Substitution of fertiliser with poultry manure: Is this economically viable?

Rapid expansion of the KwaZulu-Natal poultry industry has resulted in poultry manure and litter production that in certain areas exceeds the potential for use in crop production. If land application exceeds crop requirements, manure production may result in environmental damage. In this study, potential manure surpluses in intensive poultry producing KwaZulu-Natal areas were quantified. The costs of transferring such surpluses to manure-deficient areas were compared with the economic value of poultry manure as fertiliser. Estimates of potential arable land and pasture for spreading manure took both dairy and feedlot manure production into account. Use of manure surpluses by transfer was found to be economically viable. Public policy actions are needed, however, to promote such transfer.Crop Production/Industries,

THE ECONOMICS OF USING MANURE STORED UNDER TWO DIFFERENT SYSTEMS FOR CROP PRODUCTION BY SMALL-SCALE FARMERS IN KWAZULU-NATAL

Several manure use options were analysed for profitability using results from research and farmer participatory trials that were conducted in the small-scale farming sector in KwaZulu-Natal, South Africa. The options analysed for profitability were a) not using any manure b) using aerobically composted (heap stored) manure, c) using manure improved through anaerobic storage (pit-stored), d) different manure application methods i.e. banding, broadcasting and station placement and the use of manure in combination with inorganic fertiliser. The use of manure provided a marginal rate of return (MRR) of at least 600% compared to not using manure. The marginal rate of return on manure use was increased significantly by composting manure in pits. Financial benefits obtained from pit- stored manure were much higher in the first year of manure application compared to those of heap- stored manure. Higher returns from heap- stored manure were obtained in the second and third season after manure application. Overall undiscounted financial benefits for the three years were marginally higher for heap- stored manure. Using a discount rate of 100% financial benefits from using pit-stored manure were much higher than those of heap stored manure as pit-stored manure provided much higher returns in the first year of application. Higher financial benefits were obtained from supplementing manure with inorganic fertiliser compared to using manure alone. Banding and placing manure on-station (applying the manure to the hill of maize) increased returns from using both pit and heap stored manure. The conventional practice of broadcasting manure was found not to be profitable.Production Economics, Productivity Analysis, Resource /Energy Economics and Policy,

Technical efficiency in a vegetable based mixed-cropping sector in Tugela Ferry, Msinga District, KwaZulu-Natal

Vegetable production constitutes an important sub-sector of the agricultural economy of KwaZulu-Natal. Most vegetables are cultivated in mixed-cropping types of farming systems. The technical efficiency of vegetable based cropping systems was estimated in order to identify the potential increase in production without incurring additional costs. The factors affecting technical efficiency and constraints and potential of the cropping system were also investigated. A field survey was conducted covering 120 vegetable farmers in the irrigated Tugela Ferry scheme and dryland farming sector in Msinga district during October to December 2003. According to a stochastic frontier production function using a Cobb-Douglas model, hired labour, organic fertilizer, inorganic fertilizer, area harvested and soil fertility maintenance cost showed significant positive effects on vegetable production. The mean technical efficiency of the vegetable based cropping systems was 84.32%. According to the inefficiency model the efficiency increased significantly as a result of farm visits by extension officers, participation in farmer training, less sloping lands, more experience, and higher diversity of the vegetable system. Technical efficiency decreased, however, with higher education level of the farmer and with higher off-farm income. Farm income is low due to low productivity, market constraints, lack of technology, and institutionally related constraints. Environmental conditions in the Msinga district are such that a high value crops can be grown with an adequate supply of irrigation water. There is a good possibility for stepping up production of these crops in marginal lands through appropriate crop diversification.Crop Production/Industries,

Estimates of the increase in milk production due to the introduction of maize silage to a dairy farm in KwaZulu-Natal: A time series approach

A method involving time series modelling is provided for evaluating the effects of an abrupt intervention, such as the adoption of a new technology, when no control is available for comparative evaluation. The new technology was the introduction of maize silage into the feeding programme of a dairy farm in the midlands of KwaZulu-Natal. A model was developed using historical milk data from a nine-year period. The model was used to forecast subsequent milk production on the dairy farm had maize silage not been introduced, and these forecasts were compared with actual production after the introduction of maize silage. Milk production was more than 320,000 litres greater than forecast in ten seasons over a four-year period after the introduction of silage. During the same period, production was more than 14,000 litres less than forecast in one season, with the remaining six seasons estimated to be within 5% of observed values. This resulted in an estimated net gain of 305,668 litres of milk above the amount expected had silage not been introduced, representing an average increase in production of 18% per annum.Livestock Production/Industries,

Modelling efficiency with farm-produced inputs: dairying in KwaZulu-Natal, South Africa

This paper models dairy farms in KwaZulu-Natal, South Africa, emphasising the complexities unique to this multi-product industry. Net and gross output approaches to measuring production are discussed and then tested using panel data from 37 dairy farms in KwaZulu-Natal from 1999 and 2007. Production functions for the three outputs: milk production, animals and farm-produced feed, are fitted as a simultaneous system to model the farms’ production activities. This simultaneous model is complemented by a single equation reduced form that is fitted as a frontier, which allows estimation of the relative efficiencies of the individual farms. The results show that, with data this detailed, it is possible to refine the model until it fits very tightly. Indeed, in the gross output model that includes cows there is nothing left to call inefficiency and what was clearly a frontier becomes a mean response function.Dairy farms, production, frontiers, efficiency, Production Economics,

Estimates of the increase in milk production due to the introduction of maize silage to a dairy farm in KwaZulu-Natal: A time series approach

A method involving time series modelling is provided for evaluating the effects of an abrupt intervention, such as the adoption of a new technology, when no control is available for comparative evaluation. The new technology was the introduction of maize silage into the feeding programme of a dairy farm in the midlands of KwaZulu-Natal. A model was developed using historical milk data from a nine-year period. The model was used to forecast subsequent milk production on the dairy farm had maize silage not been introduced, and these forecasts were compared with actual production after the introduction of maize silage. Milk production was more than 320,000 litres greater than forecast in ten seasons over a four-year period after the introduction of silage. During the same period, production was more than 14,000 litres less than forecast in one season, with the remaining six seasons estimated to be within 5% of observed values. This resulted in an estimated net gain of 305,668 litres of milk above the amount expected had silage not been introduced, representing an average increase in production of 18% per annum

THE ECONOMICS OF USING MANURE STORED UNDER TWO DIFFERENT SYSTEMS FOR CROP PRODUCTION BY SMALL-SCALE FARMERS IN KWAZULU-NATAL

Several manure use options were analysed for profitability using results from research and farmer participatory trials that were conducted in the small-scale farming sector in KwaZulu-Natal, South Africa. The options analysed for profitability were a) not using any manure b) using aerobically composted (heap stored) manure, c) using manure improved through anaerobic storage (pit-stored), d) different manure application methods i.e. banding, broadcasting and station placement and the use of manure in combination with inorganic fertiliser. The use of manure provided a marginal rate of return (MRR) of at least 600% compared to not using manure. The marginal rate of return on manure use was increased significantly by composting manure in pits. Financial benefits obtained from pit- stored manure were much higher in the first year of manure application compared to those of heap- stored manure. Higher returns from heap- stored manure were obtained in the second and third season after manure application. Overall undiscounted financial benefits for the three years were marginally higher for heap- stored manure. Using a discount rate of 100% financial benefits from using pit-stored manure were much higher than those of heap stored manure as pit-stored manure provided much higher returns in the first year of application. Higher financial benefits were obtained from supplementing manure with inorganic fertiliser compared to using manure alone. Banding and placing manure on-station (applying the manure to the hill of maize) increased returns from using both pit and heap stored manure. The conventional practice of broadcasting manure was found not to be profitable

Substitution of fertiliser with poultry manure: Is this economically viable?

Rapid expansion of the KwaZulu-Natal poultry industry has resulted in poultry manure and litter production that in certain areas exceeds the potential for use in crop production. If land application exceeds crop requirements, manure production may result in environmental damage. In this study, potential manure surpluses in intensive poultry producing KwaZulu-Natal areas were quantified. The costs of transferring such surpluses to manure-deficient areas were compared with the economic value of poultry manure as fertiliser. Estimates of potential arable land and pasture for spreading manure took both dairy and feedlot manure production into account. Use of manure surpluses by transfer was found to be economically viable. Public policy actions are needed, however, to promote such transfer

Technical efficiency in a vegetable based mixed-cropping sector in Tugela Ferry, Msinga District, KwaZulu-Natal

Vegetable production constitutes an important sub-sector of the agricultural economy of KwaZulu-Natal. Most vegetables are cultivated in mixed-cropping types of farming systems. The technical efficiency of vegetable based cropping systems was estimated in order to identify the potential increase in production without incurring additional costs. The factors affecting technical efficiency and constraints and potential of the cropping system were also investigated. A field survey was conducted covering 120 vegetable farmers in the irrigated Tugela Ferry scheme and dryland farming sector in Msinga district during October to December 2003. According to a stochastic frontier production function using a Cobb-Douglas model, hired labour, organic fertilizer, inorganic fertilizer, area harvested and soil fertility maintenance cost showed significant positive effects on vegetable production. The mean technical efficiency of the vegetable based cropping systems was 84.32%. According to the inefficiency model the efficiency increased significantly as a result of farm visits by extension officers, participation in farmer training, less sloping lands, more experience, and higher diversity of the vegetable system. Technical efficiency decreased, however, with higher education level of the farmer and with higher off-farm income. Farm income is low due to low productivity, market constraints, lack of technology, and institutionally related constraints. Environmental conditions in the Msinga district are such that a high value crops can be grown with an adequate supply of irrigation water. There is a good possibility for stepping up production of these crops in marginal lands through appropriate crop diversification

The cost of producing milk in the KwaZulu-Natal Midlands of South Africa: a cost-curve approach

The cost of producing a unit of output is a critical management aspect in the dairy industry, particularly in South Africa. The ability of minimise unit costs of producing milk, while not curtailing output levels, is often a determining factor of the long-term survival of dairy farms in South Africa. In this study, average cost curves showing the variation of unit cost with output are estimated for dairy production in the KwaZulu-Natal Midlands of South Africa, using a panel of 37 farms for the period 1999 to 2007. The results show that economies of size exist, with larger farms able to produce any given level of output at lower costs compared to their smaller counterparts. The study found that the long-run average cost curve (LAC) for the sample of dairy farms is L-shaped rather than U-shaped. The best farmers, in terms of average costs of producing a litre of milk, are found between the 100 000 to about 170 000 litres of milk per year output range and these were found to spend less than R1 per litre