On the link between economic and environmental performance of Swiss dairy farms of the alpine area

Abstract

Promoting the economic and environmental performance of Swiss farms is a major objective of Swiss agricultural policy. In the present paper, we investigate the relationship between the economic and global environmental performance of the Swiss dairy farms in the alpine area. The analysis relies on a sample of 56 dairy farms from the Farm Accountancy Data Network, for which highly precise and comprehensive Life Cycle Assessments have been carried out. The work income per family work unit is used as indicator of the economic performance of a farm. The so-called global environmental performance of a farm is, for its part, measured by means of an eco-efficiency indicator for each environmental impact considered (demand for non-renewable energy resources, eutrophication potential, aquatic ecotoxicity potential, human toxicity potential and land use) and of an aggregate eco-efficiency indicator assessed using a Data Envelopment Analysis-based approach. The relationship between economic and global environmental performance is assessed by means of non-parametric Spearman’s rank correlation analysis. The results of the analysis reveal the existence of a positive relationship between economic and global environmental performance. This positive relationship exists for all environmental issues considered and thus also for the aggregate eco-efficiency indicator. Its strength, however, substantially varies from one issue to another. This study provides the evidence that there is no trade-off between economic and global environmental farm performance. When they improve their economic performance, farms also tend to improve their global environmental performance and vice versa. This finding is of central relevance for policy-makers as it should contribute to improving the acceptance among farmers of the environmental objectives of Swiss agricultural policy in terms of an increase in environmental resource use productivity. In this sense this work provides valuable insights into the sustainable performance of the Swiss dairy sector in the alpine area.