Originally published:1985-03 as Discussion paper (Lincoln College (University of Canterbury). Agricultural and Economics Research Unit) ; no. 90 by Lincoln College. Agricultural and Economics Research Unit.
Although in the past pig production has been an important export
industry, today it is only concerned with the domestic market. It is an industry which has not benefitted from direct government
subvention, as has been the case with many other farm products.
Currently the industry is in an expansionist phase, involving the
rapid adoption of new technology in production and the planned growth of
existing markets. At present the value of pig output at farm gate prices
is of the order of $100m a year. Pig production is no longer a subsidiary
activity on dairy farms, operated in order to turn dairy byproducts of no
commercial value into saleable products. Although some producers still
have access to sources of cheap feed supplies, much of the industry is
based on cereals and protein for which it has to pay the full commercial
price in competition with other buyers.
Over the past 50 years, pig producers have experienced widely
fluctuating fortunes - generated not only by domestic factors but also by
the changes on external markets. A succession of attempts to provide a
satisfactory institutional framework have been made since 1921, the most
recent being the setting up of the Pork Industry Board in 1983.
While there is a considerable volume of research into the production
of pigs, including consideration of studies undertaken abroad, there has
been very limited work on the economic issues. There is a need to consider
the allocation of expenditure on research, in order to give a better
understanding of the economic factors which determine change and the level
of prosperity in the industry. The present study is a contribution to the
debate on the further development of the New Zealand pig industry; it
brings together the available statistical and economic information on the
current situation, assesses efficiency in production and marketing from
that information, identifies alternative strategies for further development
and makes recommendations. It reports on a postal survey of a stratified
random sample of producers which gives details of their existing policies
and their views on the issues which will affect future developments.[Show full abstract]
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