Browsing by Subject "Profitability"

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Gesamtbetriebliche Analyse von Weidebetrieben und Weidesystemen in der Milchviehhaltung in unterschiedlichen Regionen Süddeutschlands
(2014) Kiefer, Lukas Robert; Bahrs, Enno
Grassland use and particularly pasture milk production is considered a highly sustainable milk production method which renders many ecosystem services for society (such as greater biodiversity, maintenance of rural cultural regions, climate protection due to higher carbon storage capacity of grassland, better animal appropriateness by regular grazing) as opposed to permanent indoor housing with its high portion of concentrate feed. Nevertheless, the share of pasture farming in overall milk production falls behind production by increasing permanent indoor housing in Germany. Therefore, it appears appropriate to analyze the necessary business environment for pasture farming with consideration of selected ecosystem services actually provided and to sketch suitable recommendations for consultation of farmers. Against this background, the research project “Business analysis and optimization of pasture-based farms and pasture systems in dairy farming in different regions of South Germany” was designed. The research project evaluated production technology, labor economics, business success, greenhouse gas emissions and specific ecosystem services of more than 80 specialized pasture milk producers through three economic years (2008/09-2010/11) and was dedicated to analysing economic and ecological competitiveness of pasture milk production at specific locations. As a result the most profitable pasture farms of the sample regarding management income and hourly rate can compete with the most profitable farms that practice permanent indoor housing; thus, they demonstrate potential economic strength of pasture farms at suitable locations. Decisive determinants of economically successful pasture management include organic farming (higher milk prices and financial compensation), high amounts of milk from forage, sufficient milk yield of the individual cow (>6,000 kg), and a great portion of pasture grass in the feed as well as high work efficiency via seasonal calving, all-day grazing and short-lawn pasture. High profitability and low greenhouse gas emissions can be achieved simultaneously through high efficiency of production. Some farms can even make “greenhouse gas avoidance gains” when production costs and proportionate emissions decrease at the same time thanks to reduced feed demand per kg milk. There is still a substantial need for research in the field of greenhouse gas balancing, particularly regarding evaluation of the manifold ecosystem services of pasture milk production. Many pasture-based farms are compensated for the above-mentioned services via the 2nd pillar of Common Agricultural Policy, but such services remain unconsidered in greenhouse gas balancing so far. It is for this reason that pasture-based farms with low productivity as well as organic farms perform poorly compared to more intensive farming with high productivity if they are measured by the established formulas of greenhouse gas balancing. Consideration of ecosystem services in the framework of greenhouse gas balancing would be possible via economic allocation of emissions between milk, meat, and subsidies of the 2nd pillar of Common Agricultural Policy, however. Based on our sample, this approach would result in an approximation of the carbon footprints per kg milk produced by extensive and intensive or organic and conventional farms, respectively. Nevertheless, a fundamental antagonism still persists between high production efficiency, which is desirable from the point of view of climate protection on the one hand and ecosystem services attainable by extensive production on the other hand. Like other milk production systems, profitable pasture milk production associated with lowest possible greenhouse gas emissions requires first of all competent training and consultation of farmers, which meets the requirements of the respective production method. Policy could improve the relevant framework conditions. Successful pasture milk producers are margin optimizers whose economic success depends above all on higher producer prices (organic milk, pasture milk), cost minimizing milk production based on pasture as the cheapest feed for many farms as well as funding of the ecosystem services which are desired by society. Farm growth and increases in milk yield are harder to achieve for pasture milk producers because consolidated areas are missing or more concentrate feed would be necessary. According to the results of the investigated sample, stronger support of the unique image of pasture milk (which does not necessarily mean monetary funding in this context) as well as increased know-how in the field of pasture milk production is desirable in order to establish or develop the numerous very positive approaches of pasture use in grassland regions that were analyzed in our investigation. The latest EU agrarian reform as well as new EAFRD regulations offer some good starting points in this regard.
Utilizing sustainable agricultural mechanization to unlock the potential of conservation agriculture in Zambia
(2022) Omulo, Godfrey Omondi; Birner, Regina
Conservation agriculture (CA) has the potential to improve agriculture’s resilience to climate change, reduce environmental degradation, and improve food security in sub-Saharan Africa (SSA). However, despite this potential, adoption rates of CA have remained relatively low in SSA, as CA is faced with major challenges. Due to low mechanization rates, the high labour requirements of CA constitute an important obstacle to the adoption of CA. The low adoption of CA in SSA has sparked national and international debates about the suitability of CA for African farming systems and about the strategies that have been used to promote it. The rise of medium-scale farmers across SSA, who use tractors and implements, offers a new perspective for CA. These farmers do not only cultivate increasingly large land areas, but also provide machinery services, share knowledge, and act as role models to small-scale farmers. However, it remains unclear whether mechanized medium-scale farmers, who typically cultivate between five and a hundred hectares of farmland, can play a key role in the upscaling of CA in SSA. Previous studies have focused on socio-economic and psychological factors in studying farmers’ decisions to adopt various CA practices. Yet, the interests of medium-scale farmers regarding mechanized Conservation Agriculture (MCA) have remained largely unexplored. Further, even though mechanization may incentivize CA adoption in SSA, little research has focused on the performance of MCA using four-wheel tractors. Against this backdrop, this research sought to investigate the extent and how sustainable agricultural mechanization can unlock the potential of CA, focusing on medium-scale farmers and using Zambia as a case study country. The study had three objectives, which are addressed in three different chapters: 1) to analyze the perceptions and intentions of medium-scale farmers with regard to MCA in Zambia; 2) to analyze the discourses about CA expressed by Zambian farmers and various key stakeholders; and 3) to investigate the short-term agronomic and economic differences between mechanized conventional tillage and MCA. To achieve these objectives, a mixed-method research approach was used, involving qualitative and quantitative methods. The introduction of the thesis presents the study rationale, discusses CA status in SSA and Zambia, and examines the literature on the increase of medium-scale farmers in Zambia as an important opportunity for MCA adoption. To address the first objective, the second chapter employs Taylor and Todd’s socio-psychological framework of the Decomposed Theory of Planned Behavior to examine the intentions of medium-scale farmers towards MCA. Three constructs are considered: normative issues, attitudes and perceived control behaviour. The chapter is based on responses from a survey that was conducted with 119 medium-scale farmers from selected districts in Zambia. The data were analyzed using descriptive statistics and Spearman’s rank correlation coefficient. This chapter reveals that medium-scale farmers have very strong intentions to apply mechanization on their farms, which is linked to strong subjective norms, attitudes and perceived control. The favourable attitude towards MCA is based on its perceived usefulness, easiness and compatibility with their current practices. Further, perceived resources and efficacy also influence farmers’ intentions to adopt MCA. Other important factors in determining farmers’ intentions to use MCA include social and media influence, technical training and extension services, as well as farmers’ background characteristics. To address the second objective, presented in Chapter 3, a discourse analytical research approach was applied to examine actors’ viewpoints on CA. The chapter is based on in-depth interviews, interviews with key informants, focus group discussions and a review of selected local media reports. Based on the analysis, six CA narratives were identified in the Zambian context, which can be labelled as follows: (1) Yield stability of CA is attainable within a few years; (2) CA is the farming choice of the future; (3) Opinion leaders and key stakeholders are pushing the new CA frontiers; (4) CA is Africa’s ancient way of farming; (5) The Youths is getting inducted to apply CA; and (6) The number of CA adopters is higher than reported. The chapter reveals that despite the numerous discourses in favour and against CA that are reported in the literature, there are unreported context-specific CA discourses that are inherent to the study sites in Zambia. The fourth chapter, which addresses the third objective, presents a large-scale on-farm experiment to explore whether there are short-term agronomic and socio-economic differences between mechanized conventional tillage and MCA. This question is relevant because short-term differences can have a stronger influence on the adoption of CA than effects that only become manifest in the long run. The experiment was conducted using a randomised complete block design trial to compare three treatments: (1) disc harrowing (DH) plus residue burning, which represents the widely used conventional practice; (2) ripping tillage (RT); and (3) direct seeding (DS) plus soil cover. The experiment focused on maize and soyabean and covered two years, of which the first was more “dry” and the second more “wet”. All operations were performed using a 60hp four-wheel tractor. The analysis shows that, as compared to conventional DH, DS leads for both crops to time and fuel-saving. This effect is also observed, though to a lower extent, in RT. The cost of production was for both crops highest for DH and lowest for DS, whereas RT fell in-between. MCA treatments led to relatively higher grain yields in the dry season for both crops. However, in the wet season, DH and RT resulted in significantly higher maize yields than DS. The analyses also show that DS resulted in higher profitability for soyabean in both seasons, while the profitability of maize was higher for DS in the dry season and higher for DH in the wet season. MCA treatments led to higher returns per unit of investment and higher returns to labour compared to DH. Overall, the chapter demonstrates that, even in the short term, MCA has multiple agronomic and economic benefits. Considering the findings regarding the three objectives together, the study indicates that deciphering the discourses and perceptions of key actors about MCA improves the chances of identifying nuanced policies and interventions that may accelerate MCA uptake by medium-scale farmers. The findings of the mechanized experiment show that the agronomic and economic gains of MCA can even be achieved even if adopters hire all tractor operations. However, to harness the synergies between CA, mechanization, and the rise of medium-scale farmers for increased agricultural productivity and sustainability in SSA, more research on the enabling environment for MCA and appropriate policies is still needed.