Animal welfare and farm economy-exploring the relationship between dairy animal welfare indicators and economic efficiency

Abstract

This paper explores the associations between a set of mainly health and productivity related animal welfare indicators in dairy farming calculated based on herd recordings, and short-term economic efficiency. To explore this association, we merged a dataset with animal welfare indicators and a dataset with farm economic data from 459 Norwegian farms. Gross margin including direct payments together with milk quota, farmland and number of animals and were used to calculate economic efficiency. The analysis was performed in two steps. First, Data Envelopment Analysis (DEA) was used to rank the farms according to efficiency. Second, the machine learning method boosting was applied to analyze the associations between economic efficiency and the different welfare indicators. The findings show that for most welfare indicators, at indicator values below the national average a positive association exists between increasing indicator values and economic efficiency. For some indicators such as for example Fertility, Calves and Youngstock, this positive association continues also beyond the national average. However, for other indicators such as for example Claw and Udder health, a curvilinear relationship exists with a turning point from where the efficiency is negatively associated with increasing indicator values. Possible explanations for the associations between economic efficiency and animal welfare indicators are outlined.