• Allocative and Productive Efficiencies [0]
• Operating Surplus [0]
• Pasture Profiles [0]
• The Impact of Nitrogen Fertilizers [0]
• Regional Trends in dry matter and milk production [0]
• 12150 Kg dry matter versus expectations more in line with 14300 Kg dry matter [0]
• Farm production functions for Waikato and Southland [0]
• Regional differences between Waikato and Southland [0]
• Setting the correct Production Level [0]
• Management Changes [0]
• Summary of Discussion [0]

• Appendix 1: Marginal Cost per Kg of milk solids plus Supplemental Dry Matter used. [0]
• Appendix 2: Marginal Cost plus Farm Operating Surplus plus Average Cost and Revenue – all per Kg of milk solids. [0]
• Appendix 3: Marginal Revenue per Cow plus Supplemental Dry Matter used. [0]
• Appendix 4: Marginal Revenue plus Farm Operating Surplus plus Average Cost and Revenue – all per Cow. [0]

http://www.dexcel.co.nz/main.cfm?id=242&sid=139&id2=439&an_id=139 [1]

Colin Riden, 2007. The Marginal Cow I – Allocative Efficiency:
http://www.agprodecon.org/node/9 [2] or
http://agprodecon.org/images/MarginalCows/MC1/TheMarginalCow-I-V2.pdf [3]

Colin Riden, 2007. The Marginal Cow II – Productive Efficiencies:
http://www.agprodecon.org/node/10 [4] or
http://agprodecon.org/images/MarginalCows/MC2/TheMarginalCow-II-V2.pdf [5]

Ridler BJ, Hurley E, Stachurski LJ; 1984: The management policy on Massey University’s Large Herd. Proceedings of Ruakura Farmers Conference.

GSL and the GSL Model refer to GSLdiagnostic software from Grazing Systems Ltd,
17 Chilton Grove, Palmerston North.
http://grazingsystems.com [6]

For background on the use of LP in Farm Management System Models refer to:
Ridler, BJ; Rendel, JM: Baker A; 2001 Driving Innovation: Application of Linear Programming to improving Farm Systems. Proceedings of the New Zealand Grasslands Association pp295-298

http://www.dairynz.co.nz/page/pageid/2145836870/Pasture_Growth_Data [7]

Appendices

Four graphs present data from the same model but in different combinations hoping one or more will communicate the critical importance in pastoral dairy farming of setting the correct production level (MC=MR for any potential milk solids payout).

Appendix 1: Marginal Cost per Kg of milk solids plus Supplemental Dry Matter used.

Marginal Cost per Kg of milk solids plus Supplemental Dry Matter used. The steep increase in marginal cost with the introduction of purchased supplements (maize silage) is the critical point to note.

Marginal Cost plus Farm Operating Surplus plus Average Cost and Revenue – all per Kg of milk solids. Peak Farm Operating Surplus corresponds with the point where MC=MR i.e. where the marginal cost equals the $5.50 payout. Average cost and operating surplus change at that point, but possibly not enough to be noticed.

Marginal Revenue per Cow plus Supplemental Dry Matter used. The steep drop in marginal revenue with the introduction of purchased supplements (maize silage) is the critical point to note. The drop in marginal revenue mirrors the increase in marginal cost shown in Appendix 1.

Marginal Revenue plus Farm Operating Surplus plus Average Cost and Revenue – all per Cow. Peak Farm Operating Surplus corresponds with the point where MC=MR i.e. where the marginal revenue per cow equals zero. Average cost and operating surplus change at that point, but again possibly not enough to be noticed.

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