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Journal of Dairy Science Vol. 82 No. 11 2412-2420
© 1999 by American Dairy Science Association ®
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A Comparison of Profitability and Economic Efficiencies Between Management-Intensive Grazing and Conventionally Managed Dairies in Michigan

B. A. Dartt 1, J. W. Lloyd 2, B. R. Radke 1, J. R. Black 1, and J. B. Kaneene 3

1 Department of Agricultural Economics, Michigan State University, East Lansing, MI 48824
2 Department of Agricultural Economics, Population Medicine Center and Department of Large Animal Clinical Sciences, Michigan State University, East Lansing, MI 48824
3 Population Medicine Center and Department of Large Animal Clinical Sciences, Michigan State University, East Lansing, MI 48824

A retrospective cohort study was designed to determine differences in profitability, asset efficiency, operating efficiency, and labor efficiency between Michigan dairy farms implementing management-intensive grazing (MIG) and conventionally managed dairy farms. Financial information and labor use data for the calendar year 1994 were collected with surveys and personal interviews from 35 MIGdairies and 18 conventionally managed dairies. Because the geographic distribution of MIG and conventionally managed farms in this study did not include Michigan's "dairy belt," extrapolation of these results to an average Michigan or Midwest dairy should be made with care. Within the areas represented, however, multivariate linear regression indicated that MIG dairies had more economic profit than conventionally managed dairies. They captured this profit by being more efficient in asset use, operating practices, and labor use. These results suggest that MIG could provide a sustainable alternate management tool for portions of Michigan's dairy industry.

Key Words: management-intensive grazing • net farm income • operating efficiency • asset efficiency

Submitted on February 17, 1999
Accepted on June 10, 1999




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