
Years E n d i n g March
NZ$ m i l l i o n
Total Exports
Total Imports
Balance on Trade
Transactions
Balance on I n v i s i b l e
Transactions
C u r r e n t Account Balance
Balance C a p i t a l Account
IMF T r a n s a c t i o n s
V a l u a t i o n Change
Overseas ~ e s e r v e s ~
Change i n O f f i c i a l
Overseas Reserves
935.8
+262.9
-179.7
-20.2
-23.9
t67.9
O f f i c i a l Overseas Reserves
a t end o f p e r i o d
720.6
983.6
803.9
783.6
759.7
827.6
Source:
a
Reserve Bank B u l l e t i n
P e r s o n a l Communication, Economics Department Reserve Bank
TABLE 2
R e c e i p t s from E x p o r t s
Year ended December
1978
1979
1980
1981
1982
$ million
Primary P r o d u c t s :
Meat
Wool
977.1
667.4
1295.5
850.6
1481.4
995.7
1713.2
979.5
Milk P r o d u c t s :
628.4
633.1
1022.1
1315.8
1454.5
O t h e r Animal P r o d u c t s :
321.7
402.2
401.3
397.9
440.4
55.0
65.1
84.9
90.5
116.4
88.3
118.7
156.3
183.1
183.4
-
1610.9
951.1
F o r e s t Products:
O t h e r Primary P r o d u c t s :
Manufactured Goods:
Processed Foodstuffs
Machinery & E l e c t r i c a l
Equipment
C a r p e t s and Other
Textiles a
Base M e t a l s and
Manufactures o f Metals
O t h e r Manufactured Goods
63.9
81.4
112.5
121.5
124.7
197.8
177.5
238.3
212.2
316.2
295.4
330.6
398.6
360. 6c
527.4
Sub-total
582.4
715.6
965.4
1124.3
1312.6
22.6
44.7
52.0
44.6
48.8
3671.1
4550.8
5819.8
6518.6
6855.7
Miscellaneous:
TOTAL
Source:
a
Reserve Bank B u l l e t i n , Vol. 46 (2),March 1983,p. 57
Main Export item i s alurniniud
Mainly b a s i c s t e e l p r o d u c t s
C
I n c l u d e s t h e s a l e o f DC10 a i r c r a f t a t around $100 m i l l i o n .
t h e s e s e c t o r s , taking i n t o account t h e imports needed i n t h e
production process.
Data on t h e economic end use of N e w Zealand imports a r e
given i n Table 3. Aggregate import payments have bee3 r i s i n g
f a s t e r than export r e c e i p t s , an average increase of 23%
annually s i n c e 1978. The majority of t h e s e imports, (64% i n
1981/82 1 a r e used a s intermediate goods o r components in $%%e
New
Zealand manufacturing industry p t h e remainder being
c a p i t a l goods (13%)o r consumer goods (22%). I n p a r t i c u l a r ,
imports
of
"materials used i n t h e production process"
represent 42% of t o t a l imports and have been increasing a t 25
per cent per year over t h e p a s t four yearsOne f i n a l comment r e l a t e s t o N e w ZealandeS terms of t r a d e
which have f a l l e n s i g n i f i c a n t l y s i n c e 1979 ( s e e Table 4 1
While export p r i c e s have r i s e n 62% over t h e period (December
1979 t o December 1982 1, import p r i c e s have increased by 87%,
which has decreased t h e t e r m of t r a d e from an index of 86 to
74.
This trend would increase t h e imported content of
exports, and therefore adversely a f f e c t t h e foreign exchange
balance.
A s government policy has been aimed a t increasing
n e t foreign exchange earnings, it i s assumed t h a t t h i s policy
should take i n t o account t h e r e l a t i v e import contents of
various commodities.
.
This r e p o r t presents t h e f i n d i n g s of a study i n t o t h e
f o r e i g n exchange earnings of t h e a r a b l e s e c t o r i n New Zealand.
The F.O.B.
value of a r a b l e s e c t o r products ( o r C.I.F.
value
of wheat) is assessed and from t h i s t h e foreign exchange
component of crop inputs is deducted.
The major cropping
e n t e r p r i s e s a r e then compared with l i v e s t o c k production i n t h e
a r a b l e sector. I n Chapter 2 t h e b a s i c concept f o r assessing
t h e foreign exchange (F.E.1
of on farm production c o s t s is
discussed i n d e t a i l while Chapter 3 describes %%%s a r a b l e
s e c t o r i n New Zealand and assesses t h e volume and value of
a r a b l e production a s well a s t r e n d s i n land use p a t t e r n s .
Chapt e r 4 evaluates t h e foreign exchange requirement ( imports 1
of the major crop and Livestock e n t e r p r i s e s i n a e a r a b l e
s e c t o r while t h e gross foreign exchange earnings ( e x p o r t s ) of
t h e s e e n t e r p r i s e s a r e assessed i n Chapter 5.
Chapter 6
compares t h e net foreign exchange earnings with t h e r e t u r n s
a c t u a l l y experienced by t h e grower and looks a t t h e foreign
exchange earnings of various band use options. Chapter 7
concludes t h e report.
TABLE 3
Economic End-Use C l a s s i f i c a t i o n o f I m p o r t s
YEAR ENDED JUNE
$ MILLION-------------------
------------m-------
1.
Finished Capital
Goods
433.8
445.2
573.0
935.0
970.4
Components and
Materials f o r
C a p i t a l Goods
375.1
398,4
487.4
551.7
769.3
F i n i s h e d Goods and
Components
369.9
565.0
658.9
707.4
900.8
4.
Consumer Goods
796.2
880.0
1128.1
1180.5
1641.6
5.
M a t e r i a l s Used i n
the Production
Process
1269.3
1528.8
2294.8
2623.4
3131.3
32.4
23.1
30.4
25.6
49.8
3840.5
5172.6
6023.6
7463.2
2.
3.
6.
S t o r e s Used o n l y
F o r Defence
p
-
TOTAL
--
--
3276.4
TABLE 4
New Zealand's Terms o f Trade
(Dec. 1957 = 100)
Year ending
June
Import Prices
Export Prices
1978
1979
1980
1981
1982
Dec. 1982
Source:
Monthly Abstract o f Statistics, May 1983.
Terms of Trade
CHAPTER 2
BASIS FOR ASSESSING THE FOREIGN EXCHANGE
COMPONENT OF ON-FARM PRODUCTION COSTS
This chapter e v a l u a t e s t h e methods t h a t can be used t o
component of on- f arm
a s s e s s t h e f o r e i g n exchange ( import
production c o s t s . Two b a s i c o p t i o n s a r e a v a i l a b l e .
Firstly,
t h e f o r e i g n exchange component can b e assessed u s i n g d a t a
submitted f o r t h e Export Performance Taxation I n c e n t i v e scheme
introduced i n t h e 1979 Budget. Alternatively, t h e f o r e i g n
exchange component can be determined from t h e 1971/72 one
hundred and t h i r t y ( 130 ) s e c t o r l e v e l input-output t a b l e s w i t h
a RAS update a t t h e 25 s e c t o r l e v e l f o r 1976/77.
2.1
Export P er£ onnance Taxation I n c e n t i v e (EPTP)
The 1979 Budget introduced a
taxation
system
of
incentives
for
exporters.
T h i s system encouraged t h e
generation of n e t f o r e i g n exchange earnings , defined a s t h e
domestic v a l u e added of exports valued a t F.O.B.
Domestic
v a l u e added i s considered a s export r e c e i p t s , exclusive of a l l
imported content and primary product i n p u t s , b u t i n c l u s i v e of
a l l t h e increase i n value a t t r i b u t e d
to
New
Zealand
manufacturing and p r o c e s s i n g i n d u s t r y . Having a s s e s s e d t h e
domestic value added component of an input, t h e r e s i d u a l
a d j u s t e d f o r primary i n p u t s can b e considered a s the Foreign
Exchange Component.
The i n t r o d u c t i o n of t h e
EPTI
required
individual
e x p o r t e r s t o e s t i m a t e t h e domestic v a l u e added component
w i t h i n t h e production p r o c e s s , i.e.
t h e d i r e c t value added
component.
I n a d d i t i o n , t h e domestic v a l u e added component of
m a t e r i a l i n p u t s , t r a n s p o r t , and energy ( i n d i r e c t value added)
p l u s t h e domestic v a l u e added of f i x e d c a p i t a l consumption had
t o be determined.
The production processes a s s o c i a t e d with t h e commodity
being assessed a r e i s o l a t e d from t h e productive a c t i v i t y
undertaken by t h e company. A l l c o s t s ( i n c l u d i n g packaging)
i n c u r r e d i n g e t t i n g t h e product t o t h e condition i n which it
l e a v e s t h e f a c t o r y f l o o r a r e included. Marketing, s t o r a g e and
d i s t r i b u t i o n c o s t s a r e n o t included. Domestic v a l u e added
percentages f o r energy i n p u t s , s e r v i c e s and c a p i t a l usage a r e
determined from a schedule of domestic contents.
From t h e i n d i v i d u a l assessments made by e x p o r t e r s i n
conjunction with work undertaken by t h e Department of Trade
and Industry,
goods a r e c l a s s i f i e d i n t o s p e c i f i c " ~ a n d s ' '
r e l a t i n g t o t h e i r domestic v a l u e added component.
This
c l a s s i f i c a t i o n of goods by domestic value added "Bands" i s
summarised i n Table 5.
TABLE 5
Domestic Value Added Component
Band
Source:
Domestic Value
Added
Department o f Trade and I n d u s t r y
Mid-Point
Reference t o t h e Export Performance Taxation I n c e n t i v e
Schedule of export goods a s published by t h e Department of
Trade and Industry enables t h e domestic value added and
t h e r e f o r e t h e foreign exchange p l u s ,primary input component of
The
t h e various input i t e m s i n broad terms t o be defined.
study team attempted t o be more s p e c i f i c , narrow t h e broad "
Bands" and update t h i s information i n order t o s e p a r a t e t h e
primary
input and f o r e i g n exchange components. Personal
approaches and a q u e s t i o n n a i r e were s e n t
to
some
19
manufacturers and s u p p l i e r s of crop i n p u t s r b u t t h e data
requests were e i t h e r r e j e c t e d o r ignored by a l l but t h r e e
suppliers. Since it appeared impossible within t h e time frame
of t h e p r o j e c t t o r e f i n e t h e data a v a i l a b l e it was decided t o
r e j e c t t h i s approach and r e l y upon t h e derivation of t h e
foreign exchange component from i n t e r - industry input output
tables.
-
Deriving Import Content from Input-Output Tables
Input-output
tables
depict
the
total
sectoral
t r a n s a c t i o n s of t h e economy, both i n terms of sources of
inputs (primary and intermediate) and disposal of output
(intermediate
and f i n a l demand). They t h e r e f o r e give a
complete p i c t u r e of t h e input s t r u c t u r e of each s e c t o r of t h e
economy, and t h e i n t e r - r e l a t i o n s h i p between any p a r t i c u l a r
s e c t o r and other sectors.
The most d e t a i l e d input-output t a b l e s c u r r e n t l y a v a i l a b l e
f o r t h e N e w Zealand economy a r e a t t h e 130 s e c t o r l e v e l f o r
1971/72, with a RAS update a t the. 25 s e c t o r l e v e l f o r 1976/77.
F u l l t a b l e s f o r 1976/77 a r e expected t o be published towards
t h e end of 1983 (see Appendix 111).
For t h e purposes of t h i s study it is p o s s i b l e t o use
input-output
t a b l e s t o d e r i v e i n d i c a t i v e estimates of t h e
import content of any s e c t o r i n t h e economy.
I t must be
appreciated,
however,
t h a t t h e methodology has c e r t a i n
fimitations.
F i r s t l y , the d a t a a r e only applicable t o t r a d i n g
in
a p a r t i c u l a r year.
Secondly, t h e s e c t o r s represent
aggregations of groups of establishments producing s i m i l a r
products, and t h e r e f o r e t h e d a t a r e f l e c t s e c t o r a l averages and
not individual establishments. Despite t h e s e l i m i t a t i o n s , t h e
r e s u l t s a r e useful a s a general guide t o import dependence.
The t r a n s a c t i o n s matrix of t h e input-output
tables
provides estimates of t h e d i r e c t imports required by each
Sector i n terms of i t s t o t a l input s t r u c t u r e .
For t h e
chemical f e r t i l i s e r s e c t o r f o r instance, imports t o t a l l e d
$29.6 million i n 1971/92, o r 50.5 p e r cent of t o t a l inputs of
$58.6 million (equal t o s a l e s o u t p u t ) .
Therefore, every
d o l l a r of s a l e s a t f a c t o r y g a t e involved d i r e c t imports of 51
cents.
I n addition, however, t h e purchases t h a t one firm makes
from another (intermediate t r a n s a c t i o n s ) may involve an import
content, and it is important t o a l s o i d e n t i f y t h i s i n d i r e c t
effect.
For while a firm may not by i t s e l f be involved it%
s i g n i f i c a n t imports, it may have a high import content i p . i t s
product by v i r t u e of purchase of intermediate inputs from
o t h e r N e w Zealand f i r m which have a s i g n i f i c a n t import
A s an asas~p%e, t h e a g r i c u l t u r a % and p a s t o r a l
component.
machinery s e c t o r d i r e c t l y imported $ 7 . 7 m i l l i o n i n 1971/72, o r
25 per cent of i t s t o t a l inputs ( s a l e s ) . However, t h e d i r e c t
and i n d i r e c t import component of t h e s a l e s of t h i s sector
( c a l l e d t h e cumulated primary
input coeff i c i e n t l is 0.344,
r e f l e c t i n g t h a t t o t a l imports accounted f o r 34 cents i n every
d o l l a r of output i n 1971/72.
The other important consideration when assessing import
content from input-output t a b l e d a t a is t h e treatment of f i x e d
c a p i t a l consunption (commonly termed depreciation, calculated
i n t e r m s of c u r r e n t replacement c o s t ) . Since a s i g n i f i c a n t
proportion of gross fixed c a p i t a l formation i n New Zealand i s
imported, .it is e s s e n t i a l t h a t t h e import content of f i x e d
c a p i t a l consumption is a l s o c a l c u l a t e d and added t o t h e
import content of other i n p u t items used during product manufa c t u r e
.
The input-output t a b l e s contain a matrix of gross f i x e d
c a p i t a l formation by s e c t o r , which can be used t o a p p r o x b a t e
t h e d i r e c t import content of c a p i t a l in each s e c t o r
for
instance, i n 1971/72,
gross f i x e d c a p i t a l formation i n t h e
chemical f e r t i l i s e r s e c t o r was $1.6 m i l l i o n , of which $0.2
million o r 12.5 per cent was d i r e c t l y imported. Consumption
of f i x e d c a p i t a l i n t h a t year was $2.6 m i l l i o n , so t h e d i r e c t
import
content of t h i s is approximately $ 8 . 3 3 million.
I n d i r e c t impost content can a l s o be important i n t e r m of
c a p i t a l formationo Direct plus i n d i r e c t contents should be
c a l c u l a t e d i n a s i m i l a r manner - t o t h a t o u t l i n e d before,
-
I n Table 6 d e t a i l s a r e provided of
the
relevant
activities
which
are
of i n t e r e s t i n t h i s study, t h e
appropriate s e c t o r s under which the
establishments
are
c l a s s i f i e d , and t h e s e c t o r nwnbers f o r both t h e 1971/ 72 and
4976/77 input-output tables.
The aggregate ( i . e .
including
consumption of f i x e d c a p i t a l ) c o e f f i c i e n t s f o r both d i r e c t and
d i r e c t p l u s i n d i r e c t import contents of t h e s e s e c t o r s a r e
summarised i n Tables 7 and 8.
I t should be emphasised t h a t inter-industry
transactions
a s depicted by t h e input-output t a b 1es a r e i n "approximate
b a s i c values", r e f l e c t i n g t h e values of an industry output a t
farm gate, factory door, f o r e s t skid. Commodity taxes o r
subsidies a r e netted out and r e f l e c t e d a s one component of
primary inputs, and mark-ups o r margins f o r wholesale and
r e t a i l t r a d e and t r a n s p o r t a r e r e f l e c t e d i n t h e i r
own
TABLE 6
Sector Classification
Sector Number
Commodity/
Activity
Sector
Classification
Contracting
)
Seed Cleaning )
Grain Drying )
Agricultural Services
Sacks
Paper bags and sacks
Weedicide/Pesticide
Chemical products n.e.c.
Fertiliser
Chemical fertiliser
Machinery
Agricultural and pastoral
machinery
Trade
Wholesale and retail
trade
Rail
Rail Transport
Road
Freight transport by road
Vehicle Repairs
Repair of motor vehicles
and motor cycles
1971/72
Table
1976/77
Table
TABLE 7
Import C o n t e n t s , 1971/72 T a b l e
p
-
Direct
Import
Content
Sector
Number
a
Agricultural Services
0.031
Meat F r e e z i n g & P r e s e r v i n g
0.*013
Paper bags and s a c k s
0.046,
Chemical p r o d u c t s n . e . c .
0.240
Chemical f e r t i l i s e r s
0.511
Motor v e h i c l e t y r e s and
tubes
0.357
A g r i c u l t u r a l and p a s t o r a l
machinery
0.256
Motor V e h i c l e Assembly
0.561
Wholesale and r e t a i l
trade
0.030
Rail transport
0.047
F r e i g h t t r a n s p o r t by
road
0.037
S t o r a g e and warehousing
0.062
R e p a i r o f motor v e h i c l e s
0.122
D i r e c t & I n d i r e c t Import C o n t e n t
Estimate 1
Revised ~ s t i m a t e ~
I n c l u d e s an a d j u s t m e n t , where a p p l i c a b l e , f o r w h o l e s a l e and r e t a i l
mark-ups.
TABLE 8
Import C o n t e n t s , 1976/77
Direct
Import
Content
Sector
Number
D i r e c t & I n d i r e c t Import7Content
Estimate 1
Revised E s t i m a t e
1
Agriculture
6
T e x t i l e , a p p a r e l and
leather
0.171
0.297
0.261
Chemicals, p l a s t i c s and
pet.roleum p r o d u c t s
0.411
0.541
0.495
Metal p r o d u c t s and
machinery
0.205
0.336
0.291
Wholesale and r e t a i l
trade, restaurants,
hotels
0.052
0.140
0.140
17
T r a n s p o r t and s t o r a g e
0.148
0.247
0.247
21
S o c i a l , p e r s o n a l and
community s e r v i c e s
0.151
0.218
0.218
9
12
16
a
able^
Assumes i m p o r t c o n t e n t of g r o s s f i x e d c a p i t a l f o r m a t i o n a s p e r 1971/72
T a b l e i s a p p l i c a b l e t o 1976/77 Table.
I n c l u d e s a n a d j u s t m e n t f o r w h o l e s a l e and r e t a i l mark-ups.
b
r e s p e c t i v e s e c t o r s . The cabcul a t e d impost contents (Tables 7
and 8 1 a r e t h e r e f o r e a percentage of b a s i c value, and need
adjustment
i f they a r e used t o r e f l e c t proportions of
producer' B values o r purchaser' s value,
of
On t h e b a s i s of data from t h e 9973/78 Census
D i s t r i b u t i o n on wholesale and r e t a i l margins, and with an
estimated average d i r e c t plus i n d i r e c t import content f o r t h e
wholesale and r e t a i l t r a d e s e c t o r of 6 . 7 % , t h e f i c p r e s of
Tables 7 and 8 were t h e r e f o r e revised t o r e f l e c t proportions
of purchaser's values, but excluding allowances of conurtodity
taxes and subsidies. These data a r e given as fAe 'kevised'"
f i g u r e s i n t h e r i g h t hand columns of Tables 7 and 8.
CHAPTER 3
THE ARABLE SECTOR
This chapter defines t h e p l a c e of t h e arable s e c t o r
within New Zealand's primary s e c t o r . The voluae and value of
a r a b l e sector productionare evaluated, Land use p a t t e r n s of
t h e major crops grown a r e assessed i n order t o determine t h e
p o t e n t i a l f o r increased production.
3.1
Volume and Value of Arable Production
The values of gross a g r i c u l t u r a l production f o r t h e years
ending June 1997 t o 1981 and t h e i n d i c e s r e l a t i n g t o change i n
volume of output from a l l N e w Zealand farms (1972
1000) a r e
summarised i n Table 9.
It is apparent t h a t t h e volume of c e r e a l s and small seeds
produced f e l l between 1977 and 1978. Subsequently production
appears t o have been s t a b l e from 1978 t o 1981.
In direct
contrast
to
this
trend, t o t a l a g r i c u l t u r a l production
increased between 1977 and 1981 with sheep, lamb and wool
production a l l showing s i m i l a r trends.
Despite t h e s t a b l e l e v e l s of production f o r c e r e a l s and
small seeds t h e gross value of t h i s output increased i n a c t u a l
d o l l a r terms. The increase, however, was not as great a s i n
other primary i n d u s t r i e s and t h e gross value of cropsiand small
seeds output a s a percentage of gross a g r i c u l t u r a l output decl i n e d from 6.5 per cent i n 1977 t o 5.3 p e r cent i n 1981.
3.2
Land Use
Land use a s a t June of each year i s shown, by farm
i n Table 10.
type,,
While t h e volume of a r a b l e production s t a b i l i s e d between
it would appear t h a t t h i s production took p l a c e
on a decreasing number of cropping properties.
In 1977/78
4823 p r o p e r t i e s received 20.0 per cent o r more of t h e i r gross
farm p r o f i t from crop production. By 1979/80 t h i s f i g u r e had
f a l l e n t o 4258 properties.
1978 and 1981,
The area of land i n preparation f o r crop declined i n
a decline which corresponds with t h e decline i n t h e
t o t a l area of t h e major crops grown.
1979/80,
The d e c l i n e i n t o t a l crop acreage between 1977 and 1980
is l a r g e l y confined t o s p e c i f i c categories of crop production.
Table 11 i n d i c a t e s t h a t 39.0 per cent of t h e t o t a l reduction
was a t t r i b u t e d t o t h e f a l l i n vegetable and potato acreage
(6300 ha d e c l i n e ) , while a f u r t h e r 33.0
per cent can be
a t t r i b u t e d t o a 5400 ha decrease i n t h e area of maize.
The
TABLE 9
Gross A g r i c u l t u r a l P r o d u c t i o n : Volume and Value
Year ended 30 June
Volume Gross
A q r i c u l t u r a l Production
(1971-72 = 1000)
Crops and Seeds
Sheep and Lamb
Wool
Total Production
Crops and Seeds
157
165
168
180
215
Sheep and lambs
415
429
527
587
682
Wool
Gross Output
Crops and Seeds 76
Gross Output
Source:
Department o f S t a t i s t i c s , Monthly A b s t r a c t o f S t a t i s t i c s
February, 1982
TABLE 1 0
A r a b l e Sector Land Use
Number
o f Holdings
Total
Area
('000 ha)
Land i n P r e p a r a t i o n
f o r F r u i t , G r a i n Crops,
Vegetables, Fodder Crops
( '000 h a )
Area
Gmssland
( '000 h a )
Other
( t o o 0 ha)
1977-78
Arable
Sheep and Beef
Intensive Horticulture
Other
4,823
25,993
4, 5 l 8
34,067
680
12,277
92
8,205
178
171
48
36
427
6,380
31
2,300
75
5,726
13
5,869
TOTAL
69,401
21,254
433
9,138
11,683
453
9,325
11,453
435
9,472
11,330
1978-79
Arable
Sheep and Beef
Intensive Horticulture
Other
4,565
27,057
4,613
34,217
TOTAL
70,452
21,231
Arable
Sheep and Beef
Intensive Horticulture
Other
4,258
28,408
4,738
34,101
608
12,445
83
8,101
TOTAL
71,505
21,237
1979-80
C-'
4
SOURCE:
Department o f S t a t i s t i c s , A g r i c u l t u r a l S t a t i s t i c s 1980-81.
A r a b l e = General Mixed Farming, Cropping, Sheep Farming w i t h Crop, Cropping w i t h Sheep, Cropping w i t h Other
Sheep and Beef = Sheep Farming, Sheep Farming w i t h Beef, Mixed L i v e s t o c k
I n t e n s i v e H o r t i c u l t u r e = Market Gardening and Flowers, Orchards, Tobacco, N u r s e r i e s
TABLE 11
Crop Acreage (June Year) '000 ha
Wheat
Oats
Barley
Peas
Sub-Total
Maize
24.8
22.3
19.4
N.A.
Vegetables
(i) Processing
(ii) Fresh Market
13.4
15.2
10.8
14.8
11.0
13.0
N.A.
9.3
7.5
7.6
N.A.
23.2
23.2
23.0
N.A.
285.5
284.3
269.4
N.A.
Potatoes
Intensive Horticulture
TOTAL
Source:
Department of Statistics, Agricultural Statistics.1981-82
N. A.
areas of wheat, barley, o a t s and peas changed i n response t o
producers' anticipation of p r o f i t s and climatic conditions b u t
i n t o t a l t h e area remained r e l a t i v e l y constant compared with
the
other crop areas a s did t h e area under i n t e n s i v e
h o r t i c u l t u r e . I t was only i n 1980/81 t h a t these crops showed a
marked decline i n acreage.
Data collected from p r o p e r t i e s i n t h e Economic Survey of
New
Zealand Wheatgrowers (Table 12) would suggest t h a t
considerable p o t e n t i a l e x i s t s f o r an i n t e n s i f i c a t i o n of crop
production on e x i s t i n g a r a b l e p r o p e r t i e s .
Ultimately t h e degree of cropping i n t e n s i t y w i l l be
l i m i t e d by t h e l e v e l of s o i l f e r t i l i t y and s o i l s t r u c t u r e .
Nevertheless, t h e f i g u r e s i n Table 12 suggest t h a t while
approximately one t h i r d of t h e p r o p e r t i e s i n t h e arable s e c t o r
crop less than 10.0 per cent of t h e i r land area, a f u r t h e r
t h i r d crop between 50 and 60 per cent of t h e i r land area.
This would i n d i c a t e t h a t considerble p o t e n t i a l e x i s t s within
t h e a r a b l e s e c t o r t o expand crop production*
3.3
Arable s e c t o r ' s Labour Requirement
The 1979 Labour S t a t i s t i c s show t h a t 9467 people were
employed on farm holdings which obtained a t l e a s t 20.0 p e r
cent of t h e i r gross income from crop production.
This
represents 6.2 per cent of t h e a g r i c u l t u r a l work f o r c e o r 2.1
persons per farm. This f i g u r e is considerably greater than
the
1.7
persons employed per sheep beef and/or dairy
properties.
Further evidence t h a t g r e a t e r employment opportunities
e x i s t under crop production is given i n t h e wage b i l l a s
determined from data c o l l e c t e d i n t h e Economic Survey of New
Zealand Wheatgrowers Financial Analysis. This information f o r
t h e period 1978/79 t o 1980/81 i s summarised i n Table 13.
TABLE 12
V a r i a t i o n i n Cropping I n t e n s i t y W i t h i n t h e A r a b l e Sector
LOW CROP
INTENSITY
1977-78 1978-79 1979-80
HIGH CROP
INTENSITY
1977-78 1978-79 1979-80
Sample Percentage
Crop Income as 76
Gross Farm Income
Physical Production
Per 100 Hectares
Stock U n i t s (s.u.)
Wheat Area ( h a )
B a r l e y Area ( h a )
Pea Area ( h a )
Small Seeds ( h a )
Other Crops ( h a )
C e r e a l and Pea Area
As 76 T o t a l Area
7.2
5.8
8.7
32.5
45.1
43.6
-
0.5
1.9
7.3
11.2
15.9
Small Seeds a s ?6
T o t a l Area
Source:
Economic Survey o f New Zealand Wheatgrowers F i n a n c i a l A n a l y s i s
1977-78, 1978-79 and 1979-80 - P h y s i c a l Farm C h a r a c t e r i s t i c s .
TABLE 13
Labour Wages:
Farm Type
A r a b l e Farms ($/ha)
1978/79
1979/80
1980/81
Livestock propertiesa
28
19
40
b
I n t e n s i v e Crop P r o p e r t i e s
34
37
53
Source:
a
b
Economic Survey of New Zealand Wheatgrowers,
1978-79, 1979-80 and 1980-81
Less t h a n 5% g r o s s farm p r o f i t from c r o p
G r e a t e r t h a n 50% gross farm p r o f i t f r o m c r o p
Financial Analysis
CHAPTER 4
FOREIGN EXCHANGE REQUIREMENT OF THE MAJOR CROPS
AND LIVESTOCK ENTERPRISES I N THE ARABLE SECTOR
This chapter evaluates t h e f o r e i g n exchange component of
on-farm production c o s t s f o r wheat, b a r l e y , peas, ryegrass and
w h i t e c l o v e r f o r t h e 1978/79, 1979/80 and 1980/81 seasons. I n
a d d i t i o n t h e f o r e i g n exchange component of d i s t r i b u t i o n c o s t s
t o m i l l S f o r wheat and F.O.B.
f o r t h e o t h e r crops i n t h e i r
unprocessed forms a r e assessed,
For t h e purpose of t h i s
e x e r c i s e it has been assumed t h a t t h e header sample f o r b a r l e y
i s s u i t a b l e f o r export without f u r t h e r d r e s s i n g charges, while
peas, r y e g r a s s and white c l o v e r have a l l been assumed t o be
dressed
at
commercial
r a t e s i n o r d e r t o meet export
s p e c i f i c a t i o n s . For comparative purposes t h e f o r e i g n exchange
requirement f o r a s e l f - r e p l a c i n g l i v e s t o c k e n t e r p r i s e i s a l s o
assessed. The u n i t c o s t information used t o determine t h e
f o r e i g n exchange component of on-farm production c o s t s has
been obtained from t h e A.E. R.U. Economic Survey of New Zealand
Wheatqrowers, t h e Lincoln College Farm Budget Manual, and t h e
Federated Farmers ' Handbook.
4.1
Crop E n t e r p r i s e Analysis
The f o r e i g n exchange requirements of t h e various cropping
e n t e r p r i s e s a r e d e t a i l e d i n Appendix I and swmnarised below i n
Table 14.
I t i s evident
that
crop
production
costs
vary
s i g n i f i c a n t l y between e n t e r p r i s e s . Wheat and barley s o l d o f f
t h e header, r e q u i r i n g no d r e s s i n g charges, have 1980-81
production c o s t s ranging from $310-$340 p e r h e c t a r e w i t h a
f o r e i g n exchange component of 32-35.0 p e r cent. This r e s u l t s
i n a 1980-81 f o r e i g n exchange requirement p e r h e c t a r e F.O.R.
o r F.O.B. of $100 t o $120 p e r h e c t a r e .
Crops such a s peas, g r a s s seed and c l o v e r which r e q u i r e
dressing
and
cleaning
c o s t s i n o r d e r t o meet export
s p e c i f i c a t i o n s i n t h e unprocessed s t a t e and which experience
high seed c o s t s i n t h e c a s e of peas, high f e r t i l i s e r c o s t s i n
t h e c a s e of g r a s s seed and high a g r i c u l t u r a l chanical c o s t s i n
t h e c a s e of c l o v e r , a l l have 1980-81 production c o s t s ranging
from $480 t o $530 per h e c t a r e . The f o r e i g n exchange components
Of t h e s e crop i n p u t s a r e s i m i l a r t o wheat and b a r l e y with t h e
r e s u l t t h a t t h e f o r e i g n exchange requirement i s assessed a t
$138 p e r h e c t a r e f o r c l o v e r , $152 p e r h e c t a r e f o r peas and
$169 p e r h e c t a r e f o r g r a s s seed.
Wheat i n c u r s a d d i t i o n a l i n t e r n a l d i s t r i b u t i o n
costs
I n 1980/81 t h e s e c o s t s were
between F.O.R.
and m i l l .
a s s e s s e d a t $165 p e r h e c t a r e w i t h a f o r e i g n exchange component
of $26 p e r h e c t a r e r e s u l t i n g i n an ex-mill f o r e i g n exchange
requirement f o r wheat of $145 p e r h e c t a r e .
TABLE 1 4
F o r e i g n Exchange Requirement f o r Crops $/ha
T o t a l Cost
t o F.O.R. o r F.O.B.
$/ha
'
F. E. Percentage
o f Total Direct
Costs (7;)
F.E. Requirement
a t F.O.R. o r F.O.B.
$/ha
F.E. component
o f internal
distribution
T o t a l F-E.
Requirement
$/ha
17
21
26
87
104
145
Wheat
1978-79
1979-80
1980-81
Barley
1978-79
1979-80
1980-81
Peas
1978-79
1979-80
1980-81
Grass Seed
1978-79
1979-80
1980-81
Clover
211
247
339
33.0
33.6
35.1
70
83
119
The o v e r a l l importance of t h e v a r i o u s f o r e i g n exchange
components of t h e i n p u t s used i n t h e a r a b l e s e c t o r is assessed
by weighting t h e 1980/81 f o r e i g n exchange requirement of each
i n p u t a s s o c i a t e d with t h e f i v e major e n t e r p r i s e s by t h e
Results of
r e l a t i v e a r e a of each e n t e r p r i s e (see Table 1 8 ) .
t h i s a n a l y s i s a r e summarised i n Table 15.
Costs a s s o c i a t e d with mechanisation of crop production,
i e.
fuel, o i l ,
r e p a i r s , maintenance and d e p r e c i a t i o n
r e p r e s e n t nearly 43.0 p e r c e n t of t h e t o t a l F.O.B.
(F.O.R.
wheat) f o r e i g n exchange requirenaents of t h e a r a b l e s e c t o r .
A g r i c u l t u r a l chemicals and f e r t i l i s e r r e p r e s e n t a f u r t h e r 28.2
p e r c e n t of t h e f o r e i g n exchange requirements.
.
4.3
Livestock E n t e r ~ r i s eAnalvsis
Appendix I1 d e t a i l s t h e f o r e i g n exchange requirement of a
s e l f contained sheep e n t e r p r i s e w i t h i n t h e a r a b l e s e c t o r .
These r e s u l t s a r e summarised i n Table 16.
A s has been t h e c a s e i n cropping e n t e r p r i s e s t h e r e h a s
been
a
significant
increase
i n t h e f o r e i g n exchange
requirement p e r stock u n i t a s t h e c o s t
of
production
i n c r e a s e s . Table 17 r e l a t e s t h i s c o s t i n c r e a s e t o t h e a c t u a l
s t o c k i n g r a t e of sheep p r o p e r t i e s w i t h i n t h e a r a b l e s e c t o r .
The f o r e i g n exchange requirement of a sheep e n t e r p r i s e
per u n i t area within t h e a r a b l e sector is s i g n i f i c a n t l y l e s s
t h a n t h e f o r e i g n exchange requirement of a cropping e n t e r p r i s e
undertaken on a s i m i l a r s o i l type, and under t h e same c l i m a t i c
conditions.
TABLE 1 5
R e l a t i v e Importance of D i f f e r e n t I n p u t s
Weighted F o r e i g n
Exchange
Requirement ($/ha)
F u e l and O i l
R e p a i r s and M a i n t e n a n c e
Seed
A g r i c u l t u r a l Chemicals
Fertiliser
Contracting
Grain Drying
D r e s s i n g and I n s u r a n c e
Bags
Irrigation
Transport
Depreciation
TOTAL COST T O F.O.B.
(F.O.R.
wheat)
76 T o t a l F o r e i g n
Exchange (76)
.
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CHAPTER 5
GROSS FOREIGN EXCHANGE GENERATED BY THE:
MAJOR CROP AND LIVESTOCK ENTERPRISES
I N THE ARABLE SECTOR
This chapter assesses t h e p e r h e c t a r e production of t h e
various cropping e n t e r p r i s e s and t h e foreign exchange v a l u e
F.O.B. o r C.I.F. of t h e f i v e major a r a b l e s e c t o r crops: wheat,
barley, peas, ryegrass and white clover. For comparative
purposes t h e foreign exchange value F.O.B. of sheep products
is determined.
From t h e s e d a t a t h e gross foreign exchange
generated per h e c t a r e i s determined.
This a n a l y s i s assumes t h a t t o t a l N e w Zealand production
valued on e i t h e r an F.O.B. o r C. I.F. b a s i s depending on
whether t h e commodity i s exported o r imported.
It
is
acknowledged t h a t t h e domestic consumption of N e w Zealand's
a r a b l e s e c t o r exports could be valued on a C.I.F.
b a s i s and
t h e surplus a v a i l a b l e f o r export on a F.O.B. basis. While
t h i s approach would undoubtedly i n c r e a s e t h e net foreign
exchange
generated by a p a r t i c u l a r cropping e n t e r p r i s e ,
d i f f i c u l t y i n assessing t h e C.I.F. value of commodities New
Zealand exports r e s u l t e d i n t h e former approach being adopted.
is
5.1
Crop Production
Crop production per h e c t a r e f o r t h e f i v e major
grown i n t h e a r a b l e s e c t o r i s summarised i n Table 18.
crops
The d e c l i n e i n t h e area of wheat, barley and peas has
been o f f s e t by an increase i n p e r h e c t a r e production with t h e
r e s u l t t h a t t o t a l production of t h e s e crops increased between
1978 and 1981.
During t h e period 1978-1980 small seed
production appears t o have been r e l a t i v e l y constant. I n 1981
however,
grass seed production f e l l while clover production
increased. No great s i g n i f i c a n c e should be attached t o t h e s e
apparent t r e n d s i n t o t a l production. Rather, t h e s e f i g u r e s
can be regarded a s s e t t i n g t h e broad range of a r a b l e s e c t o r
production.
5.2
Value of ~ r a b l eSector C r o ~ s
Export
Statistics
for t h e
period
1979-80
to
1981-
8 2 a r e summarised i n Table 19 i n order t o determine t h e F.O.B.
value of t h e major a r a b l e s e c t o r exports. I t is important t o
note t h a t t h i s exercise assumes t h a t t h e production year l a g s
one year behind t h e export year.
Despite increased crop production of both barley and
peas, t h e surplus of t h e s e crops a v a i l a b l e f o r export has
f a l l e n ; the F.O.B. price per tonne has increased r e f l e c t i n g
t r e n d s i n t h e world p r i c e f o r t h e s e commodities. The volume
of small seeds exported has a l s o declined. This d e c l i n e has
r e s u l t e d i n only a marginal i n c r e a s e i n t h e p r i c e of g r a s s
seed exports b u t a s i g n i f i c a n t i n c r e a s e i n t h e export p r i c e of
c l o v e r seed.
N e w Zealand a s a n e t importer of wheat r e q u i r e s wheat t o
be valued a t t h e C . P , F . v a l u e of A u s t r a l i a n A.SoW. ( A u s t r a l i a n
Standard White) grade and prime hard wheat landed a t North
Island m i l l s .
The import c o s t a s s t a t e d i n t h e New Zealand
Wheat Board Annual Report is summarised i n Tabfe 26.
There appears t o be a steady i n c r e a s e i n t h e banded value
p e r tonne of A u s t r a l i a n wheat while t h e a c t u a l v o f m e of wheat
imported depends on t h e volume and q u a l i t y of t h e domestic
crop.
5.3
Gross Foreign Exchange Earnings Per Hectare of Crop
The g r o s s f o r e i g n exchange earnings p e r h e c t a r e
grown i s summarised i n Tabl e 21.
of
crop
I t i s apparent t h a t t h e gross f o r e i g n exchange value p e r
h e c t a r e of crop grown has i n c r e a s e d s i g n i f i c a n t l y over t h e
89.
I t is
also
clear
that
p e r i o d 1978-73 t o 4980considerable d i f f e r e n c e s e x i s t between cropping s n t e r p r i s e s
While t h i s d i f f e r e n c e may a l t e r i n a c t u a l d o l l a r terms over
t h e period, t h e f o r e i g n exchange v a l u e of pea production has
been higher than the o t h e r cropping e n t e r p r i s e s .
.
5.4
F.O.B.
Value of Sheep Products
Based upon a one year t i m e l a g between production and
s a l e t h e F.O.B.
v a l u e of sheep products is d e t a i l e d i n
Appendix I1 and summarised i n Table 22 on a p e r stock u n i t and
per hectare basis.
The summary emphasises t h e s i q n i f i c a n t improvement i n t h e
v a l u e of sheep products t h a t occurred a f t e r 1979. This
improvement, along with s p e c i f i c Government encouragement, saw
an i n t e n s i f i c a t i o n of l i v e s t o c k production on a r a b l e land with
t h e r e s u l t t h a t , although t h e r a t e of growth of t h e F.O.B.
v a l u e of sheep products slowed d u r i n g t h e 1981 season, t o t a l
f oreiqn exchange value of sheep products p e r h e c t a r e increased
t o $46 1
.
TABLE 20
Value (C.I.F.) of Wheat Imports (January Year)
Production Year
1978-79
1979-80
Import Year
1980
1981
Wheat I m p o r t s ( t o n n e s '000)
52.9
53.3
214.39
251.25
$/tonne ex M i l l
Source:
N.Z.
1980-81
Wheat Board Annual R e p o r t s , 1978-79 t o 1980-81.
TABLE 21
-Gross f o r e i q n Exchange Earninqs Per Hectare of Crop
Production
Year
Wheat
1978-79
1979-80
1980-81
Barley
1978-79
1979-80
1980-81
Peas
1978-79
1979-80
1980-81
Grass Seed
1978-79
1979-80
1980-81
Clover
1978-79
1979-80
1980-81
T o t a l Production
( t o n n e s '000)
C.I.F./F.O.B.
Value
$/tonne
T o t a l C.I.F./F.O.B.
value
($m)
($ per ha)
TABLE 22
F.O.B.
Value of Sheep P r o d u c t s
Year Ending J u n e ($/!U)
Value meat ($/!U)
12.52
16.86
18.96
Value wool ( $ / s u )
12.21
16,58
16.22
T o t a l Value F . o . B , ~ ( $ / s u )
24.73
33 -44
35.18
292.00
411.00
461.00
Carrying Capacity
Arable Land ( S . U . / h a )
T o t a l F o r e i g n Exchange
Generated p e r h a a r a b l e
land ($/ha)
a
Appendix I1
A.E. R. U. N a t i o n a l Wheatgrowers Survey
-
1979-81.
CHAPTER 6
NET FOEtIGN EXCHANGE EARNING CAPACITY
O F ARABLE SECTOR ENTERPRISES
This chapter evaluates t h e r e l a t i v e net foreign exchange
earning a b i l i t y and t h e r e t u r n t o t h e grower (expressed a s a
Gross Margin, i.e.
Gross Return l e s s variable costs and
depreciation) of t h e f i v e major crops i n t h e arable s e c t o r and
compares them with a s e l f contained sheep enterprise. An a l l
sheep policy i s compared with a low and high i n t e n s i t y
cropping system i n order t o assess t h e r e l a t i v e m e r i t s of
various cropping p o l i c i e s and t h e i r a b i l i t y t o generate
foreign exchange.
6 1
Net Foreign Exchange Enterprise Comparison
The following analysis commences with t h e gross foreign
exchange generated by t h e f i v e major arable sector crops
(Table 21 1 and by a sheep e n t e r p r i s e undertaken on arable land
The foreign exchange requirements f o r crop
(Table 2 2 ) .
(Table 16) and sheep (Table 17) a r e deducted from these gross
f i g u r e s , and t h e net foreign exchange generated per e n t e r p r i s e
compared (Table 23 1
.
Despite t h e greater foreign exchange requirements of a
cropping enterprise, t h e l e v e l of production and F.O.B.
or
C.I.F. value is such t h a t t h e net foreign exchange generated
by a l l cropping enterprises per u n i t of land exceeds t h e sheep
enterprise.
6.2
Gross Margin Analysis
The following r e s u l t s ( d e t a i l e d figures f o r which a r e
p r e s e n e d i n Appendix I Table IA-IE f o r crop and Appendix X I
Tables I I A - I I D f o r sheep) compare t h e return t o t h e grower
( g r o s s margin) f o r t h e f i v e major a r a b l e sector crops and a
self-contained sheep enterprise (Table 24 1.
This comparison, which includes both t h e imported and
primary input content plus t h e domestic value added content of
c o s t s and prices, shows t h a t t h e r e t u r n s t o a sheep e n t e r p r i s e
are
competitive
with
those
f o r a range of cropping
enterprises.
This conclusion i s supported by an evaluation of sheep
and wheat enterprises i n t h e 1980/81 ~ a t i o n a fWheatgrowers
Survey Enterprise Analysis which shows t h a t assuming a gross
margin of $20 per stock u n i t , t h i r t y per cent of wheatgrowers
were generating greater p r o f i t margins from t h e i r sheep
enterprises than from wheat.
I f t h e return per stock u n i t
increased t o $25 per stock u n i t then nearly half of t h e
TABLE 2 3
Net F o r e i g n Exchanqe E n t e r p r i s e A n a l y s i s ( $ / h a )
T o t a l F o r e i g n Exchange Requirement
Enterprise
Gross Foreign
Exchange G e n e r a t e d
Barley
Peas
Grass Seed
Clover
Sheep
a
To F.O.R.
f o r wheat
F.O.B. a
Net F o r e i g n
Internal
Exchange
Distribution
Generated
and/or Processing
TABLE 2 4
G r o s s Margin Comparison $/ha
Enterprise
Wheat
Barley
Peas
G r a s s Seed
Clover
Sheep
Production
p e r ha
On Farm
Unit
Value
Gross
Return
Production
cost incl.
Depreciation
G r o s s Margin
p e r ha
wheatgrowers were making higher r e t u r n s from t h e i r sheep than
from t h e i r wheat e n t e r p r i s e s .
This a n a l y s i s h i g h l i g h t s t h e c o m p e t i t i v e n a t u r e of t h e
sheep e n t e r p r i s e compared w i t h
c r o p production.
It
e x p l a i n s t h e g r e a t e r i n t e r e s t in l i v e s t o c k production
by
a r a b l e producers faced w i t h i n c r e a s i n g c a p i t a l
investmat i n
p l a n t and machinery.
6.3
Return t o t h e Grower and Foreign Earchange Generation Compared
Table 25 r e l a t e s t h e r e t u r n t o t h e grower ( gross
t o t h e n e t f o r e i g n exchange generated.
margin)
To t h e producer a wheat crop is t h e most p r o f i t a b l e
enterprise.
With improved r e t u r n s t o t h e growers s i n c e 1979
t h e sheep e n t e r p r i s e ranks next, e s p e c i a l l y when undertaken i n
conjunction with t h e production of small seeds. Peas and
barley appear t o be t h e l e a s t p r o f i t a b l e , t o t h e grower, of
t h e e n t e r p r i s e s considered,
This i s not t h e c a s e when n e t f o r e i g n exchange earnings
a r e considered. Although t h e l e a s t p r o f i t a b l e t o t h e grower,
peas g e n e r a t e t h e h i g h e s t per h e c t a r e foreign
exchange
earnings of a l l t h e e n t e r p r i s e s considered, followed by wheat.
Livestock is c l e a r l y t h e l e a s t p r o f i t a b l e e n t e r p r i s e per
h e c t a r e of a r a b l e land,
6.4
Land Use and Generation of N e t Foreign Exchange
Good husbandry d i c t a t e s t h a t continuous cropping of
arable
land is not i n t h e best i n t e r e s t of s u s t a i n e d
a g r i c u l t u r a l production.
Despite r e l a t i v e l y s i m i l a r s o i l
types and environmental conditions a r a b l e producers t h e r e f o r e
vary land u s e p a t t e r n s i n order to maintain s o i l f e r t i l i t y
while attempting t o optimise t h e i r r e t u r n s . Based upon data
c o l l e c t e d from t h e wheatgrowers survey ( i n c l u d i n g growers no
longer
producing
wheat) during t h e 9980-81 season t h e
following t a b l e (Table 2 6 ) shows t h r e e g e n e r a l types of land
u s e a p p l i c a b l e t o a r a b l e land.
The a b i l i t y of t h e s e t h r e e land u s e p o l i c i e s t o generate
f o r e i g n exchange is summarised i n T a b l e 27. The evaluation
assumes t h a t t h e f o r e i g n exchange component of overhead c o s t s
is s i m i l a r f o r a l l land uses.
The p h y s i c a l c o n s t r a i n t s i n h e r e n t i n any
intensive
cropping programme do not l i m i t t h e a b i l i t y t o generate
a d d i t i o n a l f o r e i g n exchange a s cropping i n t e n s i t y increases.
The i n t e n s i v e cropping land use o p t i o n generated nearly 59.0
p e r c e n t more n e t f o r e i g n exchange than t h e a l l sheep land use
o p t i o n on s i m i l a r s o i l types.
TABLE 2 5
G r o s s Margin and F o r e i q n Exchange Comparison ( $ / h a )
G r o s s Margin &
Enterprise
Ranking
$/ha/year
Net F o r e i g n
Exchange
($1
Wheat
Barley
Peas
G r a s s Seed
Clover
Sheep
a
b
P
Table 24
-
G r o s s Margin Comparison
Table 23
-
Net F o r e i g n Exchange E n t e r p r i s e A n a l y s i s
($)
b
Ranking
$/ha/year
TABLE 26
Land Use P o l i c i e s 1980-81
A 11
Sheep
Intensive
Crop
Sheep
and Crop
Group
T o t a l Area ( h a )
Stock U n i t s
Wheat Area ( h a )
B a r l e y Area ( a )
Pea Area ( h a )
Small Seeds ( h a )
Other Crops ( h a )
Source:
Economic Survey of New Zealand Wheatgrowers, F i n a n c i a l A n a l y s i s ,
1980-81.
TABLE 27
Land Use and F o r e i q n Exchanqe Generation
NET FOREIGN EXCHANGE GENERATION
A 1l
Sheep
Sheep
and Crop
$/hat
( $/farm
($/farm 1
>
Intensive
Crop
($/farm
>
Livestock
Wheat
Barley
Peas
Small Seeds
Other Crops
TOTAL
k I n c r e a s e o v e r A l l Sheep P o l i c y
a
-
21.3
58.8
Average Grass Seed and White C l o v e r n e t f o r e i g n exchange
Barley equivalent
C
cl
Source:
Table 23
-
Net F o r e i g n Exchange E n t e r p r i s e A n a l y s i s ($/ha,
Per stock u n i t n o t p e r hectare
1980-81)
CHAPTER 7
CONCLUSIONS
The o b j e c t i v e of t h i s study was t o q u a n t i f y t h e n e t
f o r e i g n exchange earnings of t h e major crop and l i v e s t o c k
The
e n t e r p r i s e s a s s o c i a t e d w i t h N e w Zealand's a r a b l e s e c t o r .
study shows t h a t N e w Zealand's c u r r e n t account balance on
e x t e r n a l t r a d e has f a l l e n s h a r p l y over t h e l a s t t h r e e y e a r s ,
r e s u l t i n g from a d e c l i n e i n t h e balance of
visible trade
( exports minus
imports) and a r a p i d l y r i s i n g d e f i c i t on
i n v i s i b l e transactions.
This t r e n d has meant an i n c r e a s i n g
emphasis i n Government p o l i c y toward encouraging t h o s e s e c t o r s
and e n t e r p r i s e s w i t h i n t h e economy which generate f o r e i g n
exchange, with p a r t i c u l a r emphasis on n e t f o r e i g n exchange
generation.
While t h e value of exports of manufactured goods has
r i s e n markedly over t h e p a s t f i v e y e a r s (averaging a growth
r a t e of 20% a n n u a l l y ) , primary products s t i l l account f o r 80%
of export r e c e i p t s .
Exports from a g r i c u l t u r e ( i n c l u d i n g
h o r t i c u l t u r e ) make up 69% of t o t a l exports.
Even though a g r i c u l t u r e dominates t h e export market, it
p a r t i c u l a r l y u s e f u l t o e s t i m a t e t h e n e t f o r e i g n exchange
earnings from d i f f e r e n t t y p e s of land use, s i n c e
this
information is e s s e n t i a l i f a l t e r n a t i v e a g r i c u l t u r a l p o l i c y
o p t i o n s a r e t o b e meaningfully discussed.
is
The a n a l y s i s contained i n t h i s r e p o r t r e l i e s h e a v i l y on
d a t a c o l l a t e d i n t h e N e w Zealand 1971/72 input-output t a b l e s .
While t h e r e w i l l undoubtedly have been some t e c h n i c a l changes
i n s e c t o r a l production f u n c t i o n s over t h e subsequent decade,
t h e general t e n o r of t h e following r e s u l t s i s believed t o b e
r e a l i s t i c and t h e general conclusions reached a r e expected t o
b e robust under a range of assumptions.
The r e s u l t s a r e
summarised i n Table 28.
The major conclusions from t h e i n v e s t i g a t i o n s are:
-
( 1 1 I t is c l e a r t h a t p e r u n i t of land area, cropping
e n t e r p r i s e s produce between one and a h a l f t o t h r e e times t h e
f o r e i g n exchange earnings of a self-contained p a s t o r a l fanning
enterprise.
Sustained
agricultural
production however,
r e q u i r e s i n t e n s i v e cropping systems t o have a balance of
cropping and l i v e s t o c k e n t e r p r i s e s . Taking t h i s i n t o account
it i s apparent t h a t i n t e n s i v e cropping systems produce n e a r l y
59.0 p e r c e n t more n e t f o r e i g n exchange earnings than a
p a s t o r a l system run under s i m i l a r conditions (see Table 27).
TABLE 2 8
F o r e i g n Exchanqe E a r n i n g s a n d I m p o r t : E x p o r t E a r n i n g R a t i o s
Gross
Foreign
Exchange
Earnings
$/ha
Total Foreign
Exchange
Requirements
$/ha
Net F o r e i g n
Exchange
Generated
$/ha
Impost: E x p o r t
Earnings ~ a t i o ~
Wheat
Barley
Peas
Grass Seed
Clover
Sheep
-
a Defined as Import requirement p e r d o l l a r o f f o r e i g n exchange g e n e r a t e d .
(2)
The import-export earnings r a t i o of p a s t o r a l farming
systems i s lower than t h a t of cropping,
However, t h e a v a i l a b i l i t y of imports i s n o t , by i t s e l f , a binding c o n s t r a i n t .
Rather t h e policy o b j e c t i v e i s t o increase the balance of
and t h e r e f o r e t h e foreign exchange
exports less imports,
earnings r a t i o s of a l t e r n a t i v e land use options are n o t a s
r e l e v a n t a s the absolute n e t earnings of t h e o p t i o n s , p e r
u n i t of land area.
( 3 ) I t would be expected t h a t t h e comparative advantage i n
t h e generation of net foreign exchange of t h e a r a b l e over t h e
p a s t o r a l s e c t o r s would remain o r even increase w i t h . t h e
s u b s t i t u t i o n of cropping f o r sheep production systems, since:
(a1 The overhead c o s t s of crop production per u n i t
would decrease..
area
(bl
Export earnings from increased c e r e a l
product
volumes traded would generate equivalent r e t u r n s because
New Zealand production c o n s t i t u t e s an
insignificant
proportion of world trade.
Because N e w Zealand i s a
major supplier of p a s t o r a l s e c t o r products ( e.g. meat and
wool) traded on t h e world market t h e marginal export
r e t u r n from p a s t o r a l products i s li k e l y t o be l e s s than
t h e average return.
Should wheat production i n c r e a s e t o t h e p o i n t t h a t
Zealand becomes a n e t exporter of wheat then t h e
minimum n e t foreign exchange earnings from wheat would
equate t o t h e net f o r e i g n exchange earnings from a feed
wheat s u b s t i t u t e namely b a r l e y
an e n t e r p r i s e which
generates f i f t y per c e n t more foreign exchange than an
equivalent livestock e n t e r p r i s e .
(C)
New
-
( 4 1 Present Government p o l i c y has influenced a r a b l e s e c t o r
producers t o maintain and even i n c r e a s e livestock production.
A s t h e influence of t h e s e p o l i c i e s decline t h e i n h e r e n t
f l e x i b i l i t y of t h e a r a b l e s e c t o r w i l l r e s u l t i n increased crop
production a s producers r e a c t t o t h e r e a l market s i t u a t i o n .
Associated with t h i s expansion w i l l be t h e generation of
g r e a t e r d i r e c t on farm employment opportunities.
APPENDIX I
CROP GROSS MARGIN AND
FOREIGN EXCHANGE ANALYSIS
A.
GROSS AWGATAN~LYSIS
The c o s t s of various crop inputs have been assessed f o r
t h e t h r e e production years 1978/79, 1979/80 and 1980/81. The
following assumptions have been made.
( a ) The f u e l , o i l , r e p a i r s , maintenance, contracting and
depreciation c o s t s per h e c t a r e a r e based upon t h e data
c o l l e c t e d i n t h e National Wheatgrowers Survey f o r t h e
respective years and include an allowance f o r fuel. and
o i l used f o r i r r i g a t i o n .
( b ) Fuel, o i l , r e p a i r s , maintenance, contracting and
depreciation per h e c t a r e a r e s i m i l a r f o r a l l crops o t h e r
than white clover which has been allocated t h e f u l l
depreciation charge b u t only t h e f u e l , o i l , r e p a i r s and
maintenance associated with t h e harvesting o f t h i s crop.
(C)
Repairs and maintenance have been assessed on t h e
b a s i s t h a t one t h i r d of t h e t o t a l c o s t t o t h e producer i s
labour (with no foreign exchange component) and t h e
balance is p a r t s .
(d)
E l e c t r i c i t y and
i r r i g a t i o n have been
exception of wheat.
water charges associated
with
a t t r i b u t e d t o a l l crops with t h e
( e ) Inward t r a n s p o r t c o s t s of crop inputs a r e s i m i l a r
f o r a l l crops and based upon data c o l l e c t e d i n t h e
National Wheat growers Survey
.
(f) Crop t r a n s p o r t f o r wheat t o F.O.R.
is determined
from t h e National Wheatgrowers Survey. Barley and peas
incur an a d d i t i o n a l 50.0 per cent t o cover t r a n s p o r t
c o s t s t o F.O.B.
Transport c o s t s f o r small seeds have
been obtained from t h e Lincoln College Farm Budget
Manual.
( g ) Seed, f e r t i l i s e r and a g r i c u l t u r a l chemicals a r e
s p e c i f i c t o t h e various crop enterprises. The wheat c o s t
data come from t h e National Wheatgrowers Survey while
data f o r other crops a r e derived from t h e Lincoln College
Farm Budget Manual.
I n t h e case of wheat t h e c o s t of taking t h e crop
t o t h e m i l l i s determined a s follows.
from
F.O.R.
( a ) Commissions a r e determined a s per
Wheat Board Annual Reportso
the
New
Zealand
(b) The percentage of t h e S.1- crop transported t o N.%.
m i l l s , and t h e r e l a t i v e c o s t of t h i s transhipment, i s
determined from New Zeal and Wheat Board annual reports
and expressed on a per hectare b a s i s ( c ) The t o t a l c o s t of s h i f t i n g S.%* wheat t o W e % .
is
determined and deducted from t h e t o t a l f r e i g h t c o s t of
New Zealand wheat a s per t h e N e w Zealand Wheat Board
Annual
Financial Stat-ent.
This r e s i d u a l is then
expressed per tonne of S.I. wheat t o S.P. mills i n order
t o determine t h e c o s t f r m F.O.R. t o l o c a l m i l l s .
( d ) These c o s t s a r e then added t o t h e t o t a l F.O.R. c o s t s
f o r wheat t o give a t o t a l e x - m i l l c o s t per hectare.
Waving determined t h e P.O.R. and ex-mill c o s t s f o r a hectare
of wheat, and t h e F.Q.BB c o s t s per h e c t a r e f o r t h e other
crops, t h e Gross Return per hectare i s determined a s follows.
( a ) Yield per hectare f o r wheat, barley and peas is
determined from t h e Department of S t a t i s t i c s Agricultural
S t a t i s t i c s d a t a (Table 1 8 ) ( b ) No such data e x i s t f o r small seeds which have. been
assessed f o r each year a s follows based on National
Wheat growers Survey information
Grass Seed
Clover
0 675t/ha
0.35t/ha
(C)
The v a l ue of wheat F.O.R. is determined from t h e New
Zealand Wheat Board Annual Report and t h e r e f o r e allows
f o r v a r i e t a l premiums and discounts a s w e l l a s storage
increments.
( d ) The grower value of t h e o t h e r crops is
follows:
(i)
assessed
Barley ( i n order t o allow f o r feed barley)
as
=
90% malting p r i c e
( ii)
Peas ( i n order t o allow f o r f i e l d peas) = 80%
garden pea p r i c e
(iii) Grass Seed and clover seed values
Lincoln College Fam Budget Manual.
from
the
The Gross Return per hectare l e s s t o t a l c o s t s per hectare t o
P.O.R.
o r F.O.B. is therefore, t h e n e t r e t u r n per hectare t o
t h e grower (gross margin per h e c t a r e ) .
B.
FOREIGN EXCHANGE COMPONENT ANALYSIS
The f o r e i g n exchange components f o r t h e major c a t e g o r i e s
of crop i n p u t s have been d i s c u s s e d i n Chapter 2 and can be
summarised a s follows
.
COST CATEGORY
Repairs & Maintenance
Fertiliser
A g r i c u l t u r a l Chemicals
Depreciation
Sector
Number
'
%
Foreign
Exchange
27.9 a
128
58
57
8%
56.0
29.6
34 - 4
a Relates t o p a r t s only; t h e e q u i v a l e n t of 18.6%
t o t a l c o s t including labour.
These f o r e i g n exchange components by c o s t c a t e g o r i e s a r e
considered t o have been c o n s t a n t between crops over t h e p e r i o d
1977/78 t o 1980/81.
The f o r e i g n exchange components f o r t h o s e c o s t s not
covered i n Chapter 2 have been assessed on t h e following
basis.
( a ) Study estimates based upon i n c r e a s i n g p r i c e s f o r
petroleum produce suggest t h a t f u e l and o i l has a f o r e i g n
This e s t i m a t e
exchange component of 85.0 p e r cent.
indicated
t h a t t h e road t r a n s p o r t f o r e i g n exchange
component should a l s o b e r e v i s e d from t h e 12.3 p e r c e n t
The r e v i s e d f i g u r e used i n t h i s
s t a t e d i n Table 7 .
a n a l y s i s i s 20.0 p e r cent.
-
( b ) Seed
The f o r e i g n exchange component of t o t a l c o s t
i n c l u d i n g d e p r e c i a t i o n is a s s e s s e d a t 35.0 p e r cent.
-
(C)
Contracting and Seed Dressing
Based upon d a t a
supplied by t h e New Zealand Contractors Federation t h e
following assessment has been made.
FOREIGN EXCHANGE COMPONENT OF GONTRAemU INPUT COSTS
Input
Total
coat
F.E o
Component
%3,1
85*Q
21.9
%
Fue b
Repairs & Maintenance
Depreciation
Labour ( i n c l u d i n g r e p a i r s
and maintenance labour 1
Overheads
Interest
8.9
1203
2 % .1
35.1
98.1
Weighted F.E.
Component
3%0 4
-
T o t a l Costs
Profit
-
(d) Grain Drying
Verbal d i s c u s s i o n s w i t h g r a i n drying
o r g a n i s a t i o n s suggested t h e f o l l o w i n g assessment of t h e i r
cost structure.
Input
%
Total
Cost
FoEe
Component
Weighted F. E.
Component
Labour
F u e l and O i l
Overheads
-
(e) Bags
No information was a v a i l a b l e on t h e f o r e i g n
exchange component of j u t e bags.
f o r the purpose of t h i s
e x e r c i s e a f i g u r e w i s e t h a t used f o r paper bags and
s a c k s (Chapter 2 , Table 71 has been used,
(£1
Study e s t i m a t e s suggest t h a t f r e i g h t and p o r t
charges p a s t t h e farm g a t e i n c l u d i n g road, r a i l and sea
t r a n s p o r t p l u s s t o r a g e and warehousing has a f o r e i g n
exchange component of 18%.
The f o r e i g n exchange components of t h e v a r i o u s crop i n p u t
c a t e g o r i e s a r e t o t a l l e d i n o r d e r t o determine t h e t o t a l
f o r e i g n exchange reqgirement p e r h e c t a r e of t h e r e s p e c t i v e
enterprises.
The Gross Foreign Exchange v a l u e is taken
unproeessed v a l u e of t h a t crop e i t h e r C . I . F .
o r F.O.B.
as
the
-
( a ) Wheat
S i n c e N e w Zealand i s a n e t importer of
and prime
wheat, t h e C.I.F.
v a l u e of A u s t r a l i a n A.S.W.
hard grade wheat d e l i v e r e d N.I.
m i l l s a s quoted i n t h e
N e w Zealand Wheat Board Annual Report i s used t o v a l u e
New Zealand produced wheat (Table 20 1.
-
( b ) Barley, Peas, Small Seeds
Since New Zealand i s a
n e t exporter of t h e s e crops, t h e F.O.B. v a l u e p e r tonne
of t h e unprocessed crop i s a s s e s s e d from t h e Department
of S t a t i s t i c s Export S t a t i s t i c s f o r t h e r e s p e c t i v e y e a r s
(Table 191.
Per h e c t a r e production of t h e s e crops ( d e t a i l e d i n T a b l e 18 1
is then r e l a t e d t o t h e C.I.F.
o r F.O.B.
v a l u e of t h e
r e s p e c t i v e crops t o enable t h e Gross
Foreign
Exchange
generated p e r h e c t a r e t o b e assessed. The Foreign Exchange
requirement i s then deducted i n o r d e r t o determine t h e N e t
Foreign exchange generated p e r h e c t a r e .
TABLE IA
Wheat
1978/79
-
1980/81
T o t a l Cost ( $ / h a )
78-79
79-80
80-81
I r r i g a t i o n Costs
0.28
0.06
3.14
Bags
0.55
0.65
0.65
Crop I n s u r a n c e
2.73
3.21
3.55
154.85
178.04
282.77
F.E.
Component
F O E , Component ( $ / h a )
78-79
79-80
80-81
6.0
0.02
-
0.19
30.0
0.17
0.20
0.20
Fuel & O i l
R e p a i r s & Maintenance
- Parts
- Labour
Seed
Fertiliser
Sowing
Topdressing
-
Ag. Chemicals
- Weedicide
- Insecticide
- Fungicide
Transport
Crop I n p u t s
- Crop t o F.O.R.
-
Contracting
Grain Drying
Total Direct Costs
-
F.E. 7; D i r e c t Cost
Depreciation
T o t a l Cost t o F.O.R.
F.E. 76 T o t a l Cost
'F.O.R.
Commissions
F.O.R.
t o Local M i l l
Freight & Port
Charges t o N. I .
55.99
69.20
55.89
210.84
247.24
338.66
31.4
--
-
52.08
61.38
101.54
33.60
34.50
35.80
17.58
21.73
17.55
69.66
83.11
119.09
-
-
-
-
33.00
33.60
35.10
8.14
8.54
20.17
-
-
-
-
16.03
16.33
18.03
18.0
2.89
2.94
3.25
80.15
98.91
127.33
18.0
14.43
17.80
22.92
TABLE IA contd
T o t a l Cost ( $ / h a )
T o t a l Cost t o M i l l
78-79
79-80
80-81
315.16
371.02
504.19
449.28
521.18
779.62
238.44
273.94
440.96
F.€.
Component
F O E . Component ( $ / h a )
78-79
79-80
80-81
86.98 103.85
145.26
F.E.
T o t a l Cost
Mill
Gross Return per Ha
726.78 894.45 1088.84
Net Return per Ha
(i)
(ii)
Grower
F.E. e x M i l l
-
-
-
-
-
-
639.80 790.60
943.58
214.39 251.25
271.53
P r o d u c t i o n Parameters
7; T o t a l Crop Purchased
i n S . I . Delivered
N.I.
47.40
45.40
46.80
132.53
146.40
194.42
Crop Value t o ( $ / t ) :
( i ) Grower
( i i ) C.I.F.
TABLE I B
Barley
1978/79
-
1980/81
T o t a l Cost ( $ / h a )
78-79
79-80
80-81
F.E.
Component
F. E . Component ( $/ha)
78-79
79-80
-
-
80-81
Fuel & O i l
R e p a i r s & Maintenance
- Parts
- Labour
Seed
Fertiliser
Ag. Chemicals
Transport
Crop I n p u t s
Crop t o F.O.B.
-
Contracting
I r r i g a t i o n Costs
T o t a l D i r e c t Costs
F.E. 7; T o t a l
Direct C o s t s
Depreciation
T o t a l C o s t s t o F.O.B.
F.E. 76 T o t a l Costs
F.0.B
Gross Return per Ha
Net Return per Ha
( i ) Grower
( i i ) F.O.B.
Production Parameters
Yield t / h a
Crop Value $ / t
( i ) Grower
( i i ) F.O.B.
3.40
3.44
4.03
94.50
99.00
121.50
-
-
-
135.92 170.12
180.41
TABLE I C
Peas
1978/79
-
1980/81
Total Cost ($/ha)
78-79
79-80
80-81
F. E.
Component
I r r i g a t i o n Costs
7.70
13.00
15.00
6.0
D r e s s i n g Charges
90.77
120.56
147.74
17.5
280.73
337.06
467.75
F.E.
Component ( $ / h a )
78-79
79-80
80-81
0.46
0.78
0.90
15.88
21.10
25.85
77.29
92.92
134.63
17.58
21.73
17.55
94.87
114.65
152.18
854.00 1035.32
1485.80
Fuel & O i l
R e p a i r s & Maintenance
Parts
- Labour
-
Seed
Fertiliser
Ag. Chemicals
Transport
- Crop I n p u t s
-
Crop t o F.O.B.
Contracting
T o t a l D i r e c t Costs
F.E. 76 T o t a l
D i r e c t Costs
Depreciation
T o t a l C o s t s t o Grower
-
-
-
55.99
69.20
55.89
336.72
406.26
523.64
392.00
529.10
646.00
55.28
122.84
122.36
31.4
- -
-
F.E. 76 T o t a l Cost
F.O.B.
G r o s s Return p e r Ha
Net Return p e r Ha
( i ) Grower
( i i ) F.O.B.
-
-
-
759.13
-
920.67
1333.62
Production Parameters
Yield t/ha
(MD)
Crop Value ( $ / t )
( i ) Grower
( i i ) F.O.B. a
a
2.80
140
-
2.86
185
-
3.23
200
-
30 5
362
460
F.O.B. v a l u e t a k e n a s v a l u e o f p e a s e x p o r t e d f o r sowing. A l l o t h e r p e a s
e x p o r t e d have a d e g r e e o f l o c a l v a l u e added o t h e r t h a n d r e s s i n g p r i o r t o e x p o r t .
TABLE ID
Grass Seed
1978/79
-
1980/81
Total Cost ($/ha)
78-79
Fuel & Oil
Repairs & Maintenance
Parts
- Labour
-
Seed
Fertiliser
Ag. Chemicals
Transport
Crop Inputs
- Crop to F.O.B.
-
Contracting
Dressing and
Harvesting Charges
Irrigation Costs
Total Direct Costs
F.E. ?L of Total
Direct Costs
Depreciation
Total Cost to Grower
F.E.
76 Total Costs
F.O.B.
Gross Return per Ha
Net Return per Ha
(i) Grower
(ii) F.O.B.
Production Parameters
Yield t/ha (MD)
Crop Value ($/t)
(i) Grower
(ii) F.O.B.
,
79-80
80-81
F.E,
Component
F. E. Component ($/ha)
78-79
79-80
80-81
TABLE IE
Clover
1978/79
-
1980/81
T o t a l Cost ( $ / h a )
78-79
79-80
80-81
9.22
10.98
15.52
11.45
5.73
9.21
4.61
27.78
13.93
6.80
6.90
9.00
Fertiliser
20.35
30.69
38.10
Ag. Chemicals
30.63
96.97
155.40
4.29
2.03
3.94
3.78
5.09
5.50
25.93
29.34
38.60
75.32
93.72
110.50
7.70
13.00
15.00
199.45
303.14
434.42
55.99
69.20
55.89
255.44
372.34
490.31
Gross Return per Ha
490.00
560.00
805.00
Net Return per Ha
(i) Grower
( i i ) F.O.B.
234.56
187.66
314.69
Fuel & O i l
Harvesting and
Mowing Only
R e p a i r s & Maintenance
Parts
- Labour
-
Seed
Transport
Crop I n p u t s
Crop t o F.O.B.
-
Contracting
. D r e s s i n g & Harvesting
Charges
I r r i g a t i o n Costs
T o t a l D i r e c t Costs
F.€. 7; T o t a l
D i r e c t Costs
Depreciation
T o t a l Cost t o Grower
F.E. 76 T o t a l Costs
F.O.B.
-
-
-
0..35
0.35
P r o d u c t i o n Parameters
Yield t / h a (MD)
Crop Value ( $ / t )
( i ) Grower
( i i ) F.O.B.
0.35
1400
-
1600
-
2300
-
F.E.
Component
F.E. Component ( $ / h a )
78-79
79-80
80-81
APPENDIX I1
LIVESTOCK GROSS MARGIN AND
FOREIGN EXCHANGE ANALYSIS
A.
GROSS MARGIN ANALYSIS
For t h e purpose of t h i s e x e r c i s e it is assumed, t h a t t h e
is a s e l f s u f f i c i e n t l i v e s t o c k i d e n t i t y
arable
sector
breeding, w i t h i n t h e a r a b l e s e c t o r , i t s own replacements and
f a t t e n i n g a l l i t s s u r p l u s stock. Based on t h i s assumption t h e
c o s t s p e r stock u n i t f o r a s e l f s u f f i c i e n t ewe f l o c k a r e
p r e s e n t e d f o r t h e t h r e e production y e a r s 1978/79, 1979/80 and
1980/81.
These data a r e based on information gathered from
t h e Lincoln College Farm Budget Manual and t h e N a t i o n a l
Wheatgrowers S u m ey
.
These c o s t s a r e deducted from t h e gross r e t u r n p e r s t o c k
u n i t r e s u l t i n g i n t h e n e t r e t u r n p e r stock u n i t t o t h e grower.
The c a r r y i n g capacity f o r l i v e s t o c k p r o p e r t i e s w i t h i n t h e
a r a b l e s e c t o r is determined from t h e National Wheatgrowers
Survey which, when r e l a t e d t o t h e r e t u r n p e r stock u n i t ,
allows t h e r e t u r n p e r h e c t a r e t o b e assessed.
B-
FOREIGN ?3XCHANGE ANALYSIS
I n order t o a s s e s s t h e n e t f o r e i g n exchange generated
from sheep production the c o s t s between t h e farm g a t e and
F.O.B.
have t o be a s s e s s e d and t h e i r f o r e i g n
exchange
The f o r e i g n exchange
component
determined ( T a b l e I L B )
component p e r head s l a u g h t e r e d i s then a d j u s t e d by t h e
n a t i o n a l o f f - t a k e expressed p e r stock u n i t . This f o r e i g n
exchange component p a s t t h e farm g a t e is then added t o t h e on
farm f o r e i g n exchange component (Table I I A ) i n order t o o b t a i n
t h e t o t a l f o r e i g n exchange component of a sheep e n t e r p r i s e .
.
The t o t a l f o r e i g n exchange requirement i s then deducted
from t h e f o r e i g n exchange v a l u e of sheep products ( a s a s s e s s e d
i n Tables IIC and I D ) i n o r d e r t o determine t h e n e t f o r e i g n
exchange generated.
TABLE I I A
Sheep
1978/79
-
1980/81
T o t a l Cost ( $ / s o u . )
78-79
79-80
80-81
F.E.
Component
F O E . Component
78-79
79-80
80-81
Ol
10
Shearing & C r u t c h i n g
0.55
0.70
0.88
8,8
0.05
0,06
0.08
Animal H e a l t h
0.57
0.78
0,96
29.6
0.17
0.23
0.28
Ram Costs
0.25
0.40
0.38
10.0
0.03
0.04
0.04
Wool Shed Expenses
0.10
0.23
0.19
0.05
0.14
0.11
Cartage
0.37
0.62
0.66
0.07
0.12
0.13
S e l l i n g Charges
0.20
0.30
0.37-
-
-
T o t a l D i r e c t Costs
2.04
3.13
3.44
0.37
0.59
0.64
Depreciations
1.87
169
2.48
0,59
0.53
0.78
TotalCosttoGrower(A)
3.91
4.82
5.92
0,96
1.12
1.42
24.60
23.20
24.00
17.30
16.80
16.80
-
-
-
F.E. 7; T o t a l Cost
t o Grower
Gross R e t u r n t o Grower
p e r S.U. d
- Livestock
6.94
7.15
11.65
11.10
10.98
10.57
(B) 14.09
22.75
21.55
10.18
17.93
15.63
Costs 'Farmgate t o
F.o.B.~
- K i l l i n g Charges
- Wool H a n d l i n g Charges
3.82
0.70
4.85
0.83
6.58
,0.88
T o t a l Cost p a s t
Farmgate (C)
4.52
5.68
7.46
10.50
13.38
-
W001
Gross R e t u r n p e r
S. U.
Net R e t u r n p e r S.U.
t o Grower (A-B)
T o t a l Cost t o F.O.B.(A+C)8.43
F.E. ?'; T o t a l Cost
20.0
31.4
-
F.O.B. V a l e Sheep
Products C
- Meat
- Wool
T o t a l (D)
Net F.E. p e r
S.U.
a
Net R e t u r n p e r ha
( i ) To Grower
( i i ) F.O.B.
Sources :
a
C
(DLA+C)
120e12 220.54
-
-
204.75
-
274.59
Economic Survey o f New Zealand Wheatgrowers, 1978-79,
See Table I I B
See Table I I C , I I D
L i n c o l n C o l l e g e Farm Budget Manual
389.66
1979-80,
431.38
1980-81
TABLE I I B
K i l l i n g Charqes Farm Gate t o F.O.B.
T o t a l Cost
78-79
79-80
80-81
F.E.
Component
F.E.
78-79
p e r head
79-80
80-81
-
-
0.01
0.01
0.01
Transport/head
(i)
(ii)
To works
Works t o F.O.B.'
K i l l i n g Charges
Total costa
F.E.
74 T o t a l Cost
Total
(m)
S.U.
Sheep Slaughtered
(m head )
Offtake p e r
(head)
Cost p e r
($/s.u.)
b
S.U.
S.U.
Wool H a n d l i n q Charqes:Store t o F.O.B.
-
I n s u r a n c e Levy/kg
0.07
0.08
0.08
B r o k e r s Charges/kg
0.06
0.06
0.07
Total Costa
0.13
0.14
0.15
0.01
0.01
0.01
5.4
6.0
5.9
5.40
6.00
5.90
0.70
0.83
0.88
0.05
0.06
0.06
kg per
S.U.
a
T o t a l Cost p e r
S.U.
11.0
Sources :
a
N. Z.
A g r i c u l t u r a l S t a t i s t i c s 1980
Reserve Bank B u l l e t i n A p r i l 1983
C
One T h i r d t o Works Cost Based on M a r k e t i n g Cost f o r N.Z. Meat E x p o r t s 1970-71
P.D. Chudleigh, M. Clernes, L. Woods, AERU Research Report No.96.
t o 1975-76.
TABLE I I C
Meat P r o d u c t i o n
L i v e s t o c k Numbers ( ' 0 0 0 )
Ewes
Others
T o t a l S.U.
T o t a l Meat P r o d u c t i o n (tlOOO)
Sept Year
Mutton
Lamb
Total
N.Z. Consumption I n Stock
on Hand ( t ' 0 0 0 )
Mutton
L amb
Total
kg/s.u.
P r e c e d i n g Year
N.Z. M u t t o n and Lamb E x p o r t s
( t ' 0 0 0 ) June Year
Mutton
Lamb
Total
kg/s.u.
P r e c e d i n g Year
Value Meat E x p o r t s ($000 F.O.B.)
June Year
Mutton
Lamb
b
Sheepskins & p e l t s
Total
T o t a l per Export tonne
Value T o t a l Meat P r o d u c t i o n
Total per Export tonne
( $ F.O.B.1t)
Total Production ( t ' 0 0 0 )
T o t a l Value Meat P r o d u c t i o n
($'OOO F.O.B.)
T o t a l Value p e r s o u . ( $ F.O.B.)
P r e c e d i n g Year
Source :
a
Monthly Abstracts S t a t i s t i c s
Reserve Bank B u l l e t i n June 1982.
44,515
18,648
59,433
TABLE IID
Wool P r o d u c t i o n
L i v e s t o c k Numbers ( ' 0 0 0 )
Ewes
Other
Total
S.U.
New Zealand Wool P r o d u c t i o n
( t '000 g r e a s y e q u i v a l e n t )b
Total Production
T o t a l Exports
N.Z. M i l l P u r c h a s e s k g / s . u .
N.Z. S t o c k p i l e kg/s.u.
Value Wool E x p o r t s ( $ ' 0 0 0 F.O.B.)
T o t a l Value Wool E x p o r t s
T o t a l Value p e r t o n n e
Wool Export ( $ F.O.B. )
Value T o t a l Wool P r o d u c t i o n
T o t a l Value p e r Tonne Wool
E x p o r t ( $ F.O.B.)
T o t a l P r o d u c t i o n (tlOOO)
T o t a l Value Wool P r o d u c t i o n
($'OOO F.O.B. )
T o t a l Value p e r S . U . ( $ F.O.B.)
P r e c e d i n g Year
Source :
a
Monthly A b s t r a c t s
b
R e s e r v e Bank B u l l e t i n J u l y 1982
44,515
18,648
59,433
APPENDIX 111
INTER-INDUSTRY IWUT-OUTPUT REVISION
One of t h e disadvantages i n t h e use of input-output
t a b l e s f o r t h i s t y p e of a n a l y s i s is t h e f a c t t h a t t h e y a r e
t h e c u r r e n t published t a b l e s f o r N e w Zealand
u s u a l l y dated
r e l a t e t o t h e 1971/72 year. To t h e extent t h a t production
d a t a from
r e l a t i o n s h i p s t e n d t o change over time, t h e r e f o r e ,
t h e t a b l e s need t o be i n t e r p r e t e d with care.
-
Subsequent t o t h e d e t a i l e d a n a l y s i s contained i n this
r e p o r t , d r a f t p r i n t o u t s of d a t a f o r t h e 1976/77 input-output
t a b l e s became a v a i l a b l e from t h e Department of S t a t i s t i c s .
The import content f i g u r e s from each source a r e t a b u l a t e d i n
Table I I I A . Most s e c t o r s demonstrate a reasonable degree of
consistency between t h e two p e r i o d s , although g e n e r a l l y import
c o n t e n t s have r i s e n r e f f e c t i n g , amongst o t h e r t h i n g s , t h e
h i g h e r r e a l p r i c e s f o r petroleum f u e l s following t h e 1973 o i l
shock.
The f o u r s e c t o r s which show s i g n i f i c a n t
upward
movement a r e A g r i c u l t u r a l S e r v i c e s ( 4 1 , Chemical F e r t i l i s e r s
(58/56), F r e i g h t Transport by Road ( 109/107) and Repair of
Motor Vehicles ( 128/126
I n p a r t i c u f a r , t h e import content
of f e r t i l i s e r has r i s e n from 56% t o over 70% between 1971/72
' and 1976/77.
.
I n aggregate, however, a p p l i c a t i o n of t h e s e r e v i s e d
f i g u r e s would be expected t o confirm the general conclusions
of t h e a n a l y s i s undertaken.
TABLE IIIA
Comparison of Import Content Factors, 1971-72 and 1976-77
0
hJ
1971-72 Tables
Sector
~umber~
Name
Direct
Import
Content
Direct &
Indirect Igport
Content
1976-77 Tables
Direct
Import
Content
Direct &
Indirect I ort
Content
E"
Agriculture
Agricultural Services
Meat Freezing and Preserving
Pack bags and sacks
Chemical products n.e.c.
Chemical fertiliser
Motor Vehicles, Tyres and Tubes
Agr. & Pastoral Machinery
Motor Vehicle Assembly
W & R Trade
Rail Transport
Freight Transported by Road
Storage and Warehousing
Repair of Motor Vehicles
a
Sector numbers; 1971-72 Table/ 1976-77 Table
Includes the import content of consumption of fixed capital
Source :
Derived from Department of Statistics, 1980. Inter-Industry Study of the New Zealand Economy 1971-72, Wellington,
Department of Statistics, 1983.
"Inter-Industry Study of the New Zealand Economy, 1975-76". Computer printout of draft tabulations, May 1983.
RECENT PUBLICATIONS
RESEARCH REPORTS
105. Potatoes: A Consumer Survey of Christchurch and Auckland Households, M.M. Rich, M.J. Mellon, 1980.
106. Survey of New Zealand Farmer Intentions and Opinions, -JulySeptember, 1979, J.G. Pryde,. 1980.
107. A Survey of Pests and Pesticide Use in Canterbury and Southland
J.D. Mumford, 1980.
108. An Economic Survey of New Zealand Town Milk Producers, 197879, R G . Moffitt. 1980.
Changes in united ~ i n ~ d o Meat
m ' Demand R L. Sheppard,
1980.
firucelhsis Eradication: a description of a plannln~model A.C.
Beck, 1980.
Fish: A (kn.rum~rSurvey of Christchurch Households, R.J. B rodie,
1980.
An Ana/yri.r of Alternntive Wheat Pricing Schemes, M.M. Rich,
L.J. Foulds, 1980.
An Economrc Yurvey of New Zealand Wheatgrowers; Enterprise
Analysis, Survey No. 4 2979-80, R.D. Lough, R.M. MacLean,
P.J. McCartin, M.M. Rich, 1980.
A Review of the Rural Credit System in New Zealand 1964 to
1979, J.G. Pryde, S.K. Martin, 1980.
A Socib-Economic Study of Farm Workers and Farm Managers,
G.T. Harris, 1980.
An Economic Survey of New Zealand Wheatgrowerr.. Financial
Anaijvis, 1978-79, R D . Lough, RM. MacLeari, P.J. McCartin,
M.M. Rich, 1980.
Multipliers from Regional Non- Survey Input- Output Tables for
New Zealand, L.J. Hubbard, W.A.N. Brown. 1981.
Survey ofthe .Health of New Zealand Farmers; October-November
1980, J.G. Pryde, 1981.
Horticulture iivAkoroa County,
R L . Sheppard, 1981.
An Economic Survey of Ne~uZealandTown Milk Producers, 197980, R G . Moffitt, 1981.
An Economic Survey of N e w Zealand wheat grower^: E n t f l p ~ i s e
Analysis, Surtley No. 5 1980-81, R. D. Lough, P. J. McCartin,
M.M. Rich, 1981.
An Economic Survey of N e w Zealand Wheatgrowers; Financial
Analysis 1979-80, R.D. Lough, P.J. McCartin, M.M. Rich,
1981.
123. Sea.ron~lityi91 the N e w Zealand Meat Processing Industry, R.L.
Sheppard, 198.2.
124.
The N e w Zeaianb7Wheat and Flour Industry; Market Structure and
Policy Implicutio.?s, B.W. Borrell, A.C. Zwart, 1982.
The Ecomomics of Soil Conseruati6i and Water Management
Policies in the Otago High Country, G . T . Harris, 1982.
126. Survy ofNeu1 Zenland Fanner Intentions and Opinions, SeptemberNovember, 1982, J.G. Pryde, 1982.
127. The New Zealand Pastoral Livestock Sector: A n Econometric Model
(Version Two!, M.T. Laing, 1982.
128. A Farn-level Model to Evaluate the Impacts of Current Energy
Policy Optionr, A.M.M. Thompson, 1982.
' 129.
An Economic Survey of New Zealand Town Milk Producers 1980RI, R.G. Moffitt, 1982
,130. The New Zealand Potato Marketing System. R.L. Sheppard,
1982.
131. An Economic Szrrvey of New Zealand W'eatgrowers: Enterprise
,
Analysir, Survey ,Vo. 6, 1981-82, R.D. Lough, P.J. McCartin,
M.M. Rich, 1982.
132. An Ecorzomic Sut oey o/ N e w Zealand Wheatgrowers; Financial
Analysis, I9l:O-R.', R.D. Lough, P.J. McCartin, 1982.
125.
133. Altern~/ir:e lflnnir~.c,rr/i,r~t
Str~tc;y/e.r,<NI/Drf!/ti~i~yl'/i/ici~~.~
/or
/rrigfztei/ C o ~ ~ t c r h / iS~/ :I yC CF/rrn/.r,
~I
N. M. Shadh01t. 1982.
134. Economics of the Sheep Rrtedirig 0perutio11.r(d'the I)epartnze~ifof
L a n d s n n d S ~ ~ r v e A.T.G.
y,
McArthur, 1983.
W~atc~rurid(,%)oiceirr
Cauterh~ry,K.I.. Leathers. B.M.H. Sharp,
W.A.N. Brown, 1983
S ~ r v e yof- N P I Zealund
~J
F~rrrncrI~ttrrrtio~is
iriccl f)//)l,i~iior~.r,
OctoberDrcenzbet; 198.2, J . G . Prvde, P.J. htcCartit1, 1983.
I~r~~i,.rtn~ent
/rnd ,Y//pp/y I<c,.ij%/rirr/11 t / k Nriis Z W / I / I / l'uct//r//i
~/
Scctor AI/ Ei.o~/o~ui,tric
124nc/e/. M,?'. I.,ling, A.(:. Zwart, 1 98 3
The W/,rL/ ,S/ICL/III/C~I~
i\4//rkr/; [ / I / ~ , c / I I / / I I ~ / c ~1)1////i8/,
~/L
N . B1 tll,
1983.
AI/ Economic Survey cYNezu Zeal~/rd7bzun Milk P ~ o ~ / I c P1981):I.
82, R.G. Moffitt, 1983.
Ecoi/omic Relntioiishi/,s witbiir the Jopfi~~err
Feed NUJL i ~ ~ ~ r t o ~
Sector, M. Kagatsume, A.C. Zwart, 1983.
Ncuu %erl/~r?c/
Aiz,li/e Sec-to,:. Forc>(y~i
~ . Y L / I N /lil/i/i~~//oll.l~.
/I~~?
R.D. Lough, W.A.N. Brown. 1983.
DISCUSSION PAPERS
M ~ r k e tEo~lciat/on:U Sy.fteniatir A/)prixe~/I - Frozcn (;ri.crr
Spmutir/,y Hrocc-olr; R.I.. Sheppard, 1980.
7 % ~E. E. (.: Sharpmeat K eX.rnic:. /i rrti~i,~cmont.r
and Itnp/rc~i~tror/
r,
N. Blyth, 1980.
Proceedings of a Seminar on Future Directions/or New Zeolarzd
LambMarketing. editedbyR.L. Shcppard, R.J. Brodie, 1980.
The Eurrhratrmn c$ Juh Creation Pro~rammer 101th Purticrrlar
R ~ f i r ~ t r i/ t/ I, thy Filrtn E~npli<yrnenrProqrrmmc: G.T. Hnrris,
1981.
?%?L, New Ze,a/#nd Pu.rtora/ 1,111cr~ockSec-/or; a prr/inz/nary
ec.nnon~c~tric
mode,(. M.T. Laing, A.(:. Zwart, I98 l
The Schei/rr/c Prrcr Systen7 and thr Neu; Zea/un//Lomh Producer,
N . M . Shadbolt, 1981.
7%~,f;nrtherP r ~ ~ . i , . r r i t i g ~ ~ l ~ K.?il
M c , i ~ /S. I I C O C, ' R I.. Sheppard,
1981.
Jupone~rAgriirrltrerul Poiceji Develupment; I I ~ / ) / I L N ,/or
~ ~ ONNCJI O
Zc,o/rni[ A.C. Zwart. 198 1 .
lnterc,.rf K N I C ~Ful.tr
:
N N Fullacier,
~
<.B. Wood ford. 198 1 .
The E E C Sheepmeat Regime; One 1 i . a ~On, N . Blyth, 198 1 .
A Review of the World Sheepmeat Illarket; Vol. 1 - Ou~rt~l'ctu
of
International Trade, Vol. 2 - Austra/ig. New Zealand €- Arfentinu,
Vol. 3 - The E E C (IO), Vol.4 - h o r t h America, Japan L- The
Middle East, Vol. 5 - Eastern Bloc, U.S.S. R . 6 Mongoolra,
N. Blyth, 1981.
A n Evaluation of Farm Owrrrsh$ Saoit~fis Accounts,
K.B. Woodford, 1981.
The New Zealand Meat Trade iri the .I 9803: crprcil,osa(/hr c i ~ ~ c ~ . e ,
B.J. Ross, R.L. Sheppard, A.C. 2,ivart, 1982.
Supplementary Minimum Prices: a ~rodrrctior~ir~cmtior? K. L.
Sheppard, J.M. Biggs, 1982.
Proceedings ofa Seminar on Road Trfi~c.$ortin Rriro/ Ari,~.r,edited
by P.D. Chudleigh, A.J. Nicholson, 1982.
Quality in the New Zealnnd Wheat crnel Florer. il/Inrkpt:, hf.M.
Rich, 1982.
Design Considerations for Conzpr~e.~,rHiisc~rl Morkcti~~,gii~ii!
Information Systems, P.L. Nuthall, 1982.
Reugunomics and the New Zealorid Agric/r/tzcrcr/ Sector, R. W .
Bohall, 1983.
E~rergyUse iri Nezo Zenlunc/ A,yi.ic~//:~ro/
Proi//ic~tio~i.
P. D.
Chudleigh, Glen Greer, 1983.
?%P Po.rtn~,i//Live.rtock Sector cortl thi, Sic/,i/c,~~ier//oi:~~
~\~liilii//il~i~
Price Po/icy,M.T. Laing, A.C. Zwart, 1983.
S/c/,iorti~ig t/ie A~~ricti/ti/rc//
Sec.tmi:. R~tioricile~ i i i /I'o/ic:ji. P.1).
Chudleigh, Glen Greer, K.L. Sheppnrcl. 1983.
1.r.r)it.r
I<(dcrti//gto the F / ~ / i / i /U// ~/ ' ~ ' ~ I I / /I/' ~I ,IoJ c c I ~l<r.re/o,i,h
~I/~~
.1./ti.o//,y/?
Rc,.rc~?i.i/I A r.ioc ihtiori I , N . Blyti~.~ 1C.
. 13rcL.. 198 3.
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