Water use efficiency and profitability on an irrigated dairy farm innorthern Victoria: a case study

Abstract

A study was conducted to look at water use efficiency and profitability on an irrigated dairy farm in northern Victoria. For this case study farm, an economic evaluation was performed for various development options that could result in higher water use efficiency, increased profit, and meet the farm owners' objectives. Water use efficiency was defined as the amount of milk (kg milk fat plus protein) produced from pasture per megalitre of water (irrigation plus effective rainfall).The case study farm data indicated that between 1995–96 and 1998–99 there was no simple, direct association between water use efficiency and profitability. The development options considered included building a new dairy and increasing herd size and either increasing the area of irrigated pasture or intensifying on the existing irrigated area. The likely water use efficiency and economic efficiency were estimated for the various development options. The development budgets suggested that intensifying on the existing irrigated land was the most attractive option, if the predicted improvements in water use efficiency were achieved. This option had an internal rate of return of 64%, broke even after 5 years and was compatible with the objectives of the farm owners.Options that resulted in simultaneous increases in water use efficiency, profitability and labour efficiency appear to be more likely to be adopted than options that focus solely on increasing water use efficiency.

Biophysical and economic water productivity of dual-purpose cattle farming

“…This agrees with previous research in Morocco (Sraïri et al, 2009a) and other countries (Armstrong, 2004;Sultana et al, 2014). High variability among farms was observed, reflecting differences resulting from on-farm practices in all production functions, from water to cattle products.…”

Water productivity through dual purpose (milk and meat) herds in the Tadla irrigation scheme, Morocco

“…Depending on their strategic goals and practices, dairy farmers required between 1.2 and 1.8 m 3 of water to produce 1 kg of milk (Sraïri et al, 2008). These values are close to the findings of Armstrong (2004) in Australian semi-arid conditions (1.0 m 3 of water per kg of milk). Such results imply that dairy cattle systems should pay extra attention to preserving this vital resource by selecting appropriate forage species according to each region's climatic and hydraulic characteristics (Gilibert, 1992).…”

Forage Options for Dairy Farms with Reduced Water Availability in the Southern Murray Darling Basin of Australia

“…This suggested that there was scope for many farms to increase efficiency and productivity by modifying farm management practices depending on the input variables. However, later studies found no relationship between a reduction in irrigation water allocations and an increase in WUE [21] and no simple, direct association between WUE and profitability [22].…”

“…This suggested that there was scope for many farms to increase efficiency and productivity by modifying farm management practices depending on the input variables. However, later studies found no relationship between a reduction in irrigation water allocations and an increase in WUE [21] and no simple, direct association between WUE and profitability [22]. A survey of irrigated dairy farms in the region conducted about 20 years ago [20] found that there was a large range of water use efficiencies (WUE) ( Table 1) between farms (25-115 kg milk fat plus protein/ML water).…”