Assessing Animal Welfare and Farm Profitability in Cow-Calf Operations with Stochastic Partial Budgeting

The societal demand for good farm animal welfare (FAW) has increased over time. Yet, very little is known about the economic consequences of improvements in FAW in cow–calf operations. This study investigates on-farm economic consequences of improved FAW measures in cow–calf operations. It uses a stochastic partial budgeting approach to examine the relationship between contribution margins and improvements in FAW in terms of increased space allowance for a typical Swedish cow-calf operation, as compared to current practices. In the current practice, a cow should be given at least 5 m2 and the calf 2.2 m2. We found that a 0.5 m2 increase in space allowance per calf (achieved by a corresponding reduction of herd size) was associated with a 6.9 to 18.7% reduction in contribution margins in the short term. Our analysis does not include possible indirect gains like decrease in disease incidence and enhanced non-use or ‘soft’ values associated with increased FAW. However, our analysis indicates that high FAW standards can be costly and careful cost–benefit analysis should be a part of decision-making processes regarding FAW standards. Our results also suggest a need for government support payments and/or the development of market mechanisms to stimulate farmers to continue producing livestock-based foods with high FAW.

Short Communication: Profitability of beekeeping using locally made transitional top bar beehive in Wolmera Woreda, Oromia Region, Ethiopia

Gobena WE. 2020. Short Communication: Profitability of beekeeping using locally made transitional top bar beehive in Wolmera Woreda, Oromia Region, Ethiopia. Asian J Agric 4: 1-4. Beekeeping is an important source of livelihood and can be integrated with other agricultural activities. The objective of this study is to assess the profitability of beekeeping using locally built transitional topbar hive. Two-stage sampling procedure and stratified sampling technique used in the study. Primary and secondary data are collected analyzed using descriptive statistics and partial budgeting. The partial budgeting result reveals that beekeeping is profitable by using this hive with incremental net benefit of 462.12 ETB and the beekeepers increased their benefit from the hive by more than 2.9 fold by using this beehive as compared to traditional hive. The study concludes beekeeping with this hive can be profitable business for the marginal farmers who have little business capital and land resource. Moreover, income from a single bee colony at beekeeper’s backyard can be improved with minimum cost if this hive with its package used. The overall finding of this study mainly underlined the importance of extension support and technical back to the beekeepers to use this hive.

Contribution of Grain Marketing Cooperative to Members in Toke Kutaye District of West Shewa Zone, Ethiopia

Grain marketing cooperatives assist the members in ensuring food security. However, there was no adequate study that assessed the economic, social and financial benefits of cooperatives at the district. Hence, the objective of the study was to assess the contribution of grain marketing cooperatives to the members. A cross sectional survey was employed using 114 cooperative members. Systematic sampling technique was employed to identify the sample respondents. The data were collected using structured interview schedule, group discussion, key informant discussion and observation; and were analyzed using descriptive statistics, t-test, χ2 and partial budgeting. Partial budgeting result revealed that the members benefited because of their membership in grain marketing cooperatives The t-test and χ2 also revealed that market information, training, supply/provision of improved seed and size of livestock were significantly influencing the benefit of cooperatives to the members. Thus, cooperative promotion offices, research and NGOs need enhancing cooperatives through research and promotion activities on designing a system for value chain or market chain, selecting available service diversification; strengthening coordination and building the capacity of members for maintaining the quality of the production.

Costs of Capturing and Recycling Irrigation Water in Container Nurseries

In the future, the U.S. ornamental horticulture industry may be faced with limited water resources and increased requirements to reduce pollution runoff from production areas. The concerns are most evident to outdoor, uncovered container crop production, which relies on daily irrigation. Capture of precipitation and irrigation runoff from ornamental horticulture nurseries to be recycled as irrigation could potentially generate cost savings relative to the cost of alternative water sources. Existing nurseries may incur large investment costs to modify their infrastructure for water capture to recycle. These added costs must be compared with costs of alternative sources such as off-farm municipal or on-farm well water. Using both existing case nurseries and simulated nurseries, this study employed partial budgeting for comparison of annual costs of recapture and recycling to the alternatives of either municipally delivered water or on-farm well extraction. On-site visits were conducted at mid-Atlantic ornamental horticulture operations that recycle water currently to gather data for constructing budgets and to determine factors that enhance or inhibit nursery adoption of recycling. The partial budgeting analysis was followed by breakeven analysis with regard to costs of regrading, pond excavation, and opportunity costs of land to isolate their effects on the nursery adoption decision. Six of eight case nurseries currently obtaining from 20% to 100% of their irrigation needs from recycled water achieve lower production costs as a result of recycling compared with using alternative municipal or well water sources. Recycling would also reduce pollution runoff as water containing nutrients and chemicals would be retained for reuse on the farm rather than being discharged to public water bodies. Two case nurseries and two simulated nurseries that were constructed based on average conditions for nurseries participating in a mail survey see higher production costs as a result of recycling. The cost of land regrading for water recapture, excavating the recapture pond, and the opportunity cost of production area occupied by the recapture pond are critical for determination of the least cost outcome. Public funding incentives for water collection and recycling could motivate increased water conservation and reduced pollution runoff within the horticulture industry.