Economic Evaluation of Longevity in Organic Dairy Farming

Summary

The aim of this study was to highlight the economic importance of longevity in organic dairy cattle husbandry. Performance and reproductive data of 44,976 Austrian organic Simmental dairy cows were analysed by applying a bio-economic model. A farm scenario as well as different market situations were modelled. Overall costs declined with increasing longevity, due to dropping replacement costs. Annual profit was influenced considerably by milk yield and longevity. Short-lived animals needed substantially higher annual milk yields than long-lived animals to achieve equal annual profits. The applied market scenarios showed an increasing importance of longevity in situations of increasing economic pressure (+20% of concentrate price). It has been proven that extending longevity allows lower milk yield levels without decreasing profitability. Lower use of concentrates and reduced dependence on off-farm inputs and market fluctuations are further benefits.