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AGRICURURAL RESTRUCTURING IN THE SQ-TtrH- euSTnEI;ATt DruNY INDUSTRY: A CASE STUDY OF THE
ADEI.AIDE MILKSHED
JUDITH ANNE CROCKETT
Thesis submitted Master
in
for the degree of
of Arts
The Universitv of Adelaide (Department õf Geography)
August f993
Ar,uann\e"\ \qq\
ERRATA
Pg. 204, line 17 (additional paragraph)
Further in depth discussion of the impact of dai-rying in urban fringe regions of the United States can be found in research by Fielding
'
(L962, 1964), and Gregor (1963a,1963b).Pg. 391, line 16
in cities designed to keep people out'
rc
(r) 12-17
Fielding, G.J. (1964) 'The Los-Angeles Milkshed; a s_tqgy gflle political
factor iñ'agriculture''The Geograpñical Review Vol. LIV, 1-12
Pg. 392, line 39
Gregor, H. (1963a) 'Industrialised dry-lot dairying: an overview 'Economic
Geography Vol.39, 299-318
, H. (1963b) 'Urbanisation of Southern
This work contains no material which has been accepted for the award of any other degree or diploma in any university or other tertiary institucion and, to the best
of my knowledge and belief , contains no materi-al- previously published or written by another person, except where due reference has been made in the texE..
I give consent to in the University
photocopying.
Signed:
this copy of my thesis, when deposited
Library, being available for loan and
Date: 2?. A.qB
TABIJE OF CONTENTS
DECLARATION
TABLE OF CONTENTS
LIST OF TABLES
LIST OF FTGURES ABSTRÀCT
ACKNOWLEDGEMENTS
CHAPTER 1 TNTRODUCTION.
CHAPTER 2 OBJECTTVES AND OUTLINE OF THESIS CHAPTER 3 METHODOLOGY
1 1,4
3.23.1- 2?
Introduction .20
.21-
Locational modelling .30 Systems analysis
Introduction..
4 THE DECISTON MAKER
Introduction
Farm management decisions required.
sion maker and farm firm 3.3.1
3.3.2 3.3.3
30
General concepts 31
Role of systems in economic
and agricultural geography. . . .33
3.3.4 Farming systems researeh and
analysis. . . . 42
3.3.5 Systems modelling of dairy
farms ...54
3.3.6 Conclusion.. ...62
3.4 Survey process... ...63
CHAPTER 4.1-4.2 4.3
4.54.6
The deci 4.34.3
4.34.3
4.3 4.3
.1-
.2
72 .72
Introduction ...7676
Models of man-environment
interactions . . .81-
3 4
5 6
Decision making
Problems of the behavioural approach
Goals, values and family
farmInnovation and technological change - behavioural
aspects
.90 .95 .97
108 L23 13l-
1,32
L32
1,34 L37 ]-37
4.4 Influences on conservation and sustainability
The role of education... ...129 Conclusion..
CHAPTER 5 THE DECISION MAKING ENVIRONMENT
5.1 The biophysical environment
fntroduction
Climate.
Topography.
SoiLs 5.1.1
5.1.2
5.r_.3 5.1-.4
a
5.2 The economic envl-ronment. i-3 9 r_3 9
L39
1,46 1,49
r52
L61-
2t'7
223 .204 .206 .2]-0
5.2.I fntroduct ion
The 1950's and 1960's The 1970's. .
The 1980's. . Non specific
farming studies of daíry
5.2 .2
5.2.3 5.2.4 5.2.5
5.2.6 Research into the South
Austral-ian Dairy Industry. .. .158
5.2 .7 Conclusions
5 .3 The institutional and regrulatory envrronment
Introduction. . .
Industry structure. . ..1,62 5.4 The urban fringe 176
Introduction L76
Definitions of the rural urban
fringe ...I17
5.4.3 Signj-f icance of rural urban
fringe - theoretical
perspectr-ves. .1,1 9
5.4.4 Responses of land values and
markets to urban fringe
development. . .188
The farmer's response to
peri-urban change . .193
South Australian studies in peri -urban development . Loss of agricultural 1and,
:::::::1:r:i T::li:ltTi : : : : :
160
tr2'1
J.J.!
5.3 .2
5.3.3 rural
5 .4 .1,
5.4.2
Conclusion..
1,1 6
CHAPTER 6 RESPONSES TO STRESS AND EQUILIBRIUM
Introduction 2L2
Slight adjustment t.o farming system. )1) Changinq the enterprise mix 21,3
5.4.5 5.4.6 5.4.7
5 . 5 Conclusion.
system
6 .9 Conclusion. .
CHAPTER 7 ON FARM RESOURCES
Introduction
Human resources.
The farm household...
Family labour availability.
Hours worked
Quality of family laboür
resources. . .
Prior occupat.ion. .
Role of family in on-farm workSources of information. . . . .
6.1 6.26.3 6.46.5 6.6 6.76.8
Expanding the farm srze Changing location..
Off farm work for family members
Off farm work for the farmer
The ultimate decision - to leave the
. .2r4
. .21-4
. .2r4
..2r5
.221.
7.I .223
7.2
7 .2.2
1 .2.3
t .2.r
1 .2.4
. .224
'>)tr.
. .225 . .221 . .236 . .236 . .239
1 .2.5
7 .2.6
7 .2.7
l_ l_
1 .2.8
7 .3 Land resources
1 .3.L
7 .3.2
7.4 Ca
.1
1
,4 .5 .6
'7
9.3 Farmer
9 9
Non family farm labour.
Tenure....
Ownership/bus ines s
partnerships.
Inheritance of t.he farm.
7 .3.3
7 .3.4 Year ownership changed Year of purchase
7 .3.5 t .3.6
7 .3.1
4.1-
4.24.3 4.44.5
9.3.4 9.3.s 9.3.6
Farm size .241.251
244 246 246 247 247
25r
256
267 210 )'7 ) 275
216 277 282 283
316
Consolidation of farm
f ragmentation
pital
'7 .1 '7 .1 .1
7.57.5
1E .?E
7.57.5 7.5
TVpes o
oJ.
q
9.
resources. . . . .254
1.5 Land and herd management
Size of herd... .
Breed of herd
Milkins facili¿i;;: : : : : : : : : :
Capital equipment ownership.
Adequacy of herd size Pasture
Fodders. . . .
Feed supplement
Grazing practices, . . . .
Herd replacement rate. . .
Artif icial insemination.
Managrement related to
.256 .261- .264 .264 .¿6 /
.27 6
.27 6
7.67.7
rainfal I
1 .5.8 Physical production.
Diversification. ..
Conclusion..
CHAPTER 8 FARMER PERCEPTIONS OF THE EXTERNAL ENVIRONMENT
1 Influence of government on farm decision
making . . .284
I .2 Urban expansion. 286
CHAPTER 9 INTEGRATION OF RESOURCES: COUNTERACTING SYSTEM MALFUNCTTON
Introduction 289
f system malfunction. 291-
I
9.19.2
2.I Biophysical malfunction.
2.2 Economic mal-function. . . .
2.3 Social ma1function...
responses to system malfunction.
3.1 Management change
3.2 Improvement in capital
resources. . .
9.3.3 Other preferred management
pract.ices....
äetting bigg.;::
Diversification.
Consideration of
of enterprise. . . total
,o1 .293 .294 .295.295
.300
...301
...30s
...3r-0change
...313 9.4 Off farm management responses
9.4.I Family members with of f farm
work.... 3t_6
9.4.2 Family members considering off farm employment
Relocation to another 9.4.3
]II
..319
dairy. .
9 .4 .4 Non dairy rel-ocation.
9.5 Selling the farm, leaving dairying.. .331.333 .333
32r
334 3s3 3s8
3s9 361 362 362 363 364 372 378 380 382 383
38s 406 9.
Future9.
1O CONCLUSIONS
Introduction
r0 .3.2
10 .3 .3 Responses to Obstacles to
Currently se1ling.. . .
Farmers who have left the dairy farm.
With the decision maker?.
With the decision making environment ?
system malfunct.ion. . adopting change..
5.15.2
of . . .348
9.69.1
9.8 Future of the dairy industry
Conclusion
CHAPTER
10.1L0.2
t_0.3 Malfunctions discovered. . Causes of malfunction. .
10 .3 .l- In the f arm system?
10.410.5
r_0.6 ]-0.'7 l_0.8
BTBLIOGRAPHY.
APPENDTCES
1 Farm practices and manaqement
2 Federal legislation and support
3 Current situation of dairying in states
4 Mj-lk pricing mechanisms in other 5 Survey of current dairy farmers 6 Survey of ex. dairy farmers
Further research..
Value of systems approach
Role of social science in t.he study
of an agricultural /farm sysLem
mechanisms
other Australian states
l_v
IJfST OF TÀBIJES
Responses to prlmary survey
Average annual rainfall received on sample 67 3.1
5.1_
t.L t.¿
7.4t.J
7.5
f arms 1_3 s
228
.61
.8
q . 1,0 .11_
.12 .13 .1-4 .15 .16 .1
7l
'1
1 1 1 1l
7 7 1 9
Year ownership changed ..249
Year of purchase: no. of properties purchased....250 Tot.al farm size (ha.) sampled farms ....252
Ages of primary farm owners
Ages of surveyed persons: farm family members
resident on farm
Age when farm family members left school
Post secondary education of farm family members
Owner (male) occupation prior to assuming
ownership of dairy farm
Ownership of property.
Size of houseblock (ha.) sampled farms Year of milking shed construction
Preferred management practl-ces .... . . ...
Factors preventing adoption of preferred
management practices. . . .
Factors preventing alterations in management
strategty by region
Ages of ex-farm family members.
230 232 234 237 248
255 262
292 303 304 306 331
No. of cows milked simultaneously. 263
Level of capital equipment ownership... ...266
Extra cows required ...273
T\¡pe of feed supplement used ...213
T5¡pe of feed supplement used by region. 214
Environmental problems in order of LEAST impact
on productivity
9.29.3
9.59.6 Size and year of purchase - properties of 9.4
ex-farmers. . .340
9 .1 Size of dairy herd at time of f arm sale . . . . .342
9.8 Farmer opinion of future of their dairy farm by
9.9 Farmer opinion of future of daj-rying in SA by 349
regr-on 355
regron
IJIST OF FTGURES
1- Distribut.ion of dairy farmers supplying milk Lo
Adelaide, 1,990...
2 Distribution of dairy farmers supplying milk to Adelai-de, 1953
3 Number of licensed milk producers (MMB region)
1-
1
I
1_
1
)
3
L952-1988. . . .
preference. . .
4 Average number of mi-lking cows per farm (M'{e 4
region) ..
5 Number of farms by sj-ze (ha. ) in 1,915, \979
and 1989. 6
.5
I
9 2 6
1-.6 On farm costs of production (cents/1itre)
(¡ß4B region)
Gross return to producer per li-tre (MMB region) Von Thunen's theory of agricultural location...
Speculat.ive value-distance from city function. .
Functj-on relating residential val-ue of rural
land to distance from city ....27
Funct.ion relat.ing land use intensity with distance
to city ...29
Model of farm systems (Cooke and Johnson) )t
Model of farm system (Norman and Gilbert)...
Socio-economic modelling. . . . 39 1-.1
3.1?,
3.3
4
.5 .6 .7 .8 .9
2)
3 3 3 3 3 3 3 3 3 3 3 4 + 4 4 4 4 4 4
38
Major subsystems for data col1ecLion..
Procedure of analysis of agricultural Basic elements in corrective feedback
Dairy farm system development. (Witson)
systems 1oop. . .
.45 .48
.56-s9.53 .10
. L1 .L2 .13
.1,4
Dairy farm agricultural system (Crockett) .. 60 Location of surveyed farmers
Subregions of surveyed milkshed 70
Factors influencing milk production ...73 A systematic conception of attitudes.. ...79
Pred's behavioural matrix. a)
Holist.ic model of environment.
69
.1)
1
.4 .5 .6
.'7
.8
Adaptation model... .8584
Transact j-onal model of relationships. . . .
Man-environment interf ace B8
Paradigm of individual behaviour, spatial cognition,
and overt spatial behaviour. 89
86
4.94.r0 Single and multiple choice decision making.
Factors leading into a decision on spatial 93
4.1,L Taxonomy for spatial dif fusion of propagator 94
supported innovation. . . . 4.1-2
4 .1-3
4.144.15
Components of innovation diffusion. . .
Stages in decision to adopt. . Diffusion of innovation over time
Classification of adopters on basis of relative of adoption
Rainfall and topography of Adelaide milkshed... . Generalised soil landscapes of Hil1s sub-
reglon. ..
.118 .119
.1-36 113 LL4
L1,6
180
5.1 5.2 5.35.4 5.5
t_3 8
Forces of urbanj-sation and countryside A time space order of urbanisation.
Hypothetj-cal relationships between distance from urban area and value of land for
L82
agriculture. L84
5.6 A 'partial' model of agricultural evolution in areas near cities
Pressures in agriculture.
Land conversion processes
To[al farm size (ha.): regional averages.
Number of herds by s:-ze of herd
surveyed farms .257
Size of milking herd by region ....258
Mean number of milking cows per farm
Mean number of milking cows per sample farm, S.D.
and STD error of mean . .260
Mean of production in lit.res, sampled farms...279
Mean, S.D., STD error of mean for production
in litres, sampled farms ...280
Averagre percentage of annual milk production by
region, sampled farms 281-
Proclaimed regions - South East of South
Australia... ..326
Soil types in South East of South Australia. . . . . .328 5.7 1-86
7.\5.8 7.2 7.37.4 7.5
.189 .L92.253
-1 7.6-1
7 9 9
8 1 2
ABSTRÀCT
Over the last two decades a great many farmers in Ehe Adelaide Milkshed (that is, the region supplying Adelaide with its liquid milk), have left the dairy industry which has 1ed to a decrease in milk productj-on
relative to demand. Based on the results of two surveys
(one of current farmers and one of ex dairy farmers) analysed within a systems framework, deteriorating perceptions of lifestyle, the cosL pri-ce squeeze and
urban expansion are identified as significant causes for this process of restrucLuring within the dairy industry. How the dairy farm system operaLes and the means by which farmers can adopt to malfunctioning or
breakdown within the farm system is also discussed.
Reasons for farmers leaving the dairy industry are explored. Improved management of the farm, and relocation of dairies to the south east and mid north of South Australia are considered as possible options
for increased milk Production.
ACKNOWI.EDGEMENTS
I would like to gì-ve my sincere thanks to the South
Australian Dairyfarmers' Association, its two executive officers, MÍ Terry Inglis and Mr Adrian Scott, its
members, the dairyf armers , for access to their records and personal experiences, without which this research would have been impossible.
Much assistance was received from many other areas of the
dairy industry, and contributions and advice f rom the
Metropolitan Mitk Board, South Australian Bulk MiIk Handlers, Dairyva1e, Farmers Union, and staf f of Ehe South Australian Department of Agriculture were
invaluable. Financial assistance from [he Cattle
Compensation Fund of the Department of Agriculture was
crucial to the project's completion.
Grateful appreciation is ext.ended to my supervisor Derek
Smith, whose expertise, encouragement and contagious enthusiasm enabled me to complete t.he research.
Thanks must also go to Pet.er Smailes, my second
supervisor, Ted Davis for his many words of wisdom, Max,
Chris and Sue in the map library for their forbearance,
all the staff at the Waite AgriculLural Research
Institute Library for their assistance and my frj-ends and relatives who bore my fluctuating moods with good grace.
John Antonio played a great part by listening during the
difficul-t patches, and my students did much to help by
taking an interest, and by being their lively selves,
kept me in touch with the real world.
To my parents, thankyou for their frequent phonecalls and
constant encouragement.,
To my parents in law, thankyou for contributing to large phone bill and the purchase of a computer.
Thankyou too to my much loved husband, Malcolm, for unceasing love, support, wisdom, patience and prayers.
the
his
