Exploratory study on the economic value of a closed farming system on Dutch dairy farms

A closed farming system may prevent the introduction of infectious diseases on to dairy farms and could be a good starting point for the eradication of these diseases. In order to introduce a closed farming system, farmers need to be made aware of how these diseases are introduced into the herd. Farmers will be more likely to implement a closed farming system when the economic value is quantified and attractive. An exploratory study was carried out to investigate the technical and economic results of closed dairy farms. Farms that purchased cattle and/or shared pasture (defined as 'open' farms) differed in technical results from farms that did not ('closed' farms). The results of the discriminant analysis showed that the 'closed' farms incurred lower costs for veterinary services, had a lower average age at first calving and a higher birth rate per 100 dairy cows. A linear regression analysis was carried out to investigate the influence of the farming system on economic performance. Being 'closed' was found to increase the net profit by 0.31 Pound per 100 kg of milk, or approximately 25 Pounds per cow per year or 5 per cent of the typical net return to labour and management (1 Pound = Dfl 2.80 in November 1996).