Dairy deregulation and low-input dairy production: A bioeconomic evaluation

Deregulation of the Australian dairy industry could affect the utilization of resources by milk producers and the profitability of dairy production. I n this study we examine the feed mix that dairy producers use, both pasture s and supplements, under partial and total deregulation. We are particularl y interested in the interaction of pasture utilization and farm profitabili ty. The results of this research demonstrate that profitable low-input dair ying is constrained by the most limiting resource, feed supplied by pasture , and that the interactions between economic and biological processes are c ritical to farm profitability.