Automatic milking
Workpackage 1: Socio-economic aspects of automatic milking
The objectives of Work Package 1 are:
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subpackage 1: to identify and assess the farm-level
determinants of the introduction of automatic milking (AM) by farmers.
More specifically, it is the aim to examine the importance of the
characteristics and management style of the farmer, the organisation
and the environment of the farm on AM adoption.
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subpackage 2: to assess the farm-level implications
of AM adoption, including (1) the impact of the changing labour
conditions on the farmers' quality of life, (2) the impact on the
economic, financial and environmental efficiency of the farm
operation, and (3) the impact on the organisation of the farm
business.
Methodology and study materials
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In a first step, existing studies that have investigated
the determinants and implications of the adoption of new agricultural
technology will be explored to identify relevant variables to be included
in the next step. A survey of the existing literature on the economics of
AM and interviews with experts and representatives of the dairy food
industry and AM suppliers will supplement this desk study.
In a second step, farm-level data will be collected in typical dairy
regions in Belgium, the Netherlands, Germany and Denmark. Data collection
will proceed as follows:
- First, AM adopters will be identified and characterised with the
help of AM suppliers and subcontracted bookkeeping agencies. The
latter have to be identified as yet. The number of AM adopters
selected for the study depends on their occurrence. It is estimated
that between 10 and 20 AM adopters will be selected in each
country.
- Second, a sample of approximately 30-40 AM non-adopters within the
database of each subcontractor will be selected to be a representative
peer group for comparison.
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Longitudinal economic and financial data of both AM adopters and AM
non-adopters will be collected through the subcontractors. Partner 5 will
collect additional data which cannot be retrieved from the accounts by
farm visits, using both standardised questionnaires to collect additional
quantitative information and in-depth interviews to collect qualitative
data, hereby assisted by the subcontractors. A follow-up survey among the
AM adopters will be conducted one year later to check and update the
information previously collected.
In a third step, the collected data will be used to analyse the
determinants and implications of AM adoption. First, the determinants of
AM adoption will be analysed using a combination of standard econometric
techniques (probit, logit) and qualitative information from the
interviews. Second, to assess farm-level implications of AM adoption, both
a time-series analysis of adopters and a comparison of adopters and
non-adopters will be carried out.
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A time-series analysis of adopters will
be conducted using longitudinal and survey data to calculate and compare
the following indicators before and after AM adoption:
- measures of partial and total factor productivity and technical
efficiency, including milk yield, labour productivity, economies of
scale;
- economic efficiency: gross margin, profits and return on
equity;
- financial efficiency: returns on investment;
- environmental efficiency with respect to nitrogen production;
- indicators for quality of life: change in the amount and the
composition of the labour load and the time allocation of the farmer,
his/her family and hired workers;
- the organisation of the farm: change of ownership structure,
liability and contractual arrangements in relation to AM suppliers,
milk processors and feed suppliers.
A comparison of AM adopters with a sub-sample of non-adopters with
similar characteristics concerning farm size and structure will be
conducted using only longitudinal bookkeeping data. Only measures of
partial and total factor productivity and technical efficiency and
financial indicators will be calculated where possible.
