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Flashcards in Industry Deck (35)
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1

Economic significance of the dairy industry

Dairy contributes $7.8B
3.5%) towards NZ’s GDP
39% of total export revenue for NZ primary industries.

2

- Global view of the dairy industry

- More exports as going to china with less to EU
- China has the greatest influence on the NZ producers
-NZ produces 2.8% of the worlds production and is the largest exporter having a large influence on exports.

3

- Comparative advantages – of the dairy industry

-NZ mild climate makes it ideal for pasture based dairy.
- NZ soils contain 13 out of 16 nutrients required by plants.
- low input cost
- NZ based research
- NZ tight regulations
- workplace efficiency

4

- Developments – of the dairy industry

- upward trend in increase in area showing demand and strength of the NZ dairy industry
- Productivity of milk solids per cow and hectar
- The biggest development in trade for the industry was china becoming the biggest exporting marketing in 2012

5

- Purpose/Goals/Objectives –

The purpose of a dairy farm is to produce dairy milk with the goal of producing 100,000(kg) total of milk solids.

6

- Boundary –

This is the physical boundary that the farm can legally operate within titled boundary.
ystem boundary – dairy system boundary stops when the milk solids are sent off the farm

7

- External Environment -

The average sunshine hours was roughly 2500 hours with roughly even rainfall for the region. There was two snowfalls for the region during mid-august during calving as well as frequent frosting leading to poor pasture growth.

8

- Resources

• Land
• Capital
• Management
• Labour

9

• Land

There is roughly 95ha of effective land area in South Taranaki, Inglewood, majority flat to rolling land with andesitic ash. This land has good drainage but is lacking in phosphorus and sulphur.

10

• Capital

– Fix capital is the milking sheds, farm houses, effluent pits, and fencing
– Operating capital are the tractors, effluent systems, livestock, quads, and other machinery.
- Working capital – This is the cash on hand.

11

• Management

This is long term decision making is done by the farm manager which is the owner, some day-to-day management and short term decision making is done by the farm worker.

12

• Labour

labour is $38,000 a year with remuneration including a farmhouse accommodation

13

Components

This is essentially are the main make ups of the farm system as a whole. The dairy farm includes a pasture based system which means soils management is important, this includes laying of fertilisers and small amounts of lime. The farm does majority of its own hay and silage which is stored on farm. Livestock numbers are kept at 270 and consists mainly of crossbred cattle.

14

Interactions

are the combining of the farm components to produce the farm system.

15

Inputs

These are things like fertilizers, animal health, buying replacement stock, breeding, and some feed.

16

Products

The main product is milk solids produced, some revenue is made through the cattle sales which are either sent to the works or stockyards.

17

- By-products

the Major by-products are bobby calves which are sold for around $30-$50 a head.

18

Constraints

– the major constraints are legal regulations and requirements set by both Fonterra and the government. These revolve mainly around food safety and animal welfare. Other constraints come from maximum production as they are limited by effective land area and labour necessary to manage the farm efficiently.

19

Late winter to early spring

Calving
Milking has begun
. Bobby calves
Pasture growth is slowly increasing
Cow feeding levels will increase as they reach peak lactation

20

Spring to early summer

Mating
individual cow yields start to decrease
Reduced rainfall starts to limit pasture growth

21

Winter

- Cows are dried off and milk supply stops
Heifers have increased feed to gain weight for first calving
Pasture growth is at its lowest

22

what are the significant areas of dairy

Economic significance
Global view
Comparative advantages
Developments

23

how much does dairy contribute towards GDP

3.5%

24

how much does dairy contribute towards GDP in $

$7.8B

25

% total of dairy export revenue towards NZ primary industries.

39%

26

what % of the worlds trade of dairy does nz contribute

2.8%

27

what is significant about NZ soils

contains 13 out of 16 nutrients required by plants

28

what increases workplace efficiency

aid of technology such as automated milking systems and data management

29

what is the trend

upward trend in increase in area, showing an increasing demand and strength of the NZ dairy industry

30

what is the biggest development

china becoming the biggest exporting marketing in 2012