Production costs, economic viability, and risks associated with compost bedded pack, freestall, and drylot systems in dairy farms

Pinheiro, Jardeson de Souza; Vries, Albert De; Rodrigues, João Paulo Pacheco; Marcondes, Marcos Inácio

doi:10.1016/j.animal.2021.100404

Cited by 4 publications

(1 citation statement)

References 31 publications

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“…Reducing milk production seasonality would benefit dairy processors and, at least theoretically, would reduce milk price oscillations at the farm level. Modification on milk production systems with enhanced feed strategies and switching from pasture-based to confinement systems with investments in compost-bedded pack barns is an example of how farmers are addressing seasonality (Marcondes et al, 2020;Pinheiro et al, 2021), but the impact of the increased milk production remains an issue due to its potential of price reduction (Simões et al, 2019). However, understanding the significant seasonal price component can be useful to farmers and processors to formulate more profitable strategies of seasonal production.…”

Section: Discussionmentioning

confidence: 99%

Components of farm milk price behavior in Brazil from 2005 to 2020

Simões¹,

Nicholson²,

Carvalho³

2023

Revista Brasileira De Zootecnia

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The objective of this study was to assess behavior patterns in Brazilian farm milk prices. We employed a structural time series techniques model, the Unobserved Component Model (UCM), which is part of the family of State Space models, to assess the trend, seasonality, cyclical behavior, and impacts of exogenous regressors on aggregated farm milk price behavior in Brazil from January 2005 to December 2019. We tested five alternative models with different regressors using the monthly national average prices of milk paid to farmers. The fit of the models was assessed with Akaike information criterion and Bayesian information criterion. Predictions were assessed by the root mean squared error (RMSE), mean absolute error (MAE), and mean absolute percentage error (MAPE). All models demonstrated a high degree of accuracy. Trends, seasonality, and two cycles were statistically significant, with the trend and long-period cycle contributing the most to price variation. Exogenous factors such as feed cost and international dairy product prices also had significant positive effects on the level of Brazil's farm milk prices. All models demonstrated a high degree of accuracy, which may indicate their usefulness for price forecasting and policy formulation.

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Section: Discussionmentioning

confidence: 99%

Components of farm milk price behavior in Brazil from 2005 to 2020

Simões¹,

Nicholson²,

Carvalho³

2023

Revista Brasileira De Zootecnia

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Assessing the Impacts of Compost‐Bedded Pack Barns on the Productive Efficiency of Brazilian Dairy Farms

Ferreira,

Simões,

Daniel

et al. 2024

Agribusiness

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The objective of this study was to evaluate differences in the technical efficiency of alternative milk production systems on Brazilian farms. Using a panel from 2014 to 2021 (1117 observations of 383 dairy farms) we compare the technical efficiency of more recently adopted Compost‐bedded Pack Barns (CPB) with that of Semi‐confinement (SC), and Unstructured confinement (UNS) systems. A stochastic frontier was estimated by a Generalized True Random Effects to assess the relationship between technical efficiency and the production systems adopted, decompose efficiency into Transient (short‐term) and Persistent (long‐term) components, and control for unobserved heterogeneity. We found that farms using confined systems are more efficient than those using semi‐confined systems. The decomposition of the Overall Technical Efficiency in its Persistent and Transient components suggests that farmers can be more efficient when dealing with short‐term shocks than when deciding which system to use. The use of more capital‐intensive technologies such as CPB may provide opportunities to improve dairy farm profitability and productivity growth in Brazil.

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Technical and economic analysis, and benchmarking associated with dairy farms in Minas Geraiz, Brazil

et al. 2022

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Context Dairy operations have adopted benchmarking as a methodology to rank farms and establish target indexes; however, a connection between benchmarking and farms in the tropics is still warranted. Aims To evaluate the technical and economic quartiles based on farm return on assets (ROA) of three regions (Centre, South and Triangle) of Minas Gerais state, Brazil, and use them to establish benchmarks for dairy farms. Methods We collected data from 128 dairy farms (from January to December of 2019). All properties were part of the Educampo® project/Sebrae-MG. Farms were grouped into the Centre, South and Triangle regions, and subdivided into three groups within each region according to their ROA, where 25% of the farms that presented the lowest ROA were classified as the first quartile, 50% of farms were classified as interquartile and the 25% remaining farms were classified as the fourth quartile. Data were analysed as a randomised block design in a split-plot scheme, where the production systems were blocks, the regions were the main plots and the groups were the split plots. Differences were declared when P ≤ 0.10. Key results Total operating cost ($/L; $ – this currency is in US dollars and it applies throughout the paper); accrual operating cost ($/L); production costs, such as roughage ($/L), hired labour ($/L), percentage of concentrate and hired labour in accrual operating cost (%), were affected by regions and groups. The South and fourth quartile had the greatest total operating cost (0.24 $/L; 0.26 $/L) and accrual operating cost (0.27 $/L; 0.30 $/L), respectively. The majority of economic indexes were higher for Triangle than South and Centre, respectively. The fourth quartile had the greatest net margin (0.09 $/L), profit (0.07 $/L), return on assets (2%) and assets turnover rate (24%). Conclusions We suggest that benchmarks should be established by region, as there were too many variations among regions. In addition, this study demonstrated the importance of understanding the behaviour of the technical and economic indicators to stratify farms based on their return on assets. Implications We evaluated technical and economic indexes from three regions and stratified by ROA. Then, we established benchmarks by regions to better guide the producer in decision-making in dairy operations.

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Production costs, economic viability, and risks associated with compost bedded pack, freestall, and drylot systems in dairy farms

Cited by 4 publications

References 31 publications

Components of farm milk price behavior in Brazil from 2005 to 2020

Components of farm milk price behavior in Brazil from 2005 to 2020

Assessing the Impacts of Compost‐Bedded Pack Barns on the Productive Efficiency of Brazilian Dairy Farms

Technical and economic analysis, and benchmarking associated with dairy farms in Minas Geraiz, Brazil

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