In the context of an expanding, export-dependent agri-food sector, indicators of sustainable development and intensification are necessary to measure, assess and verify the comparative advantage afforded by Ireland's natural pastoral-based food production systems. Such indicators are also necessary to ensure that we produce more food with less adverse impacts on the Irish environment, climate and society. This article outlines the development of farm-level indicators that reflect the multifaceted nature of sustainability, which is encompassed in economic, environmental and social indicators. The role of innovation in farm sustainability was also examined. A comparison of indicators across Irish farm systems showed that dairy farms, followed by tillage farms, tended to be the most economically and socially sustainable farm systems. In relation to greenhouse gas emissions in particular, the top-performing dairy farms, in an economic sense, also tended to be the best-performing farms from an environmental sustainability perspective. This trend was also evident in relation to the adoption of innovative practices on farm, which was found to be strongly correlated with economic performance.
Negative externalities such as nitrogen (N) surplus that accompany dairy production activities are not usually accounted for in the market place since they are not costed. Using a parametric hyperbolic environmental technology distance function approach, we estimate the environmental efficiency and farm-specific abatement costs (shadow price) of nitrogen surplus in dairy farms on the island of Ireland (Northern Ireland and the Republic of Ireland). The methodology, unlike previous approaches (output/input distance functions), allows for asymmetric treatments of production outputs (desirable and undesirable outputs). We also analyse the farm level nitrogen pollution costs ratio and its determinants. The results of our analyses showed that the average environmental technical efficiency estimates for the Republic of Ireland and Northern Ireland are 0.89 and 0.92 and the mean abatement costs per kg of N surplus is €4.02 and €6.2 respectively. We found a reasonable degree of variation in the spectrum of abatement costs across the dairy farms with a relative increase observed over the years.
The dairy sector is the most important agricultural sub-sector in Northern Ireland both in terms of size and contribution to the economy. However, the abolition of the milk quota regime in 2015 and the government's initiative for industry growth has given rise to concerns about environmental pollution, especially in terms of phosphorus (P) balance. In light of these concerns, this study analyses the level and determinants of P balance and use efficiency on Northern Ireland's dairy farms. The study employs the OECD/ EUROSTAT nutrient balance methodology and the within-between farm random effects modelling technique on a balanced panel data set. The results show that P balance in dairy farms in the study area is relatively high. However, the more profitable dairy farms have relatively lower P balance. We also found that the amount of grass grazed, and fertilizer price have a negative and statistically significant relationship with P balance, while stocking density was found to have a positive relationship with P balance. On the other hand, the age of the farmer and the amount of grass grazed where found to have a positive and statistically significant relationship with P use efficiency. The study demonstrates that increasing the percentage of grass-based feeds reduces phosphorus balance and also has a positive impact on the profitability of the dairy farms. The study recommends that farmers in the study area should increase the percentage of grass-based feeds alongside feeding concentrates with lower phosphorus contents. A moderate level of intensification should also be maintained.
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