Dairy Income, Expenditure, Profit & Drawings

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Table : Farm Income, Expenditure, Profit and Drawings -New Zealand Factory Supply Owner Operator Dairy Farms

	90/91 NZ$	91/92 NZ$	92/93 NZ$	93/94 NZ$	94/95 NZ$	95/96 NZ$	96/97 NZ$
TOTAL FARM REVENUE	145,900	172,526	203,088	201,294	205,863	230,344	225,551
TOTAL FARM EXPENSES	108,476	118,153	137,007	140,377	150,071	163,737	164,778

FARM PROFIT (before tax**)	33,039	50,657	57,829	59,315	64,021	54,170	44,794

Net off-farm income	5,968	5,552	5,789	6,194	9,372	8,318	9,672

PROFIT (before tax)	39,007	56,209	63,617	65,509	73,393	62,488	54,466

Total Farm Manager Wage ***	44,435	46,719	44,098	48,329	50,482	51,092	49,186
- reflects reward to family labour (1.29-1.54 units during last decade)
Notes :
* * available to meet drawings, tax, capital repayments and development
* * * Equivalent of family drawings
Source : Economic Survey of Factory Supply Dairy Farmers, 1985/86 to 1995/96, LIC.
1997/98 - 1999/2000 figures are MAF estimates.
Comments
1 Gross dairy farm incomes have been trending up since 1990/91. Increases in total revenue have resulted from increases in payout and expansion in farm size.
2 Total farm expenses and farm profit before tax have also risen strongly in percentage terms, but with profit growing at a slower rate than the increases in expenditure.
3 For factory supply owner operator dairy farms net off farm income now represents almost 18% of total (before Tax) profit up from 15% in 1990/91.

Manager
Monitoring and Evaluation
MAF Policy
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0623
Fax: +64 4 894 0741
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