A study of the economies of size in New Zealand dairy farming : a thesis presented in partial fulfilment of the requirements for the degree of Master of Agricultural Science in Farm Management 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.

:!..; :· �':1 L:2Ai,.:...::J DAIRY FARMING

·..;:lesis presented in partial fulfulrncnt of

the requiremen ':.f ^. .:or the ^degree of

·.er of Acricul tural Science in Farm Manad·2me:-J.t

at

Hassey University

R. G . JACKSON

1971

A � ^{K N 0 W L} E D G E M E N T S

I am particularly grateful to P^{rofessor A. R. Frampton}

of the Agricultural Economics and fanu Management Department Mw;�Jey University, fo r his guidarwn and interest in this

I would also like to thank f'1,.,:;srs. J . N. Hodgson,

\{, G. Payne and A. H^. Hughes of thn A_{gricultural Economics}

and }'arm Hanagement Department for helpful discussions with the author.

},or assista^nce in the compilation of the cost data, I aJa indebted ^{to :;-.�r. lJ. G. Ho[Sg of} Jlogg and Cardiff, �uanti ty

;)urveyors, Palmer3ton North an(i to Messrs. J. Luxton and

',/, ...:. :�loane, Department of Agriculture, Palmerston North.

:-;1;c:cial thc-mks are due to I·:r. A. ideber and

J•li!;s ^H. hc..;auehan of the lJomputer Unit, Nassey University, for their aJvice in ^{the writin}g and testing ^of the computer

'l'he ready and willine- co^-operation of all survey farmers is gr�tefully ackn^owl^ed^ged and ^I thank the Extension Officers of the New Z:ealand Dairy Board for the assistance and time they gave to the farm survey.

rarticular appreciation is extended to Mrs. R. Donovan for her careful and patient typing of the thesis, and to Hiss M. van Hove who was responsible for the fit,rures.

J.<'inancial assistance from the New Zealand Dairy Board and from the Bank of New South Wales is acknowledged with gratitude.

CON1'ENTS

VOL"ill'IE I

CH:\Prr-;R

ONE H'TRODUCTION AliD THESIS OUTLINE

TWO ECONOHIES OF SIZE 'l'HEDRY AND POSSIBILI'l'IES FOR INCREASING fu�D DECREASING RETURNS TO SIZE

THREE

FOUR FIVE

Ai�ALYTICAL PROC1'DURE3 AND R1"'VI IM ^OF PUBLISHED S1�DIES

Tllli FARM SU:-tVLY

HE�'UlJl'S OF 'l'HE FAitH ^SURVL'Y

SIX BASIC A:�:.>UJ..,�P1'IONS OF THE S'l'UDY AND DErAILS OF '.i'IE AI\ALYTICAL PROC1'DURE

Pill� UNI1' COST AND INCOME DA'fl\.

EIGH'l' 'l'HE CO::::i'l'-SIZE AND PROFIT-SIZE RELATIONSHIPS

NINE II1PLICA'l'IONS OF THE ^S1'UDY A.lil"D CONCLUSIONS

BIBLIOGRAPHY

PAGE

1

3

17

27 )6

104

1)1

167

203

2 14

APPh"'NDICES

A

B

c D

VOLUNE I I

FAill1 SURVEY DATA

BASIC ASSill1Pl' I ONS OF _THE STUDY AND COST DA'rA

PER UNIT GOS'I' AND INCOME CURVES

SHORT RUN ^{AND LONG} RUN ^AVERAGE C'OST AND NKl' INCO:t-1E CURVES - BREAK1""YEN ANALYSIS L'URVES

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