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Cost of changing dairy cows’ diet to reduce enteric methane emissions in livestock farms

Author

Listed:
  • Fanny Le Gloux
  • Marie Laporte
  • Sabine Duvaleix
  • Pierre Dupraz
  • Elodie Letort

Abstract

Introducing fodder with high omega 3 content such as grass or linseed in the feed ration of dairy cows both improves the milk nutritional profile and reduces enteric methane emissions per litre. This lever is interesting to contribute to climate change mitigation but can also generate additional farm costs. Payment for Environmental Services, such as the Eco-Methane programme implemented by the association Bleu-Blanc-Coeur in France, can support a change of cows’ diet in dairy farms through the valorisation of methane emissions reduction. The effectiveness of such a scheme depends on (i) the definition of a precise indicator of enteric methane emissions capturing the feeding effect, (ii) a payment level that would be sufficiently attractive to compensate for the additional costs faced by farmers. This study compares two indicators of enteric methane emissions to show the effect of taking feeding into account. It also assesses the extra cost of milk production if the grassland areas in fodder crop rotation systems were to be increased in French dairy farms. The estimation of a variable cost function based on data from the Farm Accountancy Data Network (FADN) suggests a significant increase of the marginal cost of milk production with additional hectares of grass in mountainous areas, and in plains farms for which maize silage represents less than 30% of the fodder crop rotation system.

Suggested Citation

  • Fanny Le Gloux & Marie Laporte & Sabine Duvaleix & Pierre Dupraz & Elodie Letort, 2021. "Cost of changing dairy cows’ diet to reduce enteric methane emissions in livestock farms," Working Papers 311369, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    • Handle: RePEc:ags:inrasl:311369
    DOI: 10.22004/ag.econ.311369
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    References listed on IDEAS

    as
    1. Wunder, Sven, 2015. "Revisiting the concept of payments for environmental services," Ecological Economics, Elsevier, vol. 117(C), pages 234-243.
    2. Giancarlo Moschini, 1988. "The Cost Structure of Ontario Dairy Farms: A Microeconometric Analysis," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 36(2), pages 187-206, July.
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    4. Dupraz, Pierre, 2021. "Policies for the ecological transition of agriculture: the livestock issue," Review of Agricultural, Food and Environmental Studies, Institut National de la Recherche Agronomique (INRA), vol. 101(4), January.
    5. Alphonse G. Singbo & Bruno Larue, 2014. "Scale Economies and Technical Efficiency of Quebec Dairy Farms," Cahiers de recherche CREATE 2014-7, CREATE.
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    7. Antonio Alvarez & Carlos Arias, 2003. "Diseconomies of Size with Fixed Managerial Ability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 134-142.
    8. Alphonse Singbo & Bruno Larue, 2016. "Scale Economies, Technical Efficiency, and the Sources of Total Factor Productivity Growth of Quebec Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(2), pages 339-363, June.
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    More about this item

    Keywords

    Environmental Economics and Policy; Farm Management; Livestock Production/Industries;
    All these keywords.

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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