@article {Painter:2007:1816-2495:41,
	author = "Painter, Marvin J.",
	title = "A Comparison of the Dairy Industries in Canada and New Zealand",
	journal = "Journal of International Farm Management",
	volume = "4",
	number = "1",
	year = "2007",
	abstract = "Dairy farmers in both Canada and New Zealand have done very well financially, but not for the same reasons. New Zealand dairy farmers, operating in a free and competitive market with no government subsidies, have become world cost leaders in the production of milk and have diversified along the value chain into the processing and marketing of dairy products. Through Fonterra, their dairy processing and marketing cooperative, they have captured 40% of the world dairy export market with branded New Zealand dairy products. As a result, New Zealand Dairy farmers have good incomes and have accumulated significant net worth, compared with the average net worth of all families in New Zealand. Their success can be attributed to good farm management and a willingness to take risks.<P></P> Dairy farmers in Canada have also done very well financially. However, Canadian dairy farmers have a supply management system that protects them from outside competition and provides cost-plus pricing. They are not cost leaders and (other than Quebec dairy farmers) have not invested in processing and marketing. As a result, there are significant differences between the New Zealand and Canadian dairy industries in term of average farm size, cost and production efficiencies and prices paid to dairy farmers for their milk. The large excess profits and net worth of Canadian dairy farmers has attracted the attention of consumer lobby groups who would like to dismantle Canada's supply management system.",
	pages = "41-60",
	url = "http://www.ingentaconnect.com/content/iagrm/jifm/2007/00000004/00000001/art00003"
}