Exploring alternatives for milk quality improvement and more efficient dairy production in a smallholder farming context – case study: Mantaro Valley (Peru)

Consumer demand is revolutionizing the way products are being produced, distributed and marketed. In relation to the dairy sector in developing countries, aspects of milk quality are receiving more attention from both society and the government. However, milk quality management needs to be better addressed in dairy production systems to guarantee the access of stakeholders, mainly small-holders, into dairy markets. The present study is focused on an analysis of the interaction of the upstream part of the dairy supply chain (farmers and dairies) in the Mantaro Valley (Peruvian central Andes), in order to understand possible constraints both stakeholders face implementing milk quality controls and practices; and evaluate “ex-ante” how different strategies suggested to improve milk quality could affect farmers and processors’ profits. The analysis is based on three complementary field studies conducted between 2012 and 2013. Our work has shown that the presence of a dual supply chain combining both formal and informal markets has a direct impact on dairy production at the technical and organizational levels, affecting small formal dairy processors’ possibilities to implement contracts, including agreements on milk quality standards. The analysis of milk quality management from farms to dairy plants highlighted the poor hygiene in the study area, even when average values of milk composition were usually high. Some husbandry practices evaluated at farm level demonstrated cost effectiveness and a big impact on hygienic quality; however, regular application of these practices was limited, since small-scale farmers do not receive a bonus for producing hygienic milk. On the basis of these two results, we co-designed with formal small-scale dairy processors a simulation tool to show prospective scenarios, in which they could select their best product portfolio but also design milk payment systems to reward farmers’ with high milk quality performances. This type of approach allowed dairy processors to realize the importance of including milk quality management in their collection and manufacturing processes, especially in a context of high competition for milk supply. We concluded that the improvement of milk quality in a smallholder farming context requires a more coordinated effort among stakeholders. Successful implementation of strategies will depend on the willingness of small-scale dairy processors to reward farmers producing high milk quality; but also on the support from the State to provide incentives to the stakeholders in the formal sector.Les demandes des consommateurs sont en train de révolutionner la manière dont les produits sont produits, distribués et commercialisés. En ce qui concerne le secteur laitier dans les pays en développement, les composantes de la qualité du lait reçoivent plus d'attention à la fois de la société et du gouvernement. Toutefois, la gestion de cette qualité doit-être mieux prise en compte dans les systèmes de production laitière, pour garantir l'accès des acteurs, principalement les petits exploitants, aux marchés laitiers. La présente étude se concentre sur l'analyse de l'interaction de la partie amont de la filière laitière (agriculteurs et laiteries) dans la vallée du Mantaro (Andes centrales du Pérou), afin de comprendre les contraintes possibles auxquelles ces deux acteurs sont confrontés pour la mise en oeuvre des contrôles et des pratiques de qualité du lait , et d'évaluer "ex-ante" comment les différentes stratégies pour améliorer la qualité du lait pourraient affecter les revenus des agriculteurs et des transformateurs. L'analyse est basée sur trois études complémentaires menées ur le terrain entre 2012 et 2013. Notre travail a montré que la présence d’une double filière, combinant les marchés formels et informels, a un impact direct sur la production laitière aux niveaux technique et organisationnel, affectant les possibilités pour les petites laiteries formelles de mettre en place des contrats écrits impliquant des engagements sur la qualité du lait. L'analyse de la gestion de la qualité du lait, des fermes aux transformateurs laitiers, a montré sa mauvaise qualité hygiénique dans la zone d'étude, même quand les valeurs moyennes de la composition du lait sont élevées. Certaines pratiques d’élevage évaluées au niveau de l'exploitation ont démontré leur efficacité économique et leur impact sur la qualité hygiénique. Toutefois, l'application régulière de ces pratiques était limitée, puisque les petits agriculteurs ne reçoivent pas de prime pour un lait de meilleure qualité. Sur la base de ces deux résultats, nous avons co-construit avec des petits transformateurs laitiers formels un outil de simulation pour montrer des scénarios prospectifs, où ils pouvaient choisir leur meilleur produit, mais également concevoir des systèmes de paiement du lait pour récompenser les agriculteurs pour la qualité de leur lait. Ce type d'approche a permis aux transformateurs laitiers de comprendre l'importance d'inclure cette gestion de qualité dans leur processus de collecte et de fabrication, en particulier dans un contexte de forte concurrence pour l'approvisionnement en lait. Nous concluons que l'amélioration de la qualité de petits agriculteurs exige un travail plus coordonné entre les différentes parties prenantes. Une telle mise en place de stratégies dépendra de la volonté des petits transformateurs laitiers de récompenser les agriculteurs qui produisent un lait de haute qualité, mais aussi du soutien de l'Etat aux parties prenantes du secteur formel

Modelling & Simulation as a Strategic Tool for Decision-Making Process: A Dairy Case Study

The Dairy Industry faces many challenges compared to other sectors. On the supply side due to the nature of the raw material, large inventories are not applied; during the manufacturing process, the continuous production is highly sensitive to any sort of unplanned disruption; and on the demand side, the market dictates the commodity prices. In response to the growth in competition, dairy organizations’ strategy must incorporate technology into their daily processes in order to become more efficient, profitable and sustainable. To achieve desired levels of improvement, Modelling and Simulation has been increasing in popularity in the decision-making process. Using a Dairy company as a case study, this paper has highlighted the potential for Modelling and Simulation to be used as a powerful strategic tool for decision-making processes

Returns to research and development investment of Department of Agriculture and Food Western Australia : benefit cost analysis 2005-2006

Programs of the Department of Agriculture and Food Western Australia apply benefit-cost analysis to assist in the allocation of funds to those areas likely to make the largest contribution to the rural economy and thus to achieve the Department outcome of increased market competitiveness and profitability. To learn lessons from the completed projects the Programs also use ex post analyses. Information collected in the course of the ex post analyses can usefully improve the assessment of proposed projects.https://researchlibrary.agric.wa.gov.au/bulletins/1095/thumbnail.jp

Evaluation of Agricultural Policy in the Dairy Sector in Kosovo and Efficiency Analysis at the Farm Level

This thesis consists of two studies on the dairy sector in Kosovo. The first study evaluates the effect of the Subsidy per Head Scheme (SPHS) on increasing production, land use, gross income and number of dairy cows on dairy farms in Kosovo. Results from the Propensity Score Matching (PSM) approach using four alternative matching algorithms revealed that SPHS has not had any impact on increasing land use, gross income or the number of dairy cows per farm. Furthermore, SPHS had a negative impact on decreasing land use and number of cows for the participating dairy farmers in the program. In terms of milk production, SPHS has not had any meaningful effect on increasing milk productivity when compared to farms that did not participate in the program. Improvement in milk production per cow was found to be a statistically significant effect for two matching algorithms. However, two other algorithms revealed insignificant effect of SPHS on improving milk productivity. The second study provides estimates of the technical efficiency level for a random sample of 243 dairy farms in Kosovo over the 2014 farming season. Statistically significant determinants of technical efficiency are identified. A stochastic frontier production function was estimated using a two stage procedure. Results revealed that feeding rates (specifically of concentrates and silage), land use per cow, and the number of days that cows had been kept on pastures have statistically significant impacts on milk productivity per cow. The mean technical efficiency of dairy farms was estimated at 0.72. The major determinants that help to improve the efficiency are breed improvement, intensification of corn production on the farm, improving feeding rates, and using free range production systems. Given the results from the SPHS impact assessment and technical efficiency analysis, it is crucial for the Government of Kosovo to redesign their dairy policy, specifically their direct payment schemes and target technical assistance and investment support based on regional potentials

Innovaatioiden vaikutus monimuotoisuudeltaan merkittävillä High Nature Value maatalousalueilla : sosiaalistaloudellisia ja ympäristönsuojelullisia näkökulmia

Luonnonarvoiltaan merkittävät High Nature Value (HNV) maatalousalueet ovat vähentyneet maailmanlaajuisesti maatalouden modernisaation myötä. Luonnon monimuotoisuus on riippuvaista näistä alueista, sillä ne ylläpitävät habitaatteja lukuisille uhanalaisille lajeille. Esim. 30% Euroopan perhoslajien populaatioista on laskussa, ja suurin osa niistä elää HNV tai vastaavilla maatalousalueilla. EU:n maatalouspolitiikka suosii perinteistä, intensiivistä maataloutta, jonka vuoksi laaja-alainen HNV maatalous ei pärjää kilpailussa sen kanssa. Alhaisen tuottavuuden ja haastavien olosuhteiden takia HNV maatalousmaita jää hylätyksi, tai HNV järjestelmät korvataan intensiivisillä menetelmillä. Osallistavat maataloudelliset innovaatioprosessit tarjoavat ratkaisuja HNV maatalousalueiden ahdinkoon. Näissä prosesseissa tuodaan yhteen eri toimijoita – maanviljelijöitä, yrittäjiä, kansalaisjärjestöjen, kuntien ja valtioiden edustajia – etsimään paikallisesti perusteltuja ratkaisuja alueiden ongelmiin. Vuosina 2016-2019 toiminut HNV-Link projekti identifioi, kehitti ja edisti innovaatioita kymmenellä Eurooppalaisella HNV alueella. Tässä tutkielmassa tarkastelen projektin seitsemän toiminta-alueen innovaatioiden menestystä sosiaalis-taloudellisen elinvoimaisuuden sekä ympäristön hyvinvoinnin kannalta. Aineistoni on sekä määrällistä että laadullista. Käytän mixed-methods lähestymistapaa, jossa tilastollinen analyysi ja laadullinen sisältöanalyysi tukevat toisiaan. Tein kyselyn toiminta-alueiden koordinaattoreille, jossa he vastasivat millainen vaikutus innovaatioilla on ollut alueen sosiaaliseen, taloudelliseen ja ympäristön hyvinvointiin. Täydennän kyselyä projektin 2016-2017 keräämällä aineistolla. Suoritan laadullisen sisältöanalyysin projektin keräämille innovaatioiden kuvauksille Atlas.ti ohjelmalla ja tilastollisen analyysin IMB SPSS tilasto-ohjelmalla ei-parametrisin menetelmin. Vertailin innovaatioiden sosiaalis-taloudellisten ja ympäristönsuojelullisten vaikutusten, HNV suojelun ensisijaisen tavoitteen, innovaatiokuvausten ympäristönsuojelullisten aiheiden tunnistamisen sekä kulttuurillisten alueiden suhdetta. Innovaatiot olivat menestyksekkäitä niin sosiaalis-taloudellisesi kuin ympäristölle. Taloudellisen ja ympäristöllisen menestyksen välillä oli mahdollinen synergia, mikä viittaa siihen, että taloudellinen menestys alueilla edistää HNV piirteiden säilymistä alueella. Innovaatioilla, joiden erityinen tavoite oli HNV suojelu, oli positiivisempi vaikutus ympäristölle kuin niillä, joilla tavoite ei ollut ensisijainen. Innovaatioiden kuvauksissa, joissa ympäristönsuojelulliset teemat tulivat eniten esille, oli hieman positiivisempi vaikutus ympäristöön. Ero oli kuitenkin niin heikko, että kokonaisuudessaan niissä ei ole onnistuttu kommunikoimaan koordinaattoreiden raportoimia seurauksia ympäristölle. Kulttuurillisten alueiden sisällä ei ilmennyt yhteneviä kaavoja, joka voi johtua alueiden samankaltaisuudesta tai pienestä otoksesta. Tulokset korostavat innovaatioiden ennalta arvaamatonta luonnetta, sekä prosessien holistisen ymmärryksen sekä pitkäaikaisen seurannan tärkeyttä.High Nature Value (HNV) farming systems hold significant natural values but have decreased drastically during the process of agricultural modernization. Biodiversity in Europe is dependent on these extensively farmed areas because they maintain habitats for many endangered species; e.g. 30% of Europe's butterfly species have declining populations and most live in natural and semi-natural habitats. European common agricultural policy (CAP) favour conventional agriculture, leading HNV agriculture in a foul position. HNV areas are often abandoned or replaced with intensive farming practices. Participatory agricultural innovation processes offer solutions to the distress of HNV farmlands. In these processes different actors – such as farmers, entrepreneurs, advisors, NGO and municipality representatives – are brought together to find localized solutions to the challenges of the area. HNV-Link project was active during years 2016-2019 identifying, developing and improving innovations in ten European HNV farming areas. In this thesis I examine the success of innovations in seven Learning Areas (LA) in terms of socio-economic viability, environmental conservation and cultural region. The data in this thesis is both quantitative and qualitative. I use mixed methods- approach where the statistical analysis and qualitative content analysis support each other. I carried out a survey for the LA coordinators where they responded how was the impact of the innovations to social, economic and environmental wellbeing. I complement the survey with data gathered by the project in 2016-2017. I conduct a qualitative content analysis to innovation fiches using Atlas.ti programme and a statistical analysis with IMB SPSS statistics programme with non-parametric tests. I compare the relation of socio-economic and environmental impact of the innovations, explicit aim of HNV conservation, recognition of environmental topics in the fiches and cultural region. Innovations were successful both socio-economically and environmentally. There was a possible synergy between economic and environmental impacts, which indicates economic viability of the LA’s improving HNV conservation. Innovations with explicit HNV conservation objective had more positive environmental impact than the ones without. Innovations with high recognition of environmental themes in fiches had slightly more positive environmental impact, but the difference was so weak that they fail to express the environmental outcomes reported in the survey. Congruent patterns didn’t occur inside cultural regions which might be due to the similarities of the areas or small sample size. The results display the inherent unpredictability of innovation processes, and the importance of holistic understanding and long-term monitoring of them