Higher Intensity,Higher Profit? Empirical Evidence from Dairy Farming in New Zealand

Over the last two decades there have been significant and well‐documented changes in the nature and structure of New Zealand dairy production. One particular feature has been a marked shift in the ‘input intensity’ of dairy farming systems through increased use of supplementary feed. These changes have generated debate about the impact of dairy farm intensity on the performance of farm businesses and the competitiveness of the New Zealand dairy sector. Using a novel econometric approach, we assess statistically the impact of three types of dairy farming systems on milk production and financial performance, using farm business data provided by DairyBase^®. Our empirical results show that higher input systems perform significantly better physically than lower input systems, but not financially. The disaggregated analysis suggests that the average treatment effects differ by region and performance quantiles.     

Does carbon farming provide a cost‐effective option to mitigate GHG emissions? Evidence from China

In this study, we apply a whole farm bioeconomic analysis to explore the changes in land use, farm practices and on‐farm greenhouse gas (GHG) emission under varying levels of agricultural greenhouse gas abatement incentives in the form of a carbon tax for a semi‐arid crop‐livestock farming system in China's Loess Plateau. Our results show that the optimised agricultural enterprises move towards being cropping‐dominated reducing on‐farm emission since livestock perform is the major source of emission. Farmers employ less oats‐based and rapeseed‐based rotations but more dry pea‐based rotations in the optimal enterprise mix. A substantial reduction in on‐farm greenhouse gas emission can be achieved at low cost with a small increase in carbon incentives. Our estimates indicate that crop‐livestock farmers in China's Loess Plateau may reduce their on‐farm GHG emission between 16.6 and 33 per cent with marginal abatement costs <￥100/t CO₂e and ￥150/t CO₂e in 2015 Chinese Yuan. The analysis implies that reducing greenhouse gas emission in China's semi‐arid crop‐livestock agriculture is potentially a low‐cost option.     

Interaction between livestock and feeds policies: evidence from Southeast Asia

Consumption of livestock products in Southeast Asia could continue to increase rapidly, as has been the case in Northeast Asia. The extent to which domestic producers may respond to these demand developments will be influenced by government interventions in both livestock product and feeds markets. The paper analyses the net contribution of livestock product and feed price distortions on the effective rate of protection, and whether intervention in the commodity market is augmented or offset by intervention in the feeds market. While policy-induced distortions were found to exist in the livestock sectors of Thailand and Malaysia, especially in beef and dairy production, the contribution of feeds policies to these distortions was minimal. In contrast implicit taxes on feeds were high in Indonesia and the Philippines. In the latter, support on product prices was sufficient to more than offset the tax on feeds so that effective protection remained positive. But in Indonesia both livestock and feeds policies worked to provide disincentives to livestock production. It is concluded that livestock and feeds policies should be formulated with regard to objectives and priorities within both sectors. This could require that greater emphasis be placed on feeds sector assistance policies that do not affect the price of feeds.     

China's agriculture,smallholders and trade: driven by the livestock revolution?*

China's sustained rapid economic growth and development has contributed to the surge in consumption and production of livestock in that country  termed the livestock revolution. Consumption trends are first reviewed, and changes in food consumption patterns include a marked shift away from grains and towards meats and dairy products. A question is to what extent this rapid increase in demand for livestock products is reflected in China's agri‐food trade statistics? While her agri‐food imports have dramatically increased since China's accession to the WTO, livestock products have not made a noticeable contribution, although the import of certain animal feedstuffs has. This implies China's continuing self‐sufficiency in most livestock products. The paper next considers developments in China's livestock farming sector and policies that have been contributing to these supply‐side developments. The paper concludes with an examination of issues that may be important to the future development of China's, and the world's, livestock situation;  this includes future demand developments, and the question of whether future demand growth in China might be met with local production, imports of final product, and/or imports of feedstuffs.     

The novelty of simple and known technologies and the rhythm of farmer-centred innovation in family dairy farming in Brazil

Family dairy farming is under threat from the expansion of the sugarcane economy in south-eastern Brazil. This paper analyses an intervention programme which aimed to intensify dairy production and make family dairy farming sustainable in this competitive context. The case study of the ‘Balde Cheio’ Programme (Full Bucket) can be seen as an alternative method of knowledge generation to that of the dominant research approach which prioritizes cutting-edge technologies. This paper characterizes this farmer-oriented innovation programme for dairy farming systems, in which research, development and extension are seen as a long-term learning process. It analyses how the programme has been adapted to fit the diversity of situations found amongst farmers and to heterogeneous production conditions. The study relates the circulation of knowledge, the search for innovation by recombining apparently simple and known technologies, the use of experiments on the farm and the adaptation of the rhythm of innovation to the specific situation of the farm as the critical issues to achieve sustainable production systems.     

The wealth of nature: economics as if survival mattered

Livestock play a key role in the lives of poor, rural people in developing countries, providing a major proportion of their cash income, capital assets, draught power, fuel and fertilizer. Rapid growth in demand for meat and dairy products in Asia presents both opportunities and challenges for livestock development and poverty alleviation. This paper explores the potential of livestock intensification to benefit the livelihoods of upland households and meet market demand in the Lao Peoples' Democratic Republic (Lao PDR), a South East Asian country undergoing significant economic change.

A review of the livestock sector in Asia shows increasing demand for live animals and meat in neighbouring Vietnam, Thailand and China. Lao PDR is well positioned to capitalize on the growing Asian livestock sector, however the extent livestock production in Lao PDR can reduce poverty, meet growing domestic meat demand and lift livestock exports is problematic. Findings from research in two upland northern provinces demonstrate how the introduction of forages for livestock has revolutionized the lives of some farmers and villages, but concludes that strategies are still needed to engage poorer households. The impacts of changing domestic and export markets are less certain, and are discussed within the context of environmental and public health, cultural traditions, economic development and sustainable livelihoods.     

Exploring farmers’ orientation towards multifunctional agriculture: Insights from northern Iran

The multifunctional agriculture (MFA) concept, namely, the fact that agricultural activity may also have several other functions beyond its role of producing food and fiber, has emerged as a key notion in scientific and policy debates regarding the future of agriculture and rural development. However, the relationship between undertaking multifunctional activities and farmers’ perceptions of farming is to a great extent unknown. A survey of 209 randomly selected farmers was conducted in Masal County of Guilan province, Iran to describe farmers’ perceptions of MFA and provide a better understanding of factors shaping these perceptions. Several factors were considered in the study, including traditional farming practices of small-scale farmers in the area (e.g. manual soil tillage, use of livestock manure and by-products for soil improvement, multiple cropping, family livestock), good agricultural practices at farm level related to environmental protection (e.g. low use of synthetic fertilizers and pesticides), and also local traditions and heritage. Exploratory factor analysis was used to categorize agricultural functions based on the collected data and cluster analysis was used for sorting out farmers regarding six extracted factors. These factors were: multiple cropping, social acceptability, environmental health, stability and continuity, food security, and local traditions and heritage. About half of the respondents (48.3%) showed highly positive perceptions of MFA, putting emphasis on social acceptability and environmental health for food security, including also preservation of local traditions (named: guardians of culture and traditions). Almost a third (31.1%) showed moderately positive perceptions of MFA, with mainly a socio-environmental orientation, whereas a sizeable proportion (20.6%) was indifferent to MFA. Data offer useful insights to decision makers regarding the design and implementation of territorial planning strategies. Food production remains a key element in farming systems, but besides mainstream agriculture, the positive perceptions of MFA support that alternative farming systems could be implemented. However, the most successful farming systems adapted to specific contexts and needs should be promoted, taking into account existing facilities and sufficiency for appropriate rural management.     

The Spanish path of agrarian change, 1950–2005: From authoritarian to export‐oriented productivism

The aim of this study is to determine whether the evolution of Spain's agrarian change, between 1950 and 2005, exhibits any features important enough to differentiate it from the common model of developed countries in Western Europe. On the one hand, the Spanish agrarian transformations share the main features of the changes in Western Europe: technological innovation, increased production and productivity, the diminishing importance of the agricultural sector, close integration with the industrial sector, and a high environmental impact. On the other hand, a series of important peculiarities can be observed in Spain's agrarian change: strong expansion of intensive livestock farming; the role of increased irrigation in explaining the transformation of agriculture; policies that offered very little support to the agricultural sector under a dictatorship that denied a voice to farmers; and the prominent role of agriculture in the economy despite its small contribution to GDP.     

Explaining the Diversity of Southeast Asian Shrimp Aquaculture

Despite the large amount of academic attention that Southeast Asian shrimp farming has received since the 1980s, few attempts have been made to explain the remarkable variation in the industry's organization across countries and localities. This paper compares the development of shrimp farming in Indonesia, the Philippines and Thailand, arguing that differences can be traced to variations in the initial conditions under which shrimp farming was established, the different ways that national aquacultures are embedded in the regional political economy and the ways in which different countries have responded to the characteristic environmental problems the sector causes itself.     

Smallholder dairy cattle feeding technologies and practices in Tanzania: failures,successes, challenges and prospects for sustainability

In Tanzania, milk production under smallholder farming systems is season sensitive, fluctuations of feeds in both quantity and quality being the major driver. A dry season decline in milk production of over 40% due to feed scarcity is a common phenomenon. Adoption of improved feed production, conservation and utilization technologies and practices in dairy farming communities is poor. This review work was based on a key question which states “Why is adoption of improved dairy nutrition technologies and practices in Tanzania still poor despite being promoted for decades?”. We have shown that major opportunities for curbing dry season animal feed shortage include on-farm optimization of production and use of high yielding pasture varieties including napier grass (Pennisetum purperium Schumach.) and leguminous fodder species. Crop residues in particular maize stover needs to be optimized for effective dry season feeding. The major reasons for low adoption of proven technologies include limited technical knowhow among smallholder dairy farmers augmented by limited extension services and technological costs. For enhancing sustainable uptake; we suggest promotion of on-farm research, public-private partnerships and dairy farmers’ cooperative associations. These are vital for facilitating smooth access to information, investment capital, reliable inputs and markets among the smallholder dairy farmers.     

Farmers in a deregulated dairy regime: Insights from Ireland's New Entrants Scheme

While the impending review of the European Union (EU) Common Agricultural Policy (CAP) is set to have an impact on all farming sectors across Europe, particularly transformative change is sought by policies relating to dairy farmers. EU milk quota abolition in 2015 will fundamentally revise the terms of dairy production, transitioning from policies of subsidy and protection to a scenario where farmers will produce milk on the open market. Dairy quota abolition essentially represents an economic but also socio-cultural disruption for a sizeable cohort of farmers, requiring adaptation to more market-driven production strategies. Agricultural policy-makers in EU member states are demonstrably preparing for this imminent change and dairy farmers are considering and strategising their responses at farm-level. Our focus in this paper is the interplay between quota abolition and farm-level decision-making in the pre-abolition period. Drawing from a broader mixed-methodological and multi-disciplinary research project, this paper uses qualitative narrative analysis to identify the key determinants arising in dairy farmers’ decision-making processes. How are farmers currently strategising their responses to dairy quota deregulation? Using the qualitative Biographic Narrative Interpretive Method (BNIM), we examine the range of factors determining how a particular group of dairy farmers are strategising their positions on the impending open dairy market. Our analysis highlights how, in the advent of a deregulated dairy production regime, dairy farmers are carefully deliberating their responses at farm level, drawing from policy and market related information, their own personal speculations, and conventional wisdom shared with other members of the farming community. We find that the dairy farmers are influenced not only by motivations to increase productivity and scale but by a tenacious approach to farm sustainability and resilience that is informed by past experiences of farming and seeks to preserve and promote socio-cultural farming values. The paper is of particular interest to policy makers and academics interested in the interchange between policy and farmer behaviour, particularly in the context of current CAP reform.     

Comparative Advantage Indices of Selected Livestock Production Sectors in Brunei Darussalam

Abstract

This study calculates the protection rates and comparative advantage indices of livestock industry in Brunei from an import substitution perspective. Four livestock sub-sectors were being evaluated: broiler, layer, goat and beef cattle. Two measures of government intervention indices were calculated, namely nominal protection rate (NPR) and effective protection rate (EPR). Domestic resource cost (DRC) and resource cost ratio (RCR) indices were computed to determine the comparative advantages of the livestock industry. In general, the results indicate that the livestock industry in Brunei was heavily protected. The study revealed the existence of comparative advantage only for very large farms producing poultry meat and eggs. Similarly in the ruminant sector, goat production appears to have comparative advantage over beef cattle. Small and medium poultry farms and large non-ruminant farms and cattle beef production possess comparative disadvantage despite being highly protected industries.     

Brazilian policy and agribusiness damage the Amazon rainforest

Since his inauguration on January 1, 2019, Jair Bolsonaro, a declared right-wing candidate nicknamed “Tropical Trump,” has introduced measures to reduce environmental restrictions on livestock farming, the main greenhouse gas (GHG) producing sector in Brazil that is responsible for most of the deforestation in the country. This dangerous relationship between politics and livestock farming in Brazil is detrimental to environmental conservation. Politicians are introducing measures that facilitate the expansion of this type of farming, which in turn provides inputs for the food industry, i.e. agribusiness, which in turn finances politics, thus producing a dangerous cycle in forest conservation.     

Enhancing productivity on suburban dairy farms in China

Dairy farms in China's suburban areas have been playing an important role in providing urban markets with fresh milk. With the rising demand for fluid milk and dairy products in the cities, there is a perception that small and scattered dairy farms in China's provinces are gradually disappearing and more concentrated dairy cattle farming is being formed near suburban areas. This article uses farm‐level survey data and stochastic input distance functions to make estimates of total factor productivity (TFP) on suburban dairy farms, as well as for the entire dairy sector. The results show that over the past decade TFP growth has been positive on suburban dairy farms, and this rise in productivity has been driven mostly by technological change. However, at the same time we find that, on average, the same farms have been falling behind the advancing technical frontier. We also find one of the drivers of the suburban dairy sector is the relatively robust rate of technological change of these farms, which has been more rapid than on farms in the dairy sector as a whole. The results suggest that efforts to achieve greater adoption of new technologies and better advice on how to use the technologies and manage production and marketing within the suburban dairy sector will further advance productivity growth in the sector.     

Organic farming without organic products

The aims of organic farming are to protect: (a) the environment, by using organic management practices that do not have the adverse effects of conventional practices, and (b) the health of consumers, by the provision of organic products. Using the Greek organic farming sector as an example, it is shown that while this sector is well-developed, it fails to provide the market with labeled organic products. While farmers follow the rules of organic management, thus achieving the first aim, products from just one third of organically managed areas are labeled, thus failing the second aim. Several phenomena indicate an unbalanced development of the organic agricultural sector in Greece, with respect to both farming and marketing. For example, organic green fodder is grown 10 times more than demanded for organic livestock farming. Furthermore, while many other products are imported to cover the country's demand for organic produce, Greek (unlabeled) organic products are sold as conventional. As also documented in most other European member states, financial support to farmers is calculated based on the amount of land being organically cultivated, rather than the overall performance of organic farms. This study highlights the importance of establishing a monitoring procedure that evaluates the performance of organic farming systems, including the outcome of labeled organic products. The development of a sustainable organic agricultural sector, where farming, marketing, economy, and knowledge are interconnected, requires the development of research toward implementing a more sophisticated approach of financing organic farming.     

The Effect of Energy Price Increases on the U.S. Livestock Sector

This study is unique and crucial to the current time period because of the recent high energy price escalation. The uniqueness of this study pertains to the void in energy impact research of the agricultural sector, more specifically to livestock. The U.S. Department of Energy has models estimating economy-wide impacts, but not the specific impacts on agriculture. The Iowa State study concentrated on the grain sector.
The results presented here indicate that energy price increases will have substantial effects on livestock prices and production. Energy price increases will also result in differential impacts on livestock commodities (with poultry and eggs having the largest price and production effects). Furthermore, the multi-period framework enables the livestock model to capture lagged production responses. Noticeable is the higher impacts occurring in the third and fourth years.
In the future, higher energy costs may induce changes in U.S. production, processing and distribution patterns of livestock commodities. The highly vertically integrated poultry and egg industries may begin shifting production locations away from the colder northern regions to areas with more temperate climates. For industries like beef, pork and dairy, there may be increased range production to reduce impacts from higher feed costs. For all industries, closer proximity of processing plants to major livestock producing areas may occur.     

北京市地区畜禽养殖污染总量估算

[目的]随着我国经济的发展,畜禽养殖业发展迅速的同时,日益增加的畜禽粪便排放也带来了生态环境污染问题。北京市由于特殊的经济和政策环境,畜禽产品需求量较大从而畜禽粪便排放量进一步增多,因此必须要加强对于北京畜禽养殖产业污染的防治,为生态环境保护及居民身体健康提供坚实保障。[方法]文章采用随机抽调与实地调研相结合的方式,了解北京市地区主要畜禽养殖情况,进一步使用畜禽养殖主要污染物排放量计算参数估算北京地区畜禽养殖主要污染物排放量。[结果]北京地区多以养殖生猪、牛、肉鸡为主;北京市11个区县产污量较大的3个区依次是顺义区、房山区和平谷区,主要污染物为化学耗氧量和总氮;通过实地调研,发现北京地区畜禽养殖存在以下问题:(1)资金技术欠缺,无法按照要求购买必须的污染防治设备;(2)小型养殖户应对风险能力弱;(3)部分养殖户抱侥幸心理,认为投资污染防治设备没有必要。[结论]加大畜禽养殖污染防治财政补贴力度,鼓励养殖者使用新型排污设备;各个区县主管农业的部门定期组织养殖者进行免费培训;加大扶持力度,促进有机肥市场发展;发挥资金及技术优势,优势互补;引导居民调整饮食结构,倡导健康生活与饮食习惯。     

Herd Growth,Farm Organisation and Subsidies in the Dairy Sector of Russia and Kazakhstan

Initially taken as a template for farm restructuring after the demise of collective agriculture, the ‘Western family farm model’ has taken root in the former Soviet countries only belatedly and incompletely. We examine dairy structures in Russia and Kazakhstan and analyse the drivers of recent herd growth. We are specifically interested in the role of farm management and organisation, vertical integration, and the role of policy. Regression analysis based on a sample of 180 randomly selected commercial dairy farms, using an innovative simultaneous equation framework, shows that better herd management and access to milk marketing contracts were more effective in stimulating herd growth than current subsidy payments. We do not find evidence that milking plants belonging to corporate entities or even supra‐regional agroholdings grow more substantially than medium‐sized individual farms. Twenty‐five years after the end of central planning, structural change among commercial dairy farms in Russia and Kazakhstan appears similar in many ways to the patterns observed in the West more recently: smaller farms catch up in terms of herd growth and classical family‐run operations coexist with or even emulate vertically integrated agribusinesses based on hired labour. In moving toward this ‘new normal’ of farming structures, commercial dairy farms in Russia may even be a few steps ahead of their Western counterparts. At the same time, the still sizeable but stagnating group of subsistence producers in rural households finds no equivalent in the West.     

The land cost of agrarian sustainability. An assessment

Improving the sustainability of farms often incurs additional costs for farmers. These costs come from allocating land to the maintenance of the ecological processes (energy and material flows, natural population regulation) required for the agroecosystem to function. Since these costs are not recovered on the markets, farmers see a fall in profits, the financial viability of their farms is compromised, and they suffer the consequences of the environmental services they are providing. All this makes it essential to implement government policies designed to compensate farmers for their efforts. The issue of how to assess sustainability has generated widespread debate within ecological economics, specifically as to whether it is possible to place a monetary value on it and if so, how this should be done. In a previous article we showed that agrarian sustainability involves a land cost, therefore this cost can be translated into monetary values. The purpose of this study is to develop this concept in practical terms by applying it to organic farming. We calculated the land cost of agrarian sustainability (LACAS) in order to compare organic versus conventional management in olive farming, as this crop is grown extensively in Spain and other Mediterranean countries. The results show that the agro-environmental subsidy is not enough to encourage olive growers to make the conversion from conventional to organic methods, because the land cost of sustainability is not adequately offset. They also show that improving agroecosystems can allow the land to take on more functions without increasing the land cost. In our case, encouraging the multifunctionality of the land has permitted a reduction in this cost. The LACAS could be a useful tool, not only for drawing up government policies designed to support organic farming, but also for improving the sustainability of the agrarian sector.     

The impact of capital transfer tax on agriculture a preliminary assessment

Abstract

This paper aims to measure and compare technical efficiencies in the England and Wales dairy sector from stochastic production functions in the immediate post‐quota period. Milk Marketing Board data for a stratified random sample of dairy farms for 1984/85, 1985/86 and 1986/87 are used. The results show that average levels of efficiency have initially fallen and then stabilized over this period. Moreover, there is a high degree of correlation between the rankings of the efficiency measures.