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The Profitability of Seasonal Mountain Dairy farming in Norway

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  • Asheim, Leif Jarle
  • Lunnan, Tor
  • Sickel, Hanne

Abstract

In this paper the economics of seasonal production of cheese in the mountain in Norway is investigated and compared with keeping the cows at the farm, investing in a common pasture or in co-operative dairy farming. The comparison is based on calculations in a linear programming (LP) farm model supported with Stochastic Dominance with Respect to a Function (SDRF) for risk analysis. Mountain dairy farming involves free ranging cows on natural pastures for about 70 days. The contents of polyunsaturated fatty acids, CLA and various antioxidants in the milk increase when cows graze alpine pastures affecting its processing properties, and flavor and chemical content of dairy products. Seasonal mountain cheese production is found to be generally preferable to the other alternatives for risk neutral as well as risk-averse decision makers. This is due to a higher price for mountain products, subsidy payments for mountain farming, and exemption for farm processed milk in the national milk quota. The risks are partly price risks but also yield and output risks as well as downside political risks since the profitability depend strongly on subsidies and premiums, and exemption for farmprocessed milk in the milk quota. Investments in farming co-operatives were unprofitable due to less subsidy payments compared to individual farmers. Effects of calving time, introducing fertilized pastures or night pens, and supplementary feeding to extend the mountain period and sustain milk yields are examined. The premium price for “mountain products”, animal welfare, and farmer co-operation on marketing are discussed. In diesem Beitrag wird die Rentabilität der Produktion von Almkäse im eigenen Betrieb untersucht und mit gemeinsamer Weide und in einer Betriebsgemeinschaft in Norwegen verglichen. Der Vergleich basiert auf Berechnungen in einem linearen Programmierungsmodell, unterstützt durch Stochastic Dominance with Respect to a Function (SDRF) für Risikoanalyse. Die Almwirtschaft beinhaltet ein Verfahren mit Kühen auf Almen an ungefähr 70 Tagen. Der Anteil von mehrfach ungesättigten Fettsäuren, konjugierte Linolsäuren (CLA) und verschiedenen Antioxidanten erhöht sich, wenn die Kühe auf einer Alm weiden. Dadurch verändern sich die Verarbeitungseigenschaften der Milch sowie der Geschmack und die chemische Zusammensetzung von Milchprodukten. Der Beitrag zeigt, dass die Rentabilität der Almwirtschaft für risikoneutrale und risikoscheue Entscheidungsträger generell besser und den alternativen Verfahren vorzuziehen ist. Eine wichtige Rolle spielen Preisrisiko, Risiko in Bezug auf die Milchleistung und politisches Risiko, da die Rentabilität der Milchproduktion sehr stark von Beihilfen und Subventionen abhängt. Politisches Risiko findet sich zudem in der Tatsache, dass auf der Alm verarbeitete Milch von der Milchquote ausgenommen ist. Investitionen in eine landwirtschaftliche Betriebsgemeinschaft waren unrentabel. Dies erklärt sich zum großen Teil aus den degressiven Beihilfesätzen im Vergleich zu Einzellandwirten. Der Einfluss der Abkalbezeit, das Zuführen von Mineraldünger auf Almweiden und die Verlängerung der Zeit auf der Alm durch zusätzliche Fütterung werden untersucht. Darüber hinaus wird der Einfluss eines Preiszuschlages für Almprodukte, Tiergesundheit und die gemeinschaftliche Vermarktung von Almprodukten diskutiert.

Suggested Citation

  • Asheim, Leif Jarle & Lunnan, Tor & Sickel, Hanne, 2014. "The Profitability of Seasonal Mountain Dairy farming in Norway," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 63(02), pages 1-15, June.
  • Handle: RePEc:ags:gjagec:253152
    DOI: 10.22004/ag.econ.253152
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    Cited by:

    1. Shyian, Natalia & Kolosha, Valerii, 2020. "Формування Ціни На Молоко В Україні В Контексті Світових Тенденцій," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 6(4), December.
    2. Leif Jarle Asheim & Julie Føske Johnsen & Øystein Havrevoll & Cecilie Marie Mejdell & Ann Margaret Grøndahl, 2016. "The economic effects of suckling and milk feeding to calves in dual purpose dairy and beef farming," Review of Agricultural, Food and Environmental Studies, Springer, vol. 97(4), pages 225-236, December.

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