NZ Dairy Farms Losing Advantage Over EU

NEW ZEALAND - New Zealand dairy farms are slipping in terms of energy efficiency and greenhouse gas efficiency, and urgently need to focus on improved farm practices and intensification options to reverse the trend.

12 November 2007

2 minute read

Oceania

At this year's New Zealand Grassland Association Conference, AgResearch’s Dr Stewart Ledgard will present a study that shows New Zealand dairy farms are slipping in terms of energy efficiency and greenhouse gas efficiency.

This is according to the first New Zealand study to look at the entire dairy system using a Life Cycle Assessment approach.

Led by AgResearch Principal Scientist Dr Stewart Ledgard, the study analysed the relevance of food-miles in the debate over the sustainability and export of New Zealand dairy products. Food-miles are defined as the distance food travels from producer to consumer.

Presently, New Zealand farm systems are ahead of those in the European Union when considering such things as on-farm energy use and food-miles. However, the trend for intensification on New Zealand farms means that comparative advantage is diminishing, says Stewart.

“This means farmers need to start using knowledge of the main factors influencing greenhouse gas emissions to improve farm practices or plan intensification options and retain their comparative advantage.

"For example, practices such as increasing productivity per animal can reduce emissions per kg animal product, and optimising use of farm dairy effluent to reduce fertiliser requirements can reduce emissions per hectare.

“Our work focuses on finding and highlighting to farmers the potential benefits of different management practices and mitigation options — not just with greenhouse gas emissions but also with water quality. We’re looking for multiple gains.”

Greenhouse gas efficiency is becoming a major issue for New Zealand farmers as we move toward agriculture joining the Government’s Emissions Trading Scheme (ETS) in 2013. Other sectors will by then have entered the incentive-based scheme that aims to drive down New Zealand's greenhouse gas emissions.

Agriculture makes up almost 50 percent of New Zealand’s total emissions — compared to less than 10 percent of most developed countries’ emissions.

“Basically, under the ETS, if dairy farmers’ efficiency decreases there will be a cost to the dairying sector. The approach they use to intensify can have a large effect on environmental efficiencies.

About five years has gone into his team’s study that is based on comprehensive data sets from different organisations. The findings will be presented for the first time at this year’s New Zealand Grassland Association Conference being held at Taupo from November 13 to 15. AgResearch is premier sponsor of the association. This year’s conference will include a speech by AgResearch chairman Rick Christie.