Financial benchmarking on dairy farms: Exploring the relationship between frequency of use and farm performance.

The importance of financial benchmarking has increased in recent years as European Union milk quota abolition has facilitated rapid change in the dairy sector. This study evaluates the association between usage frequency of a financial benchmarking tool [Profit Monitor (PM)] and farm changes on spring-calving pasture-based dairy farms. To this end, physical and financial data for 5,945 dairy farms, representing 20,132 farm years, for the years 2010 to 2018 were used. Farms were categorized by frequency of annual financial benchmarking over the 9-yr period into frequent PM users (7-9 yr), infrequent PM users (4-6 yr), low PM users (1-3 yr), and nonusers. We use a mixed model framework and econometric models to characterize farms and to explore characteristics and determinants of economic performance and user groups. The most frequent users of the financial benchmarking tool had the greatest increase in intensification (measured by change in farm stocking rate), productivity (measured by change in milk production per hectare), and financial performance (measured by change in farm gross output and net profit per hectare) across the study period. Infrequent and low PM users of the benchmarking tool were intermediate for all variables measured, whereas nonusers had the least change. Empirical results indicated that economic performance was positively associated with dairy specialization and pasture utilization for all groups. Despite considerable fluctuations over the observation period, the overall change in total farm net profit between 2010 and 2018 was greatest for the frequent PM users (an increase of 70%, or €37,639), followed by farms in the infrequent PM user category (a 71% increase corresponding to an increase of €28,008 in net profit); meanwhile, low PM user and nonuser categories showed increases of 69% (€26,270) and 42% (€10,977), respectively. The results of this study also clearly indicated the existence of a strong positive association between frequency of financial benchmarking and greater technical and financial efficiency. The econometric analysis revealed that financial benchmarking users are more likely than nonusers to have larger herds, and that regional differences exist in usage rates. Finally, the study concludes by suggesting that the development of simplified financial benchmarking technologies and their support are required to increase benchmarking frequency, which may also help to facilitate a more sustainable and resource efficient dairy industry.

Exploring farmers' attitudes and determinants of dairy calf welfare in an expanding dairy sector.

The 2015 European Union milk quota abolition initiated considerable expansion in the dairy sector in many European Union countries, most significantly in Ireland. However, this major production increase also had wider societal implications, such as negative environmental and animal welfare consequences. In this article, we used survey data of 441 Irish dairy farmers to assess farmers' attitudes toward the welfare of farmed animals and dairy calves, as well as the reputation of the Irish dairy sector. We also explored how expansion, breeding, calf management, and farmer characteristics relate to calf welfare outcomes (i.e., calf mortality, calf export, and premature culling). In relation to attitudes, farmers expressed a general concern toward animal welfare, while views toward dairy calves and industry reputation were mixed. We used Ward's linkage hierarchical cluster analysis to group farmers based on their attitudes. The cluster analysis revealed 3 distinct groups relating to high, medium, and low animal welfare concern. Herd expansion was negatively associated with being in a higher animal welfare concern cluster, whereas beef trait-focused breeding was positively associated with it. In relation to dairy calf welfare outcomes, our econometric analyses based on multiple regression and binary choice models revealed that expansion was positively associated with calf mortality, whereas improved breeding and calf management factors had a negative association. In addition, being in the high animal welfare concern cluster was negatively associated with calf mortality. Furthermore, breeding decisions were significantly associated with whether calves were exported, and being in the high animal welfare concern cluster was negatively associated with the probability that calves were sent for live export. Finally, farmers' breeding and calf management decisions were associated with premature culling of calves. Overall, this article revealed strategies worth promoting to improve dairy calf welfare, such as beef trait-focused breeding leading to greater dairy-beef integration.

Extended grazing: a detailed analysis of Irish dairy farms.

Profitability and factors affecting grazing season length were econometrically analyzed using a representative sample of Irish dairy farms. The objective of this study was to explore what potential exists on Irish dairy farms to extend the grazing season and to quantify the possible economic benefits that result from lengthening the grazing season. Regression results indicate that location factors affect the length of the grazing season, but even when physical factors are controlled, farmer characteristics, such as education, also affect the grazing season length. The results of a panel data analysis show that significant cost reductions can be achieved by extending the grazing season. Overall, the findings indicate that lengthening the grazing season offers a cost-saving alternative on many Irish dairy farms, which could contribute to strengthening the competitiveness of the Irish dairy sector.