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Abstract

In the Adelaide whole milk supply area, licensed dairymen are encouraged by higher bonus payments to maintain production during the summer and autumn months. High bonus payments in the late 1950s encouraged dairymen to increase output, but by 1960-61 the Adelaide whole-milk market was substantially oversupplied, principally as a result of marked increases in productivity on dairy holdings. Excess supplies have resulted in declining butterfat prices, but productivity gains have been sufficient to maintain rising farm incomes for the more specialised producers remaining in the whole-milk industry.

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