Dairy farming in New Zealand
Encyclopedia
Dairy farming
Dairy farming
Dairy farming is a class of agricultural, or an animal husbandry, enterprise, for long-term production of milk, usually from dairy cows but also from goats and sheep, which may be either processed on-site or transported to a dairy factory for processing and eventual retail sale.Most dairy farms...

 in New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

 began from small beginnings during the early days of colonisation by Europeans. The income from dairy farming is now a major part of the New Zealand economy
Economy of New Zealand
New Zealand has a market economy which is greatly dependent on international trade, mainly with Australia, the European Union, the United States, China, and Japan. It has only small manufacturing and high-tech sectors, being strongly focused on tourism and primary industries like agriculture...

, becoming an NZ$11 billion industry by 2010.

History

In the dairy industry, dairy co-operatives have long been the main organisational structure. The first dairy co-operative was established in Otago in 1871. By 1920, there were 600 dairy processing factories of which about 85% were owned by co-operatives. In the 1930s there were around 500 co-operatives but after World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

, improved transportation, processing technologies and energy systems led to a trend of consolidation where the co-operatives merged and became larger and fewer in number. By the late 1990s, there were four co-operatives: the Waikato
Waikato
The Waikato Region is a local government region of the upper North Island of New Zealand. It covers the Waikato, Hauraki, Coromandel Peninsula, the northern King Country, much of the Taupo District, and parts of Rotorua District...

-based New Zealand Dairy Group, the Taranaki-based Kiwi Co-operative Dairies, Westland Milk Products
Westland Milk Products
Westland Milk Products is the trading name of Westland Co-operative Dairy Company Limited, an independent co-operative dairy company. It is owned by over 340 farmer shareholders, who supply milk to the factory for processing...

 and Tatua Co-operative Dairy Company
Tatua Dairy Company
Tatua Co-operative Dairy Company, trading as Tatua, is a small independent co-operative dairy company in the Matamata-Piako District of the Waikato Region, in the North Island of New Zealand. It is located in the small rural locality of Tatuanui, approximately 8 kilometres east of Morrinsville...

.

Production

Dairy export volumes for year ended 31 March 2007
Product Volume (tonnes)
Whole milk powder 682,000
Butter 420,000
Skim milk powder 368,000
Cheese 303,000
Ingredients 209,000
Casein 206,000
Other products 142,000


New Zealand is the world's eighth largest milk producer, with about 2.2% of world production. Total production was 1.3 billion kg of milk solids, and NZ$8.38 billion of dairy products were exported in the year ending 30 September 2007.

Traditional dairy production areas are the wetter areas of the country: Waikato, Taranaki, Southland, Northland, Horowhenua, Manawatu and Westland. Before the advent of refrigerated shipping in the 1880s, dairy production was entirely for local consumption, with butter and cheese usually being produced on the farm, with the surplus being sold to the community via the local store. Small dairy factories began to be established in the 1880s, and soon there was one in almost every village in dairying regions. Production began to be centralised in the second half of the 20th century, with facilities such as the Fonterra plants at Whareora (near Hawera), Te Rapa, Edendale and Timaru being the four largest in the Southern Hemisphere. Edendale is also currently the largest dairy factory in the world by milk intake.

Fonterra
Fonterra
Fonterra Co-operative Group Limited is a New Zealand multinational dairy co-operative owned by almost 10,500 New Zealand farmers. The company is responsible for approximately 30% of the world's dairy exports and with revenue exceeding NZ$19.87 billion, is New Zealand's largest company.- History :In...

 is the largest processor of milk in New Zealand. It processes 94.8 percent of all milk solids from dairy farms. Other large dairy companies are Tatua Co-operative Dairy Company, Westland Milk Products
Westland Milk Products
Westland Milk Products is the trading name of Westland Co-operative Dairy Company Limited, an independent co-operative dairy company. It is owned by over 340 farmer shareholders, who supply milk to the factory for processing...

 and Synlait.

There are approximately 4.2 million dairy milking cows in New Zealand, and 5.26 million dairy cattle in total at 30 June 2007, an increase from 3 million in 1982. In mid-2005, there were 12,786 dairy farms, with a total area of 2.1 million hectares.

Environmental impacts

Dairy farming is being increasingly held to account for the environmental impacts of the industry. Fish and Game started the "dirty dairying
Dirty dairying
Fish and Game started a high profile "dirty dairying" campaign to highlight the problems caused by intensification of dairy farming on the ecological health of New Zealand's freshwater environment...

" campaign to highlight the effect of dairying on water quality. As a response to the campaign the Dairying and Clean Streams Accord
Dairying and Clean Streams Accord
The Dairying and Clean Streams Accord is an agreement signed in 2003 in New Zealand between Fonterra, Ministry for the Environment, Ministry of Agriculture and Forestry and regional councils...

 was established in an attempt to reduce the level of water pollution. The family owned Crafar Farms
Crafar Farms
CraFarms is a group of companies of which Allan, Beth and Frank Crafar were Directors. Crafar Farms was New Zealand's largest family-owned dairy business. The family business owned 22 dry stock and dairy farms with approximately 20,000 cows in various regions of the North Island, and was put into...

 have borne the brunt of the prosecutions and have been labelled the "poster boys for dirty dairying" by Environment Waikato's regulatory committee chairman Ian Balme.

External links

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