An analysis of governance factors influencing performance of selected smallholder dairy cooperatives in Zimbabwe.

Cooperatives are organisations owned and operated by individuals or groups that come together for mutual benefit including pooling of resources for the purchase of inputs and marketing of products. Marketing of milk is through dairy cooperatives where the milk collection centres are mandated to help integrating smallholder farmers into competitive markets. The study investigated governance structures of five smallholder dairy schemes purposively selected based on their agroecological regions in Zimbabwe. The aim of the study was to explore how the governing boards conduct their business, particularly marketing milk, and how this affects allocation of resources (milk production and deliveries to milk centres) by smallholder farmers. Qualitative data were collected using focus group discussions with 20 dairy cooperative members from each milk collection centre. Key informant interviews were conducted with chairpersons, management committee members, and dairy value chain stakeholders such as dairy associations and processors. The SWOT analysis technique was employed to identify governance structures highlighting major strengths, weakness, opportunities, and threats as a gateway to isolating strategies for enhancing centre performance. An analysis of implications of the governance structures on resource allocation decision by farmers was also performed. So focus is on how boards are discharging mandate such as marketing on behalf of farmers, price setting and negotiations, trainings, and accountability to members. Such factors if executed well will see farmers increasing milk production and deliveries to MCC yielding positive results in income and profits. The study results show that poor governance mainly caused by incompetent boards and management committees was the major factor affecting performance. Other findings were that if good governance factors were in place, then cooperatives became proficient leading to their growth. Thus, cooperatives must adopt business models based on private sector partnerships to maximise on expertise and technical support. The schemes ought to take advantage of existing opportunities, especially policies that mitigate threats and improve product diversity, value addition, and effective pricing strategies. To achieve these milestones, capacity building roadmaps ought to identify competent and efficient boards.

Survival analysis of dairy cows in the Netherlands under altering agricultural policy.

Culling of underperforming dairy cows by replacement heifers is a fundamental part of Dutch dairy farm management. Changes in national agricultural policies can influence farmers' culling decisions. The objective of this study was to analyse the relevancy of cow-level risk factors for survival of Dutch dairy cows under perturbations due to national policy changes related to the -milk quota abolishment of 2015 and the phosphate regulations since 2017. For this purpose, an accelerated failure time model was fitted on-longitudinal dairy cows' data at national level covering the period 2009-2019. The associated cow-level risk factors for culling such as lactation value (relative production level), parity number, rolling average of inseminations over all parities, very high fat-protein ratio (highFPR) and very low fat-protein ratio (lowFPR) in early lactation, test-day somatic cell count, were fitted in the model. Along with these, a factor representing three target policy periods, namely Milk Quota period (MQ), Post-Milk Quota period (PMQ) and Phosphate regulation period (PH) were fitted. The mean survival age for all producing cows was 441 weeks overall. The predicted median survival time for the policy periods MQ, PMQ and PH were 273 weeks, 271 weeks and 256 weeks, respectively. Risk factors such as lactation value, parity and highFPR, rolling average of inseminations over all parities were positively associated with survival time in all three policy periods. Risk factors such as test-day somatic cell count and lowFPR were negatively associated with survival time in all three policy periods. In conclusion, this study demonstrated the differences in survival of Dutch dairy cows in response to changing agricultural policy. The association of cow-level risk factors for culling was consistent across the three evaluated policy periods.

A cross-sectional study of associations between herd-level calf mortality rates, compliance with legislation on calf welfare, and milk feeding management in Norwegian dairy herds.

Our aim was to investigate the associations between management factors, compliance with current legislation, and herd-level calf mortality. In a national calf welfare audit, veterinary inspectors from the Norwegian Food Safety Authority assessed compliance with current legislation on calf welfare (n = 912 herds). Nine criteria were assessed and rated as satisfactory (1) or not satisfactory (0): housing, natural behavior, single pens, colostrum feeding, feeding, water, surveillance, illness/injuries, and <5% mortality rate. In addition, a short questionnaire on milk feeding management for 3-wk-old calves was distributed to all national calf welfare audit herds, and data on mortality and disease recordings were obtained from the Norwegian Dairy Herd Recording System (NDHRS). A herd welfare compliance score (WCS) for each farm was constructed, summarizing the results for the individual criteria. Most herds had a high WCS (median 9.0, range 2-9). Fifty-six percent of the national calf welfare audit herds (508/912) responded to the questionnaire. We performed a cross-sectional study using a data set from 431 herds with available data on recorded disease and mortality events from the NDHRS, recordings from the national calf welfare audit, and the questionnaire. A mixed-effects negative binomial model with Norwegian Food Safety Authority district as the random effect was fitted to the data. Of the 416 herds with available data on calf mortality, 108 (25.9%) reported no mortality in 2016, and the median 6-mo mortality rate was 0.064 (interquartile range 0-0.11) dead calves per 6 calf-months at risk, based on NDHRS recordings. Calf mortality rates were higher in herds whose calves did not have free access to water (incidence rate ratio 1.29; 95% confidence interval 1.02-1.64) and higher in herds that had reported calf disease events (incidence rate ratio 1.31; 95% confidence interval 1.09-1.54). Neither the WCS nor any of the calf milk feeding management factors were associated with mortality, but more than half of producers (59.6%) fed less milk than currently recommended for 3-wk-old calves (8 L/d first 3 to 4 wk). These results indicate that a lack of access to water was associated with higher calf mortality rates. Herds with registered calf disease events had a higher incidence rate ratio of mortality. This finding may be linked to suboptimal calf management, leading to more calf diseases and mortality; or it may be that veterinary consultancy occurs too late or only for the worst cases. There is room for improvement in Norwegian dairy calf management, and water should be provided to young calves.

Investigation of the governance structure of the Nairobi dairy value chain and its influence on food safety.

The dairy value chain of Nairobi is comprised, in its majority, of small-scale independent enterprises that operate within a complex interlinked system. In this complexity, the coordination and power structures of the system may have major influences on the management of dairy food safety. Therefore, the aim of this study was to investigate the governance structure and challenges faced by stakeholders throughout the Nairobi dairy value chain and assess their potential implications on food safety. Qualitative data were collected through focus group discussions and key informant interviews based on a dairy value chain mapping framework previously developed. Thematic analysis enabled identification of governance themes, key challenges and analysis of their implications on food safety. Themes were organized depending on their association with farmers (informal settlement or peri-urban), dairy cooperatives, dairy traders, processing companies, retailers or government officers. The identified governance themes included: i) weak linkage between government and farmers, ii) inadequate compliance with government regulations by traders and retailers, iii) emphasis on business licenses and permits for revenue rather than for food safety, iv) multiple licensing resulting in high business cost and lack of compliance, v) fragmented regulation, vi) unfair competition and vii) sanctions that do not always result in compliance. The key challenges identified included, among others: i) inadequate farmer support, ii) harassment of traders and retailers and iii) high business costs for traders, retailers, dairy cooperatives and large processors. The implication of governance and challenges of food safety were, among others: i) inadequate extension services, ii) insufficient cold chain, iii) delivery of adulterated and low milk quality to bulking centers, iv) inadequate food safety training and v) lack of policies for management of waste milk. The range of issues highlighted are based on stakeholders' perceptions and reflects the complexity of the relationships between them. Many of the governance themes demonstrate the linkages that are both beneficial or confrontational between the formal and informal sectors, and between industry and regulatory authorities, with possible direct food safety consequences. Findings obtained provide indications to decision-makers of potential governance areas that could help improve efficiency and food safety along the dairy value chain.

Review of the Eprinomectin effective doses required for dairy goats: Where do we go from here?

Eprinomectin (EPM) has been recently granted a marketing authorisation in the European Union for use in goats, with a zero-day milk withdrawal period. Considering the high prevalence of benzimidazole resistance worldwide and the economic implications of managing milk residues, EPM may today be considered the main (or even the only) affordable treatment option, at least in dairy goats in the EU. However, the chosen dose (1 mg/kg) seems to be suboptimal, especially for lactating goats, and the chosen route of administration (Pour-on) highly subject to inter-individual variability. Considering the scarcity of anthelmintic resources, such a dosage regimen might threat the sustainability of this crucial drug in goat milk production and needs to be urgently discussed and reassessed.

Upgrading the smallholder dairy value chain: a system dynamics ex-ante impact assessment in Tanzania's Kilosa district.

This paper examines ex-ante impacts of two policy interventions that improve productivity of local-breed cows through artificial insemination (AI) and producers' access to distant markets through a dairy market hub. The majority of cattle in Kilosa district in Tanzania are local low productivity breeds kept by smallholders and agro-pastoralists. Milk production is seasonal, which constrains producers' access to distant urban markets, constrains producers' incomes and restricts profitability in dairy processing. We developed and evaluated an integrated system dynamics (SD) simulation model that captures many relevant feedbacks between the biological dynamics of dairy cattle production, the economics of milk market access, and the impacts of rainfall as an environmental factor. Our analysis indicated that in the short (1 year) and medium (5-year) term, policy interventions have a negative effect on producers' income due to high AI costs. However, in the long term (5+ years), producers' income from dairy cattle activities markedly increases (by, on average, 7% per year). The results show the potential for upgrading the smallholder dairy value chain in Kilosa, but achievement of this result may require financial support to producers in the initial stages (first 5 years) of the interventions, particularly to offset AI costs, as well as additional consideration of post-farm value chain costs. Furthermore, institutional aspects of dairy market hub have substantial effects on trade-offs amongst performance measures (e.g. higher profit vs. milk consumption at producer's household) with gain in cumulative profit coming at the expense of a proportional and substantial reduction in home milk consumption.

An assessment of the economic costs to the U.S. dairy market of antimicrobial use restrictions.

Antimicrobial resistance is a public threat for humans, generated by the use of antimicrobials in human medicine as well as animal agriculture. Consequently, governments set public policies aim at curbing antimicrobial use (AMU). In dairy production, the occurrence of diseases triggers AMU to limit the costs associated with these afflictions. Therefore, any policies targeting AMU are likely to generate additional costs for farmer, and impact the dairy market. The objective of our research was to assess at the market level the costs associated with potential regulations (a prohibition scenario and tax scenarios) surrounding antimicrobial use in the U.S. dairy sector, comparing to a business as usual scenario. We conducted a two-step analysis, first at the farm and then the market level, to estimate the costs to both farmers and consumers. We found that potential policies restricting AMU would have a minor effect at the market level. In the case of prohibition of AMU, the average milk price would rise from $0.423 to $0.425 per liter. In the short run, the total annual losses would be $152 million. Implementing taxes on AMU would also slightly increase milk price, up to $0.426 in the case of a tax multiplying by five the initial antimicrobial price. Under the prohibition scenario, the quantity of milk produced would decrease by 356 million kilograms, representing 0.4% of the average U.S. milk production over the period 2012-2016. Implementing such policies would lead to a slight increase in costs of production, borne by both consumers and farmers through higher milk prices and lower milk production. As AMU in animal agriculture also fulfills animal welfare and public health objectives, the impacts of restricting AMU should be weighed with these other objectives in policy decisions. Further research is necessary to assess the distributional benefits and costs of AMU policies across farmers, retailers, animal and human health workers, and the public, incorporating multiple dimensions, such as animal welfare and food safety.

A comparative analysis of vehicle-related greenhouse gas emissions between organic and conventional dairy production.

Agricultural industrialisation and globalisation have steadily increased the transportation of food across the world. In efforts to promote sustainability and self-sufficiency, organic milk producers in Sweden are required to produce a higher level of cattle feed on-farm in the hope that increased self-sufficiency will reduce reliance on external inputs and reduce transport-related greenhouse gas emissions. Using data collected from 20 conventional and 20 organic milk producers in Sweden this paper aims to assess the global warming impact of farmyard vehicles and the transportation of feed produced 'off-farm' in order to compare the impact of vehicle-related emissions from the different production methods. The findings show organic and conventional production methods have different vehicle-related emission outputs that vary according to a reliance on either road transportation or increased farmyard machinery use. Mechanical weeding is more fuel demanding than conventional agrichemical sprayers. However, artificial fertilising is one of the highest farmyard vehicle-related emitters. The general findings show organic milk production emits higher levels of farm vehicle-related emissions that fail to be offset by reduced emissions occurring from international transport emissions. This paper does not propose to cover a comprehensive supply chain carbon footprint for milk production or attempt to determine which method of production has the largest climatic impact. However, it does demonstrate that Sweden's legal requirements for organic producers to produce more feed on-farm to reduce transport emissions have brought emissions back within Sweden's greenhouse gas inventory and raises questions around the effectiveness of policies to reduce vehicle-related emissions. Further research is needed into the effectiveness of climate change mitigation on food production policies, in particular looking at various trade-offs that affects the entire food supply chain.

Corporate political activity of the dairy industry in France: an analysis of publicly available information.

OBJECTIVE: In the present study, we used a structured approach based on publicly available information to identify the corporate political activity (CPA) strategies of three major actors in the dairy industry in France. DESIGN: We collected publicly available information from the industry, government and other sources over a 6-month period, from March to August 2015. Data collection and analysis were informed by an existing framework for classifying the CPA of the food industry. Setting/Subjects Our study included three major actors in the dairy industry in France: Danone, Lactalis and the Centre National Interprofessionnel de l'Economie Laitière (CNIEL), a trade association. RESULTS: During the period of data collection, the dairy industry employed CPA practices on numerous occasions by using three strategies: the 'information and messaging', the 'constituency building' and the 'policy substitution' strategies. The most common practice was the shaping of evidence in ways that suited the industry. The industry also sought involvement in the community, establishing relationships with public health professionals, academics and the government. CONCLUSIONS: Our study shows that the dairy industry used several CPA practices, even during periods when there was no specific policy debate on the role of dairy products in dietary guidelines. The information provided here could inform public health advocates and policy makers and help them ensure that commercial interests of industry do not impede public health policies and programmes.

Mass balance analyses of nutrients on California dairies to evaluate data quality for regulatory review.

Effective regulations may help reduce nitrate contamination of groundwater from agriculture. Dairy farmers in California must maintain a ratio below 1.4 of total nitrogen (N) applied to total N-removed (N-Ratio) on cropland receiving manure application. In annual reports to the regulatory agency, farmers detail nutrients applied to cropland, removed in harvests, and exported off farm. Data were extracted from all available annual reports for 62 dairies from 2011, 2012, and 2013. Excretions of N, phosphorus (P), and potassium (K) were calculated using reported herd demographics and standard excretion equations from the American Society of Agricultural and Biological Engineers. Calculated nutrient excretion values were compared to the reported values of manure nutrients applied to cropland and exported off farm. Reported N-Ratios were compared to mass balance simulations exploring variable crop yields and alfalfa management. In the nutrient excretion balance, the distribution of the percent of N and P recovered in manures applied or exported peaked at 24% (median=31%) and 26% (median=53%) of excreted, respectively. The distribution of recovered K was fairly uniform from 0% to 300% (median=146%) of excreted K. In N-ratio simulations, 62% and 66% of all reported N-ratios were lower than their respective simulated N-ratio, assuming alfalfa crops received no N fertilization and minimal fertilization (26% of N-removed in harvest) respectively. When simulated crop yields were normally (sd=0.25) or Student's t distributed (df=154) around expected crop yields, 28% and 57% of all reported ratios fell within the 95% confidence interval of the simulations, respectively. Low and erratic recovery rates of excreted P and K existed. Additionally, reported N-Ratios were generally lower and more varied than necessary for farmers to maintain crop yields while complying with regulations. Greater understanding of low recovery rates is needed before data are used to assess the impact of regulations.

Dutch dairy farms after milk quota abolition: Economic and environmental consequences of a new manure policy.

The abolition of the Dutch milk quota system has been accompanied by the introduction of a new manure policy to limit phosphate production (i.e., excretion via manure) on expanding dairy farms. The objective of this study was to evaluate the effect of these recent policy changes on the farm structure, management, labor income, nitrogen and phosphate surpluses, and greenhouse gas emissions of an average Dutch dairy farm. The new manure policy requires that any increase in phosphate production be partly processed and partly applied to additional farmland. In addition, phosphate quotas have been introduced. Herein, we used a whole-farm optimization model to simulate an average farm before and after quota abolition and introduction of the new manure policy. The objective function of the model maximized labor income. We combined the model with a farm nutrient balance and life-cycle assessment to determine environmental impact. Based on current prices, increasing the number of cows after quota abolition was profitable until manure processing or additional land was required to comply with the new manure policy. Manure processing involved treatment so that phosphate was removed from the national manure market. Farm intensity in terms of milk per hectare increased by about 4%, from 13,578kg before quota abolition to 14,130kg after quota abolition. Labor income increased by €505/yr. When costs of manure processing decreased from €13 to €8/t of manure or land costs decreased from €1,187 to €573/ha, farm intensity could increase up to 20% until the phosphate quota became limiting. Farms that had already increased their barn capacity to prepare for expansion after milk quota abolition could benefit from purchasing extra phosphate quota to use their full barn capacity. If milk prices increased from €355 to €420/t, farms could grow unlimited, provided that the availability of external inputs such as labor, land, barn capacity, feed, and phosphate quota at current prices were also unlimited. The milk quota abolition, accompanied by a new manure policy, will slightly increase nutrient losses per hectare, due to an increase in farm intensity. Greenhouse gas emissions per unit of milk will hardly change, so at a given milk production per cow, total greenhouse gas emissions will increase linearly with an increase in the number of cows.

Impact of reproductive technologies on dairy food production in the dairy industry.

Reproductive technologies drive the efficiency of managing dairy cows because the lactation cycle of the dairy cow depends on regular calving to renew lactation yields. Achieving timely pregnancies to allow calving every 12-14 months, therefore, is critical in modern dairy production. To meet the demands to produce sufficient milk for fluid and dairy products, various technologies are applied to enhance efficiencies on the dairy farm. Artificial insemination (AI), embryo transfer, ultrasonographic and chemical detection of pregnancy, various monitors that detect or predict estrus, and handheld communication and testing devices allow managers to retrieve information to make cow-side decisions about health and reproductive status. Genomic testing of young potential sires or young heifers is now possible and can provide information about their genetic merit years before any progeny tests can be completed. In many countries, the challenge faced by dairy producers is their ability to afford these technologies in the face of rising feed and labor costs and volatile milk prices received at the farm gate. Government policies often place obstacles, trade barriers, and unfunded mandates that preclude operations from making a modest profit. Unlike nearly all other manufacturing industries, agriculture producers have little control over the price received for their products. Therefore, dairy production is vulnerable to many uncontrolled factors including climate, government policy, economic conditions, and skilled labor shortages. It is clear that the impact of emerging and current reproductive technologies is critical to the management of dairy cattle to produce sufficient milk to meet consumer demands for quality fluid and dairy products.

Recent patents on microbial proteases for the dairy industry.

This paper reviews the general characteristics of exo and endopeptidases of microbial origin currently used in the milk industry. It also includes recent patents developed either to potentiate the enzymatic activity or to improve the resulting milk derivatives. The main application of these proteases is in the cheese-making industry. Although this industry preferentially uses animal rennets, and in particular genetically engineered chymosins, it also utilizes milk coagulants of microbial origin. Enzymes derived from Rhizomucor miehei, Rhizomucor pusillus and Cryphonectria parasitica are currently used to replace the conventional milk-clotting enzymes. In addition, the dairy industry uses microbial endo and exoproteases for relatively new applications, such as debittering and flavor generation in cheese, accelerated cheese ripening, manufacture of protein hydrolysates with improved functional properties, and production of enzyme-modified cheeses. Lactic acid bacteria play an essential role in these processes, hence these bacteria and the proteases they produce are currently being investigated by the dairy industry and are the subject of many of their patent applications.

Occupational health and safety regulations in the dairy industry.

The application of occupational health and safety (OHS) legislation in the dairy industry varies throughout the world. Generally there is no specific OHS legislation that applies to the dairy industry and mostly in countries the current OHS legislation applies to all workplaces with specific guidelines that apply to agricultural industries. The main difference between countries is in the application of OHS legislation specifically in relation to the size of the farms. In the USA, the OHS legislation, and therefore enforcement, does not, in most cases, apply to farms with less than 11 employees, whereas in other countries there is no minimum number of employees and in some cases such as the United Kingdom and Australia it covers all people who work on the farm. The other area of difference is in the use and publication of guidelines for the industry; some countries have a wide range of guidelines whereas other counties have few. Generally, this relates to the jurisdiction of the OHS legislation, which in several countries is not at a national level such as USA, Canada, and Australia. The main principal of OHS legislation is that all workplaces, including dairy farms, should be a safe and healthy place to work, and does not vary significantly between the countries reviewed even those with prescriptive legislation.

Occurrence of flunixin residues in bovine milk samples from the USA.

5-Hydroxy-flunixin concentrations in milk samples were quantified by two commercially available screening assays--CHARM® and enzyme-linked immunoabsorbant assay (ELISA)--to determine whether any concentrations could be detected above the tolerance limit of 2 ng g⁻¹ from different regions in the United States. Milk samples came from large tanker trucks hauling milk to processing plants, and had already been screened for antibiotics. Positive results for flunixin residues based on a screening assay were confirmed by ultra-HPLC with mass spectrometric detection. Of the 500 milk samples analysed in this study, one sample was found to have a 5-hydroxy-flunixin concentration greater than the tolerance limit. The results of this study indicate that flunixin residues in milk are possible. Regulatory agencies should be aware that such residues can occur, and should consider incorporating or expanding flunixin screening tests as part of routine drug monitoring in milk. Larger studies are needed to determine the true prevalence of flunixin residues in milk from other regions in the United States as well as different countries.

The effect of somatic cell count data adjustment and interpretation, as outlined in European Union legislation, on herd eligibility to supply raw milk for processing of dairy products.

Somatic cell count (SCC) limits are a key component of national and international regulation for milk quality. As yet, very limited work has been published on SCC regulatory standards, including on the effect of different approaches to SCC data adjustment and interpretation. This study examines the effect of SCC data adjustment and interpretation, as outlined in current European Union (EU) legislation, on herd eligibility to supply raw milk for processing of dairy products for human consumption, using Irish data for illustration. The study used Irish milk-recording data as a proxy for bulk tank SCC (BTSCC) data, to calculate an unadjusted monthly SCC value for each herd during each month of participation. Subsequently, 4 data adjustments were applied, as outlined in EU and national legislation: seasonal adjustment; 3-mo rolling geometric average, without accounting for a break in the supply; 3-mo rolling geometric average, after accounting for a break in the supply; and seasonal adjustment and 3-mo rolling geometric average combined, after accounting for a break in the supply. Analyses were conducted to examine the effect, during the period from 2004 to 2010, of data adjustment on the percentage of herds with herd SCC >400,000 cells/mL. In all, 4 interpretation scenarios, incorporating different data adjustment combinations, were used to estimate herd eligibility (compliant, under warning, or suspended, as defined by legislation) to supply raw milk for processing. The 4 methods of data adjustment each led to a sizable reduction (6.7, 5.0, 5.3, and 11.1 percentage points, respectively, compared with the unadjusted data) in the percentage of herds exceeding a herd SCC of 400,000 cells/mL. Herd eligibility varied by interpretation scenarios, in particular those incorporating seasonal adjustment. The study provides new perspectives on the effect of data adjustment on herd SCC and of interpretation scenarios on herd eligibility. The results provide an illustrative, rather than definitive, picture of this effect, as national authorities use BTSCC data when determining herd eligibility, whereas this study was conducted using milk-recording data as a proxy. Some aspects of the primary EU legislation are unclear, which may lead to differences in interpretation and application. The potential impact of data adjustment and milk purchaser pricing on farm-level mastitis control in Ireland is considered.

Evaluating expansion strategies for startup European Union dairy farm businesses.

A stochastic whole-farm simulation model was used to examine alternative strategies for new entrant dairy farmers to grow and develop dairy farm businesses in the context of European Union (EU) milk quota abolition in 2015. Six alternative strategies were compared: remain static, natural growth expansion, waiting until after EU milk quota abolition to expand, a full-scale expansion strategy without milk quotas and not incurring super levy penalties, a full-scale expansion strategy with milk quotas and incurring super levy penalties, and once-a-day milking until EU milk quota abolition, followed by full-scale expansion. Each discrete whole farm investment strategy was evaluated over a 15-yr period (2013-2027) using multiple financial stability and risk indicators, including overall discounted farm business profitability, net worth change, return on investment, and financial risk. The results of this study indicate that, although associated with increased risk, dairy farm expansion will ensure the future profitability of the farm business. Within the context of EU milk quotas until 2015, the most attractive expansion strategy is to increase cow numbers while avoiding super levy fines using once-a-day milking techniques, increasing to the full capacity of the dairy farm once milk quotas are removed. In contrast, the results also indicate that dairy farms that remain static will experience a significant reduction in farm profitability in the coming year due to production cost inflation. Cash flow deficits were observed during the initial year of expansion and, therefore, rapidly expanding dairy farm businesses require a significant cash reserve to alleviate business risk during the initial year of expansion. The results of this analysis also indicate that dairy farm businesses that expand using lower cost capital investments and avoid milk quota super levy fines significantly reduce the financial risks associated with expansion.