Dairy Performance and Intensification under Traditional and Economic Efficiency Farm Plans in Uganda

This study was motivated by the realisation that although public and civil society projects interventions emphasize dairy intensification, dairy producers adopt systems that exhibit a continuum of intensification stretching from extensive to intensive levels. De-intensification of zero grazing, downgrading of herds in other grazing systems and adoption of extensive or intensive systems on farmers' own accord have been observed. The purpose of this study was to examine enterprise choices and resource allocation in different dairy systems under traditional (observed) and optimum (profit driven) scenarios. Longitudinal data used was obtained from 14 representative farms for zero grazed, tethered, herded, semi-intensive and fenced dairy systems in Masaka, Mbarara and Jinja districts. Observed and profit driven farm plans were assessed by whole-farm modeling using Linear Programming net farm benefit maximization. Results obtained show that net farm benefits were significantly higher for profit driven plans compared to observed farm plans for all dairy systems; milk cost of production was highest (168 Uganda shillings) in zero grazed systems and lowest in fenced systems (114 Uganda shillings). As expected milk density, milk/TLU and market orientation matched with the trend of dairy intensification. Only returns per land unit matches with degree of intensification. Returns to TLU and labour are not necessarily highest in most intensive farms. Shadow prices on crop residues and land indicate that extra feeding of crop residues would lead to significantly higher net benefits in zero grazed, tethered and semi-intensive systems. Increasing available land produces significantly higher net farm benefits for all systems except tethered systems. In all dairy systems, quantities of manure applied are lower than those deposited on farms. Sensitivity analysis on labour price shows that potential increase in wage rates more adversely affects long term sustainability fenced and zero grazed systems compared to other systems. The following recommendations were made. Promotion of dairy intensification implemented by Government (DDA, MAAIF, NAADS, NARO and PMA), civil society organizations and other actors in the dairy industry should strategically consider labour and feed resource availability. Targeted identification of superior cattle of indigenous breeds should be done by MAAIF, NARO and NAGRC and DB for improved management of herded dairy and preservation of indigenous breeds in the national herd. Dairy research and development by Government (MAAIF, NARO, NAADS and DDA), civil society organizations and other actors in the dairy industry should systematically identify and promote crop residues and manure technologies to improve exploitation of crop-livestock synergies. Further research is being proposed in the following areas. Optimum packages and domains for zero grazing and dairy upgrading where benefits justify associated higher input costs; Characterization and selection of indigenous breeds of desired attributes to benefit from their multipurpose uses and prevention of genetic erosion of indigenous breeds; Systematic selection, processing and application of crop residues and manures for development of appropriate management practices for sustained dairy yield stabilization.