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    Stocking rate and dairy production in New Zealand: An analysis of the UQR model with fixed effects

    Ma, Wanglin; Renwick, A.; Greig, Bruce J.
    Abstract
    This paper analyzes the effects of stocking rate on dairy production, using New Zealand dairy farm business data for the period 2005-2014. Unlike previous studies that assume a homogenous relationship between stocking rate and dairy production, we contribute to the literature by investigating the heterogeneous effects of stocking rate on milksolids production and applying an unconditional quantile regression model with fixed effects to control for unobserved farm-specific traits that are time invariant. The empirical results show that stocking rate exerts significant heterogeneous effects on milksolids production at different quantiles. In particular, we find that an additional increase in stocking rate (i.e. one cow/ha increase) increases milksolids production per hectare by 0.18%~0.25% but decreases milksolids production per cow by 0.05%~0.12%. In addition, we find that milking interval, dairy breed, farm labour, access to irrigation and farm location are important factors that increase milksolids production... [Show full abstract]
    Keywords
    stocking rate; milksolids production; unconditional quantile regression; fixed effects; New Zealand
    Fields of Research
    0701 Agriculture, Land and Farm Management; 0702 Animal Production; 140201 Agricultural Economics
    Date
    2019-07-25
    Type
    Conference Contribution - Published (Conference Paper)
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    • Department of Global Value Chains and Trade [212]
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    Abstracts_19_05_15_17_57_51_58__103_240_53_52_0 (2).pdf
    AAEA 2019.pdf
    DOI
    https://doi.org/10.22004/ag.econ.290717
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    © 2019 by Wanglin Ma, Alan Renwick and Bruce Greig. All rights reserved.
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