IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Identifying Financially Versatile Milk Production Systems

Listed author(s):
  • Anderson, Duncan J.
  • Jack, Claire G.
  • Connolly, Niamh
Registered author(s):

    The European dairy industry faces an increasingly uncertain world. There is uncertainty about, for example, subsidy payment levels and compliance conditions, global competition, price variability, consumer demand, carbon footprints, water quality, animal welfare, food safety, and the environment. Farmers can reduce their exposure to these uncertainties by adopting production systems that are financially versatile over a wide range of possible circumstances. In this research project we develop a profit maximizing whole-farm model and employ it to identify financially optimal milk production systems for a typical Northern Ireland farm under varying market, policy and farm family conditions. The systems assessed range from lower yielding New Zealand type systems based on grazed grass to very high yielding North American type systems based on concentrates and conserved forage. The model also incorporates a disaggregated specification of time use within farm households and links intra-household human resource allocation to the process of agricultural technology adoption. Model results indicate that the optimal dairy system for a typical Northern Ireland farm is one that is somewhere between the extremes of those systems adopted in North America and New Zealand. Moderate input-moderate output milk production systems (i.e. 7,000 to 8,000 litre yields) are shown to be financially robust over a wide range of milk prices, concentrate prices, fertilizer prices, and farm family conditions. Low input-low output (New Zealand style) and high input-high output (North American style) systems are found to be less financially versatile.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by European Association of Agricultural Economists in its series 123rd Seminar, February 23-24, 2012, Dublin, Ireland with number 122460.

    in new window

    Date of creation: 24 Feb 2012
    Handle: RePEc:ags:eaa123:122460
    Contact details of provider: Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. Beth Allen, 2000. "The Future of Microeconomic Theory," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 143-150, Winter.
    2. McCown, R. L., 2002. "Changing systems for supporting farmers' decisions: problems, paradigms, and prospects," Agricultural Systems, Elsevier, vol. 74(1), pages 179-220, October.
    3. Mullen, John D., 1996. "Why Economists and Scientists Find Cooperation Costly," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 64(02), August.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ags:eaa123:122460. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.