NEW ZEALAND: ESTIMATES OF SUPPORT TO AGRICULTURE

Contact person: Il Jeong Jeong
Email: jeong.jeong@oecd.org
Tel :	(33-1) 45 24 95 27	Fax :	(33-1) 44 30 61 01

DEFINITIONS AND SOURCES

Country Total Support Estimate (TSE) and derived indicators in Table 1 cover all agricultural production, i.e. all agricultural commodities produced in the country. Definitions of basic data sets refer to the specific name of the programmes. For the Producer Support Estimates (PSE) and Consumer Support Estimates (CSE), the description of policy measures indicates the commodities covered by the measures. MPS commodities, which vary across countries, are those for which market price support is explicitly calculated in Table 2.

Market Price Support (MPS) and Consumer Support Estimates (CSE) by commodity in Table 2 are calculated for the following commodities: wheat, maize, barley, oats, milk, beef and veal, pigmeat, poultry meat, sheep meat, wool, and eggs. Definitions are provided only for basic data sets from which all the other data sets in this table are derived, following the formula indicated in each commodity table. Specific sources are indicated in square brackets.

Definitions of the indicators, criteria of classification of programmes included, and methods of calculation can be seen in OECD, Methodology for the measurement of support and use in policy evaluation [http://www.oecd.org/agr/policy].

Conversion factors:

Milk tonnes = thousand litres / 1.031

Eggs tonnes =  million dozen x 12 (eggs) x 58.5 (grams per egg)

Sheep tonnes = number exported live x 0.020

Wool cons. tonnes = clean wool consumed x 1.33

Crop years: 1 April 1986-31 March 1987 crop year is referred as "1986" and covers data denoted in the reference source as "1986/87". Note that, in contrast, when the New Zealand authorities use statistical year "1979", they are referring to "1978/79".

Marketing years: Vary according to livestock products. The following examples are referred to as "1986":

milk: 1 June 1986-31 May 1987;

beef and veal, pigmeat, poultrymeat, sheepmeat: 1 October 1986-30 September 1987;

wool: 1 July 1986-30 June 1987;

eggs: 1 April 1986-31 March 1987.

Abbreviations:

MAF New Zealand, Ministry of Agriculture and Forestry

MISA Meat Income Stabilization Account [no longer exists]

NZDS New Zealand Department of Statistics [now SNZ, Statistics New Zealand]

NZMPB New Zealand Meat Producers Board [no longer exists]

SONZA(F) Situation and Outlook for New Zealand Agriculture (and Forestry)

USDA United States Department of Agriculture

Table 2. Market Price Support and Consumer Support Estimate by commodity

Definitions:

I. Level of production

Cereals: Total production of all cultivars from all sources [1].

Milk: Milk production, calculated as the sum of town milk and manufacturing milk production.[1]

Meats: Total production in carcass weight of slaughtering (including dairy cattle for beef, mutton and lamb for sheepmeat); canned meat production (for beef) and animals exported live (for sheep) (number exported multiplied by 0.020). Includes production from rural slaughterhouses, on-farm kill, and pet food factory kill [2].

Poultry: Commercial production in carcass weight of meat of chicken, roasting fowl, duck and turkey. Goose and pheasant meat is not included [2].

Wool: Total production of greasy and scoured wool in greasy equivalent weight; excluding slip wool and wool on sheepskins (which is exported).

Eggs: Commercial egg production, dozen converted to tonnes (0.702 = 12 eggs x 58.5 grams per egg) [2].

II. Producer price

Cereals, poultry and eggs, milk, meats and wool: Implicit average farm-gate price calculated by dividing the value of production by the level of production. Since 1987, barley price refers only to feed barley.

IV. Level of consumption:

Cereals: Apparent consumption, i.e. production minus exports (in the following year) [3].

Milk: Apparent consumption of market fresh milk, plus consumption of milk products in milk equivalent [3].

Beef and veal: Local disappearance of beef and veal, including farm and rural slaughterhouse kill, carcass weight; and carcass weight equivalent of canned and miscellaneous processed beef and veal [3].

Pigmeat: Total apparent consumption (i.e. production minus net exports of pork, bacon and ham), carcass weight [3].

Poultrymeat: Assumed equal to production [3].

Sheepmeat: Total apparent consumption of mutton and lamb, carcass weight [3].

Wool: Consumption of wool, in greasy equivalent, obtained by multiplying consumption of clean wool by 1.33 [4].

Eggs: Assumed to be equal to production.

VII. Reference prices:

Milk: Border prices of butter and SMP converted into a milk equivalent border price using technical coefficients minus a processing margin, calendar year. The border price of butter is the butter average export unit value, f.o.b., year ended 30 June [8], and the border price of SMP is Skim milk and buttermilk powder f.o.b. export price, year ended 30 June [8]. The processing margin is calculated as the difference between the domestic wholesale price (domestic wholesale prices of butter and SMP converted into milk equivalent price using technical coefficients) and the producer price. The domestic wholesale price of butter and SMP is assumed to be the same as the border prices of butter and SMP.

Pigmeat: Implicit import price obtained by applying the tariff rate to the wholesale price (estimated as the producer price plus processing margin estimated at 50 per cent of the producer price).

Poultrymeat: Implicit US export price obtained by subtracting the average unit value of the export subsidy (total value of the US Export Enhancement Programme (EEP) divided by total exports) from the US producer prices [6].

Eggs: Export unit value of eggs-in-shells exported by the European Community minus processing margin estimated as 5 per cent of the producer price [7].

Sources:

[1] New Zealand Department of Statistics (NZDS), Situation and Outlook for New Zealand Agriculture and Forestry, and data reported in various serials published by the Ministry of Agriculture and Forestry (MAF).

[2] 1986-1990: New Zealand Department of Statistics (data transmitted by MAF). 1991 onward: MAF estimate.

[3] MAF replies to the OECD Agricultural Directorate’s "Medium-Term Market Developments and Policies Questionnaire"(AGLINK).

[4] New Zealand Wool Board, annual report -- year ended June; since 1991, OECD Secretariat estimates.

[5] MAF NZ Agricultural Statistics, various years, New Zealand Dairy Board, Annual Report, various years.

[6] USDA, Agricultural Outlook, table "US Agricultural Exports & Imports", row "Poultry meats (mt)", various years. OECD PSE/CSE database, US calculation.

[7] EUROSTAT, External trade-Exports, various years.

[8] OECD Aglink Databases.