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Dairy's role in sustaining New Zealand - Fonterra

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Figure 3 Importance of dairy to regional employment<br />

Dairy farm and process<strong>in</strong>g jobs as % of total <strong>in</strong> region<br />

Figure 3 Importance of dairy to regional employment<br />

Dairy farm and process<strong>in</strong>g jobs as % of total <strong>in</strong> region<br />

Source: DoL, NZIER<br />

A complete<br />

A complete<br />

table<br />

table<br />

of<br />

of<br />

dairy employment<br />

employment<br />

statistics<br />

statistics<br />

for each<br />

for<br />

of <strong>New</strong><br />

each<br />

<strong>Zealand</strong>’s<br />

of <strong>New</strong><br />

74 Territorial<br />

<strong>Zealand</strong>’s<br />

Local<br />

74<br />

Authorities is conta<strong>in</strong>ed <strong>in</strong> Appendix E.<br />

Territorial Local Authorities is conta<strong>in</strong>ed <strong>in</strong> Appendix E.<br />

1.7 Contribution to other sectors’ performance<br />

F<strong>in</strong>al report - 16 November 2010<br />

Of course, the dairy farm<strong>in</strong>g and process<strong>in</strong>g sector do not operate <strong>in</strong> isolation. They have<br />

strong upstream and downstream l<strong>in</strong>ks to other parts of the <strong>New</strong> <strong>Zealand</strong> economy.<br />

1.7 Contribution to other sectors’ performance<br />

1.7.1 Supply cha<strong>in</strong><br />

Of course, the dairy farm<strong>in</strong>g and process<strong>in</strong>g sector do not operate <strong>in</strong> isolation. They<br />

The dairy sector can conceptually be broken <strong>in</strong>to a dairy farm<strong>in</strong>g <strong>in</strong>dustry and a dairy<br />

have strong<br />

process<strong>in</strong>g<br />

upstream<br />

<strong>in</strong>dustry. Dairy<br />

and<br />

farm<strong>in</strong>g<br />

downstream<br />

generates<br />

l<strong>in</strong>ks<br />

the raw<br />

to<br />

milk<br />

other<br />

that the<br />

parts<br />

dairy<br />

of<br />

process<strong>in</strong>g<br />

the <strong>New</strong><br />

<strong>in</strong>dustry<br />

<strong>Zealand</strong><br />

economy. uses as an <strong>in</strong>put, and produces processed dairy products for sale to domestic consumers,<br />

export markets and other <strong>in</strong>dustries.<br />

1.7.1 Supply cha<strong>in</strong><br />

The dairy sector can conceptually be broken <strong>in</strong>to a dairy farm<strong>in</strong>g <strong>in</strong>dustry and a dairy<br />

process<strong>in</strong>g <strong>in</strong>dustry. Dairy farm<strong>in</strong>g generates the raw milk that the dairy process<strong>in</strong>g<br />

<strong>in</strong>dustry uses as an <strong>in</strong>put, and produces processed dairy products 6 for sale to<br />

domestic consumers, export markets and other <strong>in</strong>dustries.<br />

6<br />

In our model, we have a variety of processed dairy products, but for simplification for this work,<br />

we consider one generic processed dairy product. Similarly, farm <strong>in</strong>come from other sources than<br />

just milk 6. In (e.g. our model, stock we have and a variety other of processed sales) dairy is <strong>in</strong>cluded products, but <strong>in</strong> for the simplification modell<strong>in</strong>g for this but work, not we consider s<strong>in</strong>gled one generic out <strong>in</strong> processed the<br />

report<strong>in</strong>g.<br />

dairy product. Similarly, farm <strong>in</strong>come from other sources than just milk (e.g. stock and other sales) is <strong>in</strong>cluded <strong>in</strong> the modell<strong>in</strong>g but<br />

not s<strong>in</strong>gled out <strong>in</strong> the report<strong>in</strong>g.<br />

NZIER – Dairy’s <strong>role</strong> <strong>in</strong> generat<strong>in</strong>g growth<br />

6<br />

Dairy’s <strong>role</strong> <strong>in</strong> generat<strong>in</strong>g growth<br />

5

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