Efficiency in milk production on Reunion Island: dealing with land scarcity.

This paper aims to analyze efficiency on dairy farms in Reunion Island, a French overseas district located in the Indian Ocean. On this island, dairy farming is promoted with financial and technical support from the European Union, with the French and local governments aiming at reducing dependency on imports of milk powder and dairy products and creating employment. A critical factor for increasing the local milk production is the limited availability of arable land because of the small size and the volcanic nature of the island. In this paper, we study the efficiency levels of dairy production on 34 farms by using a data envelopment analysis approach. The average technical efficiency score of farms, assuming constant returns to scale, was 0.927, with 19 out of 34 farms not being efficient. The technical efficiency with a variable returns to scale specification was 0.951. The efficiency with which farmers used their land (subvector efficiencies) was estimated in a second model. The average subvector efficiencies calculated with constant returns to scale and variable returns to scale models were lower than the technical efficiencies. The farmers on the efficiency frontier had a relatively higher milk production, milk production per cow, and land surface than those who were less efficient. A policy promoting better use of the land on inefficient farms should increase the milk production-to-land ratio. Possible on-farm strategies are improved feeding systems, farms having their own heifer breeding, and improved genetics.

Economics of theileriosis control in Zambia.

For an economic analysis of theileriosis control, we adopted the total economic cost (TEC) method, which calculates the sum of output losses from tick damage, theileriosis mortality and morbidity, and expenditures for treatment or prevention of the disease. At farm level, the TEC can be minimized by a specific combination of vector control and/or immunization and an acceptable level of losses. Expenditures for vector control include acaricides, construction of dipping or spraying facilities and their maintenance, and variable costs such as those for water and labour. Economics of vector control depend on the herd size and the method of application of the acaricide. Morbidity, mortality and tick damage losses are effectively reduced by correct and intensive vector control programmes. Expenditures for vector control are estimated at US$ 8. 43, 13.62 and 21.09 per animal per year for plunge dipping, hand spraying and pour-on, respectively. Immunization costs comprise production of parasite stabilates, storage and application, delivery and treatment. At US$ 9.5 per animal, immunization limits losses caused by Theileria parva, but ticks still may reduce the productivity of the animals. Expenditures for treatment after natural infection involve drugs, transport, veterinary fees and farm labour costs. Treatment has a moderate success rate, hence both morbidity and mortality remain important factors. Equally, it does not affect the vector, which may continue to reduce overall productivity of cattle. Expenditures for treatment range between US$ 9.04 and US$ 27.31 per animal. To compare different TECs in relation to different control strategies, assumptions have to be made on disease occurrence, case fatality, value and productivity of the cattle, reductions in productivity due to morbidity and number of animals under a specific control regime. Calculations based on data from Southern Province, Zambia show that large-scale immunization reduces the TEC by 90% compared to no intervention. Treatment, which is the second-best option, reduces the TEC by 60%. Appendix 1 Summary of factors influencing total economic cost

Theileriosis control modelling (experiences from Southern Province, Zambia).

Effects of different tick-borne disease control strategies on cattle productivity are simulated based on a 30-year herd projection, calculated by a modified Markov Chain model. Input data can be grouped in technical, economic and epidemiological parameters. The output is a set of economic parameters such as benefit/cost ratio (BCR), net present value (NPV) of the profit, internal rate of return (IRR), total economic cost (TEC) as well as graphs showing animal production over time. Shadow prices are obtained for input and output in kind. Throughout the calculations a distinction is made between transactions in cash and transactions in kind. A case study was run for Southern Province, Zambia, to illustrate the model. Either vector control or treatment, or a combination of these, controls theileriosis at farm level after natural infection. Preventive immunization against the parasite is also possible. Although the calculations are based on a mixture of data obtained from literature, field experience, expert opinion and assumptions, the importance of theileriosis control is clearly indicated. Immunization gives better economic results than chemotherapy. Vector control can only be used as a last resort.