Abstract
Biophysical and financial analysis of a case study dairy farm in 2000/01 was used to examine performance and opportunities to improve performance by expansion or intensification under the prevailing conditions. Performance of each system was also examined under a range of technical feeding efficiencies. The operating profit of the farm was improved by expansion or intensification that included increasing per cow production. However, the projected operating profit for all scenarios, in particular, those that increased grain use were sensitive to assumptions about technical efficiency of the feeding system, and the success of each option depended on achieving high levels of efficiency. The effects of drought in 2002/03 on farm performance were also modelled. The drought led to an operating loss for each of the development options analysed.
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