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Broad breeding goals and production costs in dairy farming

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  • Daniel Atsbeha
  • Dadi Kristofersson
  • Kyrre Rickertsen

Abstract

Breeding goals for dairy cows have typically emphasized production traits such as milk and meat yields. We estimate the effects of genetic progress in different traits on variable costs of production. A variable cost function that is augmented with indices of dairy cows’ genetic merit in different groups of traits is estimated by using farm-level panel data. Our results show that a genetic progress of one standard deviation in production and functional traits reduces variable costs by 0.4 and 0.6 %, respectively. The cumulative variable cost reduction from genetic progress in functional traits between 1999 and 2007 is about 1 % for the average farm. Genetic change is permanent, and the discounted perpetual cost reduction because of genetic progress in functional traits is about NOK 160 million for Norwegian dairy farms. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Daniel Atsbeha & Dadi Kristofersson & Kyrre Rickertsen, 2015. "Broad breeding goals and production costs in dairy farming," Journal of Productivity Analysis, Springer, vol. 43(3), pages 403-415, June.
    • Handle: RePEc:kap:jproda:v:43:y:2015:i:3:p:403-415
    DOI: 10.1007/s11123-014-0412-0
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    Cited by:

    1. Habtamu Alem, 2021. "The Role of Technical Efficiency Achieving Sustainable Development: A Dynamic Analysis of Norwegian Dairy Farms," Sustainability, MDPI, vol. 13(4), pages 1-11, February.
    2. Tsakiridis, Andreas & Hanrahan, Kevin & Breen, James & Wallace, Michael & O’Donoghuea, Cathal, 2016. "Feed substitution and economies of scale in Irish beef production systems," 149th Seminar, October 27-28, 2016, Rennes, France 244769, European Association of Agricultural Economists.
    3. Alem, Habtamu1 & Lien, Gudbrand1 & Kumbhakar, Subal C1 & Hardaker, J. Brian, 2017. "Economies Of Scale And Scope In The Norwegian Agriculture," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 260907, European Association of Agricultural Economists.
    4. Christine E Whitt & Loren W Tauer & Heather Huson, 2019. "Bull efficiency using dairy genetic traits," PLOS ONE, Public Library of Science, vol. 14(11), pages 1-14, November.

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    More about this item

    Keywords

    Breeding; Cost function; Dairy production; Functional traits; Norway; C33; D24; O33; Q12; Q16;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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