Dairy's role in sustaining New Zealand - Fonterra
Dairy's role in sustaining New Zealand - Fonterra
Dairy's role in sustaining New Zealand - Fonterra
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Figure 4 Model structure of the sector<br />
Figure 4 Model structure of the sector<br />
Source: NZIER<br />
At each stage of production there is also labour, capital and other <strong>in</strong>termediate employment.<br />
At each stage of production there is also labour, capital and other <strong>in</strong>termediate<br />
employment. 1.7.2 Dairy farm<strong>in</strong>g<br />
The structure of the farm<strong>in</strong>g <strong>in</strong>dustry is shown <strong>in</strong> Table 3. The farm<strong>in</strong>g sector produced around<br />
1.7.2 $7.5 Dairy billion farm<strong>in</strong>g worth of raw milk <strong>in</strong> the 2009/10 production year for sale to the process<strong>in</strong>g<br />
operations. As expected, farm<strong>in</strong>g uses a lot of land and the labour is not a large part of the<br />
The structure of the farm<strong>in</strong>g <strong>in</strong>dustry is shown <strong>in</strong> Table 3. The farm<strong>in</strong>g sector<br />
farm’s costs. The on-farm sector employs around 24,000 full time equivalent (FTE) workers. The<br />
produced around $7.5 billion worth of raw milk <strong>in</strong> the 2009/10 production year for sale<br />
primary cashflow costs for farmers are fertiliser for the land and feed for the animals. These<br />
to the process<strong>in</strong>g two <strong>in</strong>dustries operations. are heavily affected As expected, by movements farm<strong>in</strong>g <strong>in</strong> demand uses for a milk lot of products. land and the labour<br />
is not a large part of the farm’s costs. The on-farm sector employs around 24,000 full<br />
We can break down the $7.5 billion of raw milk <strong>in</strong>to the follow<strong>in</strong>g parts:<br />
time equivalent (FTE) workers. The primary cashflow costs for farmers are fertiliser<br />
for the • land $3.0and billion feed is reta<strong>in</strong>ed for the as returns animals. to land, These labour two and<strong>in</strong>dustries capital. are heavily affected by<br />
movements • $3.6 <strong>in</strong> billion demand is spent for on milk domestically products. produced <strong>in</strong>termediate <strong>in</strong>puts, such as fertilizer ($447<br />
million), straw and feed ($723 million), agricultural services ($446 million), f<strong>in</strong>ancial services<br />
We can break ($341down million), the mach<strong>in</strong>ery $7.5 billion repairs of ($198 raw million) milk <strong>in</strong>to andthe petrol/diesel follow<strong>in</strong>g ($80 parts: million).<br />
• $3.0 • billion $440 million is reta<strong>in</strong>ed is spent as onreturns imported to <strong>in</strong>puts land, such labour as fertilizer and capital. ($138 million), pharmaceuticals<br />
($111 million), feed ($31 million), agricultural equipment ($26 million) and pesticides ($16<br />
• $3.6 billion million). is spent on domestically produced <strong>in</strong>termediate <strong>in</strong>puts, such as<br />
fertilizer ($447 million), straw and feed ($723 million), agricultural services ($446<br />
• $290 million is spent on marg<strong>in</strong> services such as transport.<br />
million), f<strong>in</strong>ancial services ($341 million), mach<strong>in</strong>ery repairs ($198 million) and<br />
petrol/diesel ($80 million).<br />
NZIER – Dairy’s <strong>role</strong> <strong>in</strong> generat<strong>in</strong>g growth<br />
6 Dairy’s <strong>role</strong> <strong>in</strong> generat<strong>in</strong>g growth<br />
F<strong>in</strong>al report - 16 November 2010<br />
• $440 million is spent on imported <strong>in</strong>puts such as fertilizer ($138 million),<br />
pharmaceuticals ($111 million), feed ($31 million), agricultural equipment ($26<br />
million) and pesticides ($16 million).<br />
• $290 million is spent on marg<strong>in</strong> services such as transport.<br />
7