No abstract

Dairy mountain farms are economically disadvantaged due to small farm size and high production costs. However, these farms are of importance for the preservation of traditional landscapes and biodiversity, especially when they are managed extensively. The present study compares the economic situation of mountain dairy farms in South Tyrol that differ with respect to the amount of concentrates fed (low-input vs. high-input) and the breed used (Tyrolean Grey vs. Brown Swiss). The calculations show that low-input farms have lower variable costs but similar fixed costs and lower revenues compared to high-input farms. As a result, high-input farms are economically superior to low-input farms in terms of income per farm, per ha and per kg energy-corrected milk. Regarding the breeds, farms using the local breed Tyrolean Grey can compete with farms using the high-yielding breed Brown Swiss when subsidies are considered because of special payments for an endangered breed. The dominance of high-input farms can be explained with economies of scale and the milk to feed price ratio of about 1.8. Thus, the currently paid high milk price makes it economically worthwhile to produce as much milk as possible. The results thus point to the risk of intensification or abandonment of small mountain farms. In order to improve their economic situation and thus maintain small and low-input mountain dairy farms, it might be an option to connect subsidies with the feeding strategy and farm structure, pay premiums for value-added milk products or use taxes for concentrated feed to support extensive farms. HIGHLIGHTS Low-input farms achieve lower farm income Only small differences in farm income between breeds Herd size and milk yield per cow are decisive for farm income ARTICLE HISTORY

Pasture-raised milk is gaining in importance in some European countries and in the United States. The production of pasture-raised milk is linked to higher costs, as the milk is normally collected and processed separately from conventional barn milk. This could hinder the production of sustainable milk products. We discuss alternative labeling strategies that allow the mixing of pasture-raised (sustainable) and conventional milk to reduce costs and break free from the current niche market. The lower price would allow for more pasture-raised milk to be produced and enter the mainstream market. The aim of this study was to analyze consumers' willingness to pay for alternative labeling types using a discrete choice experiment with 1,065 German milk buyers. The 2 alternative labels, besides the classical labeling approach, are based on the mass balance approach (at least 50% pasture-raised milk in a package) and cause-related marketing (support of farmers who keep their cows on pasture). The discrete choice experiment was combined with a cluster analysis to get a deeper understanding of the buying behavior of the diverse consumer segments for milk. We found that all consumer groups prefer the classical label where products are segregated but also understand the benefits of cause-related marketing. The average consumer was willing to pay €0.50 more for pasture-raised milk certified with the classical label and €0.38 more for pasture-raised milk labeled with a cause-related marketing claim. However, differences between the clusters are strong: The smallest cluster of ethically involved consumers (15%) is willing to pay the highest premiums, especially for the classical label. Cause-related marketing is an interesting alternative for involved buyers under price pressure (41%), whereas the mass balance approach is little understood and thus less valued by consumers. From our results we concluded that cause-related marketing (in our case, the support of pasturing of dairy cows) can be useful for dairies for which it is not efficient to collect and process products separately. This approach is furthermore suitable for reaching consumers who are mainly interested in altruistic issues but at the same time are more price sensitive, as this labeling strategy does not need separate collection and processing and can thereby be marketed at a lower price.

Several studies on the environmental impacts of livestock enterprises are based on the application of life cycle assessments (LCA). In Alpine regions, soil carbon sequestration can play an important role in reducing environmental impacts. However, there is no official methodology to calculate this possible reduction. Biodiversity plays an important role in the Alpine environment and is affected by human activities, such as cattle farming. Our aim was to estimate the carbon footprint (CF) of four different dairy production systems (different in breeds and feeding intensity) by using the LCA approach. The present study included 44 dairy Alpine farms located in the autonomous province of Bolzano in northern Italy. Half of the farms (n = 22) kept Alpine Grey and the other half (n = 22) Brown Swiss cattle. Within breeds, the farms were divided by the amount of concentrated feed per cow and day into high concentrate (HC) and low concentrate (LC). This resulted in 11 Alpine Grey low concentrate (AGLC) farms feeding an average amount of 3.0 kg concentrated feed/cow/day and 11 Alpine Grey high concentrate (AGHC) farms with an average amount of 6.3 kg concentrated feed/cow/day. Eleven farms kept Brown Swiss cows with an average amount of 3.7 kg concentrated feed/cow/day (BSLC) and another 11 farms feeding on average 7.6 kg concentrated feed/cow/day (BSHC). CF for the four systems was estimated using the LCA approach. The functional unit was 1 kg of fat and protein corrected milk (FPCM). Furthermore, two methodologies have been applied to estimate soil carbon sequestration and effect on biodiversity. The system with the lowest environmental impact in terms of CF was BSHC (1.14 kg CO2-eq/kg of FPCM), while the most impactful system was the AGLC group (1.55 kg CO2-eq/kg of FPCM). Including the CF reduction due to soil carbon sequestered from grassland, it decreased differently for the two applied methods. For all four systems, the main factor for CF was enteric emission, while the main pollutant was biogenic CH4. Conversely, AGLC had the lowest impact when the damage to biodiversity was considered (damage score = 0.41/kg of FPCM, damage to ecosystem diversity = 1.78 E-07 species*yr/kg FPCM). In comparison, BSHC had the greatest impact in terms of damage to biodiversity (damage score = 0.56/kg of FPCM, damage to ecosystem diversity = 2.49 E-07 species*yr/kg FPCM). This study indicates the importance of including soil carbon sequestration from grasslands and effects on biodiversity when calculating the environmental performance of dairy farms.

Purpose The percentage of dairy cows managed in grazing systems in Northwest Europe is on the decline, even though pasturing is perceived favourably as enhancing the health and welfare of dairy cows. With consumers turning away from intensively produced food, developing the pasture-raised milk market could encourage farmers to continue keeping their cows on pastures. To provide insights for expanding this specialty milk market, the purpose of this paper is to, therefore, investigate the roles of personal, product-related, economic and social factors in purchasing pasture-raised milk. Design/methodology/approach Drivers of pasture-raised milk purchases are identified and the conceptual model is tested using structural equation modelling with data from a cross-sectional study among 917 German milk consumers. Findings Perceived price and availability barriers are the main consumption obstacles for pasture-raised milk. Besides increasing availability and reducing price premiums, processors should cater health and dietary conscious consumers by providing pasture-raised milk with unique and favourable product qualities, i.e. focussing on freshness, a rich taste or naturalness. Raising awareness for extensive husbandry systems may enhance pasture-raised milk purchases, while introducing a unified pasturing claim could help consumers to distinguish pasture-raised milk from conventional barn milk. Originality/value This study provides dairies and marketers with valuable insight about the factors driving pasture-raised milk purchases. This information is derived from a large sample with extensive regional coverage and will thus be useful in expanding this specialty milk market and in maintaining extensive dairy production.