Environmental impact and economic performance of Norwegian dairy farms

Dairy farming contributes approximately 2.5 % of annual global anthropogenic greenhouse gas (GHG) emissions, necessitating effective mitigation strategies. Two approaches are often discussed: low-intensity, low-cost production with minimal reliance on purchased inputs; and high-intensity production with higher-yielding cows to reduce land use and reduce methane emissions per unit of milk.

The objective was to identify management factors and farm characteristics that explain variations in GHG emissions, environmental, and economic performance. Indicators included were GHG emissions, land use occupation, energy intensity, nitrogen intensity, and gross margin.

Life Cycle Assessment (LCA) was used to calculate the environmental impacts for 200 commercial dairy farms in Central Norway based on farm activities, purchased inputs, machinery, and buildings from 2014 to 2016. A multiple regression analysis with backward elimination was conducted to highlight important variables for environmental impact and economic outcome.

A higher share of dairy cows was found to be the most important factor in reducing GHG emissions, energy and nitrogen intensity, and land use but also to decrease gross margin. Additional key factors for reducing environmental impact included less purchased nitrogen fertiliser, and higher forage yield. There were no statistical correlations between GHG emissions and gross margin per MJ of human-edible energy delivered.

Conducting LCA for many dairy farms allows to highlight important factors influencing environmental impact and economic outcome. Using the delivery of human-edible energy from milk and meat as a functional unit allows for a combined evaluation of milk and meat production on a farm.