2.0 TERMS OF REFERENCE
The following were the terms of reference for this project.
- Develop a brief case for sharemilking - ie, define the ways that sharemilking has benefitted the dairy industry and New Zealand as a whole.
- Update and develop the earlier sharemilking review (Hall and Martyn, 1993) as follows:
- Basic statistical background - both current levels and changes from 1972/73 and 1992/93 of the following:
1. number of dairy units;
2. average size of units;
3. total number of sharemilkers;
4. number of contract milkers;
5. number of unorthodox arrangements;
6. number of farm sales;
7. percentage of farm purchasers who are new farmers; and
8. average age of farmers and sharemilkers
- Return on sharemilkers' capital and owners' capital - both currently and compared with 1972/73 and 1992/93. Compare the current return on owners' and sharemilkers' capital in Waikato and Canterbury to investigate whether there is any comparative regional advantage for sharemilkers and/or owners.
- Compare inflation in dairy farm prices and dairy stock prices in both regions. Calculate the number of cows required to buy an average first dairy farm at present, and compare with past requirements.
- Implications of all of the above for:
1. ability of sharemilkers to achieve farm ownership;
2. time taken to achieve farm ownership/age of farmers;
3. incentives for owners (e.g. to employ 50/50 sharemilkers, contract milkers, unorthodox arrangements etc.);
4. regional differences in the industry;
5. attractiveness of the dairy industry as an employment opportunity; and
6. motivation for those in the industry.
Contact for Enquiries
Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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