New Zealand Journal of Agricultural Research abstracts

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An analysis of environmental and economic implications of nil and restricted grazing systems designed to reduce nitrate leaching from New Zealand dairy farms. II. Pasture production and cost/benefit analysis

C. A. M. DE KLEIN

AgResearch Invermay
Private Bag 50 034
Mosgiel, New Zealand

Abstract  Nitrate leaching from animal urine is perceived to be a serious consequence of dairy farming. Previous results suggested that nil and restricted grazing systems could reduce nitrate leaching by up to 50%. It is likely that such systems may also increase pasture production. However, potential disadvantages include reduction in the clover content of pastures and increase in capital and/or operating costs. This paper examines the economic implications of nil and restricted grazing systems based on data from an average New Zealand dairy farm and from a long-term farmlet study. The analyses suggested that pasture production increased by about 20% and 2-8%, respectively, compared with a conventional grazing system. Based on the average New Zealand dairy farm, the costs/benefit analysis of the nil grazing system suggested a negative return on capital of about -10%. For the restricted grazing system, the average return on capital was about 9% (range: -4 to 25%) and depended largely on the efficiency of animal excreta use. On farms where an effluent application system is already in place, the average return on capital was 17% (range: 2 to 50%). Based on the farmlet study, the cost/benefit analysis of both grazing systems suggested a small negative return on capital, except when the costs of an effluent application system were excluded. It is concluded that a restricted grazing system for the average New Zealand dairy farm is likely to be economically viable, on farms where an effluent application system or a feed pad is already in place.

Keywords  cost/benefit; dairying; grazing management; milk solids production; pasture production

New Zealand Journal of Agricultural Research, 2001, Vol. 44: 217-235

0028-8233/01/4402&3-0217 $7.00/0 (c) The Royal Society of New Zealand 2001

PDF file of entire paper: medium quality (1620K); (scanned from paper original: notes about this process)

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