Dairy performance and intensification under traditional and economic efficiency farm plans in Uganda

Abstract: 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 an