Economic modelling of grazing management against gastrointestinal nematodes in dairy cattle.

Grazing management (GM) interventions, such as reducing the grazing time or mowing pasture before grazing, have been proposed to limit the exposure to gastrointestinal (GI) nematode infections in grazed livestock. However, the farm-level economic effects of these interventions have not yet been assessed. In this paper, the economic effects of three GM interventions in adult dairy cattle were modelled for a set of Flemish farms: later turnout on pasture (GM1), earlier housing near the end of the grazing season (GM2), and reducing the daily grazing time (GM3). Farm accountancy data were linked to Ostertagia ostertagi bulk tank milk ELISA results and GM data for 137 farms. The economic effects of the GM interventions were investigated through a combination of efficiency analysis and a whole-farm simulation model. Modelling of GM1, GM2 and GM3 resulted in a marginal economic effect of € 8.36, € -9.05 and € -53.37 per cow per year, respectively. The results suggest that the dairy farms can improve their economic performance by postponing the turnout date, but that advancing the housing date or reducing daily grazing time mostly leads to a lower net economic farm performance. Overall, the GM interventions resulted in a higher technical efficiency and milk production but these benefits were offset by increased feed costs as a result of higher maintenance and cultivation costs. Because the results differed highly between farms, GM interventions need to be evaluated at the individual level for appropriate decision support.

The relation between input-output transformation and gastrointestinal nematode infections on dairy farms.

Efficiency analysis is used for assessing links between technical efficiency (TE) of livestock farms and animal diseases. However, previous studies often do not make the link with the allocation of inputs and mainly present average effects that ignore the often huge differences among farms. In this paper, we studied the relationship between exposure to gastrointestinal (GI) nematode infections, the TE and the input allocation on dairy farms. Although the traditional cost allocative efficiency (CAE) indicator adequately measures how a given input allocation differs from the cost-minimising input allocation, they do not represent the unique input allocation of farms. Similar CAE scores may be obtained for farms with different input allocations. Therefore, we propose an adjusted allocative efficiency index (AAEI) to measure the unique input allocation of farms. Combining this AAEI with the TE score allows determining the unique input-output position of each farm. The method is illustrated by estimating efficiency scores using data envelopment analysis (DEA) on a sample of 152 dairy farms in Flanders for which both accountancy and parasitic monitoring data were available. Three groups of farms with a different input-output position can be distinguished based on cluster analysis: (1) technically inefficient farms, with a relatively low use of concentrates per 100 l milk and a high exposure to infection, (2) farms with an intermediate TE, relatively high use of concentrates per 100 l milk and a low exposure to infection, (3) farms with the highest TE, relatively low roughage use per 100 l milk and a relatively high exposure to infection. Correlation analysis indicates for each group how the level of exposure to GI nematodes is associated or not with improved economic performance. The results suggest that improving both the economic performance and exposure to infection seems only of interest for highly TE farms. The findings indicate that current farm recommendations regarding GI nematode infections could be improved by also accounting for the allocation of inputs on the farm.

Institutional and policy analysis of wastewater (re)use for agriculture: case study Hyderabad, India.

Wastewater constitutes an alternative water source for the irrigation sector. To fully benefit from it, and reduce possible adverse effects on public health and the environment, we need to look at the regulation of the practice. A prerequisite for this is an institutional analysis, and the points to consider are the institutional mandates. We used the city of Hyderabad, India, as a case study. There, irrigation with wastewater is not supported or recognized, but it happens in practice. It takes place in an indirect and unplanned way. Institutions fail at enforcing regulations, and little attention is given to formalization of the practice. With this article, we aim to untangle the institutional setup, and by doing so, identify the constraints surrounding development of a formal practice. Ultimately, we aim at contributing to the discussion on the agricultural use of wastewater.

Impact of groundwater markets in India on water use efficiency: a data envelopment analysis approach.

In the hard rock areas of India, overdraft of groundwater has led to negative externalities. It increased costs of groundwater irrigation and caused welfare losses. At the same time informal groundwater markets are slowly emerging and are believed to improve water distribution and to increase water use efficiency in the irrigation sector. These claims are evaluated in this study. For this purpose data was collected from a sample containing three different groups of water users: water sellers, water buyers and a control group of non-traders. First the socio-economic characteristics of these groups are compared. Then the efficiency of water use of the three groups is studied using Data Envelopment Analysis. The results indicate that groundwater markets provide resource poor farmers access to irrigation water, giving them the opportunity to raise their productivity. Water buyers are furthermore shown to be most efficient in their water use, while water sellers are also shown to be more efficient than the control group. The differences in efficiency between the groups are statistically significant. The demonstrated potential of groundwater markets to improve the efficiency of water use and to increase equity in resource access should be taken into account by the Indian government when deciding on their attitude towards the emerging groundwater markets.

Economic impact of decreasing stocking densities in broiler production in Belgium.

Stocking density is a prominent topic in public debates on animal welfare and was one of the reasons for the European Commission to set limits to the stocking density on broiler farms. The objective of this paper was to calculate in detail the financial impact of changes in technical and management variables due to decreasing stocking densities in line with new European Union (EU) regulations. Therefore, the productive performance indicators such as BW, mortality, or feed conversion and farm technical data such as water consumption and heating of 3 independent experiments conducted at a poultry research station in Flanders (Belgium) were combined. Using the partial budget technique only those elements that change with stocking density have been taken into account. Reducing stocking density implies a recalculation of all costs on a reduced number of birds. This yields an economic situation that leaves hardly any profit margin for most of the broiler producers under the present market conditions. It was found that the critical threshold of stocking density for maintaining profitability under the present market and technical conditions is around 46 kg/m(2), thus well above the EU maximum of 42 kg/m(2). It is shown, however, that with changing broiler feed and meat prices, the impact might be less negative in economic terms.

A conceptual framework for the economic analysis of factors influencing decision-making of small-scale farmers in animal health management.

The delivery of veterinary services in most of sub-Saharan Africa has undergone substantial changes, with the private sector gaining increasing recognition as an alternative to state provision. Given this policy shift, the authors argue that a better understanding of the behaviour and decision-making processes of small-scale farmers in animal health management is urgently required, to guide policy decisions regarding the delivery of animal health services. Whether the involvement of the private sector will improve overall efficiency in the delivery of veterinary services will depend greatly on the demand response of livestock producers who must make decisions about the health of livestock. The authors briefly review the decision-making process in small-scale farming systems, the economic nature of animal diseases and disease control and the models that have been used to guide resource allocation for disease control. To gain an improved understanding of the behaviour and decision-making processes of small-scale farmers, the authors propose a conceptual model including variables that relate to characteristics specific to small-scale farmers and farms, economic factors, institutional setting and biophysical factors. Two possible approaches are proposed for the economic analysis. Agricultural household modelling allows the derivation and testing of hypotheses regarding the demand elasticities for veterinary services, while qualitative choice models are better suited to the analysis of determinants behind the choices of farmers. The authors conclude that an urgent need exists for empirical research in this area.

Consumer motivation towards purchasing fruit from integrated production in Belgium.

Consumer concerns about food safety have been steadily growing during the last decade. Along with the recognition of the increasing power from the consumer side of food chains, this has forced agricultural producers to innovate and adapt their production methods. One of those developments is integrated production of pip fruit (IFP). This research analyses and presents motivational structures of consumers towards purchasing IP fruit in Belgium. The research methodology builds on means-end-chain (MEC) theory, with data collected through personal laddering interviews with consumers. A hierarchical value map, indicating motivational structures for farm shop purchase of IP-labelled apples, is presented. IP-apple buyers pursue typical values, with health being paramount. The findings reveal interactions between market channel characteristics and product attributes, including characteristics that refer to production methods. Also, the study shows how outlet choice influences the perception and the motivation structure of the respondents for the specific product, fresh fruit in this case. From the findings, two sets of implications are set forth. First, marketing implications pertaining to advertising through the application of the "Means-End Conceptualization of the Components of Advertising Strategy" or MECCAS model. Second, implications to producers with respect to adapting their production methods to the needs and wants of the present end consumers.