Farm-level cost-effectiveness analysis of in-paddock feeding of methane inhibitors in pasture-based dairy

Abstract

Various approaches have been proposed to reduce methane emissions from ruminant livestock systems. While methane-inhibiting feed-additives are not yet commercially available in New Zealand, it has been reported that they can reduce enteric methane emissions by 30-90% when fed to ruminant livestock regularly and precisely in total mixed ration systems. This study aims to determine the primary economic performance drivers of using In-Paddock Smart-Feeders (IPSF) for delivering methane inhibitors in pasture-based dairy to understand the conditions in which they are viable. A farm-level financial model is developed, drawing on the Economic Farm Survey produced by DairyNZ. Both a scenario and sensitivity analysis are conducted on the cost-effectiveness of the approach for methane mitigation. The main finding is that the largest cost associated with the approach is the cost of additionalsupplement, which would acts as a carrier for the methane inhibitor. Therefore, the quantity of additional supplement used prior to adoption is a key determinant of viability. There is a large range in breakeven methane prices depending on the value of assumptionsused. More certainty in these assumptions is required to fully understand the potential use of IPSFs to deliver methane-inhibiting feed-additives in-paddock.