AN ECONOMIC SURVEY
OF NEW ZEALAND
TOWN MILK PRODUCERS
R.G.
MOFFITT
RESEARCH REPORT NO. 129
AUGUST 1982
ISSN 0069-3790
T H E AGRICULTURAL ECONOMICS RESEARCH U N I T
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 AERU, the Department of Agricultural Economics and Marketing, and the
Department of Farm Management and Rural Valuation maintain a close working
relationship o n research and associated matters. The Unit is situated on the 3rd floor of
the Burns Wing at the College.
UNIT POLICY COMMITTEE: 1982
P.D. Chudleigh, B.Sc. (Hons), P11.D.
Professor J.B. Dent, B.Sc., M.Agr.Sc., Ph.D
(Farm Management and Rural Valuation)
Professor B.J. Ross, M.Agr.Sc.
(Agricultural Econotnics and Marketing)
UNIT RESEARCH STAFF: 1982
Director
P.D. Chudleigh, B.Sc. (Hons), P11.D.
Rercrtrch Fc//ow it7 Agricilltrtr.u/ Po/i~:y
J.G. Pryde, O.B.E., M.A., F.N.Z.I.M.
St,t/ior- Ri,reorcl, Eco~lofnz:ci~.
K.L. Leathers, B.S., M.S., Ph.D.
R D . Lough, B.Agi-.Sc.
RP.TPN~L./I
~COI?/JI?Z~~~.T
A.C. Beck, B.Sc.Agr., M.Ec.
KC;. Mof'fitt. B.Hort.Sc., N.D.H.
hl.hl. Rich, Dip. V.F.M., B.Agr.Com., M.Ec.
R. L. Sheppard, B.Agr.Sc. (Hons), B.B.S.
Assistant Research Economirts
G.Greer, B.Agr.Sc. (Hons)
hl.?'. Lalng B.Agr.Com., M.Com.(Agr)(Hons)
P. J. McCartin, B.Agr.Com.
C. R. McLeod, B.Agr.Sc.
-
Po.s/ (;i.(t(/~/~tio
Ft,//o~~~.r
N. Rlyth. H.Sc. (Hons)
C.K.G. Darkey, B.Sc., M.Sc.
M. Kagatsume, B.Sc., M.Sc.
Sct 1~t'f~tl:l:
C.T. Hill
CONTENTS
(ii>
LIST OF TABLES
PREFACE
( i v>
ACKNOWLEDGEMENTS
(v>
ABBREVIATIONS USED IN THIS RFJORT
(vi
SUMMARY OF THC 1979-80 AND 1980-81 SURVEY RESULTS
(vii)
SUMPlARY
(viii)
CHAPTER
1
BACICC ROU ND
1
1.1 O b j e c t i v e s of t h e N a t i o n a l Farm Survey
1
1.2 C l i m a t i c C o n d i t i o n s
1
1.3 P r o d u c e r P r i c e s
2
5
1.4
Town Milk P r o d u c t i o n Data
1.5 Town Milk S u p p l i e r s a n d Quotas
6
2
. DESCRIPTION OF THE SURVEY
9
2.1
The Sample
9
2.2
Sample S t r a t i f i c a t i o n
10
2.3 Weighting
10
2.4
m t a C o l l e c t i o n and Assembly
10
3
P HY SICAL AND P RODU CTION DATA
13
3.1 P h y s i c a l C h a r a c t e r i s t i c s of Farms
13
3.2
Farm Ownership
15
3.3 Labour
15
3.4
Milk P r o d u c t i o n
16
3.5
O t h e r P h y s i c a l and P r o d u c t i o n Data
17
4
FINANCIAL DATA
19
4.1
Introduction
19
4.2
Capital Structure
19
4.3 C r o s s Revenue
22
4.4
Expenditure
24
4.5
Farm Income
27
4.6 P r i n c i p a l Revenue & E x p e n d i t u r e Components
33
>
APPEND ICES
A
P r o d u c e r A s s o c i a t i o n s I n c l u d e d i n Survey
B
Survey D e f i n i t i o n s and Treatment of Data '
C
R e l i a b i l i t y of Survey E s t i m a t e s
D
O t h e r P h y s i c a l a n d P r o d u c t i o n Data
E
Survey R e s u l t s by Region a n d Quota Group
F
Comparison w i t h Survey R e s u l t s of P r e v i o u s Years
36
37
48
53
60
84
LIST OF TABLES
Pa ge
Table No.
C h a p t e r 1 BACKGROUND
1
N a t i o n a l Average Town Milk P r o d u c e r P r i c e s
2
Town Milk P r o d u c e r P r i c e s f o r Year Ended
3 1 August 1981
3
T o t a l Town Milk P r o d u c t i o n
4
T o t a l Milk S u p p l i e r s and D a i l y Quotas
5
Quota H o l d i n g Companies 1980-81
C h a p t e r 2 DESCRIPTION OF SURVEY
6
P o p u l a t i o n and Sample D i s t r i b u t i o n by S t r a t a
7
D i s t r i b u t i o n of Balance Dates
3
4
5
7
7
11
12
C h a p t e r 3 PHYSICAL AND PRODUCTION DATA
8
Average Areas of Town Supply Farms
9
U t i l i z a t i o n of Farm Area
10
Types of Farm m e r s h i p
11
Types of Labour U n i t s
12
Milk P r o d u c t i o n
C h a p t e r 4 FINANCIAL DATA
13
Capital Structure
Value of a l l Assets a n d
Liabilities
14
Gross Revenue Components
15
Farm E x p e n d i t u r e Components
16
D e p r e c i a t i o n of Farm A s s e t s
Net Farm Income Components
17
18
Cashsurplus fromFarming
19
Net Farm Income l e s s Imputed I n t e r e s t on E q u i t y
and T o t a l A s s e t s
20
Measures of Economic P r o f i t a b i l i t y
21
Revenue and E x p e n d i t u r e P r o p o r t i o n s
-
APPENDICIES
R e l i a b i l i t y of Survey E s t i m a t e s
E s t i m a t i o n of S t r a t u m S i z e s
Farmers Age, Y e a r s of Management C o n t r o l and
Number of Dependants
Supplementary Feed Use
Run-off Area
Land Values Updated by D i f f e r e n t V a l u a t i o n
Department I n d i c e s
Non-Family Adult Worker Annual Wage P a i d
a n d Y e a r s of E x p e r i e n c e
Use of Herd T e s t i n g
Number of Farmers Using A r t i f i c i a l B r e e d i n g
Total Stock P r o f i t Calculated w i t h Various
S t a n d a r d Values
Dairy S t o c k B a l a n c e s
Beef a n d Sheep S t o c k B a l a n c e s
20
23
25
28
29
31
32
34
35
LIST OF TABLES (Cont.)
T a b l e No.
AI'PENDICIES (Cont.)
34
Average Areas of Town Supply Farms by Region
a n d Quota Croup
35
U t i l i z a t i o n of Farm Area by Region and Qriota
Group
36
v p e s of Farm Ownership by Region and Quota
Group
37
Types of Labour U n i t s p e r Farm by Region a n d
Quota Group
38
Milk P r o d u c t i o n by Region and Quota Group
39
Capital Structure
Value of a l l A s s e t s a n d
by Region and Quota Group
Liabilities
40
G r o s s Revenue Components by Region a n d Quota
Group
41
Farm E x p e n d i t u r e Components by Region a n d Quota
Group
42
D e p r e c i a t i o n of Farm A s s e t s by Region a n d Quota
Croup
43
Net Farm Income Components by Region a n d Quota
Croup
44
Cash S u r p l u s f r o m Farming by Region and Quota
Group
45
Net Farm Income l e s s Imputed I n t e r e s t o n E q u i t y
and T o t a l Assets by Region and Quota Group
46
Measures of Economic P r o f i t a b l i t y by Region a n d
Quota Group
47
Farmers Age, Y e a r s of Managerent C o n t r o l a n d
Number of Dependants by Region and Quota Croup
48
Supplementary Feed Use by Region and Quota Group
49
Run-off Area by Region and Quota Group
50
Land V a l u e s Updated by D i f f e r e n t V a l u a t i o n
Department I n d i c e s by Region and Quota Group
51
Non-Family Adult Worker Annual Wage P a i d a n d
Years of E x p e r i e n c e by Region and Quota Group
52
Use of Herd T e s t i n g by Region a n d Quota Group
53
Number of Farmers Using A r t i f i c i a l B r e e d i n g by
Region a n d Quota Group
54
Total Stock P r o f i t C a l c u l a t e d w i t h Various
S t a n d a r d V a l u e s by Region a n d Quota Croup
55
Comparison w i t h Survey R e s u l t s of P r e v i o u s Y e a r s
-
-
FIGURE
1
Survey Comparisons w i t h P r e v i o u s Years
( iii
P REF ACE
This r e p o r t i s t h e e i g h t h i n a n a n n u a l s e r i e s of economic s u r v e y s
of
New Z e a l a n d town m i l k s u p p l y f a r m s .
These s u r v e y s h a v e b e e n
u n d e r t a k e n by t h e A g r i c u l t u r a l E c o n o m i c s R e s e a r c h U n i t a t L i n c o l n
C o l l e g e on b e h a l f
Producers'
of t h e N e w Z e a l a n d M i l k Board a n d t h e Town M i l k
F e d e r a t i o n of New Zealand (Inc.).
A s i n t h e p a s t t h e m a j o r o b j e c t i v e of t h i s s u r v e y h a s b e e n t o
e s t i m a t e t h e a v e r a g e n e t f a r m income r e c e i v e d by town milk p r o d u c e r s i n
New Zealand.
I n a d d i t i o n , h o w e v e r , t h e o p p o r t u n i t y p r o v i d e d by t h e
s u r v e y s h a s b e e n u s e d t o c o l l e c t a d d i t i o n a l d a t a s o t h a t a more
comprehensive p r o f i l e of t h e i n d u s t r y emerges.
The f i e l d w o r k a n d a n a l y s i s f o r t h i s s u r v e y was c a r r i e d o u t by
R u s s e l l M o f f i t t w i t h i n v a l u a b l e a s s i s t a n c e f r o m M i c h a e l Ciemes.
r e p o r t was compiled by R u s s e l l Mof f i t t .
P.D. C h u d l e i g h ,
Director.
August 1982
The
The A g r i c u l t u r a l Economics Research Unit g r a t e f u l l y acknowledges
t h e c o - o p e r a t i o n a n d a s s i s t a n c e w i l l i n g l y provided by o f f i c e r s of t h e
New Zealand Milk Board,
(Inc.),
Town Milk Producers' F e d e r a t i o n of New Zealand
and Milk P r o d u c e r
Companies.
In p a r t i c u l a r ,
thanks
are
e x p r e s s e d t o t h e i n d i v i d u a l town milk producers f o r c o - o p e r a t i n g i n t h e
s u r v e y and making t h e i n f o r m a t i o n c o n t a i n e d i n t h e i r a c c o u n t s a v a i l a b l e .
The r e p o r t was typed by Judy Rennie.
ABBREVIATIONS USED I N THIS REPORT
Av~,
Ave r a ge
As s n
Association
C.V.
C a p i t a l Value
D a i r y prod. h a
-
Dairy p r o d u c t i v e
hectares
equipment
exPs
=
expenses
ha
-
hectares
equip
.
1
lirres
L.U.
Labour U n i t s
m.
million
milk p r o d .
m i l k produced
M.P.
Milk P r o d u c e r
fJ. A.
Not A v a i l a b l e
no.
numbe r
prod. ha
productive hectares
RSE
Relative Standard
Error
S.U.
stock units
SUMMARY OF 1979-80 AND 1980-81 NEW ZEALAND
SU RV EY RE SULT S
.......................................................................
Characteristic
1979-80
.......................................................................
152
Farms Surveyed (no. )
T o t a l Farm Area ( h a l f a r m )
D a i r y P r o d u c t i v e Farm Area ( h a l f arm)
1980-81
152
95.9
94.99
82.68
83.72
D a i l y Quota ( l l f a r m )
80 7
803
Herd S i z e (cows/farm)
113
119
2.25
2.27
484,611
499,772
(l / h a )
5,052
5,141
( l l d a i r y prod. h a )
5,861
5,866
215,383
220,164
4,288
4,200
356,624
448,012
G r o s s Revenue. ( $ / f a r m )
70,121
86,056
T o t a l Expenditure ($/farm)
53,412
66,388
Net Farm Income ( $ I f arm)
16,709
19,668
20 2
23 5
Labour U n i t s (L.U./farm)
Milk P r o d u c t i o n ( l l f a r m )
(l/labour unit)
(l/cow)
T o t a l Value of A l l Assets ( $ / f a r m )
N e t Income p e r Dairy Prod. ha ( $ / h a )
Net Income p e r D a i l y Quota ( $ 1 1 )
20.7
Net Income p e r Cow ($/cow)
148
Net Income p e r L i t r e ( c e n t s / l )
24.5
165
3.45
3.94
G r o s s Revenue p e r L i t r e ( c e n t s l l )
14.47
17.22
T o t a l Expenditure per L i t r e ( c e n t s / l )
1 1.02
.........................................................
---------------------------------------------------------=-------------
( vii
13.28
-------------
SUMMARY
-
P h y s i c a l and Production Aspects
.
The. a v e r a g e t o t a l a r e a of t h e N e w Z e a l a n d f a r m s s u r v e y e d w a s
94.99 ha.
figure.
T h i s was m a r g i n a l l y smaller t h a n t h e 1979-80
survey
The a v e r a g e d a i r y p r o d u c t i v e a r e a w a s 83.72 h a compared
w i t h 82.68 h a i n 1979-80.
.
F o r t y p e r c e n t of s u r v e y f a r m s were i n d i v i d u a l l y owned.
Husband-
w i f e p a r t n e r s h i p s w e r e t h e n e x t most common f o r m of ownership.
Land t e n u r e was p r e d o m i n a n t l y f r e e h o l d .
The a v e r a g e d a i l y q u o t a r e c o r d e d o n t h e s u r v e y e d f a r m s was 8 0 3
l i t r e s compared w i t h t h e p r e v i o u s 1979-80 s u r v e y e s t i m a t e of 807
litres.
D a i l y q u o t a s on t h e f a r m s s u r v e y e d r a n g e d f r o m 289
l i t r e s t o 1,903 litres.
.
The a v e r a g e n u m b e r of c o w s i n t h e h e r d ( i n c l u d i n g d r y c o w s ) p e r
f a r m w a s 119.
I n 1979-80 t h e r e were
113.
Herd s i z e s o n
i n d i v i d u a l f a r m s ranged f r o m 26 t o 450 cows.
.
T o t a l m i l k p r o d u c t i o n p e r f a r m (499,772 l i t r e s ) was t h r e e p e r
c e n t h i g h e r t h a n t h e 1979-80 t o t a l .
North I s l a n d f a r m s showed a
1.55 p e r c e n t i n c r e a s e , a n d S o u t h I s l a n d f a r m s a 4.82 p e r c e n t
increase,
The p r o p o r t i o n of m i l k s o l d a t t o w n m i l k q u o t a p r i c e s was 66 p e r
cent.
'
T h i s c o m p a r e s w i t h 6 8 p e r c e n t f o r t h e 1979-80 s u r v e y .
The S o u t h I s l a n d a g a i n s o l d a g r e a t e r p r o p o r t i o n a t q u o t a m i l k
p r i c e s (71 p e r c e n t ) t h a n t h e North I s l a n d ( 6 3 p e r c e n t ) .
.
M i l k p r o d u c t i o n p e r cow was 4,111 T i t r e s .
It f e l l by 4.2 p e r c e n t
c o m p a r e d w i t h t h e 1979-80 f i g u r e . P r o d u c t i o n p e r l a b o u r u n i t
i n c r e a s e d m a r g i n a l l y ( u p 2.22 p e r . c e n t ) .
Milk Production p e r
d a i r y p r o d u c t i v e h e c t a r e r e m a i n e d a l m o s t s t a t i c a t 5,866 l i t r e s
p e r farm.
.
The a v e r a g e t o t a l l a b o u r e m p l o y e d o n s u r v e y f a r m s (2.27 l a b o u r
u n i t s ) w a s s i m i l a r t o t h e 1'979-80 f i g u r e of 2.25 l a b o u r u n i t s .
I n t h e North I s l a n d t h e r e was l i t t l e change i n t h e t o t a l l a b o u r
u s e d (2.34
units).
In t h e South I s l a n d t h e labour u n i t s p e r
f a r m d e c r e a s e d s l i g h t l y f r o m 2.21 t o 2.18 u n i t s .
( viii 1
Financia 1 Aspects
A v e r a g e n e t f a r m i n c o m e f o r a l l s u r v e y e d f a r m s f o r 1980-81 w a s
$19,668 compared w i t h $16,709 i n t h e
previous
r e p r e s e n t e d a 17.7 p e r c e n t i n c r e a s e .
The a v e r a g e f o r N o r t h
I s l a n d f a r m s was $21,540 (up
.
year.
This
17.06 p e r c e n t ) w h i l e t h e a v e r a g e
f o r South I s l a n d f a r m s was $17,175 ( u p 18.0 p e r c e n t ) .
T o t a l g r o s s r e v e n u e f o r New Zealand s u r v e y e d f a r m s was $86,056.
T h i s w a s 22.7 p e r c e n t h i g h e r t h a n t h e p r e v i o u s y e a r ' s r e s u l t .
The N o r t h I s l a n d f a r m s h a d a 24.5 p e r c e n t i n c r e a s e i n g r o s s
r e v e n u e w h e r e a s t h e S o u t h , I s l a n d f a r m s h a d a 19.7
per cent
increase.
.
T o t a l f a r m e x p e n d i t u r e ( $ 6 6 , 3 8 8 ) was 24.3 p e r c e n t h i g h e r t h a n
f o r t h e p r e v i o u s s u r v e y ($53,412).
The a v e r a g e North I s l a n d f a r m
had a n i n c r e a s e i n t o t a l e x p e n d i t u r e of $14,800 t o $69,476.
.
The
a v e r a g e South I s l a n d e x p e n d i t u r e i n c r e a s e was $10,457 t o $62,276.
Average n e t d e p r e c i a t i o n was $5,942, a n i n c r e a s e of 19.8 p e r c e n t
compared w i t h t h e 1979-80 s u r v e y e s - t i m a t e of $4,960.
From t h e r e v e n u e f r o m m i l k s a l e s t h e a v e r a g e p r i c e r e c e i v e d p e r
l i t r e of a l l m i l k p r o d u c e d c a n b e c a l c u l a t e d .
For t h e c u r r e n t
s u r v e y i t was 14.5850 c e n t s compared w i t h 12.2114 c e n t s i n 197980.
M i l k s a l e s a c c o u n t e d f o r 84.7 p e r c e n t of g r o s s r e v e n u e o n t h e
a w r a g e f a r m (84.4
p e r c e n t i n 1979-80).
Net f a r m income on a c e n t s p e r l i t r e of t o t a l m i l k produced b a s i s
was 3.94 c e n t s compared w i t h 3.45 c e n t s i n 1979-80 a n d 4.47
cents
i n 1978-79.
L i v e s t o c k t r a d i n g p r o f i t i n c r e a s e d by o v e r 1 5 p e r c e n t f r o m
$7,429 i n 1979-80 t o $8,591 i n 1980-81.
Tlie a v e r a g e v a l u e of f a r m a s s e t s was $434,788 which r e p r e s e n t s a n
i n c r e a s e of 25.97 p e r c e n t o v e r t h e f i g u r e r e c o r d e d f o r 1979-80
($345,140).
T o t a l l i a b i l i t i e s p e r farm were $104,336,
a 31.6
i n c r e a s e i n t h e s u r v e y f i g u r e of t h e p r e v i o u s year.
per cent
•
E q u i t y a s a p e r c e n t of t h e v a l u e of a l l a s s e t s a v e r a g e d 76.7 p e r
cent.
T h i s was s i m i l a r t o t h e p r e v i o u s s u r v e y .
North I s l a n d
f a r m s h a d a h i g h e r p r o p o r t i o n (79.0 p e r c e n t ) t h a n S o u t h I s l a n d
f a r m s (72.5 p e r c e n t ) .
CHAPTER 1
BACKGROUND
1.1
--
O b j e c t i v e s of t h e X a t i o n a l Farm Survey
As i n previous years,
t h e p r i n c i p a l o b j e c t i v e of
t h e 1980-81
S u r v e y w a s t o d e t e r m i n e t h e a v e r a g e n e t f a r m i n c o m e r e c e i v e d by t o w n
m i l k p r o d u c e r s i n New Z e a l a n d .
u s e d 'for a
variety
of
I n f o r m a t i o n p r o d u c e d by t h e s u r v e y i s
purposes.
It a s s i s t s d e c i s i o n s c o n c e r n i n g
a p p l i c a t i o n s f o r p r i c e i n c r e a s e s from s p e c i f i c producer groups.
The
n a t i o n a l average c o s t and r e t u r n r e s u l t s a r e a l s o used a s s t a n d a r d s w i t h
which c o s t a n d r e t u r n f i g u r e s d e r i v e d f r o m s m a l l e r r e g i o n a l s u r v e y s can
be compared.
The s u r v e y d a t a
obtained
each year
a l s o provide a
c o n t i n u i n g s e t of s t a t i s t i c s o n t h e e c o n o m i c p o s i t i o n of t o w n s u p p l y
d a i r y farms.
The a v a i l a b i l t y of s u c h i n f o r m a t i o n i s of v a l u e t o t h e
i n d i v i d u a l f a r m e r , r e g i o n a l a d v i s e r s , and government p o l i c y makers.
No a t t e m p t h a s been made i n t h e Report t o draw a n y c o n c l u s i o n s o n
w h e t h e r o r not a n i n c r e a s e i n town m i l k p r i c e s i s j u s t i f i e d .
The
a n a l y s e s have been c a r r i e d o u t p r i m a r i l y t o meet t h e b a s i c o b j e c t i v e of
t h e s u r v e y , namely t h e d e t e r m i n a t i o n of n a t i o n a l n e t f a r m income.
1.2
Climatic Conditions
I n most d i s t r i c t s t h e summer of
growth.
1979-80 r e s u l t e d i n good p a s t u r e
I n t h e Auckland a n d W a i k a t o r e g i o n s a wet e a r l y autumn f o l l o w e d
a w e t sumner.
On some Waikato f a r m s s m a l l o u t b r e a k s of
were reported.
A c o o l damp autumn i n T a r a n a k i a n d Manawatu s l o w e d g r a s s
growth w i t h a f a l l i n grass q u a l i t y ,
f a c i a l eczema
In t h e South I s l a n d f r e q u e n t
autumn r a i n s h e l p e d m a i n t a i n f e e d c o n d i t i o n s .
I n Southland, however,
heavy r a i n i n l a t e Nay c a u s e d some f l o o d i n g .
Shortages
of
milk
developed
during
W e l l i n g t o n / H u t t V a l l e y and Hawkes Bay a r e a s .
the
winter
in
the
S u b s t a n t i a l q u a n t i t i e s of
accommodation m i l k w e r e n e c e s s a r y t o keep s w e e t c r e a m marlcets i n t h e s e
two d i s t r i c t s f u l l y supplied.
The d i f f i c u l t w e t w i n t e r i n S o u t h l a n d
r e q u i r e d a s u p p l y of accommodation n i l k f r o m Dunedin i n August.
L i t t l e r a i n w i t h d r y i n g winds i n t h e Auckland a r e a i n t h e s p r i n g
a n d e a r l y s u n n e r of 1980 l e d t o r e d u c e d p a s t u r e g r o w t h .
Taranalii and
Eianawatu had a s l o w b e g i n n i n g f r o m a c o o l w e t and windy s p r i n g .
In t h e
S o u t h I s l a n d t h e s p r i n g c l i m a t e was f a v o u r a b l e w i t h g e n e r a l l y good
p a s t u r e growth.
The l i m i t e d r a i n and d r y i n g winds of t h e 1950-81 s u m n e r a n d 1981
autumn i n t h e Auckland a n d Waikato r e g i o n s l e d t o s o i l s d r y i n g o u t w i t h
low q u a l i t y p a s t u r e growth.
S h o r t a g e s of
f e e d s u p p l i e s developed w i t h
o u t b r e a k s of f a c i a l eczema i n s h e e p a n d c a t t l e .
In o t h e r tiorth I s l a n d
r e g i o n s t h e w e a t h e r was g e n e r a l l y h o t w i t h a d e q u a t e r a i n f a l l t o m a i n t a i n
g r a s s growth.
Nelson,
Canterbury and Southland a l l experienced drought
c o n d i t i o n s d u r i n g t h e summer and autumn of 1981.
1.3
Producer P r i c e s
T h e r e w a s n o c h a n g e i n t h e b a s i c m e t h o d of f i x i n g t h e t o w n n i l k
producer price.
It c o n t i n u e d t o be l i n k e d t o t h e a v e r a g e m a n u f a c t u r i n g
p r i c e f o r whole milk f o r a l l major uses.
An i n c r e a s e i n p r i c e of o n e
c e n t p e r k i l o g r a m of m i l k f a t r e s u l t s i n a n i n c r e a s e of 0.06 c e n t s p e r
l i t r e i n t h e town m i l k p r o d u c e r p r i c e .
The
initial
national
average
advance
prices
based
on a
m a n u f a c t u r i n g p r i c e of 218 c e n t s p e r k i l o g r a m of m i l k f a t i n whole m i l k
a t f a r m g a t e , were approved f o r town milk f o r t h e y e a r commencing 1
S e p t e m b e r 1980.
Subsequently,
however,
t h e Dairy Products P r i c e s
A u t h o r i t y e s t a b l i s h e d a new v a l u e of 230 c e n t s p e r k i l o g r a m of m i l k f a t
i n whole m i l k f o r t h e 1980181 s e a s o n .
c e n t s p e r l i t r e f o r f i n e s t grade milk,
These r e v i s e d p r i c e s of
16.5045
16.1375 c e n t s p e r l i t r e f o r f i r s t
g r a d e n i l k , a n d 15.4055 c e n t s p e r l i t r e f o r s e c o n d g r a d e m i l k w e r e
a p p r o v e d a s f r o m 1 September 1380.a
Further increases
kilogram
of
respectively.
of
10 cents,
1 3 c e n t s a n d 5.07
milk f a t occurred i n April,
cents per
J u n e a n d December
T h e s e i n c r e a s e s w e r e a d v a n c e i n t e r i n e n d of
1981
season
p a y m e n t s . When t r a n s l a t e d i n t o t o w n m i l k p r i c e s , t h e f i n a l n a t i o n a l
p r i c e s p e r l i t r e f o r t h e 1980-81
m i l k y e a r f o r t h e t h r e e g r a d e s of town
m i l k w e r e 18.7347 c e n t s f o r f i n e s t ,
18.3677 c e n t s f o r f i r s t , and 17.6357
f o r second grade.
a
PJ.Z.
Milk Board 2 8 t h Annual Report 1981, p. 10.
T a b l e 1 g i v e s a summary of t h e n a t i o n a l a v e r a g e town m i l k p r o d u c e r
prices
for
finest
grade
milk
over
the past
four
E.Z.
PLilk
Board
financial years.
Most p r o d u c e r c o m p a n i e s a r e a c t u a l l y p a i d a t s t a n d a r d s e a s o n a l
p r i c e s w h i c h a v e r a g e back t o t h e n a t i o n a l a v e r a g e p r i c e s r e f e r r e d t o i n
T a b l e 1.
Some p r o d u c e r c o m p a n i e s e l e c t t o v a r y t h e i r m i l k p r i c e s
t h r o u g h o u t t h e y e a r t o c o m p e n s a t e f o r c l i m a t i c c o n d i t i o n s , o r a s a means
of
e n c o u r a g i n g h i g h e r p r o d u c t i o n i n t h e more d i f f i c u l t p r o d u c t i b n
months.
Where w i t h i n - y e a r
v a r i a t i o n s of p r i c e s a r e u t i l i s e d , t h e e n t i r e
p a y o u t must a v e r a g e back t o t h e n a t i o n a l a v e r a g e p r i c e s .
TABLE 1
N a t i o n a l Average Town Milk P r o d u c e r P r i c e s
.......................................................................
Year Commencing
1 s t September
SOURCE:
M.Z.
F i n e s t Grade
Advance P r i c e
(cents per l i t r e )
F i n e s t Grade
Final Price
(cents per l i t r e )
Elilk Board 2 8 t h Annual R e p o r t , p.11.
A d d i t i o n a l f u n d s f o r s p e c i a l p r o d u c t i o n a l l o w a n c e s have been r a d e
a v a i l a b l e f o r c e r t a i n r e g i o n s o v e r and above t h e b a s i c p r i c e p a y a b l e t o
town milk suppliers.
The p u r p o s e of t h e e x t r a a l l o w a n c e s i s t o h e l p
o f f s e t t h e h i g h e r c o s t s of p r o d u c t i o n i n t h e s e r e g i o n s .
The s p e c i a l
p r o d u c t i o n a l l o w a n c e f u n d f o r t h e 1979-80 y e a r w a s a p p r o x i m a t e l y
$815,000 w i t h $493,000 b e i n g p a i d t o a l l South I s l a n d p r o d u c e r s a s a
f l a t South I s l a n d allowance.
The b a l a n c e was p a i d t o s p e c i f i c a r e a s i n
both Islands.
I n r e c e n t y e a r s v a r i o u s s u b m i s s i o n s have been made t o Government
c o n c e r n i n g t h e a d e q u a c y a n d d i s t r i b u t i o n of t h i s s p e c i a l p r o d u c t i o n
allowance.
The G o v e r n m e n t h a s now a p p r o v e d t h e m e r g i n g of t h e S o u t h
I s l a n d a l l o w a n c e w i t h t h e g e n e r a l s p e c i a l production allowance fund and
i n c r e a s e d t h e a n n u a l f u n d t o $ 1 m i l l i o n f o r a t h r e e y e a r p e r i o d frorr, 1
S e p t e m b e r 1980.
A r e v i e w w a s u n d e r t a k e n by t h e Bew Z e a l a n d !!ilk Soard
of p r o d u c t i o n c o s t s a n d t h e n e e d s of a l l a r e a s w h i c h r e c e i v e d s p e c i a l
p r o d u c t i o n a l l o w a n c e s i n t h e past.
Table 2 s u n n a r i z e s t h e i l a t i o n a l ,
p r i c e s f o r t h e y e a r ended 31 August,
s e a s o n a l and d i s t r i c t town m i l k
1381.
TABLE 2
Town Milk P r o d u c e r ? r i c e s f o r Year Ended 31 August 1981
P a r t 1 : NATIONAL AFD SEASONAL PRICES
Grade
of Milk
Year
ended
31 Aug.
?!ational
Town
Milk
Price
c/l
Fines t
First
Second
1981
1981
1981
18.7347
18.3677
17 .h357
?art 2 :
Spring &
Summer
(Sept. t o
Jan. i n c l .
c/ 1
15.5822
15.2152
14.4832
Autum
(Feb. t o
Apr i 1
incl.)
c/ 1
Winter
(May t o
August
incl.)
c/ 1
18.7002
18.3332
17.6012
23.3742
23.0072
22.2752
ADDITIONAL LOCAL PRICES
District
Cents p e r l i t r e
o v e r s i x autumn
and w i n t e r months
1981
-
Rotorua
Tokoroa ( e x c l u d i n g P u t a r u r u and H o d d e r v i l l e )
C i s b o r n e ( e x c l u d i n g Wairoa)
Hawke 's Bay (Here t a u n g a P l a i n s )
Ruapehu
Wa i r a r apa
W e l l i n g t o n ( 4 8 km)
Blenheim
Nelson
Bul l e r
Grey D i s t r i c t
Chris tchurch
As h b u r t o n
South C a n t e r b u r y
North Otago
Dunedin/Balclutha
C e n t r a l Otago
South l a n d
0.700
0.700
0.367
0.600
2.000
0.367
0.185
0.800
0.900
0.500
0.800
1.500
0.900
0.900
2.300
1.200
3.000
2.300
.......................................................................
.......................................................................
SCURCE:
N.Z.
l l i l k Board 2 8 t h Annual R e p o r t , p.53.
1.4
Town "I.1ilk P r o d u c t i o n Data
-T o t a l town m i l k p r o d u c t i o n i n t h e y e a r e n d i n p 31 Allgust 1981 was
6.8 p e r c e n t a l e s s t h a n i n t h e p r e v i o u s y e a r .
Table 3 shows t h e t o t a l
p r o d u c t i o n and s a l e of m i l k p a s s i n g t h r o u g h t h e X a t i o n a l Milk S c h e ~ ef o r
t h e y e a r s e n d i n g 31 August 1979,
1980 a n d 1981.
TABLE 3
T o t a l Town Milk P r o d u c t i o n
.......................................................................
Year
ending
Milk
Product i o n
31 August
m.
li t r e s
Quantity E l i g i b l e
f o r Town X i l k P r i c e
m.
T o t a l Town S a l e s
m. l i t r e s
litres
.......................................................................
1979
1980
1981
722.876
723.358
674.189
535.233
514.248
471.675
.......................................................................
SOURCE:
386.292
375.008
365.887
N.Z. Fiilk Board 28th Annual R e p o r t , 1981, p.41.
T o t a l m i l k s a l e s t o c o n s u m e r s f o r t h e y e a r e n d e d 31 August 1981
w e r e 365,886,592 l i t r e s b .
This was 2.43 p e r c e n t below t h e 1980 f i g u r e .
The d e c l i n e i n s a l e s w a s i n f l u e n c e d by two i n c r e a s e s i n consumer p r i c e s
d u r i n g t h e 1980-81
c e n t s p e r 600 m l
period.
b o t t l e a s f r o m 1 Kovember 1980 and a f u r t h e r i n c r e a s e
from 2 1 c e n t s t o 25 c e n t s
a
I b i d . p.7.
I b i d . p.11.
The f i r s t i n c r e a s e was Erom 18 c e n t s t o 2 1
i n t r o d u c e d f r o m 1 August 1981.
The
decline
silk
in
c o n s u m p t i o n of m i l k .
sales
is
reflected
in
the
per
capita
T h i s s h o w e d a d e c l i n e f r o m a n e s t i m a t e d 123.76
l i t r e s p e r head f o r t h e y e a r e n d i n g 31 August 1980 t o 120.00 l i t r e s p e r
h e a d i n t h e f o l l o w i n g year.
For t h e 1980-81 m i l k y e a r t h e n o m i n a t e d q u a n t i t i e s which p r o d u c e r
associations contract
t o g u a r a n t e e t o meet
the
daily
liquid
milk
r e q u i r e m e n t s i n t h e i r a r e a t h r o u g h o u t t h e y e a r w e r e f u r t h e r reduced.
They were r e d u c e d t o a l e v e l which r e f l e c t s t h e g r e a t e r of e i t h e r a c t u a l
s a l e s , o r a f u r t h e r e i g h t p e r c e n t r e d u c t i o n of t h e 1978-79 n o m i n a t e d
quantitiesa.
T h i s w a s t h e s e c o n d s t a g e i n a Government p o l i c y d e c i s i o n
t o b r i n g back n o m i n a t e d q u a n t i t i e s f r o m t h e f r o z e n 1975-76 l e v e l t o a
sales level situation.
1.5
and Quotas
Town N i l k S u p p l i e r s -There w e r e 1,467 town m i l k q u o t a h o l d e r s b d u r i n g t h e 1980-81 m i l k
y e a r compared w i t h 1540 f o r t h e p r e v i o u s y e a r , and i n a d d i t i o n , t h e r e
w e r e t h r e e d a i r y company q u o t a h o l d e r s .
A s u n n a r y of t h e n u m b e r of
q u o t a h o l d e r s o v e r t h e p a s t f o u r y e a r s i s g i v e n i n T a b l e 4,
w h i l e Table
5 g i v e s d e t a i l s of q u o t a h o l d i n g d a i r y companies i n 1980-81.
For t h e 1981-82
milk year,
t h e f i x i n g of n o m i n a t e d q u a n t i t i e s f o r
a l l a s s o c i a t i o n s i s t o be a p p r o v e d a c c o r d i n g t o a n a g r e e d f o r n u l a .
formula i s a s
1.
The
follow^:^
A v e r a g e d a i l y s a l e s c a l c u l a t e d by t a k i n g t h e n e t s a l e s by r n i l k
s t a t i o n s t o vendors o v e r a p e r i o d of two c o n s e c u t i v e w i n t e r months
and d i v i d i n g by t h e a p p r o p r i a t e number of days i n t h e p e r i o d .
a
Ibid.,
p.7.
Ibid.,
p.7.
I b i d . , p.8.
-
TABLE 4
T o t a l Milk S u p p l i e r s a n d D a i l y Quotas
.......................................................................
Year
Ending
31 August
Type of Q u o t a t l o l d e r s
Tot a 1
Nominated
Quantity
(1)
No. Town
tZve r a ge
!lilk
Daily Quota
S u p p l i e r s per S u p ~ l i e r
(1)
......................................................................
1978
T o t a l NZ S u p p l i e r s
D a i r y Companies
D i r e c t Ouota Holders
1,298,528
24,570
1,273,958
1,667
3
1,664
778.96
8,190.00
765.60
1979
T o t a l NZ S u p p l i e r s
D a i r y Companies
D i r e c t Quota H o l d e r s
1,298,748
24,593
1,274,155
1,604
3
1,601
809.69
8,197.67
795.85
1980
T o t a l NZ S u p p l i e r s
D a i r y Companies
D i r e c t Quota H o l d e r s
1,246,586
23,637
1,222,949
1,543
3
1,540
807.90
7,879 .OO
794.12
T o t a l ??Z S u p p l i e r s
D a i r y Companies
D i r e c t Quota H o l d e r s
1,145,118
21,830
1,123,288
1,470
3
1,467
778.99
7,276.67
765.70
-
--
--------------
-
.......................................................................
1981
.......................................................................
SOURCE:
N.Z.
- - -
-
Milk Board, p e r s . comm.
TABLE 5
Quota Holding Companies 1980-81
.......................................................................
.......................................................................
??arne of
Company
No. of subquota holders
Quota
he1d
(1)
SUPPY;
District
13,390
1,103
7,337
:luck l a n d
Franklin
Hamilton
49
6
8
Total
P r o p o r t i o n of
T o t a l Nominated
Suppliers :
63
.......................................................................
E a s t Tamaki
E a s t Tanaki
Rruntwood
.......................................................................
Total
21,830
P r o p o r t i o n of
T o t a l Nominated 1.91%
Quota :
4.29%
.......................................................................
.......................................................................
SOURCE:
2.
N.Z. ?.{ilk Board, p e r s . conm.
The r e s u l t a n t d a i l y s a l e s f i g u r e s t o be i n c r e a s e d by a t o l e r a n c e
f a c t o r of
3.25
p e r c e n t t o c o v e r r e t u r n e d milk,
w a s t a g e and o t h e r
factors.
3.
The r e s u l t a n t f i g u r e t o be a d j u s t e d t o i n c l u d e a n a l l o w a n c e f o r
e x p e c t e d c h a n g e s i n t tie p o p u l a r ion.
CEAPTER 2
DESCRIPTION OF THE SUEWEY
2.1
The Sample
The s a m p l i n g u n i t f o r t h e s u r v e y i s t h e f a r m , a n d t h e main s o u r c e s
of i n f o r m a t i o n t h e f a r m e r a n d t h e a n n u a l f a r m a c c o u n t s .
A random 7 5 p e r c e n t of
t h e f a r m s t h a t p a r t i c i p a t e d i n t h e 1979-80
s u r v e y w e r e r e t a i n e d f o r t h e 1980-81
survey.
The o t h e r 25 p e r c e n t were
e x c l u d e d and r e p l a c e d by a new random s e l e c t i o n of f a r m s .
A l l town m i l k
f a r m s w e r e e l i g i b l e f o r s e l e c t i o n p r o v i d e d t h e f o l l o w i n g c r i t e r i a were
satisfied:
( i ) The f a r m s u p p l i e d a p r o d u c e r a s s o c i a t i o n t h a t h a d a n o m i n a t e d
q u a n t i t y (W.Q.)
of
n o r e t h a n 8,700 l i t r e s d a i l y .
( i i ) The f a r m i t s e l f had a d a i l y
q u o t a of more t h a n 200 l i t r e s .
( i i i ) The f a r m r e c e i v e d a t l e a s t 75 p e r c e n t of
g r o s s r e v e n u e f r o m town
milk sales.
( i v ) The f a r m engaged no s h a r e m i l k e r .
( v ) The f a r m e r h a d b e e n p r o d u c i n g t o w n m i l k o n t h a t p a r t i c u l a r f a r m
o v e r t h e t w e l v e months of t h e s u r v e y p e r i o d .
The d e c i s i o n o n e l i g i b i l i t y was
carried
out
in
two s t a g e s .
F i r s t l y , i n f o r m a t i o n a v a i l a b l e f r o m t h e M i l k Board p r i o r t o s a m p l e
s e l e c t i o n enabled farms not
s a t i s f y i n g ( i ) and
eliminated
population.
from
the
total
Also
(ii)
above
results
t o be
from a
q u e s t i o n n a i r e which h a d b e e n s e n t t o e a c h p r o d u c e r company s e c r e t a r y
s e e k i n g i n f o r m a t i o n on t h e
s h a r e m i l k e r s i n e a c h company
f a r m s t o b e f u r t h e r e l i m i n a t e d o n t h e b a s i s of ( i v ) .
enabled
The s e c o n d s t a g e
a t which a d e c i s i o n was made on e l i g i b i l i t y was a t t h e t i n e of t h e f a r m
v i s i t when f u r t h e r f a r m s w e r e e l i m i n a t e d b e c a u s e of e i t h e r ( i i i ) o r (v).
Of a n i n i t i a l l i s t of 1 4 6 7 f a r m s p r o v i d e d by t h e M i l k B o a r d , t h e
e l i g i b l e . p o p u l a t i o n was r e d u c e d u n d e r ( i ) ,
sample s e l e c t i o n .
( i i ) a n d ( i v ) t o 996 p r i o r t o
Replacement f a r m s w e r e s e l e c t e d a t r a n d o n f r o n t h e
r e d u c e d l i s t a n d t h e f a r m e r s i n i t i a l l y c o n t a c t e d by n a i l .
Provided t h a t
t h e farm. w a s found t o be e l i g i b l e and t h e f a r m e r a g r e e d t o p a r t i c i p a t e
i n t h e s u r v e y , a f a r m v i s i t was u n d e r t a k e n by L i n c o l n C o l l e g e s t a f f a n d
t h e required information obtained.
Where f a r m s w e r e f o u n d t o be
i n e l i g i b l e o r t h e farmer unwilling t o participate,
f u r t h e r replacement
f a r m e r s were c o n t a c t e d u n t i l s u f f i c i e n t n u ~ b e r swere o b t a i n e d .
2.2
Sample S t r a t i f i c a t i o n
The s a m p l e w a s s t r a t i f i e d o n t h e b a s i s of t w o r e g i o n a l g r o u p s
( K o r t h I s l a n d a n d South I s l a n d ) a n d t h r e e q u o t a s i z e s (201-600
601-1000
litres,
l i t r e s and 10Olf l i t r e s ) .
T a b l e 6 shows t h e number of s u r v e y f a r a s f o r e a c h s t r a t a o r group
compared w i t h t h e e l i g i b l e p o p u l a t i o n f o r e a c h s t r a t a .
Further d e t a i l s
a r e g i v e n i n Appendix C.
2.3
Weighting
S i n c e t h e South I s l a n d s t r a t a w e r e s a m p l e d r e l a t i v e l y more h e a v i l y
t h a n t h e Morth I s l a n d , a s i m p l e a v e r a g e of a l l s u r v e y f a r m s would h a v e
given a biased n a t i o n a l figure.
The e s t i m a t e d p r o p o r t i o n of
the total
f a r m s i n e a c h s t r a t a ( T a b l e 6 ) was t h e r e f o r e u s e d t o " w e i g h t " t h e
a v e r a g e f r o m e a c h s t r a t a t o g i v e o v e r a l l New Zealand r e s u l t s ( a n d a l s o
t h e North I s l a n d a n d South I s l a n d r e s u l t s ) .
This procedure e n s u r e s t h a t
e a c h s t r a t a a s s u m e s i t s c o r r e c t d e g r e e of
importance i n the f i n a l
results.
2.4
-
Data C o l l e c t i o n and Assembly
F i e l d w o r k commenced i n November 1 9 8 1 a n d w a s c o m p l e t e d by Nay
1982.
To m a i n t a i n u n i f o r m i t y and c o n t i n u i t y of t h e s u r v e y t h e manual of
p r o c e d u r e s a s i n t r o d u c e d by t h e New Z e a l a n d t l i l k S o a r d and t h e Town M i l k
P r o d u c e r s ' F e d e r a t i o n of New Z e a l a n d ( I n c . ) w a s f o l l o w e d .
g i v e s d e t a i l s of d e f i n i t i o n s ,
A s e t of
p r o c e d u r e s a n d i m p u t e d v a l u e s used.
f a r m w o r k i n g a c c o u n t s f o r t h e 1980-51 f i n a n c i a l y e a r w a s
o b t a i n e d from t h e f a r m e r o r h i s accountant.
the
farms
surveyed
associations.
adjusted
Appendix R
were
provided
Milk production r e c o r d s f o r
from
the
records
of
producer
A c c o u n t s of f a r m s w h e r e m a n a g e r s w e r e e m p l o y e d w e r e
t o a n owner-operated
basis,
companies were t r e a t e d a s o w n e r - o p e r a t e d
p a r t n e r s (members) a s owner,
Likewise,
p a r t n e r s h i p s and
f a r m s by a s s u m i n g one of t h e
a n d t h e o t h e r ( s ) a s employee(s),
provided
t h e y w e r e engaged i n f a r m work.
Wherever p o s s i b l e ,
cia t a w e r e t r a n s f e r r e d d i r e c t l y f r o m t h e f a r m
a c c o u n t s t o t h e r e l e v a n t income a n d e x p e n d i t u r e c a t e g o r i e s on t h e s u r v e y
a s s e ~ b l yf o r n .
Trade d i s c o u n t s ,
s u b s i d i e s and a l l o w a n c e s f o r p e r s o n a l
u s e were deducted from t h e a p p r o p r i a t e expense i t e n before e n t r y .
Other
a d j u s t m e n t s i n c l u d e d t h e c a l c u l a t i o n of a n i m p u t e d wage f o r any un?aid
f a m i l y l a b o u r a n d t h e a s s e s s m e n t of a s t a n d a r d l i v e s t o c k v a l u e f o r e a c h
s e t of a c c o u n t s .
P o p u l a t i o n a n d Sample D i s t r i b u t i o n by S t r a t a
......................................................................
Estimated
T o t a l KO.
of F a r m i n
strataa
Strata
Estimted
Proport ion
of T o t a l
Farms i n
strataa
Plumber of
Farms
Surveyed
- --
Proport ion
of T o t a l
Farms
surveyeda
- -- - ---------- -
Xorth I s l a n d
201-600 l i t r e s
16 0
0.1744
23
0.1513
601-1000
189
0.2288
27
0.1776
148
0.1680
26
0.171 1
49 7
0.5712
76
0.500
201-600 l i t r e s
143
0.1952
28
0.1842
601-1000
112
0.1536
27
0.1776
1001
+
It
II
................................................
T o t a l North I s l a n d
South I s l a n d
-
1001
+
It
I1
60
0.0800
21
0.1382
................................................
T o t a l South I s l a n d
3 15
0.4285
76
0.500
......................................................................
81 2
Xew Z e a l a n d
1.0000
15 2
......................................................................
1 .000
A l l f i n a n c i a l and p r o d u c t i o n d a t a c o l l e c t e d r e f e r r e d t o t h e farm's
f i n a n c i a l year.
T a b l e 7 shows t h e d i s t r i b u t i o n of f a r m a c c o u n t b a l a n c e
d a t e s as d e t e r m i n e d f r o m a m a i l c e n s u s of
o u t i n O c t o b e r 1979.
town m i l k p r o d u c e r s c a r r i e d
It c a n be s e e n t h a t a p p r o x i m a t e l y 60 p e r c e n t of
a l l b a l a n c e d a t e s w e r e >larch 3 1 s t .
F i n a n c i a l r e s u l t s f o r t h e s u r v e y f a r m s w e r e d e r i v e d l a r g e l y from
t h e farm accounts.
In c a s e s where t h e s e showed i n s u f f i c i e n t d e t a i l , .
f u r t h e r i n f o r m a t i o n w a s sought from t h e f a r m e r and/or accountant.
a
See Appendix C.
TABLE 7
D i s t r i b u t i o n of B a l a n c e D a t e s
.......................................................................
.......................................................................
P e r c e n t a g e of F a r c s w i t h B a l a n c e Date F a l l i n g o n :
?larch 31
A p r i l 30
May 31
J u n e 30
J u l y 31
August 31
September 30
October 31
Tot a 1
100%
.......................................................................
SOURCE:
U n p u b l i s h e d Census of Town M i l k P r o d u c e r s , October 1979.
? HY SICAL AND PRODUCTION DATA
--
3.1
P h y s i c a l C h a r a c t e r i s t i c s of Farms
3.1.1
Farm Area
Table 8 shows t h e a v e r a g e t o t a l f a r m a r e a and a v e r a g e p r o d u c t i v e
a r e a of t h e S o u t h I s l a n d , Y o r t h I s l a n d a n d a v e r a g e Kew Z e a l a n d s u r v e y
farms.
T h e same t a b l e i s b r o k e n d o w n by r e g i o n a n d q u o t a g r o u p i n
A p p e n d i x E.
T h e a v e r a g e t o t a l s i z e of t h e f a r n i n c l u d i n g r u n - o f f a r e a f o r
N o r t h I s l a n d f a r m s was 9 7 . 5 3
h e c t a r e s , f o r S o u t h I s l a n d f a r m s 91.62
h e c t a r e s , a n d f o r t h e a v e r a g e N e w Z e a l a n d f a r n , 94.99 hectares.
Farm
s i z e s r a n g e d f r o m 32.37 h e c t a r e s t o 297.66 h e c t a r e s i n t h e Y o r t h I s l a n d ,
a n d f r o m 22.39
h e c t a r e s t o 208.90
h e c t a r e s i n t h e South Island.
An e s t i m a t e of t h e t o t a l d a i r y p r o d u c t i v e a r e a u s e d f o r m i l k
p r o d u c t i o n a l s o a p p e a r s i n T a b l e 8.
This a r e a increased marginally
c o m p a r e d w i t h t h e 1979-80 s u r v e y f o r b o t h I s l a n d s a n d Mew Zealand.
l a r g e s t i n c r e a s e w a s f o r t h e a v e r a g e :Jorth
h e c t a r e s i n 1979-80
The
I s l a n d f a r m f r o m 84.33
t o 85.65 h e c t a r e s i n 1980-81.
TABLE 8
Average Areas of Town Supply F a r m
Area p e r F a r n
>:or t h
Island
South
Is l a n d
Zealand
76
(ha)
82.22
0.40
14.91
76
(ha)
81.68
2.65
7.29
152
(ha
81.99
1.36
11.64'
97.53
7.02
91.62
5.67
94.99
6.44
90.51
55.95
88.55
7.65
7.40
7.54
\i
~.ew
.......................................................................
Number of Farms
F r e e h o l d Area
Crown & Maori Lease
Rented Area
T o t a l Farm Area
L e s s U n p r o d u c t i v e Area
P r o d u c t i v e Area
L e s s E s t i m a t e d nond a i r y i n g Area
P l u s Estimated
' G r a z i n g Gut' Area
Est i n a t e d Dairy
P r o d u c t i v e Area
Utilized f o r Nilk
product iona
.......................................
.......................................
2.79
2.60
2.71
.......................................
85.65
81.15
83.72
.......................................................................
a
Hereafter abbreviated t o dairy productive hectares
3.1.2
Land Use
Table 9 g i v e s a b r i e f summary of l a n d u s e on t h e s u r v e y e d f a r m s .
The n o n - p r o d u c t i v e a r e a o n i n d i v i d u a l f a r m s r a n g e d u p t o 121.80 h a i n
t h e North I s l a n d and up t o 92.00 h a i n t h e South Islartd.
TABLE 9
U t i l i z a t i o n of Farm Area
Xort h
Is l a n d
P r o p o r t i o n of Farm
Area Under:
D a i r y Pas t u r e
F o r a g e Crops
Sheep & Reef C a t t l e
Pas t u r e L Cas h
Crops
U n p r o d u c t i v e Land
X
South
Is l a n d
?Jew
Zealand
0,
/o
84
1
86
2
85
8
7
7
7
5
6
10Q
100
100
.......................................................................
Total
c/
/o
.......................................................................
2
3.1.3
Irrigation
Fifty-eight
p e r c e n t ( 4 4 f a r m s ) of
t h e surveyed South I s l a n d
f a r m s used i r r i g a t o n d u r i n g t h e y e a r compared w i t h 12 p e r c e n t ( n i n e
f a r m s ) i n t h e North I s l a n d .
3.2
Farm Ownership
T a b l e 1 0 s h o w s t h e d i s t r i b u t i o n of t h e v a r i o u s f o r m s of f a r n
ownership.
I n d i v i d u a l o w n e r s h i p p r e d o n i n a t e s i n t h e S o u t h I s l a n d (50.2
In t h e North
p e r c e n t ) f o l l o w e d by h u s b a n d a n d w i f e p a r t n e r s h i p s .
I s l a n d t h e o r d e r was r e v e r s e d w i t h h u s b a n d a n d w i f e p a r t n e r s h i p s b e i n g
t h e most f a v o u r e d (35.8
p e r c e n t ) f o l l o w e d by s o l e o w n e r s h i p a t 33.0 p e r
cent.
TABLE 1 0
Types of Farm Ownership
.......................................................................
Farm Ownership
I n d i v i d u a l Owner
Partnership :
( i ) Hus band-wif e
( i i ) Father-son(s)
( i i i ) Other family
F a ~ i l yCompany
Trust
Other Chnership
Total
North
Is l a n d
South
Is l a n d
....................................
100 .0
1 0 0 .0
.......................................................................
3.3
New
Zealand
100 .O
Labour
The a v e r a g e s u r v e y f a r m e m p l o y e d a t o t a l o f 2.27
labour units
( s e e T a b l e 1 1 ) w h i c h was m a r g i n a l l y h i g h e r t h a n t h e 1979-81) f i g u r e o f
2.25 l a b o u r u n i t s .
A s l i g h t increase i n labour u n i t s per farm f o r the
N o r t h I s l a n d f r o m 2.27 i n 1 3 7 3 - 8 0 t o 2.34 u n i t s o c c u r r e d .
T h e r e was a
f a l l i n t h e p r o p o r t i o n of p e r m a n e n t l a h o u r p e r i?ew Z e a l a n d f a r m ( f r o m 9 0
p e r c e n t t o 8 8 p e r c e n t ) a n d a n i n c r e a s e i n t h e p r o p o r t i o n of f a m i l y
l a b o u r ( f r o m 7 0 p e r c e n t t o 72 p e r c e n t ) .
TAI3LE 1 1
Types of Labour U n i t s
.......................................................................
Type of Labour
Xort h
Is l a n d
South
Is l a n d
0.94
0.56
0.14
0.97
0.54
0.13
.......................................................................
Farmer
Permanent Family
Casua 1 Family
?:ew
Zealand
0.95
0.55
0.14
.......................................
1.64
1.64
1.64
.......................................
T o t a l Family Labour U n i t s
Permanent Non-family
C a s u a l FTon-f a n i l y
T o t a l Noon-family
Labour U n i t s
0.70
0.54
.......................................................................
T o t a l Labour U n i t s
2.34
2.18
.......................................................................
P r o p o r t i o n of
Permanent Labour
P r o p o r t i o n of Family
Labour
Milk P r o d u c t i o n
3.4.1
Hilk Production Per Farn
2.27
882
88%
8 ;8;
70%
7 5X
7 2X
.......................................................................
.......................................................................
3,4
0.63
The d a i l y q u o t a p e r s u r v e y e d f a r m w a s 8 0 3 l i t r e s ( T a b l e 1 2 ) ,
compared w i t h t h e p r e v i o u s Kew Z e a l a n d s u r v e y e s t i m a t e of 807 l i t r e s .
T o t a l a n n u a l m i l k p r o d u c t i o n i n c r e a s e d t o 493,772 l i t r e s p e r f a r m
(up t h r e e p e r c e n t f r o m t h e p r e v i o u s y e a r ) .
The p r o p o r t i o n of m i l k s o l d
a t q u o t a p r i c e s showed a d e c r e a s e of two p e r c e n t .
When t h e t o t a l l i t r e s p r o d u c e d p e r f a r m i s c o n v e r t e d t o m i l k f a t
a t a 4.21
Per cent testa,
t h e average North I s l a n d townmilk
farrr:
p r o d u c e d 266 k g p e r d a i r y p r o d u c t i v e h e c t a r e compared w i t h t h e a v e r a g e
S o u t h I s l a n d f a r n a t 221 kg.
Unlike
t h e p r e v i o u s s u r v e y t h e a v e r a g e South I s l a n d s u p p l i e r
p r o d u c e d more m i l k on a l i t r e s - p e r - c o w
counterpart.
The bTorth I s l a n d f a r m e r ,
b a s i s t h a n h i s North I s l a n d
however,
h e c t a r e a n d p e r f a r m per day.
a
Millc Board 2 8 t h
---
Annual P.eport
1 9 8 1 , p.62.
--
produced n o r e m i l k p e r
-
-
3.5
Other P h y s i c a l and P r o d u c t i o n Data
I n Appendix D f u r t h e r p h y s i c a l and p r o d u c t i o n i n f o r m a t i o n i s
listed.
It i n c l u d e s i n f o r m a t i o n s u c h a s s u p p l e m e n t a r y d a i r y f e e d ,
run-
o f f a r e a , d a i r y management and s t o c k b a l a n c e s .
TABLE 12
hfilk P r o d u c t i o n
.......................................................................
i.lilk P r o d u c t i o n P e r F a r n
P:orth
Is l a n d
South
Is l a n d
Ne w
Zealand
D a i l y Quota ( 1 )
t l i l k P r o d u c t i o n Sold a t
Quota P r i c e s ( 1 )
N i l k P r o d u c t i o n Sold a t
Surplus Prices (1)
T o t a l L i t r e s Produced ( 1 )
P r o p o r t i o n of T o t a l Sold
a t Quota P r i c e s (7;)
T o t a l L i t r e s Produced i n
J u n e 1980 ( 1 )
T o t a l L i t r e s Produced i n
Dec. 1980 ( 1 )
Average Herd S i z e (No.
cows i n c l u d i n g d r y cows)
Average No. M i l k i n g Cows
i n J u n e 1960
Average No. M i l k i n g Cows
i n Dec. 1980
T o t a l L i t r e s Converted t o
4.21% M i l k f a t ( k g )
Kg M i l k f a t p e r Dairy Prod.
ha ( k g )
T o t a l S t o c k ~ n i t s a / F a r n(So.)
S t o c k U n i t s / D a i r y Prod.
ha (No.)
T o t a l L i t r e s I A v e r a g e E!erd
Size (1)
L i t r e s / D e c . t l i l k i n g Cows ( 1 )
L i t r e s / T o t a l ha ( 1 )
L i t r e s / D a i r y Prod. ha ( 1 )
Litres/Farr/Day (1)
.................................
23,361
17,349
26 6
22 1
247
.................................
1,413
1,103
1,280
.................................
16.5
13.7
15.3
4,075
4,798
5,555
6 , 3 18
1,520
4,158
4,753
4,589
5,264
1,168
4,111
4,779
5,141
5,866
1,369
.................................
.......................................................................
a
21,040
For a d e f i n i t i o n of s t o c k u n i t s , s e e tlppendix 3 .
C~IAPTER4
FINANCIAL DATA
4.1
Introduction
Many of t h e t a b l e s i n t h i s c h a p t e r h a v e r e s u l t s p r e s e n t e d o n a p e r
f a r m , per a v e r a g e cow a n d a p e r d a i r y p r o d u c t i v e h e c t a r e b a s i s .
For
b o t h I s l a n d s t h e p e r f a r m r e s u l t s a r e d i v i d e d by t h e a v e r a g e number o f
cows ( i n c l u d i n g d r y cows) a n d d a i r y p r o d u c t i v e a r e a f o r e a c h I s l a n d t o
g i v e t h e p e r cow a n d p e r d a i r y p r o d u c t i v e h e c t a r e r e s u l t s .
The New
Z e a l a n d c a l c u l a t i o n s u s e t h e New Z e a l a n d a v e r a g e number o f c o w s a n d t h e
New Z c a l a n d a v e r a g e d a i r y p r o d u c t i v e a r e a .
The r e l i a b i l i t y of t h e s u r v e y e s t i m a t e s a r e p r e s e n t e d Fn Appendix
C.
Comparisons w i t h t h e r e s u l t s from previous y e a r s a r e p r e s e n t e d i n
A p p e n d i x F.
4.2
Capital Structure
Details o f
t h e procedures adopted i n a s s e s s i n g t h e c a p i t a l value
o f assets a n d l i a b i l i t i e s a r e l i s t e d i n Appendix B.
They a r e s i m i l a r t o
those followed i n previous surveys.
4.2.1
V a l u e of a l l Assets
The t o t a l v a l u e o f a l l a s s e t s o n t h e a v e r a g e N e w Z e a l a n d s u r v e y
f a r m was $448,012 ( s e e T a b l e 13).
t h e 1979-80 v a l u e .
T h i s w a s 25.63 p e r c e n t h i g h e r t h a n
This i n c r e a s e would have been g r e a t e r b u t f o r t h e
f a l l i n t h e a v e r a g e s u r v e y f a r m f r e e h o l d area f r o m 84.59
h a i n 1979-80
t o 81.99 ha.
The a v e r a g e North I s l a n d f a r m h a d a n a l l assets t o t a l of $509,635
c o m p a r e d w i t h t h e South I s l a n d f i g u r e o f $365,932.
difference
$113,133,
4.2.2
i n asset value
per
farm between t h e
i n 1979-80 i t was $104,430 a n d i n 1980-81
I n 1978-79
two
Islands
the
was
i t was $143,703.
Value of A l l L i a b i l i t i e s
The a v e r a g e
North
Island
l i a b i l i t i e s t o t a l o f $107,002.
farm had a
current and fixed
The S o u t h I s l a n d f i g u r e w a s $ 1 0 0 , 7 8 9 .
The Mew Z e a l a n d v a l u e o f a l l l i a b i l i t i e s a n d e q u i t y b o t h i n c r e a s e d
c o m p a r e d w i t h t h e p r e v i o u s y e a r , t h e f o r m e r by 31.6 p e r c e n t a n d t h e
l a t t e r by 23.9 p e r c e n t ( s e e T a b l e 13).
TABLE 13 ( c o n t .)
Capital Structure
t
Per
Farm
-
V a l u e o f a l l Assets a n d L i a b i l i t i e s
........................
North I s l a n d
Per
P e r Dairy
Cow
Prod. Ha
Current L i a b l i t i e s .
Bank O v e r d r a f t
Sundry C r e d i t o r s
Hire P u r c h a s e s
Stock Firm
Liabilities
Other Current
Liabilities
I
93
Total Current
Liabilities
Fixed L i a b i l i t i e s
P r i v a t e Mort g a g e s
R u r a l Bank
I n s u r a n c e Company
Rank Mort g a g e s
O t h e r Term Loans
t
....................
Total
South I s l a n d
Per Per Dairy
Cow Prod. Ha
........................
$
3,938
4,892
2,269
1,561
....................
Total Fixed
Liabilities
Total a l l
Liabilities
Equity
Per
Farm
145
.........................
I
509,635
3,835
5,950
.....................
.........................
...............................................
$
49
48
23
16
$
49
60
28
19
Per
Farm
New Z e a l a n d
Per Per Dair
Cow P r o d . ila
.......................
$
4,577
5,342
1,387
1,040
*
$
38
45
12
9
$
55
64
17
12
4.3
Gross Zevenue
T o t a l g r o s s r e v e n u e i n Table 14 f o r t h e a v e r a g e Nerd Z e a l a n d f a r m
i n c r e a s e d by 22.7 p e r c e n t t o 586,056 compared w i t h t h e y e a r b e f o r e .
M i l k s a l e s r e p r e s e n t e d 84.7
f o r t h e a v e r a g e farm.
p e r c e n t of t h e t o t a l g r o s s r e v e n u e
The PIew Z e a l a n d f i g u r e of $72,891 f o r m i l k s a l e s
was a b o v e t h e 1 9 7 9 - 8 0 f i g u r e by 23.2 p e r c e n t .
l i v e s t o c k s a l e s of $8,523 p e r f a r c was 14.7
year's figure.
The p r o f i t f r o m a l l
p e r c e n t above t h e p r e v i o u s
Livestock standard values were c a i n t a i n e d a t t h e s a n e
l e v e l a s t h e previous survey.
The t o t a l North I s l a n d g r o s s r e v e n u e p e r f a r m of $91,016 was 14.6
p e r c e n t h i g h e r t h a n t h e South I s l a n d t o t a l p e r f a r m ($79,451).
The
North I s l a n d was a l s o h i g h e r i n r e v e n u e p e r d a i r y p r o d u c t i v e h e c t a r e b u t
t r a i l e d t h e South I s l a n d i n r e v e n u e p e r cow.
TABLE 14
Gross Revenue Components
Per
North I s l a n d
Per P e r ~ a i r ~
South I s land
Per Per Dairy
Cow P r o d . Ha
New Zealand
Per
Per Per Dairy
Farm
COW P r o d . Ha
.------------------------
I
I
Milk S a l e s
Produce Sold
\.loo1 & Skins S o l d
Contracting Fees
Rent & Lease Fees
Employee's House
1,ivestock P r o f i t
Dairy
Other Stock
Other Revenue
-
1
5
7
8
8,94 5
4 59
1,929
67
3
15
105
5
23
----------------------.-------------------------
Gross Revenue
5
603
220
4 52
636
664
91,016
2
3
5
68 5
3
5
1,063
.....................
.........................
...............................................
14
4
18
5
$
72,891
957
30 3
3 53
537
5 64
$
61 1
8
3
3
4
5
$
87 1
11
4
4
6
7
4.4
Expenditure
4.4.1
Farm E x p e n d i t u r e
F o r t h e a v e r a g e New Z e a l a n d f a r m ,
t o t a l e x p e n d i t u r e i n c r e a s e d by
24.3 p e r c e n t t o $ 6 6 , 3 8 8 i n 1 9 3 0 - 8 1 ( T a b l e 1 5 ) .
The l a r g e s t i n c r e a s e
was overhead c o s t s which
f o l l o w e d by
rose
32.0
per
cent
labour,
operating, d e p r e c i a t i o n and a d m i n i s t r a t i o n expenses which r o s e
per cent,
21.7
per cent,
27.6
19.8 p e r c e n t and 12.9 p e r c e n t r e s p e c t i v e l y .
The t w o h i g h e s t i n d i v i d u a l o p e r a t i n g e x p e n s e s f o r t h e a v e r a g e town
m i l k f a r m w e r e r e p a i r s a n d m a i n t e n a n c e which r o s e by 34.1 p e r c e n t ( t o
S7,641) and
vehicle
e x p e n s e s ( u p 28.5
per
cent
to
$5,968).
f o l l o w e d f e r t i l i s e r a n d s e e d c o s t s which i n c r e a s e d by 42.4
$5,109).
Then
per cent ( t o
F e e d e x p e n s e s were t h e n e x t h i g h e s t o p e r a t i n g e x p e n s e ( u p
19.9 p e r c e n t t o $ 5 , 0 1 6 ) .
A r i s e of
30.2
p e r c e n t ( t o $8,968) i n t h e i n t e r e s t p a i d on t h e
a v e r a g e Xew Z e a l a n d f a r m was r e c o r d e d .
R o r t h I s l a n d i n c r e a s e d by 44.8
The a v e r a g e a m o u n t p a i d i n t h e
p e r c e n t t o $9,277 p e r f a r m w h i l e i n t h e
S o u t h I s l a n d t h e a v e r a g e i n t e r e s t p a i d w a s u p b y 14.2 p e r c e n t t o
$8,556.
TABLE 15
Farm E x p e n d i t u r e Components
S o u t h Is l a n d
P e r P e r Dairy
Cow P r o d . Hla
North I s l a n d
Pe r
Farm
Expenses
Labour
Family Labour
Family C a s u a l Labour
Non-Family P e r m a n e n t
& C a s u a l Labour
Unpaid Family Labour
L a b o u r ~ c c o m m o d ait o n
I ~ u b - t o t a l Labour
B r e e d i n g & Herd
Testing
Contractors
D a i r y Shed E x p e n s e s
Electricity
F e r t i l i z e r b Seed
l'e e d
Crazing Expenses
Freight
Weed & P e s t E x p e n s e s
V e h i c l e Expenses
Repairs and
Maintenance
I r r i g a t i o n Expenses
1.5
,I
b-Total
Operating
$
3,458
829
$
26
6
$
40
10
2,060
488
$
20
5
$
25
6
Per
Farm
New Z e a l a n d
P e r Per Dairy
Cow P r o d . Ha
4.4.2
D e p r e c i a t i o n of Farm Assets
Yet d e p r e c i a t i o n ( T a b l e 16) i n c r e a s e d by 19.8 p e r c e n t
t o $5,942 f o r t h e a v e r a g e New Z e a l a n d f a r m .
fro^ $4,960
The i n c r e a s e w a s g r e a t e r i n
t h e t ! o r t h I s l a n d ( u p by 29.6 p e r c e n t ) c o m p a r e d w i t h t h e S o u t h I s l a n d
(up
8.7 p e r c e n t ) .
T o t a l g r o s s d e p r e c i a t i o n f o r New Z e a l a n d i n c r e a s e d b y 14.9 p e r
The a v e r a g e N o r t h I s l a n d f a r m h a d a n i n c r e a s e o f 20.8
c e n t t o $6,392.
p e r c e n t w i t h t h e S o u t h I s l a n d a v e r a g e f a r m s h o w i n g a s m a l l e r r i s e of
8.2 p e r c e n t .
For
both
Islands
a n d New
Zealand i n c r e a s e s occurred i n a l l
g r o u p s of o r d i n a r y d e p r e c i a t i o n ( p l a n t a n d e q u i p n e n t ,
vehicles and
buildings).
4.5
F a r n Income
-
4.5.1
Net Farm I n c o n e
Xew Z e a l a n d n e t f a r m i n c o m e ( b e f o r e t a x a t i o n ) a v e r a g e d $19,668 i n
1930-81 ( T a b l e 17).
T h i s was a n i n c r e a s e o f 17.7 p e r c e n t o v e r t h e
p r e v i o u s s u r v e y r e s u l t of $16,709.
f a l l e n by 9.7
I n 1979-80 n e t f a r m i n c o m e h a d
per c e n t compared w i t h t h e previous year.
K o r t h I s l a n d a v e r a g e n e t f a r m i n c o m e i n c r e a s e d by 17.1 p e r c e n t t o
$21,540.
The N o r t h I s l a n d f a r m e r h a d a s l i g h t l y
i n c r e a s e i n h i s t o t a l e x p e n d i t u r e ( u p 27.01
i n g r o s s r e v e n u e ( u p 24.5
per cent).
higher percentage
per cent) than his increase
In t h e South I s l a n d t h e average
f a r m e r a l s o had a s u b s t a n t i a l i n c r e a s e i n h i s t o t a l e x p e n d i t u r e
p e r c e n t t o $51,819.
of 20.2
The i n c r e a s e i n t h e S o u t h I s l a n d g r o s s r e v e n u e
s h o w e d a s i m i l a r p e r c e n t a g e r i s e ( u p 19.6 p e r c e n t t o $79,451).
The n e t
f a r m i n c o n e r e s u l t f o r t h e a v e r a g e S o u t h I s l a n d f a r m e r s u r v e y e d was a
r i s e i n n e t i n c o m e f r o m $ 1 4 , 5 8 0 t o $17,175 ( u p 17.8 p e r c e n t ) .
The
Island
d i f f e r e n c e b e t w e e n t h e a v e r a g e n e t f a r m i n c o m e of t h e ' l b r t h
and t h e South I s l a n d
was $4,365.
I n 1379-80 t h e d i f f e r e n c e was
$3,821.
P L e s u l t s by q u o t a g r o u p a r e g i v e n i n Appendix D.
'
m
U
aJ
(I)
(I)
<
1
I
I
5
G
L
i
I
l
U . ,
C I C
Y
? i d 1 1
L G +
I
I
%
.+
! I
il
a
EX)
In
a2
- o m
4.5.2
Cash S u r p l u s
R e t a i l s of
the cash surplus available t o farmers a f t e r the years
f a r m i n g a r e l i s t e d i n T a b l e 18.
Imputed revenue and c o s t components
such a s a l l o w a n c e s f o r t h e employee's
excluded.
house and f a r i l y labour a r e
T a x a t i o n h a s n o t b e e n deducted.
Cash s u r p l u s f r o m f a r m i n g i n c r e a s e d t o $27,409.
p e r c e n t h i g h e r t h a n t h e p r e v i o u s survey.
increase,
T h i s w a s 21.8
Both I s l a n d r e s u l t s showed a n
t h e a v e r a g e Korth I s l a n d f a r m h a d a 24.2 p e r c e n t r i s e and t h e
South I s l a n d had a 17.9 p e r c e n t i n c r e a s e .
Cash r e c e i p t s f o r t h e a v e r a g e New Z e a l a n d f a r m w e r e up by 21.5 p e r
c e n t w i t h c a s h e x p e n s e s i n c r e a s i n g by a s i m i l a r p e r c e n t a g e (up 21.3
cent).
per
In b o t h I s l a n d s t h e p e r c e n t a g e i n c r e a s e i n c a s h r e c e i p t s was
matched by t h e p e r c e n t a g e r i s e i n c a s h e x p e n s e s .
also closely
D a i r y c a t t l e s a l e r e c e i p t s showed a s u b s t a n t i a l i n c r e a s e o v e r t h e
previous year.
F o r t h e a v e r a g e Mew Z e a l a n d f a r m , d a i r y c a t t l e s a l e s
w e r e up 4 3 p e r c e n t t o $9,298.
4.5.3
Farm Incomes Less Imputed I n t e r e s t P a t e s
In Table
19 a n i m p u t e d i n t e r e s t r a t e (e.g.
3.5
p e r cent) was
a p p l i e d f i r s t t o t h e e q u i t y of t h e f a r m e r . The r e s u l t i n g f i g u r e was t h e n
d e d u c t e d f r o m t h e n e t farm. i n c o n e .
The a c t u a l i n t e r e s t p a i d was l e f t i n
a s a n expense.
S i c i l a r l y a n i m p u t e d i n t e r e s t was a p p l i e d t o t h e t o t a l v a l u e of
farm assets.
The r e s u l t i n g f i g u r e was t h e n d e d u c t e d f r o m t h e sum of n e t
f a r m i n c o r e p l u s a c t u a l i n t e r e s t paid.
This second approach e l i r n i n a t e s
a n y d i f f e r e n c e s t h a t o c c u r r e d i n n e t f a r m i n c o m e s due t o a c t u a l i n t e r e s t
payments and a s s u m e s t h a t t h e f a r m s w e r e d e b t f r e e .
Cash S u r p l u s f r o n F a r p i n g
( S per farm)
.......................................................................
?Torth
Is l a n d
South
Is l a n d
*;,ew
Zealand
.......................................................................
Cash R e c e i v e d :
-
S
S
S
Millc S a l e s
Dairy C a t t l e Sales
Sheep h Beef S a l e s
Bobby C a l f S a l e s
O t h e r Farm Income
77,108
10,030
650
1,352
3,840
67,277
3,322
91 1
1,136
4,398
72,891
9,2? 8
762
1,277
4,079
Total
33,010
82,044
88,307
16,258
13,797
15,203
3,124
244
2,926
824
3,039
492
.......................................................................
Cash S p e n t :
-Labour a n d
Operating
Overhead h
Adminis t r a t i o n
Cattle P u r c h a s e s
Sheep G Beef Cattle
Purchases
.......................................................................
Total
64,043
56,711
60,898
.......................................................................
Cash S u r p l u s f r o m Farming
28,967
25,333
27,4(39
.......................................................................
TABLE 19
l!et F a r m 1ncorr.e l e s s I m p u t e d I n t e r e s t
on E q u i t y and T o t a l A s s e t s
.......................................................................
PJorth I s l a n d
--
- - ---
- -
-
South I s l a n d
Xew Z e a l a n d
-
$
S
$
Equity
Net Farm I n c o c e
A. Net Farm Income l e s s
Imputed I n t e r e s t o n
E q u i t y a t P a t e of :
3.5% p.a.
5% p.a.
7% p e a .
402,633
21,540
265,143
17,175
343,676
19,468
7,448
1,408
-6,645
7,835
3,915
-1,386
7,639
2,484
-4,390
T o t a l Farm Assets
t:e t Farrn Income
I n t e r e s t Paid
B . Net Farm Income p l u s
I n t e r e s t Paid l e s s
Imputed I n t e r e s t o n
T o t a l Farm Assets a t
P a t e of :
3.5% p.a.
5%
pea.
7%
p.a.
4 9 4 , 7 68
21,540
9,277
354,895
17,175
8,556
434,788
19,668
8,965
13,500
h ,078
-3,817
13,309
7,986
888
13,418
6,896
-1,799
.......................................................................
.......................................................................
4.5.4
X e a s u r e s of Economic P r o f i t a b l i t y
:in a t t e m p t h a s b e e n r?ade i n T a b l e 2 0 t o a l l o w a c o m p a r i s o n of
r e s u l t s f r o m t h i s town m i l k s u r v e y w i t h t h o s e f o u n d i n t h e i1.Z.
Wool Board's Economic S e r v i c e s u r v e y of s h e e p and beef f a r n s a .
Xeat G
:!ost
of
t h e terms used h e r e a r e p a r t i c u l a r t o t h i s t a b l e and a r e not found
elsewhere i n t h i s report.
They a r e d e f i n e d i n Appendix 3.
The c a l c u l a t e d r a t e of r e t u r n o n f a r m c a p i t a l i n v e s t e d f o r t h e
a v e r a g e New Z e a l a n d t o w n n i l k f a r m w a s 4.23 p e r c e n t ( T a b l e 2 0 ) .
f i g u r e f o r t h e p r e v i o u s y e a r was 4.37
per cent.
The c a p i t a l t u r n o v e r p e r c e n t a g e i s t h e r a t i o of
t o t a l farm c a p i t a l ,
The
expressed a s a percentage.
gross revenue t o
I n 1380-81 t h e a v e r a g e
Kew Z e a l a n d f a r m had a c a p i t a l t u r n o v e r p e r c e n t a g e of 20.49 p e r c e n t .
The l a b o u r a n d management r e s i d u a l i s a n a s s e s s m e n t of what t h e
f a r m e r e a r n s a s a r e w a r d f o r h i s own l a b o u r and nanagerrrent,
h e p a y s i n t e r e s t a t 11.0
given t h a t
p e r c e n t o n h i s own e q u i t y c a p i t a l ,
a d d i t i o n t o t h e i n t e r e s t h e a l r e a d y pays on borrowed c a p i t a l .
Zealand a v e r a g e t o w n m i l k r e s i d u a l w a s -$15,277
in
The New
compared w i t h -$8,673
f o r t h e p r e v i o u s survey.
4.6
-
P r i n c i p a l Revenue a n d E x p e n d i t u r e Components
M i l k s a l e s r e p r e s e n t e d 84.7 p e r c e n t o f t o t a l r e v e n u e i n t h e
c u r r e n t s u r v e y ( T a b l e 21).
T h i s was 0.3 p e r c e n t more t h a n i n 1979-80.
The na j o r e x p e n d i t u r e s u b g r o u p was o p e r a t i n g e x p e n s e s .
Operating
e x p e n s e s make u p n e a r l y h a l f t h e t o t a l e x p e n s e s o n t h e a v e r a g e t o w n
m i l k farm.
The n e x t m a j o r e x p e n d i t u r e s u b g r o u p was o v e r h e a d s , f o l l o w e d
c l o s e l y by l a b o u r e x p e n s e s .
\:hen
c o m p a r i n g t h e North and South I s l a n d s , o p e r a t i n g and l a b o u r
e x p e n s e s w e r e t h e o n l y s u b g r o u p s w i t h a d i f f e r e n c e g r e a t e r t h a n two p e r
c e n t of t o t a l e x p e n s e s .
A s a p e r c e n t a g e of t o t a l e x p e n s e s , a l l o t h e r
e x p e n d i t u r e s u b g r o u p s f o r t h e two .Isl a n d s w e r e s i m i l a r .
a
P:ew Z e a l a n d ?.feat a n d Wool Boards'
Farm S u r v e y , 1379-80, p.44.
E c o n o m i c S e r v i c e , S h e e p a n d Beef
TABLE 2 0
Measures of Economic p r o f i t a b i l i t y a
-----
----PP=EPE===P==P===EI=====IEI========ii(ii(PEECi===m=============-==================-=-==X=======
North I s l a n d
Number of Farms
Return on C a p i t a l
1. Working Expenses ( L a b o u r , o p e r a t i n g
& g d m i n i s t r a ti o n l e s s i m p u t e d c o s t s )
2. P l u s a s s e s s e d M a n a g e r i a l Reward ( $ 8 , 7 1 0
p l u s 1% o f Farm C a p i t a l - s e e 5)
A.
76
$
South I s l a n d
'
76
$
New Z e a l a n d
152
$
46,304
40,917
43,993
13,448
12,017
12,834
3. T o t a l a d j u s t e d Working Expenses (1+2)
4. Working C a p i t a l (8.33% o f 3 )
5. Farm C a p i t a l ( e x c l u d i n g d w e l l i n g , c a r ,
and s h a r e s )
6. T o t a l Farm C a p i t a l (4+5)
7. Net Farm Income
8. P l u s I n t e r e s t P a i d
9. P l u s Rent P a i d
10. S u b - t o t a l (7+8+9)
11. L e s s a s s e s s e d M a n a g e r i a l Reward ( 2 )
12. Economic Farm S u r p l u s (10-11)
13. Rate of R e t u r n % ( 1 2 1 6 )
B. C a p i t a l ' h r n o v e r P e r c e n t a g e
14. G r o s s Revenue ( l e s s w o r k e r ' s h o u s e )
15. T o t a l Farm C a p i t a l ( 6 )
16. C a p i t a l ' h r n o v e r P e r c e n t a g e (14115)
--
C. Labour & Management R e s i d u a l
17. T o t a l Farm C a p i t a l ( 6 )
18. P l u s Cash a t Bank
19. Sub-Total (17+18)
20. L e s s F i x e d L i a b i l i t i e s
21. L e s s C u r r e n t L i a b i l i t i e s
22. T o t a l E q u i t y C a p i t a l ( 19-20-21)
23. t h t Farm Income (7)
24. L e s s 11.0% of E q u i t y C a p i t a l ( 2 2 )
25. Labour & Management R e s i d u a l (23-24)
---------==---------
a
------------
-=------------=========P=================
Most of t h e t e r m s u s e d h e r e a r e p a r t i c u l a r t o t h i s t a b l e a l o n e .
They a r e d e f i n e d
i n Appendix H. They a r e s i m i l i a r t o t h o s e u s e d hy t h e N.Z. H e a t a n d Wool Hoartls'
1:conoruic S e r v i c e I n t l ~ e t r"Sheep a n d Deef Farm Survey".
Revenue a n d E x p e n d i t u r e P r o p o r t i o n s
----------_________------------------------------------------------------____-________----------------------------------------------?:art h I s l a n d
South I s l a n d
P~!ew Z e a l a n d
G r o s s Revenue
Milk S a l e s
Livestock P r o f i t
O t h e r Revenue
Tot a1
100.0
100.0
100.0
100.0
100.0
100.0
.......................................................................
Expenditure
Labour
Operating
Adninis t r a t i o n
Overheads
Depreciation
Total
.......................................................................
Expendi t u r e / R e v e n u e
Ratio
76.3%
78.4%
.......................................................................
.......................................................................
77.17;
,@PEXDIX A
PRODUCER ASSOCIATIONS IRCLUDED I N SURVEY
NORTH 1SLAL;D
Whangarei ?!ilk Y a r k e t i n g Co. Ltd
Yorth Shore Co-op :-Iilk P r o d u c e r s L t d
+
Auclcland Co-op :"ilk P r o d u c e r s Ltd
The Kew Zealand Co-op
D a i r y Co. Ltd (Ambury's),
Auckland
F r a n k l i n Co-op >{ilk P r o d u c e r s L t d
n a m e s V a l l e y Piilk P r o d u c e r s Ltd
t l a m i l t o n N i l k P r o d u c e r s Ltd
W e s t e r n Say of P l e n t y (Co-op)
f l i l k Producers Ltd,
E a s t e r n Ray of P l e n t y (Co-op)
N i l k P r o d u c e r s L t d , I.:hakatane
Tauranga
Rotorua Co-op Elilk P r o d u c e r s Co. Ltd
Tolcoroa Co-op
G i s b o r n e Co-op
> [ i l k P r o d u c e r s Co. L t d
f t i l k P r o d u c e r s Assn Ltd
FIawke8s Bay Milk P r o d u c e r s Co-op
Xew Plymouth Town ? f i l k Co-op
Egmont Town Milk Co-op
Ltd
Ltd
Ltd
Wanganui Co-op I f i l k Supply Co. L t d
Manawatu Milk P r o d u c e r s Co. Ltd
W a i r a r a p a Town Y i l k Ltd
W e l l i n g t o n Dairy Farmers Co-op
Assn Ltd
SOUTH ISLAFD
PTelson Co-op > E l k P r o d u c e r s Assn Ltd
Rlenheim Co-op Milk Suppply Ltd
Grey D i s t r i c t Co-op
X i l k P r o d u c e r s Assn. Ltd
C a n t e r b u r y Dairy F a r n e r s Ltd
Fletropolitan :Iilk Ltd
Ashburton Town Plilk P r o d u c e r s Co-op
Ld
South C a n t e r b u r y Co-op l l i l k Supply Co. Ltd (Tirnaru)
PTorth Ctago Co-op
flillc Supply Co. L t d
Dunedin Dairy F a r n e r s Co-op
3 i l k Supply Co. L t d
S o u t h l a n d Co-op i i i l k P r o d u c e r s Assn Ltd ( I n v e r c a r p i l l )
SURVEY DEFINITIOEtS AND TREAEIENT OF DATA
The same b a s i c s u r v e y p r i n c i p l e s and p r o c e d u r e s have been a d o p t e d
a s i n s u r v e y s of p r e v i o u s y e a r s .
The f o l l o w i n g d e f i n i t i o n s a n d
p r i n c i p l e s were adopted i n e x t r a c t i n g and a s s e m b l i n g d a t a f r o m each
farm.
FAR1 AREA :
-T o t a l Farm Area:
--T h i s was t h e t o t a l a r e a f a r m e d by t h e p r o d u c e r d u r i n g h i s 1980-81
f i n a n c i a l year.
It i n c l u d e d r e n t e d l a n d a n d run-off u n i t s , b u t d i d n o t
i n c l u d e any ' g r a z i n g out' l a n d .
--
P r o d u c t i v e Farm Area:
The p r o d u c t i v e a r e a of t h e f a r m i n c l u d e d t h e l a n d t o w h i c h s t o c k
It w a s t h e a r e a g r a z e d by s t o c k l e s s t h e a r e a i n
had r e g u l a r access.
roads, yards, r a c e s and f a r m buildings.
The p r o d u c t i v e a r e a of run-off
u n i t s was a l s o i n c l u d e d . A r e a s u n d e r swamp, s t e e p g u l l i e s , r i v e r b e d s
and dense bush were excluded.
P r o d u c t i v e Farm Area Used For D a i r v S t o c k :
T h i s w a s t h e e s t i m a t e d t o t a l p r o d u c t i v e a r e a of l a n d u s e d f o r
p a s t u r e a n d f o d d e r p r o d u c t i o n f o r d a i r y s t o c k g r a z i n g d u r i n g t h e income
year.
E s t i m a t e d a r e a s u s e d f o r beef c a t t l e and s h e e p g r a z i n g bave been
A l l g r a z i n g o u t a r e a s u s e d by f a r m e r s d u r i n g t h e y e a r h a v e
deducted.
b e e n c o n v e r t e d t o a n a n n u a l g r a z i n g a r e a and a r e i n c l u d e d i n t h e
estimated area.
Run- Off U n i t s :
Run-of f u n i t s w e r e l a n d a r e a s s e p a r a t e d f r o m t h e m a i n f a r m and w e r e
m a i n l y u s e d t o r e a r young d a i r y s t o c k o r c a r r y o t h e r s t o c k f r o m t i m e t o
time.
Run-off u n i t s w e r e i n c l u d e d i n t h e t o t a l f a r m a r e a .
LABOUR :
Labour U n i t :
A l a b o u r u n i t was d e f i n e d a s a w o r k e r , w h e t h e r owner o r employee,
Fractional
who w o r k e d o n t h e f a r m f u l l t i m e o v e r t h e s u r v e y p e r i o d .
u n i t s of l a b o u r w e r e u s e d when i n c l u d i n g work c a r r i e d o u t on a p a r t y e a r
o r p a r t time basis.
Any work c a r r i e d o u t by c h i l d r e n u n d e r 1 2 y e a r s was
ignored.
The f a r m e r ' s \ . r i f e , c a d e t a n d s t u d e n t w o r k e r s w e r e a s s e s s e d
a c c o r d i n g t o t h e amount of u s e f u l work c a r r i e d o u t .
T h i s was t h e a v e r a g e d a i l y q u o t a p e r f a r n f o r t h e f a r m e r ' s 1980-81
income year.
XILK GRADES:
Elilk g r a d e s a r e d e f i n e d by t h e N.Z.
Ffilk Board a s f o l l o w s :
F i n e s t Grade:
For m i l k which p a s s e s a f i v e - h o u r r e d u c t a s e t e s t a n d
w h i c h , w h i l e g e n e r a l l y c o m p l y i n g w i t h t h e a c c e p t e d n a t i o n a l s t a n d a r d of
4 . 3 c e n t f a t f o r town m i l k , does n o t f a l l below 3.5 p e r c e n t f a t .
F i r s t Grade:
For m i l k which p a s s e s a three-hour r e d u c t a s e t e s t h u t
f a i l s t o p a s s t h e f i v e - h o u r t e s t a n d / o r w h i c h c o n t a i n s 3.25 p e r c e n t f a t
b u t n o t 3.5 p e r c e n t f a t .
Second Grade:
For m i l k which f a i l s t o p a s s a t h r e e - h o u r
and/or c o n t a i n s l e s s t h a n 3.25 per c e n t f a t .
reductase t e s t
STOCK URITS :
T h e s e f i g u r e s a r e b a s e d on t h e s t o c k u n i t o r ewe e q u i v a l e n t
A g r i c u l t u r a l Science",
c o n v e r s i o n r a t i o s r e c o m m e n d e d by Coop i n "N.Z.
Vol. 1 , No. 3, 1965.
D a i r y Town S U D D ~ Y
S h e e ~a n d Beef C a t t l e
p e r head
F r e i s i a n cow
-
5.5
S.U.
p e r head
Eve
1.0
2 year old
6.0
Hoggets
0.6
1 year old
4.5
Rams
0.9
C a t t l e beef
6.0
Ileifer-weaner
3.5
Y e a r l i n g beef
4.0
2 y e a r o l d beef
4.5
Calf
2.5
S.U.
REVENUE :
Total Nilk
--
Sales:
The v a l u e of a l l m i l k s a l e s w a s e x t r a c t e d f r o m e a c h s e t of
a c c o u n t s a n d checked a g a i n s t t h e monthly m i l k payments a s p r o v i d e d by
each Producer C o ~ p a n y . Milk r e c e i p t s i n c l u d e a l l r e l e v a n t s p e c i a l
payments ~ a d eby t h e P r o d u c e r Company d u r i n g t h e farm's f i n a n c i a l year.
P r o d u c e Sold :
P r o c e e d s f r o m t h e s a l e of o t h e r f a r m p r o d u c e , e.g.
c e r e a l s , hay
etc.
C o n t r a c t i n g Fees :
G r o s s p r o c e e d s from c o n t r a c t i n g work u n d e r t a k e n by t h e f a r m e r o r
h i s e m p l o y e e s ; e.g. f e n c i n g , h a y b a l i n g , b u l l d o z i n g e tc.
Rent a n d Lease
---
Fees :
C r a z i n g f e e s o r r e n t r e c e i v e d f r o m f a r m c o t t a g e s o r land.
Employee's
House a n d
--
Produce :
T h i s v a l u e i s t h e sum of t h e a n n u a l i m p u t e d r e n t a l of $1,300 f o r
t h e f a r m employee's house a n d $130 p e r annum a l l o w a n c e f o r e a c h m a r r i e d
n o n - f a m i l y p e r m a n e n t w o r k e r f o r p r o d u c e u s e d . The f i g u r e o f $ 1 9 0 p e r
annum f o r p r o d u c e u s e d p e r f u l l - t i n e n a r r i e d l a b o u r u n i t was a d o p t e d t o
c o v e r milk, meat, v e g e t a b l e s and f i r e w o o d used.
This a l l o w a n c e was n o t
e x t e n d e d t o t h e o w n e r o r members of t h e f a r m f a m i l y .
The v a l u e of
produce used was a l s o i n c l u d e d i n l a b o u r accommodation e x p e n s e s .
L i v e s t o c k Prof i t :
Stock p r o f i t from t h e l i v e s t o c k t r a d i n g accounts.
The s u r v e y
standard values were a p p l i e d t o a l l livestock.
Stocl: b a l a n c e s w e r e
d e r i v e d w i t h t h e a i d of t h e f a r m e r a n d f a r m a c c o u n t s .
O t h e r Revenue :
S a l e s of t i m b e r , p o s t s , and s u n d r y i t e m s , and i n t e r e s t f r o m Dairy
Company s h a r e s a n d i n v e s t m e n t s .
Government l i v e s t o c k s u b s i d i e s and
d r o u g h t r e l i e f payments a r e a l s o i n c l u d e d .
G r o s s Revenue :
Sum of a l l t h e above income i t e m s .
a s s e s s e d i n t h e survey.
$Jon-farm income h a s n o t been
EX? END 1TUP.E :
Family Permanent Labour :
A c t u a l wages p a i d t o p e r m a n e n t f a c i l y members.
i n c l u d e a n y s a l a r y o r management f e e p a i d t o owner.
Value of
--
It d o e s n o t
Labour U n i t :
A s t a n d a r d w a g e o f $ 8 , 7 1 0 p e r a n n u m , w i t h t h e p r o v i s i o n of a
house, was assumed f o r t h e i m p u t e d wage of a d u l t w o r k e r s o v e r 20 y e a r s .
T h i s f i g u r e was c a l c u l a t e d f r o m t h e a d u l t a w a r d wage f o r d a i r y f a r m
A f u r t h e r $1,726 w a s
w o r k e r s f r o m 2 O c t o b e r 1980 of $6,984 p e r annum.
added t o c o m p e n s a t e f o r t h e 12 months m i l k i n g r e q u i r e m e n t on a town-milk
f a r m a n d t h e p r o x i m i t y of a l t e r n a t i v e e m p l o y m e n t o p p o r t u n i t i e s . T h e
i m p u t e d wage based on a 54 h o u r week f o r y o u t h s b e t w e e n 12 and 20 y e a r s
of a g e w a s t h e a w a r d r a t e f o r 1 8 y e a r o l d s o f $ 5 , 7 3 5 p e r annum. Of t h e
152 f a r m e r s s u r v e y e d f o r t h e 1979-80 s u r v e y , 6 0 p a i d a n a v e r a g e a n n u a l
a d u l t wage of $ 7 , 6 6 4 t o p e r m a n e n t n o n - f a m i l y w o r k e r s . From t h i s i s
s u b t r a c t e d t h e 1979-80 a w a r d r a t e of $5,938 t o l e a v e $1,726.
This h a s
b e e n added o n t o t h e O c t o b e r 1980 a w a r d t o t o t a l $8,710.
Xon-Family
-
Permanent a n d C a s u a l Labour:
Wages p a i d t o p e r m a n e n t a n d c a s u a l n o n - f a m i l y members.
Casual
wages i n c l u d e wages p a i d f o r r e l i e f m i l k i n g , c a s u a l f e e d i n g , h a y m a k i n g
e t c . d u r i n g t h e year.
C o n t r a c t o r s ' work i s e x c l u d e d .
Unpaid Family Labour :
The v a l u e of u n p a i d f a ~ i l yl a b o u r was a s s e s s e d a s f o l l o w s :
A d u l t s o v e r 20 y e r s of a g e :
12-20 y e a r o l d y o u t h s and g i r l s :
C h i l d r e n u n d e r 12 y e a r s :
$3.10 p e r h o u r
$2.04 p e r hour
Kil.
The t i m e worked by f a m i l y member up t o a maximum of 54 h o u r s p e r
I f a wage was
week w a s a s s e s s e d a n d a n i m p u t e d t o t a l wage c a l c u l a t e d .
p a i d and l i s t e d i n t h e a c c o u n t s , t h i s was n o t e d u n d e r f a m i l y l a b o u r a n d
deducted from t h e assessed t o t a l .
Any b a l a n c e w a s l i s t e d a s u n p a i d
f a m i l y labour.
I f two b r o t h e r s worked f u l l - t i n e a s a p a r t n e r s h i p , t h e
f a r m was a d j u s t e d t o a s o l e o w n e r s h i p e n t e r p r i s e a n d o n e b r o t h e r w a s
a l l o c a t e d a n i m p u t e d wage of $8,710 p e r annum.
Labour Accommodation:
T h i s was c a l c u l a t e d a s t h e sum of t h e i m p u t e d r e n t a l v a l u e of t h e
f a r m c o t t a g e of $1,300 p e r annurn a n d $190 p e r annum f o r produce u s e d by
non-family permanent workers.
F u l l b o a r d was a s s e s s e d a t $ 1 , 0 0 0 p e r
y e a r per person,
Contracting:
Payment t o c o n t r a c t o r s f o r work done, s u c h a s b u l l d o z i n g , f e n c i n g ,
c u l t i v a t i o n , hay o r s i l a g e making a n d h a r v e s t i n g .
T h i s amount i n c l u d e s a l l v e t e r i n a r y f e e s a n d d r u g s , b l o a t c o n t r o l
a n d f a c i a l eczema c o n t r o l .
--
B r e e d i n g and Herd T e s t i n g :
A r t i f i c i a l b r e e d i n g , h e r d t e s t i n g and p e d i g r e e e x p e n s e s .
-.Shed Expenses :
sheds.
Rubberware, r o p e s , b u c k e t s , c l e a n s e r s and m i s c e l l a n e o u s i t e m s f o r
Xebates have been d e d u c t e d where a p p l i c a b l e .
Electricity :
E l e c t r i c i t y used on t h e f a r m and u p t o o n e - q u a r t e r of t h e d o m e s t i c
account.
--
F e r t i l i s e r a n d Seed:
I n c l u d e s c o s t of f e r t i l i z e r , s e e d s ,
S u b s i d i e s a n d r e b a t e s have been d e d u c t e d .
and spreading charges.
Feed :
P u r c h a s e s of hay, s t r a w , d a i r y m e a l , g r a i n s , m i n e r a l s , c a l f f o o d
and miscellaneous i t e m s such a s b a l e r twine.
Rebates were deducted
where a p p l i c a b l e .
G r a z i n n E x ~ e n s e :s
Grazing f e e s incurred during t h e year.
and P e s t
-
Control :
T h i s amount i n c l u d e s c o s t of m a t e r i a l s and s p r a y i n g work.
I n some
c a s e s where i t i s n o t i t e m i z e d t h e c o s t of s p r a y i n g work i s i n c l u d e d i n
c o n t r a c t i n g expenses.
V e h i c l e E x ~ e n s e :s
Includes f u e l , r e p a i r s , l i c e n c e s , r e g i s t r a t i o n , insurance and s o
on f o r a l l v e h i c l e s i n c l u d i n g f a r m b i k e s .
Personal allowances f o r
v e h i c l e r u n n i n g have b e e n d e d u c t e d w h e r e t h e y w e r e shown i n a c c o u n t s .
-
R e p a i r s and Eiaintenance :
Repairs t o buildings, plant, fences, water supply, races, etc.
T h i s i t e m a l s o i n c l u d e s 25% of r e p a i r s t o t h e f a r m e r ' s house.
Developrzent Expenses :
If t h i s amount i s d e t a i l e d i n t h e farmer's a c c o u n t s , i t has been
combined w i t h R e p a i r s a n d N a i n t e n a n c e i n t h e r e s u l t s .
I r r i g a t i o n Expenses :
Repairs t o i r r i g a t i o n equipment and r u n n i n g c o s t s f o r f u e l o r
electricity.
Accountancv :
Accountancy f e e s p a i d on a l l f a r m a c c o u n t s .
Telephone :
Telephone r e n t a l s and t o l l s .
General Administration:
farm advisory
A d m i n i s t r a t i o n I t e m s n o t a l l o c a t e d e l s e w h e r e , e.g.
services, l e g a l f e e s , subscript ions, t r a v e l l i n g expenses and sundry
o t h e r administration items.
Insurance :
G e n e r a l i n s u r a n c e of
far^ a s s e t s .
..
Interest :
The i n t e r e s t p a i d i s t h a t l i s t e d i n t h e a c c o u n t s .
It d o e s n o t
i n c l u d e a n y c a l c u l a t e d i n t e r e s t on t h e f a r m e r ' s e q u i t y c a p i t a l .
Rates :
The a m o u n t s p a i d t o C o u n t y C o u n c i l , H a r b o u r B o a r d ,
Board, R a b b i t Board o r D r a i n a g e Board.
Fees p a i d f o r Crown l e a s e o r o t h e r r e n t i n g .
r e n t s p a i d t o t r u s t a n d companies e t c .
Catchment
Excludes a l l i n t e r n a l
--
D e p r e c i a t i o n of F a r n B u i l d i n g s :
The o r i g i n a l c o s t v a l u e s
deternine depreciation.
Ordinary
f o r t a x purposes were applied.
was a p p l i e d t o t h e c o s t v a l u e s of
of a l l f a r m b u i l d i n g s w e r e u s e d t o
building depreciation r a t e s as claimed
The n o r m a l t a x a t i o n d e p r e c i a t i o n r a t e
a l l houses on t h e farm.
--
R e p r e c i a t i o n of Other A s s e t s :
D e p r e c i a t i o n on a l l o t h e r a s s e t s e x c e p t f a r m b u i l d i n g s was a l s o
A l l personal allowances f o r
b a s e d on r a t e s u s e d f o r t a x a t i o n p u r p o s e s .
d e p r e c i a t i o n (e.8. m o t o r c a r ) w e r e d e d u c t e d f r o m t h e g r o s s d e p r e c i a t i o n .
Ket D e p r e c i a t i o n :
-
Includes a l l s p e c i a l and o r d i n a r y d e p r e c i a t i o n a s claimed f o r t a x
p u r p o s e s p l u s a n y l o s s o n s a l e of a n a s s e t a n d l e s s a n y p r o f i t o n s a l e
of a n a s s e t .
T o t a l Farm
--
Expenditure :
Sum of a l l t h e above e x p e n d i t u r e i t e n s .
Farm Income :
Gross f a r m revenue l e s s t o t a l farm e x p e n d i t u r e .
Cash S u r ~ l u sf rorn farm in^:
This i s t h e d i f f e r e n c e between t h e c a s h r e c e i v e d and t h e c a s h
spent.
I m p u t e d r e v e n u e a n d c o s t components s u c h a s a l l o w a n c e s f o r t h e
employee's h o u s e a n d f a m i l y l a b o u r a r e e x c l u d e d .
T a x a t i o n h a s n o t been
deducted.
CAPITAL STRUCTURE
-- ASSETS:
F r e e h o l d Land :
The m o s t r e c e n t G o v e r n m e n t c a p i t a l v a l u a t i o n f o r e a c h far^ w a s
o b t a i n e d f r o m t h e f a r m e r . T h i s was t h e n u p d a t e d t o t h e 1980-81 y e a r .
Xext t h e o p e n i n g book v a l u e of e a c h f a r m e r ' s b u i l d i n g s was s u b t r a c t e d t o
a r r i v e a t t h e updated land value.
F o r t h i s s u r v e y , two l a n d i n d i c e s
w e r e o b t a i n e d f r o m t h e V a l u a t i o n Department.
This a l l o w e d a c o m p a r i s o n
between t h e t r a d i t i o n a l t o w n m i l k s u r v e y i n d e x ( t h e N.Z. F a r m l a n d S a l e
P r i c e I n d e x ) a n d one o t h e r which was a v a i l a b l e .
Land Value I n d i c e s
........................................................................
........................................................................
Year ended
3 1 Dec.
142 Farmland
P r i c e Indexa
(1975 = 1,000)
D a i r y Farmland
P r i c e 1ndexh
(1975 = 1,000)
a
Report of t h e V a l u a t i o n D e p a r t m e n t f o r t h e y e a r e n d e d 31 Narch
1 9 8 1 , p.7.
b
Ibid.,
p.8.
The u p d a t e d l a n d v a l u e s u s i n g t h e above two i n d i c e s a r e l i s t e d i n
T a b l e s 27 a n d 50.
Farmer's
House :
Half t h e a v e r a g e book v a l u e of t h e f a r m e r ' s h o u s e i s i n c l u d e d .
Dairy and Other
---
Stock:
The a v e r a g e book v a l u e of d a i r y a n d o t h e r s t o c k w a s c a l c u l a t e d
from t h e f o l l o w i n g s t a n d a r d v a l u e s :
S t a n d a r d Values Used i n t h e V a l u a t i o n of L i v e s t o c k :
N u ~ b e r sof d a i r y s t o c k i n t h e v a r i o u s c l a s s e s w e r e d e t e r m i n e d
p a r t l y from t h e f a r n a c c o u n t s and p a r t l y from d i s c u s s i o n s w i t h t h e
farmer.
The f o l l o w i n g s t a n d a r d v a l u e s p e r h e a d w e r e a p p l i e d t o t h e
v a r i o u s c l a s s e s of s t o c k :
Dairy Stock :
A 1 1 Cows
He i f e r s - i n - c a l f
He i f e rs
Yearlings
Calves
$125
$100
Young B u l l s
Sulls
$80
$50
$2 0
Sheep :
Ewes
Hoggets
-
Eve
Xam
-Wether
$10
$10
$8
SO
Wet h e r s
P am s
Reef C a t t l e :
Cows
Heifer
-
calves
1 yr
- 2 y r
$125
$50
$50
$125
Steers
Bulls
-
-
calves
1 yr
2 yr
calves
other
$5 0
$50
$125
$50
$200
I n o r d e r t o a l l o w c o m p a r i s o n s of r e s u l t s w i t h p r e v i o u s s u r v e y s t h e
s t a n d a r d v a l u e s a p p l i e d t o a l l s t o c k were t h e s a n e a s f o r t h e p r e v i o u s
two s u r v e y s .
F o r c o m p a r a t i v e p u r p o s e s two o t h e r f o r m s of s t a n d a r d v a l u e s were
used t o c a l c u l a t e t o t a l s t o c k p r o f i t .
These r e s u l t s a r e l i s t e d i n
T a b l e s 3 1 a n d 54.
Cash a t Bank:
--Average v a l u e of a l l c u r r e n t a c c o u n t s h e l d a t Banks f o r t h e f a r n ' s
f i n a n c i a l year.
Sundry D e b t o r s :
Average v a l u e of g e n e r a l s u n d r y d e b t s t o t h e f a r m a c c o u n t .
I4os t
of t h i s amount i s monthly m i l k payments due from t h e P r o d u c e r Companies.
Other Current Assets :
Average v a l u e of a l l o t h e r c u r r e n t a s s e t s .
Total A l l
--
Assets:
The sum of a l l c u r r e n t and l o n g t e r m f a r m a s s e t s .
CAP ITAL STRUCTURE
LIABILITIES :
Current L i a b i l i t i e s :
The a v e r a g e b a l a n c e t a k e n f r o m t h e f a r m e r ' s b a l a n c e s h e e t s f o r t h e
various current l i a b i l i t i e s .
Fixed L i a b i l i t i e s :
The a v e r a g e b a l a n c e f o r
m o r t g a g e s and l o n g t e r m l o a n s .
a l l
the
fixed
liabilities
such
as
Equity :
T h i s v a l u e i s o b t a i n e d by s u b t r a c t i n g t h e v a l u e of
a n d f i x e d l i a b i l i t i e s f r o m t h e t o t a l v a l u e of a l l a s s e t s .
USED
-
t o t a l current
MEASURES
Working Expenses :
C a s h p a y m e n t s f o r l a b o u r ( e x c l u d i ~ ~i gm p u t e d l a b o u r
accommodation v a l u e s ) , o p e r a t i n g a n d a d m i n i s t r a t i v e e x p e n s e s .
and
A s s e s s e d M a n a g e r i a l Reward :
-
T h i s i s a n a s s e s s m e n t of t h e payment t h a t s h o u l d be i m p u t e d t o a n
o w n e r - o p e r a t o r f o r h i s own l a b o u r and management s k i l l .
C a l c u l a t e d by
a d d i n g $8,710 ( i m p u t e d valrie of f a r m w o r k e r ' s wage) a n d one p e r c e n t of
Farm C a p i t a l .
Working C a p i t a l :
T h i s i s e s t i m a t e d t o be o c e t w e l t h of t h e t o t a l a d j u s t e d w o r k i n g
expenses.
S i n c e town s u p p l y f a r m s h a v e monthly m i l k c h e q u e s b e i n g p a i d
i n t o t h e i r c u r r e n t a c c o u n t s , one t w e l t l i of t h e s e e x p e n s e s i s c o n s i d e r e d
a l a r g e enough p r o p o r t i o n .
The Sheep a n d Beef Survey a l l o w s 50 p e r c e n t
of t h e s e e x p e n s e s , a s income nay be r e c e i v e d i n f r e q u e n t l y .
Farm C a ~ i t a l :
T h i s i s t h e sum of t h e c a p i t a l v a l u e of l a n d a n d b u i l d i n g s
(excluding homestead), p l a n t and machinery, farm vehicles (excluding
p r i v a t e c a r v a l u e d a t $5,329) a n d a l l l i v e s t o c k .
a
SCURCE:
N.Z. Meat a n d Wool Boards' Economic S e r v i c e ,
Sheep and Beef
Farm Survey,
1979-80,
p.44.
T o t a l Farm C a p i t a l :
-Tnis i s t h e sum of Working a n d F a r ~C a p i t a l .
-
I n t e r e s t Paid :
This is t h e i n t e r e s t paid from t h e annual accounts.
Rent P a i d :
-This is t h e a c t u a l r e n t paid.
Economic Farm S u r ~ l u :s
T h i s i s t h e d i f f e r e n c e b e t w e e n t h e sum of n e t f a r m i n c o m e ,
s a l a r i e s paid, i n t e r e s t and r e n t , a n d t h e a s s e s s e d managerial reward.
Rate of
--
Return:
T h i s i s t h e r a t i o of t h e Economic Farm S u r p l u s t o t h e T o t a l Farm
C a p i t a l expressed a s a percentage.
C a p i t a l Turnover P e r c e n t a g e :
T h i s i s t h e r a t i o of C r o s s Revenue t o T o t a l Farm C a p i t a l e x p r e s s e d
It g i v e s a n i n d i c a t i o n of t h e r a t e a t w h i c h a c a p i t a l
a s a percentage.
i n v e s t m e n t r e p r o d u c e s i t s e l f i n t h e f o r m of g r o s s income.
-
Labour a n d 14anagernent R e s i d u a l :
T h i s i s a n a s s e s s m e n t of w h a t t h e f a r m e r e a r n s a s a r e w a r d f o r h i s
own l a b o u r and management. The sum of 11.0 p e r c e n t i n t e r e s t ( s i m i l a r t o
t h e E c o n o n i c S e r v i c e Survey) i s a p p l i e d t o E q u i t y C a p i t a l , i n a d d i t i o n
t o t h e i n t e r e s t a l r e a d y p a i d o n b o r r o w e d c a p i t a l . The s u m o f 11.0 p e r
c e n t of t h e c a l c u l a t e d E q u i t y C a p i t a l i s s u b t r a c t e d fror;: t h e s u n of Net
Farm Income a n d M a n a g e r i a l S a l a r i e s paid.
XELIABILITY OF SURVEY ESTI1ItZTE S
E s t i m a t e s of
f a r m c h a r a c t e r i s t i c s based on a s a m p l e of E a r r s a r e
l i k e l y t o d i f f e r E r o n t h e f i g u r e s w h i c h ~70111dh a v e b e e n o b t a i n e d h a d
i n f o r ~ a t i o nb e e n c o l l e c t e d f r o m a l l f a r m s i n t h e p o p u l a t i o n .
The
~ a p i t u d e sof t h e s e d i f f e r e n c e s o r s a m p l i n g e r r o r s of s u r v e y e s t i m a t e s
i n t h i s r e p o r t a r e p r e s e n t e d i n t h i s A p p e n d i x i n t h e f o r m of r e l a t i v e
s t a n d a r d e r r o r s (RSE)
of
the e s t i m a t e s i n percentage
terms.
21e
r e l a t i v e s t a n d a r d e r r o r i s d e f i n e d a s t h e s t a n d a r d e r r o r d i v i d e d by t h e
mean.
The s m a l l e r t h e r e l a t i v e s t a n d a r d e r r o r , t h e n o r e r e l i a b l e t h e
estimate.
T a b l e 2 2 s e t s o u t t h e mean a n d r e l a t i v e s t a n d a r d e r r o r f o r k e y
survey variables.
For e x a m p l e , Table 22 shows t h a t f o r New Zealand t h e
s u r v e y e s t i m a t e of a v e r a g e n e t f a r n i n c o s e was $19,668 w i t h a r e l a t i v e
s t a n d a r d e r r o r ( R S E ) of 5.97 p e r c e n t .
In o t h e r words, i t i s 95 per
c e n t c e r t a i n t h a t t h e t r u e value of a v e r a g e n e t f a r m income l i e s w i t h i n
t h e r a n g e of 1.96 x 5.97
value.
p e r c e n t x $19,668 e i t h e r s i d e of t h e e s t i m a t e d
That i s w i t h i n $19,668
+
$2,301.
R e l a t i v e s t a n d a r d e r r o r s of
e s t i m a t e s of t h e means f o r t h e v a r i o u s s t r a t a t e n d t o be l a r g e r t h a n f o r
t h e New Z e a l a n d e s t i m a t e s b e c a u s e t h e s a m p l e s i z e i s s m a l l e r .
more
c a u t i o n s h o u l d be
individual strata.
exercised
in
rr.aking
Hence,
i n f e r e n c e s 'from
the
Estimation :lathecatics
a
I n a d d i t i o n t o f o r m i n g t h e u s u a l s u r v e y e s t i m a t e s i t was n e c e s s a r y
t o d e f i n e t h e p o p u l a t i o n of f a r r s e l i g i b l e f o r t h e s u r v e y s i n c e ( a s
n o t e d i n C h a p t e r 2 ) n o t a l l i n e l i g i b l e f a r ~ cs o u l d b e e l i c i n a t e d fro^
t h e t o t a l p o p u l a t i o n p r i o r t o s e l e c t i n g t h e sample.
Definitions
-
N
h
:2
t h e a p p a r e n t s t r a turn s i z e (known).
t h e number of f a r n s i n s t r a t u m h r ~ h i c hs a t i s f y t h e e l i g i b i l i t y
c r i t e r i a (unknown).
nh
-
"h
-
Ch
-
t h e number of e l i g i b l e f a r m s ( f a r m e r s ) w h i c h p r o v i d e d d a t a i n
s t r a t u m h (known).
t h e n u m b e r of i n e l i g i b l e
o b t a i n i n g nh (known).
farns
drawn
in
the
c o u r s e of
t h e number of e l i g i b l e f a r m s ( f a r m e r s ) who d e c l i n e d t o p r o v i d e
d a t a (known).
h
-
%
h
Tlh*/~*,
t h e f r a c t i o n of
eligible farns in the total
p o p u l a t i o n c o m i n g f r o m s t r a t u m h.
-
t h e unknown orean a n d v a r i a n c e of t h e e l i g i b l e P a r n s i n s t r a t u n
2
qfsh -
t h e mean and v a r i a n c e of t h e s a m p l e d e l i g i h l e u n i t s i n s t r a t u m
ch oh2
1-I
X
a
ti.
- Cnhch,
t h e unknown mean of tire c h a r a c t e r i s t i c u n d e r s t ~ ~ do vy e r
a l l e l i g i b l e units.
A
-
- Zflhxh,
tlie sample e s t i v a t e of
-
ii
Thc AERU a c k n o w l e d g e s t h e u s e f u l d i s c u s s i o n s h e l d w i t h Mr J. J o w e t t
of
t h e MAF i n f o r m u l a t i n g t h e s t a t i s t i c a l p r o c e d u r e s u s e d i n t h i s
survey.
The f i r s t t e r m i n t h e e q u a t i o n f o r e s t i m a t i n g t h e s t a n d a r d e r r o r
(s.e.)
of t h e s u r v e y m e a n s i s t h e n o r m a l e s t i m a t e f r o r n a s t r a t i f i e d
sanple.
The o t h e r t w o t e r n s r e l a t e t o t h e u n c e r t a i n t y i n r e l a t i v e
stratum sizes.
The r e c o r d e d s t a t i s t i c s r e l a t i n g t o t h e e s t i m a t e d
s t r a t u m s i z e s a r e p r e s e n t e d i n T a b l e 23.
E s t i ~ a t i o nof S t r a t u n S i z e s
.......................................................................
Stratun
K o r t h Is l a n d
201-600 li t r e s
160
23
6
13
109
0.1744
South I s l a n d
201-600 l i t r e s
601-1000
"
1001 +
It
112
60
27
21
4
6
5
5
96
50
0.1536
0.0800
T o t a l 1;7ew Z e a l a n d
812
152
625
1. 0000
.......................................................................
.......................................................................
Seventy-six f a r n s were surveyed i n each Island.
The f o l l o w i n g
f o r n u l a e were a p p l i e d t o d e t e r m i n e t h e optimum n u n b e r t o s u r v e y i n e a c h
o f t h e t h r e e q u o t a ,groups f o r e a c h I s l a n d .
on
the
var
7
where n
1979-80
=
h
2
ZNh
*
standard
var
errors
of
the
The n u e b e r n e e d e d was
farm
net
incotye
based
results.
(ih)
is proportional t o N S i,e,
h h
n
h
=
nNhSh
CNhSh
-
Y
=
n e t farm income f o r t h e s t r a t u m ,
Sh
=
t h e n e t f a r m income s t a n d a r d e r r o r f o r t h e s t r a t u m ,
APPENDIX D
OTHER PHYSICAL AND PRODUCTION DATA
1.
F a r m e r s Age, Y e a r s of !!anagement
2.
S u p p l e m e n t a r y Feed Use.
3.
Run-of f Area.
4.
Land V a l u e s Updated by D i f f e r e n t V a l u a t i o n D e p a r t m e n t I n d i c e s .
5.
Non-family
6.
Herd Tes t i n s .
7.
Number of F a r m e r s U s i n g A r t i f i c i a l B r e e d i n g .
8.
T o t a l Stock P r o f i t Calculated w i t h Various Standard Values.
9.
Dairy Stock Balances.
10.
a n d Nunber of Dependants.
A d u l t lu'orker Annual Wage P a i d a n d Y e a r s of E x p e r i e n c e .
Beef a n d Sheep S t o c k B a l a n c e s .
TABLE 2 4
F a r m e r s Age, Y e a r s of Management C o n t r o l a n d Number
of D e p e n d a n t s
.......................................................................
?Tort h
Is l a n d
Is l a n d
Kew
Zealand
76
76
152
2.8
2.6
2.7
South
.......................................................................
Number of Farms
Age of F a r c e r
(principal
decision-maker)
No. of Y e a r s of
Managenent C o n t r o l
Ibiurnber of D e p e n d a n t s
(including wife)
.......................................................................
Supplementary Feed Use
.......................................................................
.......................................................................
KO r t h
Is l a n d
South
Is l a n d
.......................................................................
I:e w
Zealand
76
76
152
Number of Farms w i t h Home Grown
Hay
Average Xo. of Home Grown B a l e s
-
73
2,901
71
4,557
144
3,611
?;umber of Farms w i t h P u r c h a s e d
Fay
Average No. of P u r c h a s e d B a l e s
25
1,646
46
2,146
74
1,860
65
47
112
36 3
422
38 8
1
21
22
Xumber of Farms Surveyed
-
Number of Farms Making S i l a g e
Average No. of Tonnes of S i l a g e
Ma de
-
Number of Farms w i t h Home Grown
Grain
Average No. of Tonnes of Home
Grown G r a i n
-
Number of Farms w i t h P u r c h a s e d
Grain
Average !.lo. of Tonnes of P u r c h a s e d
Grain
0.9
8
-
Kumber of Farms w i t h P u r c h a s e d
D a i r y ?leal
Average No. of Tonnes of D a i r y
Xeal P u r c h a s e d
-
.......................................................................
156.3
24.2
25
59.8
10.9
33
114.9
34
33
h7
23.0
10 .O
17.4
TABLE 26
Run-Off
Area
.......................................................................
Number of Farms w i t h a Run-of f
Area
Run-off Area ( h a )
D i s t a n c e from Hone E a r n t o
Run-off (km)
-
?:orth
Is l a n d
South
Is l a n d
?:ew
Zealand
51
37.26
40
29.55
91
33.95
6.0
5.8
5.9
.......................................................................
TABLE 27
Land V a l u e s Updated by D i f f e r e n t V a l u a t i o n
Department I n d i c e s a
.......................................................................
South
Is land
tbrt h
Is Land
New
Zea l a n d
-
-
- --
- -- --
82.22
81.68
81.99
Land Value Updated by N.Z.
Farmland Sa e P r i c e Index
t o 31.12.80
414,200
274,229
354,178
Land Value Updated by t h e
D a i r y Farmland P r i c e Index
t o 31.12.80
375,314
237,314
316,138
F r e e h o l d Land Area ( h a )
6
a
D e t a i l s of e a c h i n d e x a p p e a r i n Appendix R.
-.
The i n d e x s e l e c t e d f o r t h e c a p i t a l a c c o u n t f o r t h i s r e p o r t w a s t h e
N.Z. Farmland S a l e P r i c e Index.
TABLE 28
??on-Family Adult Worker Annual Wage P a i d a n d Years of E x p e r i e n c e
.......................................................................
?!o r t h
Is l a n d
Kumber of F a r m w i t h a ?ion-Family
A d u l t Worker Employed A l l Year
Annual Average Wage p a i d a
P r e v i o u s Years of Dairy
Experience
-
27
$9,343
5.1
South
Is l a n d
19
$3,038
2.8
.......................................................................
a
New
Zealand
46
$3,191
4.1
It i s t h e s i m p l e
The a v e r a g e wage p a i d i s n o t t h e w e i g h t e d a v e r a g e .
a v e r a g e c a l c u l a t e d f r o m Table 51.
TABLE 29
Use of Herd T e s t i n g
North
Is l a n d
South
Is l a n d
42
39
5
tlew
Zealand
P r o p o r t i o n of Farms
Using :
No Herd T e s t i n g
Owner Sampling
Monthly Sanp l i n g
A l t e r n a t e >lonthly
P r o d u c t i o n Ranking
2
43
12
1
56
40
4
48
0
0
7
1
100
100
.......................................................................
Total
100
.......................................................................
TABLE: 30
Ntunber of Farmers U s i n g A r t i f i c i a l B r e e d i n g
.......................................................................
North
Is l a n d
South
Is l a n d
:!e w
Zealand
4 3%
61%
Rumber of Farms w i t h Some
A r t i f i c i a l l y Bred Stock
-
P e r c e n t a g e of Herd Bred
f r o m AR
7 5X
.......................................................................
.......................................................................
TABLE 3 1
T o t a l Stock P r o f i t C a l c u l a t e d w i t h V a r i o u s S t a n d a r d V a l u e s
.......................................................................
.......................................................................
North
Is l a n d
South
Is l a n d
New
Zealand
- -
T o t a l Stock Prof i t C a l c u l a t e d
U s i n g Town Milk Survey
Standard valuesa
T o t a l S t o c k Prof i t C a l c u l a t e d
U s i n g N.Z. D a i r y Board
b
S t a n d a r d Values 1979-50
T o t a l Stock P r o f i t a s L i s t e d
i n Farmers' Annual Accounts
$9,404
$7,347
S8,522
$9,750
$7,443
$8,761
$9,572
$8,133
$8,955
.......................................................................
a
b
-
Town f f i l k Survey s t a n d a r d v a l u e s a r e d e t a i l e d i n Appendix R.
N.Z. Dairy Board, An Economic Survey of F a c t o r y Supply D a i r y Farms i n
N.Z.,
1979-80,
p.24.
d
q
+ m a g
h 3s
&J
s o u m
e*uoz
0
LE
aJ m
Mu4
m
Ll Ll
aJ aJ
> a
<
50
u
V:
M
C
4
V]
0
7-4
U
aJ
1
7-4-
Q
>
0
C E
Ll
aJ
m
COW
m
Ll Ll
aJ a
> a
C
-"U0
LI
cn
u)
C
d
C
aJ
a
0
SUIWEY RESULTS i3Y R E G I O N AL!D (>UOTX GP,OU,D
Average A r e a s of Town S u p p l y F a r m .
U t i l i z a t i o n of Farm Area.
Types of Farm Ownership.
r
.
~ y p e sof Labour U n i t s .
?.!ilk P r o d u c t i o n .
Capital Structure
-
V a l u e of a l l A s s e t s and L i a b i l i t i e s .
C r o s s R.evenue Components.
Farm E x p e n d i t u r e Covponent s.
D e p r e c i a t i o n o f Farm tlssets.
R e t Farm Income Corrponent s
.
Cash S u r p l u s f r o m Farming.
I:et
F a r n Income less
I m p u t e d I n t e r e s t on
Equity and T o t a l
Assets.
? I e a s u r e s of Economic P r o f i t a b i l i t y .
F a r m e r s Age,
Y e a r s of
Management
C o n t r o l a n d :?umber o f
Dependants.
S u p p l e m e n t a r y Feed u s e .
Run-of f A r e a .
Land V a l u e s Updated by D i f f e r e n t V a l u a t i o n D e p a r t r e n t I n d i c e s .
?!on-Facily
Adult !Jorkers
A n n u a l Wage P a i d a n d Y e a r s
Experience.
Use of Herd Tes
tin^.
;.:umber of F a r ~ e r sU s i n g A r t i f i c i a l B r e e d i n p .
T o t a l Stock P r o f i t Calculated w i t h Various Standard Values.
of
TARLF. 34
Average Areas of Town Supply Farms
by Region and Quota Group
.......................................................................
......................................................
---------------Fbrth Island
201-600d 601-1001 R l O O l + R
South I s l a n d
201-6002 601-1000R 1001+R
.......................................................................
28
23
(ha
55.52
0.18
27
(ha
77.04
0
26
(11a
116.99
1.16
(ha)
59.87
0.81
27
(ha
P2.32
2.O4
21
(ha)
133.66
6.60
9.20
16.68
18.44
6.01
8.35
8.34
64.90
93.7 2
136.59
66.69
93.61
148.60
10.39
6.30
6.42
3.06
8.82
61.62
83.33
130.29
60.27
90.55
139.78
3.11
8.25
11.55
6.78
7.01
3.65
2.46
1.68
4.65
0.84
1.75
.......................................................................
8.52
PTurrber of F a r m
F r e e h o l d Area
Crown & X a o r i
Lease
Rented Area
T o t a l F a r n Area
L e s s Unproducti v e Area
P r o d u c t i v e Area
Less Estimated
Non-dairying
Area
P l u s Estimated
' G r a z i n g Out'
Area
>
>
.......................................................
3.28
.......................................................
ZS t i m t e d d a i r y
Pr odu c t i ve
Area U t i l i s e d
54.33
60.97
76.76
123.39
85.29
f o r iiilk
Product i o n
---------------------------------------------.-------------------------.......................................................................
138.65
TABLE 35
U t i l i z a t o n of Farm Area
By Region a n d Q u o t a Croup
---------------- ...........................
-------------------------.
----------------------------------------------------------------------.
T
South I s l a n d
201-6002 601-10002 1001+2
I!orth I s l a n d
201-6002 601-1000k 1001+G
----------------.----------------------------.--------------------------23
27
26
Kurnber of Farms
P r o p ' n of r' a r m
Area U n d e r :
Dairy P a s t u r e
Forage Crops
Sheep h Beef
Cattle P a s t u r e
L Cash C r o p s
Unproductive
Land
Total
X
I
1
-/
/O
28
x
(If
10
27
21
01
o/
k
lil
89.1
1 .O
79.7
0.4
84.8
2.2 ,
8b.4
2 .LC
87.4
1.8
84.5
3.1
4.8
8.8
8.4
6.8
7.5
6.5
5.1
11.1
3.3
5.9
100
100
100
ion
.......................................................................
100
1
100
TABLE 36
Types of Farm Ownership
by Region a n d Quota Group
--------------------------.
Xort h Is l a n d
201-6008 601-1000!?, 1001+,!?,
-----------------.--------------------------Plumber of F a r n s
Type of Farm
Owners h i p
I n d i v i d u a l owner
Partnership :
(i)
flusbandWife
( i i ) Patherson ( s )
( i i i ) Cther
f ami l y
Family Company
Tr us t
Other
Ownership
Total
23
27
26
W
/O
X
X
48
26
27
35
37
35
4
C,
0
4
7
4
9
26
4
0
34
100
100
0
0
South I s l a n d
20 1-600 Q 601-1000 Q, 1001+R
0
0
1
100
100
100
............................................
..........................
.......................................................................
/
TABLE 37
Types of Labour U n i t s p e r F a r r by Region
a n d q u o t a Group
....................
Xunber of Farms
Farmer
Permanent F a n i l y
C a s u a l Family
T o t a l Family Labour
Units
Permanent Kon-Facil
C a s u a l Non-Family
T o t a l Pbn-Family
Labour U n i t s
Soutll I s l a n d
Rorth I s l a n d
701-6130!?, 601-1000!?, 1001+R 201-600% 601-1000% 1001+!?,
........................
0.17
0.83
0.59
0.15
2 6 1
28
0.95
0.44
0.14
0.61
0.12
21
0.38
0.63
0.15
1.53
1.74
1.63
1.53
1.71
1.76
0.20
0.08
0.40
0.10
1.18
0.23
0.07
0.09
0.50
0.16
1.04
0 -20
0.28
0.50
1.41
0.16
0.66
1.24
0.92
0.51
0.10
1 2 3
27
1 .OO
0.57
27
0 .!IF:
..................................................
9
..................................................
------------------- ...................................................
2.37
1.69
T o t a l Labour U n i t s
1.81
2.24
3 -04
------------------- ...................................................
P r opo r t i o n of
Pe r m n e n t Labour
P r o p o r t i o n of
Fami l y Labour
3 .OO
9 0%
8 8%
8 8%
8 65
8 8%
8 8%
85%
7 8%
54%
917;
72X
592
------------------...................................................
.......................................................................
TABLE 38
![ilk P r o d u c t i o n by Region and Ouota Croup
____
_____
____________----------------------------------------------------------------..........................
ifilk Product i o n
lbrth Island
South I s l a n d
20 1-600% 601-1000% 1001+% 201-600% 601-1000% 10011-9
--------------------.--------------------------,-------------------------
i.;tlrnber of F a r n s
D a i l y Quota ( 1 )
l.Ii l k Product ion
S o l d A t Quota
Prices (1)
IIilk Product i o n
Sold a t Surplus
Prices (1)
23
466
27
793
26
1,362
78
472
27
7 56
21
1,291
199,238
3 2 4 , 5 1 4 540,359 1 8 5 , 0 7 6
3 2 0 , 3 5 6 551,26:
140,939
162,056 329,923
1 4 5 , 7 0 1 150,776
96,524
---------------_----.---------------------------------------------------
Total Litres
Produced ( 1 )
340,177
486,570 870,882 281,600
466,657
.......................................................................
702,03E
P r o p o r t i o n of T o t a l
S o l d a t Ouota
59
67
62
66
69
73
Prices (1)
Average L i t r e s
Produced i n
23,772
38,064 61,458 18,667
29,825 48,018
June 1980 ( 1)
Average L i t r e s
Produced i n
32,147
47,427 79,345 29,381
5 0 , 2 0 3 68,174
December 1980 (1)
Average Herd S i z e
(l!o. Cows
92.78
120.41 191.54
70.27
112.24
155.17
i n c l u d e s d r y cows)
Average No. " i l k i n g
Cows i n J u n e 1980
58.57
86.15
130.12
47.86
72.11
107.38
Average No. E l i l k i n g
Cows i n Dececber
80.74
101.37
161.19
61.75
99.37
131.67
1980
Total Litres
C o n v e r t e d t o 4.21% 1 4 , 3 2 1
20,485 36,664 11,855
19,646 29,556
Flilk F a t ( k g )
Kg ?Iillc F a t I D a i r y
P r o d u c t i v e ha (kg)
235
26 7
297
2 18
230
213
T o t a l Stock u n i t s a /
Farn (Yo.)
968
1,237
2,032
755
1,131
1,781
Stock U n i t s / D a i r y
P r o d u c t i v e ha (No.)
15.9
16.9
16.5
13.3
14.0
12.8
Total LitresIAverage
Herd S i z e ( 1 )
3,666
4,041
4,547
4,007
4,158
4,524
L i tres/December
E I i l k i n g Cows ( 1 )
4,213
4,800
5,403
4,560
4,696
5,332
L i t r e s I T o t a l ha ( 1 )
5,242
5,132
6,376
4,385
4,774
4,223
L i t r e s / D a i r y Prod u c t i v e ha ( 1 )
5,579
6,333
7,055
5,183
5,471
5,063
~dltresLSa~mLDa~-Lll-------------------_~-------------I------=1---~-------------22------~--33 2
1 333
7 356
__-________________---------------------772
1 779
1 323
a For a d e f i n i t i o n of S t o c k U n i t s s e e A ~ p e n d i xB.
-
I
TABLE 39
-
Value of a l l A s s e t s a n d L i a b i l i t i e s
Capital St ructure
by Region and Quota Group
.....................................................
Korth I s l a n d
23
27
South I s l a n d
26
27
21
ASSETS
F r e e h o l d Landa
(Valued a t
31.12.80)
F a r c e r ' s Fiouse
(1/2)
O t h e r Farm Houses
Farm B u i l d i n g s
P l a n t & Equipment
Farm Veh i c l e s
Dairy Stock
O t h e r Stock
Company S h a r e s
T o t a l Farm Assets
Cash a t Sank
Sundry D e b t o r s
Other Current
Assets
-----------------T o t a l A l l .Assets
-----------------a
D e t a i l s of t h e u p d a t i n g of
i n T a b l e 27 of Appendix D.
l a n d valiles a r e l i s t e d i n Appendix 3 and
( T a b l e 39 c o n t . . .)
TABLE 39 ( C o n t . )
-
Vahle of a l l Assets arid L i a b i l i t i e s
Capital Structure
by Region and Quota Croup
.......................................................................
f:orth I s l a n d
South Is l a n d
201-600R 601-1000!?, 1001+!?, 201-600% 601-1000!?, 1001+!?,
--------------------.--------------------------------------------------Number of Farms
CURBEKT LIABILITIES
Bank O v e r d r a f t
Sundry C r e d i t o r s
Ilire Purchases
Stock Firm
Liabilities
Other Current
Liabilities
23
27
26
28
27
21
$
$
$
$
S
$
2,587
4,502
1,559
4,311
&,500
27 2
8,635
8,509
47 9
2,633
2,937
1,895
5,078
5,299
3,148
b,335
8,742
1,491
717
510
769
1,211
2,423
762
33
0
366
458
40 5
349
3,398
3,593
19,358
9,192
16,351
16,279
FLYED LIABILITIES
P r i v a t e Mort g a g e s
R u r a l Bank
I n s u r a n c e Co.
Rank i l o r t gages
O t h e r Term Loans
37,718
15,222
703
2,953
1,226
43,567
35,095
12,091
6,364
10,302
32,399
764
3,958
3,257
47,109
30,939
1,635
3,655
16,985
72,716
37,733
27,808
7,278
5,369
T o t a l Fixed
Liabilities
57,822
--------------------.--------------------------------------------------Tot a 1 C u r r e n t
Liabilities
Total a l l
Liabilities
Equity
Total
5,692
8,623
8,353
51,880
100,323 150,904
TAHLE 40
G r o s s Fe Jenue Components by Region and q u o t a Croup
------------------------------------- ..........................
.........................
South I s l a n d
Fbrt ti Is l a n d
201-600% 601-1000R 1001+R 201-6002, 601-10002 1001t-i?,
Number of Farms
Xi l k S a l e s
Produce Sold
!4ool & S k i n s Sold
C o n t r a c t i n g Fees
Rent & Lease Fees
Employee's House
Livestock P r o f i t
Dairy
Other Stock
O t he r Revenue
-
G r o s s Revenue
-------------------
Farm E x p e n d i t u r e C o c p o n e n t s by F,egion a n d Quota c r o u p a
.......................................................................
------------------- .........................
-------------------------
1
i
South I s l a n d
Xorth I s l a n d
201-600L 601-1000!?, 1001+!?, 201-600!?, 691-1000!?, 1Q01+R
------------------- ........................
Number of F a r n s
------------------------
26
$2 3
LABOUR
F a m i l y Labour
Fami l y C a s u a l
Labour
Xon-Fami l y Permane n t & C a s u a l Labout
Unpaid F a m i l y L a b o u ~
L a b o u r Acconnodat i o r
S u b - t o t a l Labour
OPERATIPIG
Animal H e a l t h
1,111
B r e e d i n g & Herd
Testing
Contractors
D a i r y Shed E x p e n s e s
Electricity
F e r t i l i s e r & Seed
Feed
G r a z i n g Expenses
Freight
Weed & P e s t Expense
V e h i c l e Expenses
Repairs L
:!aint e n a n c e a
I r r i g a t i o n Expenses
Sub-Total O p e r a t i n g
ADMII~ISTRATIOB
Accountancy
465
Telephone
261
G e n e r a l Administration
679
Sub-Total
Adminis t r a t i o n
1,405
OVERIIEADS
Insurance
647
Interest
5,358
Pates
1,624
Pent
1,425
Sub-total Overheads
9,054
T o t a l Cash E x p e n s e s 3 9 , 4 4 4
Ket D e p r e c i a t i o n
4,412
I
I
$27
$
1,210
28
27
21
$
S
S
1,132
1,343
2,389
350
5 80
2 27
396
479
650
1,493
39 0
1,088
1,552
1,560
2,832
1,006
2,113
2,885
893
7,636
1,601
2,024
12,154
54,932
754
15,581
2,33C
4,242
22,907
39,832
9,352
671
5,300
939
4 17
7,327
33,973
3,702
1,147
9,347
1,545
1,269
13,308
63,771
6,771
1,702
14,981
2,464
1,979
21,126
97,503
8,918
37,675
70,542 106,421
4,918
.......................................................................
T o t a l E:cpendi t u r e
43,856
53,850
1
------------------- .........................
---------------,----f------------------------------------------------------
8
........................
R e p a i r s and i?aintenance a l s o i n c l u d e d e v e l o p c e n t expenses.
TABLE 43
Ke t Far n [ncone Cocponents by ?.e g i o n and Quota Group
------------------------------------- ....................................................
..........................
.........................
South I s l a n d
I:orth Is l a n d
201-600% 601-1000!?, 1001+!?, 201-600% 601-1000!?, 1001+2
------------------- .--------------------------.------------------------?Jurr,ber of F a r n s
G r o s s Revenue
T o t a l Expenditure
lJe t Farm Income
-------------------------------------
23
S
53,951
43,856
36
27
S
S
80,706 143,536
59,850 109,184
28
S
50,262
37,675
21
S
85,390 138,253
70,542 106,421
27
S
Cash S u r p l u s frorn F a r p i n g by Kegion and q u o t a Croup
_------__-_-_______---------------------------------------------------_------_---_-______---------------------------------------------------South I s l a n d
Xorth I s l a n d
201-600% 601-1000% 1001+8 201-6008 601-1000R 1001+R
---------------------------------------------.-------------------------23
!!umber of Sarms
37
$
$
-
1. Cash R e c e i v e d :
!!ilk S a l e s
Dairy C a t t l e
Sales
Sheep a n d Beef
Sales
Sobby C a l f
Sales
O t h e r Farm
I n come
46,567
26
28
27
31
S
$
$
$
6 8 , 6 6 6 120,310
44,660
71,725 113,909
5,782
7,317
18,135
4,604
8,193
17,641
40
759
1,136
89 1
744
1,280
83 7
1,564
1,701
90 9
1,394
1,191
2,767
2,907
6,274
1,345
5,613
5,051
------------------- .........................
.........................
Total :
55,993
81,213 147,505 53,009
87,671 142,072
------------------- .........................
.........................
2. Cash S p e n t :
1
Labour and
Opera t i n g
Overhead a n d
Adminis t r a t i o n
Cattle Purchases
Sheep a n d
Beef C a t t l e
Purchases
------------------Total :
Cash S u r p l u s f r o m
F a r n i ng
-------------------
I
TABLE 4 5
h!et Farr, Income Less Imputed I n t e r e s t on E q u i t y ancl T o t a l A s s e t s
by Region and Quota Croup
( $ p e r farm)
.......................................................................
__-_______-_----__------__-----___--_-----_-----------------_-_____
201-60Ok
? b r t h Island
South I s l a n d
601-1000R 1001+R 20 1-600R 601-l0COR 1001+R
.............................................
Xurcber of Farms
23
$
Fq u i t y
Yet P a r n Income
A. Net Farm Income
Less Imputed
I n t e r e s t on
Equity a t r a t e
of:
3.5%
52
7 YL
351,865.
10,095
-2,220
-7,498
-14,536
--------we--------
27
26
$
$
344,306 534,784 166,256
20,856 34,352
8,805
3,641
-3,245
15,635
7,613
-3,083
6,768
4,274
949
27
21
$
S
2 8 9 , 2 3 6 46Q,122
14,848 32,832
4,725
336
-5,399
.......................................................................
T o t a l Farm A s s e t s
F:et Farm I n c o ~ e
Interes t Paid
3. Net Farm Income
Plus Interest
Paid Less
Imputed
I n t e r e s t on
T o t a l Farm
Assets a t r a t e
of:
3.5%
5%
7%
406,278
10,095
5,358
4 2 9 , 5 5 6 5 7 5 , 4 5 4 219,417
20,856 34,352 12,587
5,300
7,636 15,581
16,728
9,82?
623
395,950 506,576
14,848 32,832
9,347 14,381
-1,233
-4,361
-12,986
13,457
7,014
-1,577
.......................................................................
26,292
16,160
2,651
10,207
6,916
2,528
10,337
4,338
-3,522
26,553
17 , & 8 4
5,353
TABLE 46
l l e a s u r e s o f Economic P r o f i t a b i l i t y
a
by l i e g i o n a n d r\uota Croup
.........................................................................
-----------------------------------------------T-------------------------
S o u t h Is l a n d
Prorth I s l a n d
201-600R 601-1000R 10Ol+R 201-600% 601-1Q00R 1001+%
-------------_-_-----.---------------------------.------------------------Kumbe r of F a r a s
-
23
S
RETURN OTI CAPITAL
1 . Working E x p e n s e s
( l e s s imputed
costs)
2. P l u s Assessed
Managerial
I i e t ~ adr
A.
3. T o t a l A d j u s t e d
Vorking Expenses
(1+2)
4. Working C a p i t a l
5. Farm C a p i t a l
6. T o t a l Farm
C a p i t a l (4+5)
7. 1;et Farm Income
8. P l u s I n t e r e s t
Paid
9. P l u s Rent P a i d
10. S u b - t o t a l
( 7+8+3 )
1 1 . L e s s ?;'anagerial
Peward ( 2 )
12. E c o n o v i c F a r n
S u r p l u s (10-11)
13. R a t e of P e t u r n
7: ( 1 2 / 6 )
....................
a
27
26
28
27
21
S
$
S
C
$
2 8 , 2 16
39,573
73,833
24,252
45,?63
71,358
12,608
12,799
15,205
10,694
12,431
14,449
40,324
52,672
89,044
34,956
58,394
86,307
..................................................
3,401
389,762
4,388
7,417
2,912
408,923 649,536 198,444
7,189
4,364
372,127 5 7 3 , 9 6 7
393,163
10,095
413,311 656,953 201,355
20,856 34,352 12,587
376,931 531,156
14,848 32,832
---------------------------.-------------------------
5,358
1,425
7,636
2,024
15,581
4,242
5,300
4 17
9,347
1,269
14,981
1,979
16,878
30,516
5A, 1 7 5
18,304
75,464
49,792
12,608
12,799
15,205
10,694
12,431
14,449
4,270
17,717
38,970
7,610
13,033
35,343
1.09%
4.292
5.93%
3.787;
3.462
6.0SZ
---------------------------.-------------------------
....................................................
...................................................
f l o s t of t h e t e r p s u s e d i n t h i s t a b l e a r e p a r t i c u l a r t o t h i s t a b l e
a l o n e ; t h e y a r e d e f i n e d i n Appendix 3.
( T a b l e 46 Cont
...)
TABLE 46 (Cont .)
a
Measures of Economic P r o f i t a b i l i t y by Region a n d Quota Group
I
....................
----me--------------
Number of Farms
.
t
--"----------------------TTTTTTTTTTTTTT------------
North I s l a n d
South I s l a n d
201-6002 601-1000R 1001+R 201-600t 601-1000R 1001+R
-------------------------..------------------------23
27
26
28
27
21
$
$
$
$
$
$
B
CAPITAL TURNOVER PERCENTAGE
14. C r o s s Revenue
( l e s s worker's
house )
53,864
80,026 1 4 2 , 2 9 3 50,262
15. T o t a l Farm
Capital (6)
393,163
413,311 656,953 201,356
16. C a p i t a l Turno v e r % (14/15)
13.70%
19.36% 21.66% 24.96%
C.
LABOUR & MANAGEMENT RESIDUAL
17. T o t a l Fzrm
Capital (6)
393,163
413,311 656,953 201,356
18. P l u s Cash a t
Bank
6,567
6,022
4,010
3,070
---------------------------.-------------------------
19. S u b - t o t a l
(17+18)
20. L e s s F i x e d
Liabilities
21. L e s s C u r r e n t
Liabilities
22. T o t a l E q u i t y
Cap i t a1
(19-20-21)
23. Net Farm
Income ( 7 )
24. Less 11.0% of
Equity C a p i t a l
(22)
25. Labour &
Management
Residual
(23-24)
399,730
57,822
9,398
419,333 660,963 204,426
8 9 , 5 1 1 139,697
9,593
19,358
51,880
9,192
---------------------------.------------------------332,510
320,229 501,908 143,354
84,673 138,331
376,991 581,156
22.46%
23.80%
376,991 581,156
2,927
7,225
379,918 588,381
100,323 150,904
16,351
16,279
263,244 421,198
10,095
20,856
34,352
12,587
14,848
32,832
36,576
35,225
55,210
15,769
28,957
46,322
---------------------------.-------------------------
-26,481
-14,369 -20,858
-3,182
-14,109 -13,490
.......................................................................
a
Most of t h e t e r m s u s e d i n t h i s t a b l e a r e p a r t i c u l a r t o t h i s t a b l e
a l o n e ; t h e y a r e d e f i n e d i n Appendix R.
TABLE 47
F a r n e r s Age, Years of I J a n a p e m n t C o n t r o l a n d l!unber
of Dependants by Region and Ouota Group
........................................................................
Kart h Is l a n d
201-600% 601-1000% 1001+R
S o u t h Is l a n d
201-60QR 601-1000% 1001+R
.......................................................................
Iiumbe r of Sar r?s
Age of F a r ~ e r
(principal
d e c i s ion-maker)
I!o. of Years of
: l a n a g e ~ e nt
Con tr 01
llunber of
Dependants
(including wife)
23
27
36
38
27
21
49
44
45
43
42
42
17
20
17
16
17
13
2.17
2.83
3.35
3.18
3.00
3.00
.............................................
---------------------------------------------=-------------------------
.........................
S u p p l e n e n t a r y Feed Use by Kegion and Cuota Group
.......................................................................
..........................
............................................
Xort h Is l a n d
201-600% 601-100CR l O O l t R
Sout tl Is l a n d
101-600% 601-1000% 1001+%
-------------------.---------------------------------------------------ITunber of rarr.s
Surveyed
?:umber of F a r m
t!i t h F',on?e Grown
Hay
-Average ;:o. of
Hone Grown
B a l e s p e r Farm
):umber of Farms
With P u r c h a s e d
Hay
-Average Xo. of
Purchased Bales
Kumber of Farms
?laking S i l a g e
-Average Ro. of
Tonnes of S i l a g e
Ma de
> h i m b e r of F a r n s
w i t h Home Grown
Gra i n
-Average ?Yo. of
Tonnes of Home
Grown G r a i n
rlumber of Farms
w i t h Purchased
Grain
Ave ra ge Tonnes
of P u r c h a s e d
Grain
23
27
16
28
27
21
23
25
25
26
25
30
1,958
3,144
3,550
3,321
4,[+72
7,733
....................................................
11
1,209
10
1,950
7
1,686
16
1,263
18
2,632
....................................................
12
3,365
20
21
24
12
20
15
199
322
55 9
233
540
654
....................................................
1
3.0
0
0
0
rt
4
13.3
9
8
20.9
56.9
....................................................
2
2
4
11
7
7
125
123
234
14.4
06
10 1
-
E!umber of Farms
With P u r c h a s e d
Dairy ?leal
-Average Tonnes
of D a i r y Meal
Purchased
....................................................
10
8.2
12
24.1
12
36.8
13
10
10
10.0
9.6
10.6
.............................................
.........................
.......................................................................
Run-off
1
Area by Region and Quota C r o u p
.......................................................................
Xorth I s l a n d
201-600% 6 ~ 1 - 1 0 0 0R 1001+R
-------------------,-------------------------
23
f;urnbr of Farms
Xumber of F a r m
17
With a Run-off
-Run-off Area ( h a ) 19.12
- D i s t a n c e From
F!orr.e F a r n t o
4.5
Run-of f (kc)
27
y:
17
46.73
43.18
8.9
3.7
South I s l a n d
201-600R 601-1000% 1001+R
.........................
21
2182
27.09
217
7
75.27
11
37.99
6.7
4.7
5.7
.......................................................................
l------------------l-,------------------
TABLE 50
Land V a l u e s Updated by D i f f e r e n t V a l u a t i o n Departclent I n d i c e s
a
by P.egion a n d Quota Group
........................................................................
li'orth I s l a n d
201-6092 601-1000% 1001+2
South I s l a n d
201-600% 601-1000% 1001+%
---------------------------------------------..----------------------?;umber of F a r n s
F r e e h o l d Land
Area ( h a )
23
55.52
S
27
77.04
$
25
26
116.93
27
59.87
82.32
S
$
21
133.66
$
F r e e h o l d Land
V a l u e Updated
307,672 480,770
357,608 557,701 163,246
by PJ.7,. Farmland 350,219
Sale P r i c e Index
t o 31.12.80
Freehold ~ a n 2
V a l u e Updated
by t h e D a i r y
265,053 421,561
Farmland P r i c e
318,934
331,895 492,?84 133,957
Index t o
1 31.12.80
/ - _----------,-,----i----------------__-_-__________
$
____--___-____-_--_--------&--------------------------
a
Details of e a c h i n d e x a p p e a r i n Appendix R .
The i n d e x s e l e c t e d f o r t h e c a p i t a l a c c o u n t f o r t h i s r e p o r t was t h e
N.Z. F a r m l a n d S a l e P r i c e Index.
TABLE 5 1
;Jon-Fani l y Adult Borker Annual '.{age P a i d 2nd Years of E x p e r i e n c e
.............................................
----------------- ...........................
p
p
p
p
p
p
- -
1
..........................
South I s l a n d
Kort h Is l a n d
2C1-600% 601-1000R 1001+% 201-600R 601-IOOOR 1001+R
Tiumber of F a r r s
Surveyed
Eon-Fanily Adult
Worker :
?!umber of F a r m
w i t h a Worker
f o r f u l l year
Annual a v e r a g e
wage p a i d
P r e v i o u s years
of d a i r y
experience
..........................
23
27
26
0
10
17
0
$9,344
-
$9,341
-
0
6.7
.............................................
----we---------------------------------------
8.1
28
27
21
TABLE 52
Use of Herd T e s t i n g by E e g i o n and q u o t a C r o u p
........................................................................
------------------ ........................
--------------------------
T
F1u:unber of F a r n s
P r o p o r t i o n of Farms
Using :
EJo Ilerd T e s t i n g
Cwner S a m p l i n g
E o n t h l y Sampling
A l t e r n a t e :.!onthly
Product i o n Pankin
Total
1
k r t h Is l a n d
South I s l a n d
01-600R 601-1000!?, 1001+% 201-600% 601-10012 1001+R
23
27
36
0,
0,
/"
/o
52
19
48
0
43
9
0
0
a
33
15
0
58
11
4
100
100
100
h e r of F a r ~ e r sU s i n g A r t i f i c i a l B r e e d i n g
by Region a n d Quota Group
!!orth
---------------Xumber of Farms
:;'umber of Farms
w i t h Some
Art i f i c i a l l y
Bred D a i r y
Stock
- P e r c e n t a g e of
Herd E r e d
f r o m AB
----------------
Island
S o u t h Is l a n d
TARLE 5 4
T o t a l S t o c k P r o f i t C a l c u l a t e d : ~ i t t \V a r i o u s S t a n d a r d V a l r ~ e s
by Region a n d Quota Group
.......................................................................
Yorth I s l a n d
201-600% 601-10002 lnOl-!-R
South Is l a n d
301-6002 601-10002 1001+2
-------------------.---------------------------------------------------Xunber of Farms
T o t a l Stock P r o f i t
C a l c u l a t e d Using
Town ?!ilk Surve
Standard Values
T o t a l Stoclc P r o f i t
C a l c u l a t e d Using
N.Z. D a i r y Board
S t a n d a r t Values
23
27
26
28
27
$
$
S
$
$
4,529
8,453
15,760
4,464
8,959
16,316
5,373
8,624
15,221
3,657
7,335
21
S
16,370
1979-80
T o t a l Stock P r o f i t
a s Listed i n
F a r m e r ' s Annual
Accounts
.............................................
a
Town ?!ilk
N.Z.
N.Z.,
Survey s t a n d a r d v a l u e s a r e d e t a i l e d i n Appendix 3.
D a i r y l o a r d , An Economic Survey of F a c t o r y Supply D a i r y Y a r n s i n
1979-80, p.24.
C o n p a r i s o n w i t h Survey F.esults of P r e v i o u s Yearsa
.............................................................................
Suppliers (no.)
Sample ( n o . )
(a) P h y s i c a l
Characteristics:
D a i r y P r o d u c t i v e Area ( h a )
D a i l y Quota ( 1 )
Elerc! S i z e (no. cows)
?Iilk Production (Ijfarm)
?[ilk Production
( 1 1l a b o u r u n i t )
14ilk P r o d u c t i o n
( l / d a i r y p r o d . ha)
T o t a l Labour U n i t s
Engaged (L.U.)
1
1,732
152
1,664
152
1,501
152
1,540
152
1,467
152
79.4
766
112
433,752
203,639
80.9
7 74
110
421,564
137,133
76.2
768
113
413,522
189,689
,S3. 7
507
113
484,611
215,383
83.7
803
119
499,772
220,164
5,465
5,218
5,428
5,Phl
5,866
2.13
2.14
2.18
2.25
2.27
345,140
70,121
14.47
53,412
11.02
16,709
3.45
434,788
56,056
17.22
66,388
13.28
19,668
3.94
...............................................................................
( b) F i n a n c i a l
Characteristics
T o t a l Farm A s s e t s ( $ / f a r r . )
C r o s s Revenue ( $ / f a r m )
C r o s s Revenue ( c j l )
T o t a l Expenditure ($/farm)
Total Expenditure ( c l l )
lie t F a r n Income ( $ / f a r m )
ITet F a r n Income ( c / l )
240,247
46,955
10.83
33,462
7.71
13,433
3.11
265,483
51,640
12.24
36,445
8.64
15,195
3.60
280,366
59,745
14.45
41,245
9.37
18,500
4.47
................................................................................
"
Survey c o m p a r i s o n s a r e a l s o g i v e n i n t h e f o r m of h i s t o g r a m i n F i ~ u r e1
'=he d a t a have been t a k e n f r o m t h e l a s t f i v e e c o n o m i c s u r v e y s of Kew
Zealand town m i l k p r o d u c e r s .
FIGURE 1:
1.
SURVEY COMPARISONS WITH PREVIOUS YEARS
Daily ~ u o t a s
i
I
2.
<,300l
Total Milk
Production
80/81
77/78
4. Expenditure: Revenue Comparisons
3.
Proportion on which Town
Milk Prices Payable
5'
7G
77/7a
S'0'70
15.
77/78
80/81
Net Far3 Income
5.
NFI per Lltre Yilk Produced
77/7a
Survey Years
80/81
80/81
Furvey Years
RECENT PUBLICATIONS
RESEARCH REPORTS
Intetjibre Relationships and Textile iiarketing in Japan, G .W.
Kitson, 1978.
96. 'Survey of New Zealand Farmer Intentions, Expectations, and
Opinions, June-August 1978, J.G. Pryde, 1978.
97. Peak Wool Flows through the Marketing System, S.K. Martin,
95.
125.
The Ecomomics of Soil Conservati& and Water Management
Policies in the Otago High Country, G.T. Harris, 1982.
Survey of New ZealandFarmer Intentions and Opinions, SeptemberNovembqr, 1981, J.G. Pryde, 1982.
127. "The New Zealand Pastoral Livestock Sector: An Econometric
Model (Version Two)", M.T. Laing, 1982.
128. '3Farm-level Model to Evaluate the Impacts of Current Energy
Policy Options", A.M.M. Thompson, 1982.
126.
1979.
9 8 . An Economic Survey of New Zealand Town Milk Producers, 197778, R G . Moffitt, 1979.
The Regional Impacts of Irrigation Development in the Lower
Waitaki, L.J. Hubbard, W.A.N. Brown, 1979.
100. Recent Trends in the Argentinian Wool Industry, S.K. Martin,
99.
DISCUSSION PAPERS
40.
1979.
101. An Economic Survey of New Zealand E%c,atgrowers; Enterprise
Analysis, Survey No. 3, 1978-79, R.D. Laugh, R.M. MacLean,
P.J. McCartin, M.M. Rich, 1 9 7 9 .
4 1.
Cheese: A Consumer Survey of Christchurch Households, R J.
Brodie, M.J. Mellon, 1979.
A Study of Excess Livestock Transport Costs In the South Island of
New Zealand, R.D. Inness, A.C. Zwart, 1979.
An Economic Survey of New Zealand Rfheatfrowrrs: Finarzcial
Analysis, 1977-78, R D . Lough, R M . MacLean, P.J. McCartin,
M.M. Rich. 1979.
Potatoes: A Consumer Survey o/ Christchurch and Auckland Households, M.M. Rich, M.J. Mellon, 1980.
Survey of New Zealand Farmer Intenhons and Opinions, JulvSeptember, 1 9 7 9 , J.G. Pryde, 1980.
A Survey of Pest.r and Pesticriie Use in Canterbury and Sozcthland,
J.D. Mumford, 1980.
An E~;.,nimicSurvey of New Zealand Town Milk Producers, 197879. R G . Moffitt, 1980.
Changes in United Kingdom Meat Demand, R L . Sheppard,
42.
102.
10 3 .
104.
105.
106.
107.
108.
109.
1980.
1 1 0 . ~ru~.t,llosi.r
Erud/cafion: a description c$ a plann~ng mode(, A. C.
Beck, 1980.
1 1 1. Fi-rh:A (,'o~.rrrmerSuri~eyojChristchurch Households, RJ. Brodie,
1980.
1 1 2. An Anali2ri.r of Alternnfiuive.Wheat Pricing Schemes, M. M. Rich,
I..!. Foulds, 1 9 8 0 .
11 3 . AII Etnnomzc Sirrvty of Areul Zealand Wheat~rowers;Enterprise
Ann(~sis,Surve), No. 4 1979-80, R.D. Lough, R.M. MacLean,
P.J. McCartin, M.M. Rich, 1980.
114. '4 Rezjzew of the Rural Credit .7-vstern in New Zealand: 1 9 C i to
1079, J.G. Pryde, S.K. Martin, 1980.
1 1 5. A Socr/rEL-onomicStudy of Farm ~'orkersand Farm Mana,~er.r,
G.T. H a r r ~ s ,1980.
1 16. An Eronomrt S N ~ I , Cqf-J New Zealand Wheatgro~uerr:Financial
A N ^ N ! I ,1978-79.
I~~.
R D . Lough, R M . MacI,eaii, P.J. McCartin,
M.M. Rich, 1980.
1 1 7 .MlrDipfi~.rrf r o Regjonal Non-Surve,~Input- Outptlt T a b l r s j ~ r
Nc.tc.1 Zealand, L.J. Hubbard, W.A.N. Brown. 1981.
1 18 Sr~rl,rv14tho Health ~?fA'c,i~,
Zoaland Farmerr: O<-tuhrrNoz~e~zher
1980. J.G. Pryde, 1981.
1 19
Hort~culturein Akaroa Cbunfy,
RL. Sheppard, 198 1.
121. A n Econorizc Surt,;ey of New Zealand Wbeatgrowers: Enterprise
Ana(ya:r. S~rrr'eyhro. J 1980-81. R. D. Lough, P. J. McCartin,
M.M.Rich, 1981.
122.
An E<.~~nr/m~c
S u r z ~ ~q/) . (;fNrulZ ~ ~ a l a nl&%eatgrowers:
d
Financiai
2 4 n u ~ ~ i1979-80,
.r
R.D. Lough, P.J. McCartin, M.M. Rich,
1981.
123 .
S~,u.ronu//ty!'v t h f , Ncu: Z e a l ~ n dMeat I'rocessihg Industry, R. L.
Sheppard, i 982.
124.
T h c iL'cu Zea/and Il"be~itar~dF(our Indrr~tr)~:
Market S t r u c t ~ t r e a ~ d
I';~/ic:yi,ti/~/i[otio~i.r,
B.W. Rorrell, -4.C. Zwart, 1982.
43.
44.
New Zealand Agriculture and Oil Price Increases, P.D. Chudleigh,
S. L. Young, W.A.N. Brown, 1979.
Proceedzng.r of a Seminar on The Development of Rational Policies
for Agricultural Trade between New Zealand and Japan, A.C.
Zwart, L.J. Wilson (eds), 1979.
A Review of the New Zealand Goat Industry, RR.. Sheppard,
D.K. O'Donnell, 1979.
Goats: A Bibliography, D.K. O'Donnell, R L . Sheppard, 1979.
Proceedings of a Seminar/Workshop on the New Zeahnd Goat
Industry. R. J: Brodie, R L . Sheppard. P.D. Chudleigh (eds),
1979.
45
46.
47.
48.
49.
An Evaluatlbn ofthe Southland Flood Relief Temporay Employment
Programme, G.T. Harris, T.W. Stevenson, 1979.
Economic Factors Affecting Wheat Areas Within New Zealand,
M.M. Rich, A.C. Zwart, 1979.
Japanese Food Policy and Self Sufliciency-An Analysis with
Reference to Meat, R L . Sheppard, N.J. Beun, 1979.
i,'orporate Struc.trtrive.((a Beet-Ethanol Indrrstry, W.A.N . Brown,
J.R. Dent, 1980.
T/)PCort ,!f O L , C ~ ~SLh Ji j~p Ji n ~ .Kfho P ~ s ?P.D. Chudleigh,
1980.
50 hlarkrt Eiwlration: a .7.y.rtematic- Approach - Frozen Grcjcn
S,qmrrfiny Rroccolr; R.L. Sheppard, 1980.
52
P ~ N L ! . ~ of
~ I N/ ~SemNz~r
I I ~ . ~ on "Future Dir~,rtio~zs.fi,r
h'rri, ~r.cclan$
Lamb h l ~ r k ~ t N i . t 'edlted
:
by R.L. Sheppard, R.J. Brodie,
53
The, Eutrilr~~ifJn
of- Joh (,-rc.cifio?c Pro~rammca.rwith Partz~-/l-lllar
RL./('~I,N(L,
to
f i r m Empl~ymentPro,qrummc: G.T. Harris,
1981.
1980.
7Ac. Ncu, %I.~I/~INI/
'u.rtoru/ L.rvestoc.k Sector: a prrlzmmary
ctunom~~/,;.t~riode(,M.T. Laing, A.C. Zwart, 198 1.
5 5 . The Sc ~ ( , I ~ I I / cPricc
,
S.y.rtrm and the New Zealund Lanzb Produc-er,
N.M. S!~adbo!t. 1981.
6 . 7 % I;//r./hcr
~
Pro(-c~rr~/<q
~ ! Met~t,
f
K.M. Silcock, R.L. Sheppard,
54.
1981.
5 7 . J I I / ) N N( ,( A,~I'I./~
. I ~ l / l ~ r t! ' Of ~/~ I : ) J ~t,ve/opmml-Inp/icati~ns/or New
% ~ I I / N A.C.
N ~ ~ :%wart. 1981.
58.
I~itc,r-i,rtKnf[*.i.l : t i l / r ~ ~ mFol/alutie.r.
d
K.B. Woodford, 1981
59. The E E C Sheepmeat Regime: One Year On, N. Blyth, 198 1.
60. A Revieu] o f t h e World Sheepmeat Market: Vol. 2 - Overview of
Internatio~jalTrade, Val. 2 - Australia, New Zealand 6 Argentina,
Vol. 3 - The E E C (lo), Vol.4 - North America, Japan & The
Middle Eart. Vol. J - Eastern Bloc, U.3. S. R. & Mongolia,
N. Blyth, 1981.
61. An Evaiuation of Farm O W ~ P ~ J ~Savings
Z$
Accounts,
K.B. Woodford, 1981.
"The Nei~.,Zeuland Meat Trade in the 2980's: a proposal for
i-l~o~ge".
B.J. Ross, R.L. Sheppard, A.C. Zwart, 1982.
io~~
6 3. "Sic)p/ementn~:y iMillinl~lm Prices: r; p i ~ ) ~ / z ~ c tincentiue?"
R.L. Sheppard, J.M. Biggs, 1982.
64. "Proreedi12gs r$ u Scmitinr or2 Roan' Transport i n Rural A.rea.r':
edited by P.D. Chudleigh, A.J. Nicholson, 1982.
62.
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