This study reports an ex post evaluation of the impact the Supplementary Minimum Price (SMP) Scheme had on the New Zealand pastoral livestock sector over the period 1978/79 to 1984/85, and for a forecast following five year period. The SMP Scheme was introduced to complement the price stabilisation schemes operated by the New Zealand Meat Producers' Board and the New Zealand Wool Board, and to guarantee prices at a level appropriate for income adequacy and for the encouragement of increased farm production and export earnings.