Life cycle cost analysis of dairy production systems in Southern Brazil

Abstract

The intensification of milk production in Brazil in the past decade has imposed great stress on the environment. Therefore, it is very important to find a balance between economic, social, and environmental objectives. The paper assesses the economic costs by production systems: confined feedlot, semi-confined feedlot, and pasture in the south of the country. The economic assessment was realized on some investment analysis tools and the GHG emissions costs for the different production systems indicated. Our results show that hectare and the total area of rural properties were lower in the confined feedlot system, followed by the semi-confined feedlot system and pasture-based grazing system. However, the reduction of the need for feed inputs in the pasture system resulted in lower feeding costs when compared to the other systems. The hectare analysis suggested that the superior productivity of the semi-confined system conditioned higher emission costs in relation to the other systems. However, considered the total emissions of the systems, the pasture system obtained higher values, justified by the greater need for an area for production. The results showed that the higher the food efficiency of a system, the greater the profitability.

Keywords: Economic; Intensification of production; Life cycle cost; Milk.