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Let the cows graze: An empirical investigation on the trade-off between efficiency and farm animal welfare in milk production

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  • Schulte, Hinrich D.
  • Armbrecht, Linda
  • Bürger, Rasmus
  • Gauly, Matthias
  • Musshoff, Oliver
  • Hüttel, Silke

Abstract

To investigate whether farm animal welfare comes at the cost of dairy farm performance, and the role that pasture-access thereby plays, we analyse a rich sample of 45 dairy farms in Germany with a scientific measure of farm animal welfare. Based on directional efficiency measure that acknowledges sequential preferences such that farm animal welfare becomes relevant after technical efficiency, we cannot find a trade-off between farm animal welfare and technical milk efficiency. Pasture-based production systems can be at least as efficient or even more efficient compared to confinement systems, despite lower milk yields. Neglecting sequential preferences would bias efficiency in provision of farm animal welfare by pasture-systems. Farms from all types of dairy systems determine the efficient frontier, where efficiency increases with herd size, and is linked with higher profits. We conclude that pasture-access may help but does not guarantee higher levels of animal welfare. These results question governmental support for pasture access regarding the provision of farm animal welfare.

Suggested Citation

  • Schulte, Hinrich D. & Armbrecht, Linda & Bürger, Rasmus & Gauly, Matthias & Musshoff, Oliver & Hüttel, Silke, 2018. "Let the cows graze: An empirical investigation on the trade-off between efficiency and farm animal welfare in milk production," Land Use Policy, Elsevier, vol. 79(C), pages 375-385.
    • Handle: RePEc:eee:lauspo:v:79:y:2018:i:c:p:375-385
    DOI: 10.1016/j.landusepol.2018.07.005
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    Cited by:

    1. Weltin, Meike & Hüttel, Silke, 2019. "Farm eco-efficiency: Can sustainable intensification make the difference?," FORLand Working Papers 10 (2019), Humboldt University Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets – Efficiency and Regulation".
    2. Fabio Gaetano Santeramo & Emilia Lamonaca & Marco Tappi & Leonardo Di Gioia, 2019. "Considerations on the Environmental and Social Sustainability of Animal-Based Policies," Sustainability, MDPI, vol. 11(8), pages 1-12, April.
    3. Uehleke, Reinhard & Seifert, Stefan & Hüttel, Silke, 2020. "Animal welfare and production efficiency in German pork production," 60th Annual Conference, Halle/ Saale, Germany, September 23-25, 2020 305600, German Association of Agricultural Economists (GEWISOLA).
    4. Xiaochen Wang & Yaqun Liu, 2024. "Enhancing Agricultural Ecological Efficiency in China: An Evolution and Pathways under the Carbon Neutrality Vision," Land, MDPI, vol. 13(2), pages 1-17, February.
    5. F. Ang & K. H. Dakpo, 2021. "Comment: Performance measurement and joint production of intended and unintended outputs," Journal of Productivity Analysis, Springer, vol. 55(3), pages 185-188, June.
    6. Schaak, Henning & Musshoff, Oliver, 2020. "Public preferences for pasture landscapes in Germany—A latent class analysis of a nationwide discrete choice experiment," Land Use Policy, Elsevier, vol. 91(C).
    7. Uehleke, Reinhard & Seifert, Stefan & Hüttel, Silke, 2020. "Animal welfare and production efficiency in German pork production," 94th Annual Conference, April 15-17, 2020, K U Leuven, Belgium (Cancelled) 303695, Agricultural Economics Society - AES.

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    More about this item

    Keywords

    Farm animal welfare; Technical efficiency; Pasture; Milk production; Data envelopment analysis;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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