Efficiency Analysis and Identification of Best Practices and Innovations in Dairy Sheep Farming

Abstract

The adoption of the best practices is crucial for the survival of the dairy sheep farms that operate under extensive and/or semi-extensive systems. In this study, an efficiency analysis was implemented to reveal the best observed practices applied by the more efficient dairy sheep farms. Data Envelopment Analysis was used on data from 60 dairy sheep farms that rear Manech or Basco-bearnaise, and Lacaune breeds under semi-extensive systems in France. The main characteristics of the most efficient farms are presented and a comparative economic analysis is applied between the fully efficient and less efficient farms, highlighting the optimal farm structure and determining the major cost drivers in sheep farming. The most efficient farmers provided information within the iSAGE Horizon 2020 project regarding the management practices that enhance their sustainability. The results show that there is room for improvement in semi-extensive dairy sheep farming. The most efficient farms rear smaller flocks than the less efficient farms and achieve higher milk yields. Fixed capital, labor, and feeding constitute the main cost drivers. Results show that farms should exploit economies of scale in the use of labor and infrastructure to reduce their cost per product, as well as their uptake practices and innovations, related mainly to modern breeding and reproduction methods, efficient feeding practices and digital technologies.