The current situation and policies of the New Zealand cereals sector
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Authors
Date
1984-12
Type
Discussion Paper
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Fields of Research
Abstract
In New Zealand's agricultural sector, the dominant position of
pastoral enterprises has resulted in relatively little importance being
attached to the production of arable crops. At times of strong demand
and remunerative prices for milk, sheepmeat, beef and wool, the
comparative advantage of New Zealand producers of these products over
those in other countries has justified the general lack of any strong
concern for the development of the arable sector. When, however, the
market for livestock and livestock products is weak, the further
expansion of other farm products, including cereals, becomes a much
more attractive proposition.
It is not perhaps always appreciated that the proportion of total
agricultural land in New Zealand devoted to cereal production is very
small. Over the past decade, the area under cereals has fluctuated
around 200,000 ha with the trend over these years being slowly
downwards, from an average of 210,000 ha during the five year period
1973-77 to an average of 190,000 over the period 1979-83 (although the
1983-84 out turn has shown a sharp reversal of this trend). This area
under cereals represents less than one per cent of the total
agricultural land in the country, although the quality of the land
involved is above that for the country as a whole. Cereals account for
less than ten per cent of the proportion of the 2.5m hectares of land
of high actual or potential value for the production of food.
This paper is concerned with the production and utilisation of the
four cereals produced commercially in New Zealand - wheat, barley, oats
and maize, and the official policies which influence them.