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Milk, money, muck and metrics: inefficient resource allocation by New Zealand dairy farmers

Author

Listed:
  • Ridler, B.J.
  • Anderson, W.J.
  • Fraser, P.

Abstract

Dairy producers have focused on increasing production and ignored the implications this may have on resource allocation efficiency. Averaged comparative figures are used to justify the production message but these cannot distinguish the point at which diminishing profitability from additional inputs will occur. Resource allocation using Linear Programming allows the effects of a simultaneous variation in resources to be revealed. Dairy production profitability is optimised where technical and biological efficiency combine to provide the best economic and coincidentally, environmental outcomes.

Suggested Citation

  • Ridler, B.J. & Anderson, W.J. & Fraser, P., 2010. "Milk, money, muck and metrics: inefficient resource allocation by New Zealand dairy farmers," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 96492, New Zealand Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:nzar10:96492
    DOI: 10.22004/ag.econ.96492
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    Cited by:

    1. Anastasiadis, Simon & Kerr, Suzi, 2012. "Mitigation and Heterogeneity in Management Practices on New Zealand Dairy Farms," 2012 Conference, August 31, 2012, Nelson, New Zealand 136039, New Zealand Agricultural and Resource Economics Society.
    2. Ridler, B.J. & Anderson, W.J. & Fraser, P. & McCallum, R.L., 2014. "“Win/Win. Improving farm profit and the environment through the application of Farm Management principles.”," 2014 Conference, August 28-29, 2014, Nelson, New Zealand 187404, New Zealand Agricultural and Resource Economics Society.
    3. Addisu H. Addis & Hugh T. Blair & Paul R. Kenyon & Stephen T. Morris & Nicola M. Schreurs, 2021. "Optimization of Profit for Pasture-Based Beef Cattle and Sheep Farming Using Linear Programming: Model Development and Evaluation," Agriculture, MDPI, vol. 11(6), pages 1-16, June.

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