The economics of growing sugar beet on farms in South Otago : a thesis presented in partial fulfilment of the requirements for the degree of Master of Agricultural Science at Massey University

Copyright is owned by the Author of the thesis. Permission is given for

a copy to be downloaded by an individual for the purpose of research and

private study only. The thesis may not be reproduced elsewhere without

the permission of the Author.

Mas~ey University library .

New Zealand & Pacific Collection

,.;

^-

p,_ ! I I

!rHE EOONO ICS

OF GRO I G

SUGAR BEEtf

ON PARKS

IN

SOUTll 0 '1' A G 0

A Theai.a ~ :1n partial 1\il.tilment of the

r e ~ a for the Degree o~ Maater of .Agr'ioultural Science 1n Jraasey Un:Lftreity

or

Ke.nawatu.

October

1961.

• •Anr

I

I

I

I

1

2

3

6 7

I

0

i

1

C ER 1

2

2

A

1

1

)

)

Fig. 2·1 World Production of Centrifugal Sugar

50

40

MILLION 30 . .. . ..

:-···

METRIC TONS

20

. .

... .

.. ..

... ·

. .

Cane -.: 1 ... ..,,

. ... I

~- . ~

.. ·. ..-··· .· I

.. . . ... ·" ... .

. .. . ... ·

^\..

. .. .. ·. . . . J' ,, ..

^:

10

J

- ... "" ... _, .. ./ Beet... · .. ,: - ,,

,"' .,.~l -···

^{.I. ....}

I

- _ -- __,-, . . .. , ..

^;

\ ~ ... ,, ,., ... _,_,

__,.- .. '::"'-'-· ... .,-···-· •..

^•

' , ,-' ' , / "' ' "- I ,

o _ _ _ _.__ _______________________ __.__ _ _

^__.__--J

18'79/80 1889/90 i99tml '9)9/1) 1919fl0 1929fJO !139/40 00/50

J..u.J ,9:t•lcl JU{7pr .i.c,:,,-norcy' in Eif~ur(m, ie60-1959,· ^{F ...}

, . o .

0

Raoo ,

P.Pe 21-30, t,nd ro:rri;J11y Bu.1lot:5.nrJ of' Agr:lcu.1tt~ l~or.or.d.cz end Ctat:t,;tioo0 i?.A.,O. o Hane.

1959/60

'-'

\)

°'

7

1

11

12

1

)

(1

R 3

:not

2

16

to

1

)

16 .. 2

B.6

^{1 .. 2}

1 6

1 1 .. 2

6

7

⁶

11

7

0 1

as

18

i

on

swedes

1

- -

...

-

-

1 11

-

-

- -

Fig. 3·1

21

SUITABLE SOILS FOR SUGAR BEET - Stephen

SCALE 4

t, :Jiii-ii!liiiiiCl! ... !!!0

i:::===j^{4 . .} ;;;;;;;;;;;;iiiii¹¹:::::==:::i1~ mllH

LEGEND

~ltahuna allt loClm Pukeawa 11 •• ,.

Clyde\lale • ,, CIU1ho allt & aandy IOOm WolkoUo.ol ailt IOClm War.pa "

TeHcula ,, Talerl

C)wQkQ If O

on

1

Fig.3·2 SUITABLE SOILS FOR SUGAR BEET - Cutter

-·-·-

LEGEND

w .. 11 Suited •

Mod•rately Sult.d ~

Doobtlully Sult~ 1mrn1mm

Un•ultablt,

D

SCALE

1= --~ -:-:_ :-.- ^44:1...T ...,;;..;,;;,z:}

to oot

to

but

=

0

=

=

=

y _::::

of

sucrose u~rac~~on

10

1.5

10

15

10

2 1 1 6 1

11+.

7 1

1

2

6

2 1

147 .. 0

0

176.,0

on:

1

7,.

C PT R

J,.

one one

ruined some

season one

1

sucrose

one

1 .. 2

number

1

1

7

(1

1 1 1

7

1 1

1

1

Gleoore 57

1

2

0 9

1

8 1 7

1

8 1

2

8

1

19 .. 1 1

6 14,.3

17 .. .5

15 ..

1 1

1

7

1

6

3

s

1 10 1

to

to

1 acrs ..

scale

on

( on

8 1

1 1

1 1 0

1 0

1 1 1

1 1

1

1

1

1 ..

8

. ..

737

1 8

1

1 1

19.5

17.0

1.17 1.

1 1 ..

on

of

C

1 ..

series

(

Fig 5.1 _THE LOCATION OF THE. SURVEY FARMS

SCALE

'4 LC...J__,---,.._-..___..,..,L__ O ___ _.. _ _ '4 ..._ I! .:.-:..=:.:..::J 12mllu

1 ..

cost

in

1

1

in

1 1

6 3

1

on

5 6

6 3

1

1

7

3

4

1

1 1

own

on

6

1 6

2

3 11

4 3

7

CO?ts reared.

was wi::i,W,,,va~A''"""' on on

swedes on sneen or

B

on

on

1

1

1 12

use

5

2

see

)

(1

P R 6

of

resources

run resources on

1

oosta

to

of'

in

on

in

1 2

:,

5 -

1

-

-

·1 -

9

'

,-o

I+

1 - 4

-

1 .... 0 1 - 0

-

6

1

s-

}

1 ....

1 -

6

3 9 3 ⁰

of

can one

on

8

1 2 1

1

1 1

1

1 1

1

1

{

C 7

on

)

or

does

the

( en

7.,

net revenue

)

defined

)

11

occur

been

20

to

1

1

1

acre

1

= 1

=

=

=

n =

m =

=

1

1

1

Units

1

65

1 0

1 12

1

13

1

Acre

)

..

.,

4

1 2 3

1

0

7

1

3

1

1 1 1

1

-

¹

1 1 1 1

2

1 8

1

..

1

"

..

^"

s

5

1 ..

)

=

1 (

1

-

5

7

10

5

6 7

- ...

-

· I

Fig . 7-1

(£) 9000

8500

REVENUE aooo

SUGAR BEET

WHEAT

HAY BUY

(ac.) 60 40 20

(ac.) 80 70

(ac.)

20

SWEDES

¹⁵

( hrs.)

OCTOBER

⁵⁰

LABOUR SUPPLY

₂₅

Parametric Solution - Case Farm ·1

PLAN7 PLAN8 PLAN9 PLAN 10

./.

'

( E'E's) - - - - - 1500

SHEEP

1450

0 5 10 15 20 25 30

SUGAR BEET GROSS MARGIN [ £]

93

35 40

Fig.7-2 Parametric Solution- Case Farm 1

( £)

7500 PLAN 5 PLAN 6

7000

J,,

I I I I

REVENUE

^{I I}

6500 ^{: I}

6000

(ac.>

80 60

WHEAT

40 20

HAY BUY

20

(ac.)

25

SWEDES

²⁰

15

( hrs.)

60

OCTOBER

LABOUR SUPPLY

⁴⁰ ...

20'-

('] _{I I I} I

' ^I

C E'.E~) 1900 1800

SHEEP

¹⁷⁰⁰

1600

1500 _{I I}

I I I I

' '

I I

0 5 10 15 20 25 30

WHEAT Gl?OSS MARGIN [ £]

95 Flg.7.3 Sugar Beet Supply Function

(Wheat G.M.:£25,24) 1,

40 ...

36- SUGAR BEET G. M.

£

Fig.7-4

WHEAT G.M.

£

20-

10~~----..r--..

0.___ ... ^{1 _ _} _._1 _ _ _ 1 _ _ 1 . . . . _ _ _ ... 1 _ _ _._1 _ _ _

30

20

10

15 30 45

60

SUGAR BEET ACREAGE

Wheat Supply Function

( Sugar Beet G.M ... Zero)

75 90

0 .__ _ __.__ _ __._ _ _ .._ _ ___.__ _ _..__ ...,..--~---

15 30 45 60 7~ 90

WHEAT ACREAGE

5 .... ...

6

• 9.42 -

1 -

8

- -

9 - -

1)

1 2

4

0

1

2

15

7

2

acre

1aore

1 acre 1 acre

1 2

1

(

2

(b)

2

90

1 0

1 ¹

7

3 ⁰

1 8

9

¹¹

1 1

1 ..

been

1

(b)

2

1

1

-

1 1 ¹ 1 1 1 117

1 1 1 1 1

1

aore 4 5

^{0 0} 0 0

1

acre 4

^{0 0} 0 0 0 0

1 17

17 Hi 1.5 16

1 1 111 1111.,.

I ⁰ ₁

I 16 I I 24

i.., acres

I I I I I 4

} aores

.3 acres

1

s

I I I

⁸

I '

1

1 I

-

_{I I}

I I

I

0

I

^~

:,1.

1 6

7

11

1

- ...

- -

Flg .7-5

( £) 9000

8500

REVENUE

8000

SOOAR BEET

WHEAT

HAY BUY

GREENFEED SWEDES

SEPTEMBER

7500

Coe.) 75

Coe:.)

12 100

,-:~

80

(Qc.) (QC.)

:I

C hrs.>

~I

75

LAOOUR SUPPLY

^~

25

0

E'.E~) 1100

SHEEP

^{1 ~ ...}

1000 ...

\

0

Parametric Solution - Case Farm 2

PLANS PLAN ~ O 9 8 · ~ ~ 1

! , , ~ 1 2

I i: I I

:

1,

'

_•

.r

L

I I t I 1 II I 1 II I

: :I, I _I

5 10

PLAN 13

I

15

I

20

PLAN 14

.

25

SUGAR BEET GROSS MARGIN [ £]

.

I

30

108

.

I

35

5 8

4-818

( £) PLAN 5 PLAN6 PLAN 7

\ ,.

_,.

i/,

,1 tl

"

,.

"

5000~---ii~----

II

(ac.)

GREENFEED

(

LABOUR SUPPLY

100

75

50 25

5

,o

5

5 10

I '

1, I I

''

11 1'

I:

, ,

15 20 25

MARGIN ]

rm

PLAN 8

30

Sugar Beet ly Function

40 (Wheat G.M. = £3175)

30

SUGAR BEET G. M.

20

10

30

20

WHEAT G.M.

10

20 40 60 80 100

SUGAR BEET ACREAGE

Wheat Supply Function

(Sugar

Beet

G.M =Zero)

20 40

60

80

WHEAT ACREAGE

100

s

8 15

1

1

2

1

as

5 or 6

cm,s

1

1

acre

1

1

one

Sor

6

1

7

(j)

7.,

2

are

1

1

1

1

)

1 acre ₃ 2 1

acre

1 acre

7

'

²

1

4 :;

1 1

1 acre

30

3

)

1

was

1n error

12

-

C

3

1

4 4 4

^I "" ^I

... ...

1 0 0 0 0

I

⁰

I

⁰

1

acre

0 0

1 it,ore

7

' 8 ; 3

1

aore

1 0 0 1 0 0

1 acre 18 1 1 101

1

acre

1

DUV I 1

I

⁰

I

⁰

I

¹

I

⁰

I

⁰

I

¹

• DUV I

1

1 11 1 11

1

1

I I t I I

7

²

7

9 I

⁹

I

^!:)

I 5

..

1

~

0 0

1

I

1

1

I

¹

I

1 1

...

I 1 0

I 1 1 1

1 1

7

1

I 16

^{0 0 1}

I

¹

0

1 1

1

0

0

0

7

9

...

I

¹

I

I

⁰

I

...

so

as

zero

so )

11 1

r

( £)

8000

PLAN 4

PL\~5

7500 _{I t}

11 I I

REVENUE

^{7000 I I 11}

6500 6000

(ac.)

30

SUGAR BEET

²⁵

POTATOES

(tons)

LUCERNE BUY

15. _ _ _ _ _ _ _ __

AUTUMN ,._ _ _ _ _ _ _ _ _

(

CHOU. WINTER

AUTUMN CHOU. Coc:t

I

(h

MAY LABOUR SUPPLY

(hrs ..

APRIL LABOUR

⁴⁰⁰ -

r

SUPPLY

350 ...

'>

^{I I I I I I I}

(Ea)

I

eooi-

DAIRY

^{I I} _{I I}

700'- ^{I I}

'>

^{I I I I I I I I I I 1 I I I I}

0 10 20 30

40

50 60

SUGAR BEET GROSS MARGIN [ £]

Fig . . 10 Parametric Solution C - Case Farm 3

(£) 8000

7500

REVENUE

7000

(ac.)

20-

SUGAR BEET

10-

0 (ac.)

WHEAT

¹⁰

0

POTATOES (acit

(ac.)

LUCERNE BUY

¹⁰

AUTUMN

5

( ac.)

10-

CHOU.WINTER

5,....

(acl

(']

CHOU AUTUMN :

(hrs.)

APRIL LABOUR

³⁵⁰

SUPPLY

₃₂₅

(E'E's) 800

DAIRY

700

0

I

I

I

10

PLAN 11 PLAN 12

I I I I

I l I

.

^{I I}

I I I I I

i

I

20 30 40 50 50

SUGAR BEET GROSS MARGIN [ £]

I

I

I

70

15

1

1

0

revenue on on

11

1)1

1

1

132

1

19

1 revenue

1

1J6

CH P

R 8

1

acre on Case 2

P.t\i .. "!'¥1~-·!il! 6 and 7,,

U~,~C'l.t OJl

1

)

2

1

2

Olutha.

t,r,Odt101.10n m~Mbe

~~-=~M

be an embe~rriisiffllEl:nt ..a .. i. ... s:>o

are

it

are

or

7

1 6

in

on

on

11

in

1

1

1

G

L

)

=

-

we see

<

<

^L

1

1

0 ..

025

0 .. 1

6

1

1

2

10.0

4.0

1 .. 3

.

1

2

.

16

1

Fig .8-1

14

C 12

10

8 Losses,

2

Break-even Curve Showing Where Investment with and Without Research may be Justified.

p

Q

---

-·u--~~~ ---1U

- - - · ~ · - - · - - - - - - - · - · - - - · - · - · - - - · - · ... · - · - · - V R

... ^Q. 0-2 0-3 0-4

o.s

^{0.5 07 Q.B 0-9 1-0}

~

..i.

~n Vil

were

1.,

success

1

p I I

(1

1 ..

1 1

1

1

1

STI~in~ SCM1l m"O'DS ~~~1~

SO'Rn

1 1

3

(

1'

1

10-14

of:

1

and uta:ier ,,,4 ·,-,~...,._~,..

seecl. e.1"1r,,,1f~&

sources are

new griamw:r ffvm~-~

-~·•,;::.;a•'-'-" are

,K.J,•~w:.,,.~ api~J.:Lce,tormounted on

175

on on

a

1

1

crowns"'

to ensttr'e mJz:rJt-ci!U!l,J.J..

)

1

PP NDIX

1 :

-

¹

) 1

acre

1 acre

75,,,00

31.,41

1 acre

-

1 acre

-

1

acre -

1 acre 0.,94

10

41

1 ocw

1

2

} 1

1 1 l!!nre 1 acre

1 acre

-

1 aore

-

1 80%'$

...

10 10 1

-

1

Rotation

1 1

2 i

l

¹ ₁

- - - -6 .. 26

5 6

² ₂

- - - -

7

²

I - - -

8 2

-

2

- - -

11 2

- - -

12 3

- - - - -

14-

^} ₃

- -

; - -

.3

^~

- - - - - -

., - - -

-

1

-

1 acre 1 1.lfB

1 acre 1 115.27

1 aore i.9 .. 00 1 1 acre

1 acre

...

1

acre

1 &ore

-

1 acre

- -

1 acre

-

¹

1 acre

- 1, ..

10 s

5 ..

10 4. ¹

1 acre

1.,

as

IX

1

1

vvvvvvvvv vvvvvvvvvvvv

...

vvvvvvvvv vvvvvwvvvvvv

••

\V WV \V V V \V \V \V \V V V \V V \V V V \V V

\.II&

-

p I

1) ..

1

1

- -

)

~t\:l~.ltf.,£&<;:A..L

to

ue:,vc,iu,u

1