The short lifespan of dairy cows not only raises ethical questions but is also the subject of economic debates. Determining the economically optimal productive lifespan (OPL) is a complex issue because a large share of cows is culled during the first 2 lactations. The objective of this study was to estimate the OPL, taking into account relevant influencing factors, such as milk loss risks, heifer costs, and breeding progress (BP). We developed a bioeconomic cow model for 2 production systems with different milk-yield levels (C_low = 6,194 kg/yr, C_high = 9,338 kg/yr) based on the net revenue approach. The model used accounting data from 189 family farms and herd-specific data from 9,858 cows with 10 completed lactations, as well as culling statistics from different breeds based on herdbook data. To estimate the impact of different risk scenarios on OPL, culled cows were assigned a milk loss of 10% to 50%. The theoretical OPL excluding milk loss risks was over 9 yr of productive lifespan, with marginal income declining significantly from the fourth year of production onwards. With an effective productive lifespan of 3.6 yr (C_low) or 2.9 yr (C_high), the milk loss rate expected by the farm was estimated to be around 25% if the cows remained in production for longer. Heifer costs had a significant influence on OPL: with heifer costs between $2,700 and $5,000 and considering 25% risk, OPL varied between 3 and 7 yr. For the baseline scenario for heifer costs ($3,423), the OPL was found to be between the fourth and fifth years of production. The effect of BP in milk yield on OPL was weak: Assuming 2% BP per generation reduced OPL by 6 mo, compared with the baseline assumption of identical replacement. To fully exploit income potential, it is more important to improve production reliability by reducing risk, which is particularly relevant for higher-yielding cows. This requires a stronger focus on fitness-related traits, such as fertility and health. The realistic economic potential of higher longevity was found between 10% and 15% higher income per cow, which would be achieved for C_high with an average productive lifespan of 4 years and for C_low at 6 years.
Pork is the most popular type of meat in Switzerland, although the organic share is relatively small at 3.5%. In the "BioPerform" project, Agroscope investigated the economic situation of organic fattening pig farming in Switzerland. The aim of the study was to analyze revenue and cost structures, working hours, productivity and other key figures of organic fattening pig farms. Ten farms with at least 50 fattening pig places were examined. The study shows that larger farms achieved higher labor productivity. Organic pork is produced more efficiently as the farm size increases, although there are large differences between farms. Feed costs per kilogram of increase varied between 2.60 and 3.60 francs. Production costs averaged 7.46 francs/kg of slaughter weight, with six farms covering their costs and four farms making losses. Compared to conventional farms (QM & label), organic farms have higher production costs, but can remain economically competitive thanks to higher contribution margins and better labor utilization.
Understanding the heterogeneity of agricultural production systems is important both for the design of targeted and tailored policies and for providing effective extension services. In Switzerland, seasonal grazing of alpine pastures during summer is important for many farms, but also for biodiversity conservation. However, these so-called alpine summer farms are threatened by water scarcity due to climate change, the lack of skilled labor, and human–wolf conflict, resulting in the abandonment of farms and loss of biodiversity. Swiss agricultural policies govern alpine summer farms with uniform policy interventions through direct payments to address these challenges. However, these farms are highly heterogeneous in terms of socioeconomic and biophysical conditions, and we lack an understanding of their structure. We investigate the heterogeneous structure of Swiss alpine summer farms by using census data (N = 5900) and a mixed-methods approach combining unsupervised clustering techniques and expert assessment to generate a farm typology. Our methodological approach enriches the existing socioeconomic farm-level data with spatial data to depict the farms' infrastructure and biophysical environment. Our results suggest 6 types that differ in terms of organizational structure, herd composition, biophysical environment, and accessibility: (1) private dairy farms; (2) communal mixed cattle and dairy farms; (3) communal cattle farms; (4) remote farms; (5) small, private cattle farms; and (6) sheep farms. We also anticipate challenges for each cluster and discuss optimization and policy measures. This will help develop targeted policies tailored to specific alpine farm types, addressing both climate and farm structural change.
Milk production is adapted to the location and, measured in terms of gross output, is the most important branch of production in Swiss agriculture. It traditionally achieves a net export surplus, which is currently declining. The EU countries are the most important trading partners. In order to secure market share, Swiss milk production companies must be competitive with EU companies. The study compares typical Swiss companies with companies from Germany, France, Austria, the Netherlands, Ireland and Finland. It examines the extent to which the production costs of milk are covered and how this cost coverage ratio has changed over the last twelve years. The data is based on 13 typical dairy farms from the IFCN (International Farm Comparison Network), which largely represent the respective countries. The company typology and analysis were carried out according to a uniform standard. Even if higher requirements or natural difficulties are compensated with direct payments and Swiss milk prices are on average 67% higher than those of EU companies, typical Swiss companies have a comparatively low cost coverage ratio of less than 60%. This is not only due to significantly higher structural costs, but also to low labor productivity. Farms with 60 or more cows (including a Swiss valley farm) have a cost coverage rate of over 80%. Some have also made a profit in the last twelve years. In order to survive in the future, Swiss farms must be prepared to value their own work more low or to invest in larger herds with labor-saving techniques (robots, full pasture farming) in order to significantly increase labor productivity.
CONTEXT: Beef production on grasslands has multiple positive impacts. In addition to the production of high -quality protein, marginal lands in particular enable high biodiversity and landscape quality. However, this type of production is perceived as less economical than more intensive meat production systems. OBJECTIVE: The aim of the study is to develop recommendations on how different grass-based production systems can be economically improved without endangering biodiversity.METHODS: Thirty-five suckler cow farms supplying into two different brand programmes (Natura-Veal: slaughter age at five months; Natura-Beef: slaughter age at 10 months) were grouped into four production systems across two production sites in Switzerland: Natura-Veal, mountain region, extensive (VMount); Natura-Beef, mountain region (BMount); Natura-Veal, hilly region, intensive (VHill) and Natura-Beef, lowlands (BLowla). On the farms, beef production was analysed in detail on the basis of technical production data as well as full cost accounting. The farms were grouped into one model farm (farm type) per production system. On each model farm, opti-misation options were simulated and checked for practicability with farmer participation. The optimisation focused primarily on improving cow efficiency via the sale of more slaughter animals per cow, through lower animal losses, higher fertility or the additional purchase of calves suckled by a nurse cow.RESULTS AND CONCLUSIONS: Descriptive statistics showed significant positive correlations between stocking rate and land productivity and significant negative correlations between stocking rate/land productivity and the share of biodiversity areas (SBA), confirming previous findings. These relationships were also reflected in the production site of the farms, as mountain farms with lower productivity had a significantly higher SBA, while farms in areas with better grass growth had fewer biodiversity areas but higher productivity. Accordingly, the optimisation options were adapted to the production site under the constraint of a constant stocking rate. In favourable forage-growing areas, further intensification via improving cow efficiency by buying foreign calves led to significant improvements in profitability (VHill and BLowla). In mountain areas, the optimisation potential is lower. Site-adapted, i.e., small-framed and robust, cow types lead to better cow efficiency, which also con-tributes to good profitability in extensive production with a high biodiversity share, although this is strongly determined by national direct payments (VMount and BMount). Both income and biodiversity can be optimised if cow efficiency is increased and production systems are adapted to the site as closely as possible.SIGNIFICANCE: The study shows practicable recommendations for sustainable intensification in grass-based meat production systems in the current discussion on maintaining or increasing biodiversity in agriculture.
Die vorliegende Studie untersucht den Wert von Tierwohlleistungen in der Schweizer Schweine- und Rindermast auf Betriebs- und Marktebene. Die Berechnungen zeigen, welche effektiven Mehrkosten anfallen. Zum einen wird analysiert, inwiefern diese Mehrkosten in der Produktion uber den Markt und staatliche Beitrage gedeckt sind. Zum anderen werden Preiselastizitaten der Nachfrage geschatzt, die aufzeigen, wie sensitiv Verbraucher auf Preisanderungen reagieren. Entgegen der hohen Wertschatzung des Tierwohls in der Gesellschaft zeigen die Ergebnisse, dass die Tierwohlleistungen der Produzenten nicht ausreichend abgegolten werden. Daruber hinaus sind Verbraucher besonders bei Fleischprodukten mit hoherem Tierwohlstandard preissensitiv. Fur eine starkere Breitenwirkung von tierfreundlichen Haltungsformen braucht es neben gesellschaftlich erwunschten Unterstutzungsmassnahmen durch den Staat und Effizienzsteigerungen in der Produktion auch die Unterstutzung des Detailhandels, welcher die Verantwortung mit einer gut austarierten Preisgestaltung wahrnimmt und so die Kaufbereitschaft von Produkten mit hoherem Tierwohlstandard bei grosseren Kauferschichten gezielt anspricht.
The objective of this study was to quantify the economic potential of grass-based milk production strategies with limited use of concentrated feed in the pre-alpine region. We monitored 36 family dairy farms from the pre-alpine region of Switzerland divided in three study groups following one of three defined, voluntarily adopted production strategies: Partial grazing and barn feeding with freshly cut forages, supplementing <500 kg (GBF) and 1,200 kg (GBFplus) of concentrated feed, respectively, and practicing full grazing (FG), supplementing <100 kg of concentrated feed per cow per year. For three years (2014-2016), data were collected on the farms, and experience and ideas were exchanged and evaluated in a participatory process together with local extension services and researchers. Economic success indicators such as cost price and return to labor from each study group were compared with structurally similar control groups derived from the Swiss Farm Accountancy Data Network after completing an interactive standardization process, which largely balanced farm-specific features in the study groups. Compared with the control groups, the cost price (Swiss francs [CHF] per 100 kg milk) of GBF, GBFplus, and FG was significantly reduced by 20%, 20%, and 26%, respectively. Return to labor (CHF per hour) was significantly higher than in the control group for GBF (20.60 versus. 13.80), GBFplus (19.70 versus. 10.20), and FG (29.30 versus. 19.20). The comparison between the study groups also showed that lower milk revenues due to a lower use of concentrate could be economically compensated by a better input efficiency. A consistent implementation of the production strategy as well as personal qualities in terms of cost management seems to play a decisive role.
This study examines the value of animal welfare services in Swiss pig and cattle fattening at farm and market levels. Calculations show the effective additional costs, which are actually incurred. On the one hand, analyses attempt to determine to what extent both the market and state subsidies can cover such additional production costs. On the other hand, price elasticities of demand are estimated, to show how sensitively consumers react to price changes. Given society's high regard for animal welfare, results show that producers do not receive sufficient compensation for their services towards animal welfare. Consumers are also particularly price-sensitive where animal products produced under high welfare schemes are concerned. For more animal-friendly forms of husbandry to achieve even wider impact, they require socially desirable support measures by the state and efficiency improvements in production in addition to the support of the retail trade, which assumes its responsibility through well-balanced pricing to specifically address larger groups of buyers and their willingness to purchase high-welfare animal products.
The alpine region is very suitable for sheep farming, which keeps the landscape open and produces meat by using local resources. However, the market has more potential than currently realised, but the profitability of lamb production needs to be improved. Management changes would allow efficiency gains and could be implemented on farms in the short or medium term. Thus, based on traditional high-quality forage management in the Swiss alpine region, we analysed the profitability of lamb production systems by full-cost accounting and by examining the economic impact of variables such as productivity, live weight and fattening management for two typical (standardised) farms: 1) farm with 200 sheep (Hill-200) in a hilly area with accelerated lambing and 2) farm with 140 sheep (Mount-140) in a mountainous area with seasonal lambing once per year. In both farm types, conventional breed types resulting from displacement crossing were kept on a constant forage area. The analyses were based on accountancy data and face-to-face interviews with farmers on 15 single farms in different regions. For Hill-200, next to other simulated management interventions the most promising was shortening the lambing interval to 240 days (3 lambings in 2 years), resulting in a substantial increase in gross margin (+44 %), return on labour (+27 %) and income per hectare (+57 %) compared with the baseline scenario. The carcass weight per hectare increased from 202 to 265 kg. A lambing interval of 240 days compared with seasonal lambing (365 days) increased the income per hectare by 82 %. For Mount-140, the most promising simulated management interventions were increasing the litter size, reducing concentrate input and extending the fattening period. When combined, these interventions resulted in a substantial increase in gross margin (+58 %), return on labour (+38) and income per hectare (+63 %) compared with the baseline scenario. The carcass weight per hectare increased from 153 to 194 kg. The improvements based on our model calculations are practicable by changing the ewe flock to original genetics characterised by higher prolificacy, less weight and greater hardiness. When crossed with rams of meaty breeds, these ewes can be expected to produce vigorous hybrid lambs with a similar growth rate and carcass quality compared with lambs of ewes in the current (baseline) systems.
Many Swiss dairy farmers use variable proportions of fresh grass (forage or grazing) and supplementary feed in their production. Which characteristics are economically successful in these fresh grass systems? This question was addressed in the project << Optimisation of grassland-based milk production systems based on forage (Hohenrain II)>> conducted on 36 pilot farms over three years (2014-2016). The farms were divided into three groups according to the system used: two mixed systems feeding on average 430 kg or 1160 kg of concentrates per cow per year, and a full-grazing system (90 kg of concentrates/cow/year). Using methodological data analysis, the three farm groups were typified as three individual farms and compared with a structurally similar and more representative reference group. The results show that very good economic efficiency can be achieved with extensive use of fresh grass. The greatest savings are in concentrates, with other savings being made in buildings and labour. With a consistently implemented full-grazing system, farmers can achieve higher productivity and produce at lower milk prices than with mixed systems. Higher milk yields and higher production volumes do not lead to better results. However, all farm types studied produce milk 24% to 32 % more cheaply than the reference group and show higher productivity per hour worked, with the difference ranging from CHF 8 to CHF 13. The improvement is largely due to better management and strong cost awareness.
espanolPer la produzione di latte molti detentori svizzeri di bestiame impiegano quote variabili di erba fresca (raccolta di foraggio verde o pascolo) e alimenti complementari. In quali configurazioni questi sistemi basati sull’erba fresca sono redditizi dal punto di vista economico? Per rispondere a questa domanda, nell’ambito del progetto «Ottimizzazione dei sistemi di produzione di latte basati sulla superficie inerbita con raccolta di foraggio verde (Hohenrain II)» sono state analizzate 36 aziende pilota per tre anni, dal 2014 al 2016. Le aziende sono state divise in tre gruppi, in base al sistema di produzione adottato: un sistema misto in cui venivano utilizzati in media 430kg di foraggio concentrato per vacca per anno, un sistema misto in cui la quantita di foraggio concentrato per vacca per anno era in media di 1160kg e un sistema di pascolo integrale (90kg di foraggio concentrato per vacca per anno). I dati provenienti dai tre gruppi di aziende sono stati tipizzati in modo da considerare ogni gruppo come una singola azienda. Le tre «aziende» sono quindi state confrontate con un gruppo di controllo piu rappresentativo, avente caratteristiche strutturali analoghe. I risultati mostrano che e possibile raggiungere un’elevata redditivita impiegando prevalentemente erba fresca. Con questo sistema si risparmia in primo luogo sul foraggio concentrato e, secondariamente, su edifici e lavoro. Se attuato in modo coerente, il sistema di pascolo integrale consente di conseguire stipendi orari piu elevati e prezzi del latte inferiori rispetto ai sistemi misti. Rese in latte superiori e produzione di quantitativi maggiori non portano a risultati migliori. Tuttavia, rispetto al gruppo di controllo, tutti i tipi di azienda oggetto dello studio producono latte a costi dal 24% al 32% inferiori e pagano da 8 a 13 CHF all’ora in piu, grazie a una gestione migliore e a una maggiore consapevolezza dei costi. MultipleEn Suisse, beaucoup d’eleveurs de vaches laitieres utilisent des proportions variables d’herbe fraiche (recoltee ou consommee au pâturage) et d’aliments complementaires. Dans quelles conditions ces systemes utilisant de l’herbe fraiche sont-ils rentables? Cette question a ete etudiee pendant trois ans, de 2014 a 2016, dans le cadre du projet «Optimisation des systemes de production laitiere bases sur les herbages et la recolte de l’herbe (Hohenrain II)» dans 36 exploitations pilotes. Les exploitations ont ete reparties en trois groupes: deux systemes laitiers avec en moyenne 430kg et 1160kg de concentres par vache et par an, ainsi qu’un systeme de pâture integrale (90kg de concentres/vache/an). Les trois groupes d’exploitations ont ete standardises en trois exploitations individuelles a l’aide d’un traitement methodique des donnees et compares a un groupe de reference plus representatif ayant des structures similaires. Les resultats montrent qu’avec une grande part d’herbe fraiche, il est possible d’atteindre une tres bonne rentabilite. Les economies les plus importantes touchent les concentres, suivis des bâtiments et de la main-d’œuvre. Par rapport aux systemes mixtes, un systeme de pâture integrale applique de maniere systematique permet d’obtenir une meilleure valorisation du travail et de produire du lait a un prix inferieur. Les rendements laitiers superieurs et les volumes de production plus eleves ne se traduisent pas par de meilleurs resultats. Tous les types d’exploitation etudies produisent toutefois du lait 24% a 32% moins cher que le groupe de reference et affichent une valorisation du travail par heure de main-d’œuvre de 8 fr. a 13 fr. superieure. L’amelioration est en grande partie due a un meilleur management et a un sens marque de la gestion des couts. EnglishMany Swiss dairy farmers use variable proportions of fresh grass (forage or grazing) and supplementary feed in their production. Which characteristics are economically successful in these fresh grass systems? This question was addressed in the project «Optimisation of grassland-based milk production systems based on forage (Hohenrain II)» conducted on 36 pilot farms over three years (2014–2016). The farms were divided into three groups according to the system used: two mixed systems feeding on average 430kg or 1160kg of concentrates per cow per year, and a full-grazing system (90kg of concentrates/cow/year). Using methodological data analysis, the three farm groups were typified as three individual farms and compared with a structurally similar and more representative reference group. The results show that very good economic efficiency can be achieved with extensive use of fresh grass. The greatest savings are in concentrates, with other savings being made in buildings and labour. With a consistently implemented full-grazing system, farmers can achieve higher productivity and produce at lower milk prices than with mixed systems. Higher milk yields and higher production volumes do not lead to better results. However, all farm types studied produce milk 24% to 32% more cheaply than the reference group and show higher productivity per hour worked, with the difference ranging from CHF 8 to CHF 13. The improvement is largely due to better management and strong cost awareness.
As in other sub-Saharan African countries, purebred dairy genetics such as Holsteins were imported to Malawi. The study investigated their economic performance by comparing them with local Zebu-crossbreds based on 131 smallholder dairy farm observations from Southern Malawi. High-yielding purebred cows and crossbred cows showed no significant differences in lactation yield and calving interval. Looking at the farms' actual costs, by-products such as maize bran clearly dominated the cost structure for both breeds, but crossbreeds showed significantly lower concentrate costs. While there was no statistically significant difference in income for both breed types, a substantial share (23%) of farms under investigation shows negative incomes. Based on survey data, two typical farms were established representing standard costs with homogenous assumptions such as identical milk price. The comparison of typical farms covering the full dairy system clearly indicated that crossbred dairy cows outperformed purebreds. In addition, a simulation of a shorter calving interval for both typical farms revealed a substantial positive impact on income for both breed types with more than 30% increase. We conclude that focusing on crossbreds in combination with improved feeding and fertility management offers a more promising strategy for smallholder dairy farms in Southern Malawi than just acquiring high-yielding purebreds.
Milk production in Malawi is stagnating although neighbouring countries steadily increase outputs. In this paper, we explored the determinants of the performance of dairy smallholders. As indicators of on-farm performance we used annual milk yield, calving intervals, and annual dairy income. Regression models revealed that milk yield was negatively related with farmer’s age, female farmer, and household size, but positively influenced by farmers’ experience. Calving intervals were strongly associated with labour costs and breeding method. Income from dairying was only associated with farmers’ education but varied strongly with region. Regional effects existed for all performance indicators which may partly be rooted in land scarcity in the south and the efforts of development agencies to promote dairying in the northern and central regions. Results also revealed a tendency for pure breeds to produce higher outputs, but crossbreeds due to lower costs provided better income. Thus, we recommend that experienced farmers become involved in extension programs to provide comprehensive services that help farmers make more efficient use of their scarce assets, and thus realise more of the animals’ genetic potential with regard to the three observed performance indicators.
The profitability of mountain agriculture is of particular interest, since the multifunctional services rendered at higher effort are recompensed with a comparatively low income, despite the fact that substantial direct payments are disbursed. Based on reference farms from the Farm Accountancy Data Network (2013-2014), ten farms are categorised and the cost-efficiency of the various types of production analysed. Among the dairy farms, both high-intensity farms, but also large-area, low-intensity farms, as well as farms that produce according to organic guidelines, or those with specialities such as goat's milk, are more successful than average farms that produce milk according to PEP standard. In terms of labour utilisation, calf-fat-tening farms perform significantly worse than suckler-cow farms. The farm types studied that reared suckler cows are economically worse-off than dairy farms, and are accordingly dependent on part-time sources of income. This farm analysis has allowed us to arrive at three economically successful production strategies that are most likely to gain social acceptance: milk production over an extensive surface area, demand-oriented quality and niche production, and extensification over a large surface area (pasture-fed meat production).