The research paper I will provide an effective analysis on is “Growth and Innovation in the Canterbury Dairy Industry”. The report tend to focus on the factors that have led to the growth and development of Canterbury dairy industry over 1982-1983 and 2009-2010. The report uses secondary sources of information in determining the financial growth parameters which exist in the dairy industry. Still, the conduction of interviews was seen as an appropriate strategy which helps in determining the factors affecting the Canterbury dairy industry.
The researcher were able to identify that the factors that are mostly used in development in the dairy industry include driver, enablers and facilitators. Driver were the factors that caused growth, this included lack of profits in farming system which could provide opportunity for entrepreneurial corporations engagement in the dairy industry (Dexcel, 2014). Enablers were factors necessary for growth which included government policies and economic conditions. For successful processing enablers were vital in regards to processing milk produced which meant that growth continued. Additionally, for facilitators they had no impact on growth but had a significant impact on growth.
From the literature review the authors have observed the success aspect vital to new agricultural industries. Hence, most researchers stress on the need of identification and development of new markets. Therefore, the existence of no markets tends to be a start-up indication of the financial challenges that dairy farmers face since there is no benefit of producing products if there is no market (Engelbrecht, 2011). Compared to the non-dairy startup which have identified their markets, establish their marketing programs and stress on product quality which often leads to development of production and quality assured products or services (Pangborn, 2012). Additionally, a new industry must have close contact with its customers and share critical information. Compared to the dairy business startup in less cases do we witness close contact between customers and producers. Thus, this makes it hard for dairy startup farmer to get the crucial information from their consumers which could be effective in helping them get profits.
Lastly, we could conclude that it’s vital to distinguish between key resources such as finance and institutional subsystems which determines the availability of resources for dairy business start-up. Compared to the non-dairy business startups where innovation system is essential and there exist elements such as research, extension and education (Lauwere, 2005). For dairy business startup this elements of innovation tends to be minimal which affects efficiency in the industry. This also adds up to the issue of financial challenges that the dairy industry startups face since they can’t get credit to expand their business. Marketing infrastructure tends to be a vital aspect for dairy business startup. Looking at Canterbury dairy business industry case the existence of a strong processor together with the marketing infrastructure offered by New Zealand Dairy board played a vital role in the expansion. Consequently, for most businesses startups should consider the factors stated above, this is because they tend to have a critical impact to one dairy firm business.
Pangborn, M. (2012). Growth and innovation in the Canterbury dairy industry (Doctoral dissertation, Lincoln University).
Dexcel (2014). Economic survey of New Zealand dairy farmers, Hamilton, NZ.
Engelbrecht, B. (2011). An overview of the implications and effects of land use changes and water issues in Canterbury. Primary Industry Management, 14(3), 16-21.
Lauwere, C.C. (2005). The role of agricultural entrepreneurship in Dutch agriculture today. Agricultural Economics, 33(2), 229-238.