NZ dairy industry plays a significant role in producing and distributing milk products domestically as well as internationally. It accounted for 3% of milk produced all over the world and earned NZ$ 13.2 billion in terms of export revenue that contributed 37% of total NZ industry export value in 2015 (DairyNZ, 2015, p.12). Although NZ economy is dependent on the dairy industry, the NZ dairy industry is well-known as the least subsidized sector in NZ (IUF, n.d., p.1). It helps feed more than 100 million people worldwide, creates job opportunities, keeps interest at a low rate and encourages NZ government spending on other essential services (New Zealand Dairy Careers, n.d., n.p.g., ¶ 1). In this part the history of NZ dairy industry will be
Since then, Shorthorns had become the most popular cattle breed which were used to mainly provide milk, butter, and cheese for people’s daily needs (Stringleman & Scrimgeour, 2012, p.1). After the 1840 Treaty of Waitangi, domestic markets were the primary targets of the dairy industry, but there was a slow development of export to Australia (Conforte et al., 2008, p.4). In the mid-1880s, the introduction of the first dairy factories which processed whole milk into butter and cheese took place in Taranaki and Waikato (Stringleman & Scrimgeour, 2012, p.2). In the late 19th century, milk processing factories started to grow faster with the establishment of transportation from farms to factories and to markets that encouraged the dairy markets to expand (Stringleman & Scrimgeour, 2012, p.3). Due to the early success of the entrepreneurs, 150 factories were established nationally; 40% of them were co-operatives owned and controlled by farmers (Stringleman & Scrimgeour, 2012, p.3). And the number had risen to more than 400 separate co-operatives by 1930s which focused mainly on export (DCANZ, n.d.,
According to DCANZ (n.d., ¶ 6), the development of transportation and refrigeration technique had triggered the wave of consolidation among the co-operatives so as to achieve higher efficiency in production. The total 400 co-operatives had become 168 by 1960s and then shrunk to 13 dairy companies by 1995 (DCANZ, n.d., ¶ 7). The four remained co-operatives after the consolidation in the late 1990s were the NZ Dairy Group, Kiwi Co-operative Dairies, Westland Milk Products and Tatua Co-operative Dairy Company. However, the industry had seen the transferred ownership of the Dairy Board’s assets which later formed the Fonterra Co-operative Group in 2001 (DCANZ, n.d., ¶ 10).
Apart from having UK as the major market in the 1970s, the industry decided to explore South East Asia not only to avoid increasing trade barriers from the UK intention to join the EU, but also to seek for diversification of products (Conforte et al., 2008, p.4). Because South East Asian markets were not suitable for butter and cheese, the dairy industry had invested in R&D to manufacture the milk powder, which was the fundamental ingredient for today’s product mix (Conforte et al., 2008, p.4). Such expansion of the international market was a contrast to the consolidation at
Unfortunately, this business model was unsustainable due to the increasing input costs of farming and the low prices the Hatcher’s were receiving for their milk. All other local dairies faced the same issues. As a result, a federal buy-out
The need for affordable, efficiently produced meat became apparent in the 1920’s. Foer provides background information on how Arthur Perdue and John Tyson helped to build the original factory farm by combining cheap feeds, mechanical debeaking, and automated living environ...
The. The "Meat Industry" Encyclopedia Americana. Grolier Online, n.d. -. Web.
From a financial and marketing standpoint, the effects have been catastrophic. In some areas, milk production has decreased by an average of two liters daily and calving index (efficiency at which new calves are produced) went down by an average of twenty days (Davies NP). Th...
The 1920’s were the singularly most influential years of farming in our country. The loss of farms following the war, and new agricultural practices resulted in the dawn of modern agriculture in our country. The shift from small family to big corporation during this time is now the basis for how our society deals with food today. Traditional farming in the 1920’s underwent a series of massive transitions following WWI as the number of farms decreased and the size of farms increased.
Since the beginning of time, people have been drinking milk. Even today you will find a gallon of milk in almost every refrigerator in America. Milk is, and has always been, a staple of our diet. Because it contains essential proteins, carbohydrates, fats, minerals and vitamins, milk is considered one of nature's perfect foods. Unfortunately, throughout the last century milk has been subjected to many forms of modern processing practices, which deprive milk from many of its natural qualities and benefits. Therefore many essential vitamins and enzymes are lost. Processing milk has altered one of nature’s perfect foods and changed it into something nature did not intend. Because of the abundant health benefits in raw milk, this report will explain why it should be made legal for consumers to buy throughout the United States.
... The routine conversation that is usually conducted when we gather together is concerning the inflated price of milk of which has transpired within the last ten years. With possessing a small child the need for the consumption of milk is not considered an optional luxury but a necessary commodity for small children and their overall development. With inflated prices on necessary commodities, such as milk, for many young families produces an enormous financial burden with monthly demands of milk. Dealing with this issue of inflation is an extremely difficult issue to bring a conclusive solution towards however, the article makes a good point in sharing that there is a vital need to reexamine the present system.
The idea of the family farm has been destroyed by large food corporations. As discussed in class, industrial farming typically leads to the mass produ...
The current Production Capacity is Low to face the upcoming competition-The dairy currently produces 10000 liters of milk per day even after 30 years of presence in the market. This will certainly affect the chances to take advantage of the current growing market and to manage the consumption cycles of the industry. The question of whether to decide on the expansion of production capacity: With an incredible growth expected in the industry, the issue that the management faces now is, whether to increase the production capacity or not. This is very much needed as the expansion of production capacity will equip the company to supply and cater to the demand as well as attain economies of scale, which can be used as a competitive advantage against the new entrants. However, this calls for capital investments on the assets required for expansion.
There were fierce competitions among the producers that have scale and scope of operations which were similar to each other. For instance, the Pepsi Co. and Coca Cola companies have developed the strategy and infrastructure, which are hard for the local sellers to complete with them. However, there were still many producers including new entrants that try to access the market and compete seriously with low price and differentiation- strategies among rival...
Horizontal growth from 1879 to 1893- which occurred when producers of similar fields combined through mergers, pools, or trusts to gain economies of scale, and
At the time of the case, the beef industry was in a state of decline. Increasing consumer sentiment towards the negative health effects of red meat timed with increasing inventories of product supplied from Canada and Mexico as a result of the North American Free Trade Agreement (NAFTA) had caused prices in the consumer market to plummet. (Mohr, 1999) As a result, ranchers were seeing that their finished product was commanding lesser dollar values while their inputs of feed and medication was remaining the same or rising.
Currently New Zealand is finally recovering from the rapid economic growth it experienced in the mid-90s, now that the worst of the Asian financial crisis effects are over. New Zealand lost many export markets in Asia, but looked to the U.S. and European markets to replace the lost customers. The country remains dependent on trade due to its small size and isolation; price and access to foreign markets are a constant concern.
Since its inception in 2001, Fonterra Co-Operative Group Limited (Fonterra), the largest company in New Zealand, has grown to be the world’s 4th largest dairy company in 2013 (Robobank, 2013). Fonterra is the largest dairy exporter of the world and it controls a third of global dairy exports. Fonterra has huge pool of talents of 16,000 staff locally and internationally to make dairy available every day to millions of consumers ...
When Ireland joined the EEC or European Economic Community in 1973 many small dairies began to merge in order to compete with the larger dairy producing companies. Kerry also participated in the mergers with help from the milk suppliers of the County. Kerry acquired the State owned milk processing company along with its creameries. The Group also held a 42.5% stake in the NKMP Company for a total of 1.5 million Euros. At the same time, six of the eight independent Co-ops, which owned the other 42.5% stake, were acquired and became a new subsidiary of the Kerry Co-operative Creameries Ltd, which began trading in 1974. Kerry began as the smallest of six agricultural co-ops, a position that was soon to change.