The intensification of the NZ Dairy Industry – Ferrari cows being run on two-stroke fuel on a road to nowhere?

P.J. Fraser, B.J. Ridler and W.J. Anderson

No 187491, 2014 Conference, August 28-29, 2014, Nelson, New Zealand from New Zealand Agricultural and Resource Economics Society

Abstract: This paper applies an economic lens to the argument that dairy farmers should increase production via supplements, which has led to concerns regarding the environmental impact of intensification. This paper finds: 1. Intensification has led to farms producing at levels incompatible with profit maximisation 2. Claims that de-intensification will result in lower farm profitability are unconvincing 3. The current suite of assessment and planning tools are likely to be causing systemic overstocking 4. Failing to recognise the difference between marginal and average costs is likely to be leading to expensive mitigation measures that treat symptoms rather than address causes.

Keywords: Agribusiness; Land Economics/Use; Productivity Analysis (search for similar items in EconPapers)
Pages: 16
Date: 2014
New Economics Papers: this item is included in nep-agr and nep-eff
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Persistent link: https://EconPapers.repec.org/RePEc:ags:nzar14:187491

DOI: 10.22004/ag.econ.187491

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