Productivity versus area: The growth dilemma of the Uruguayan dairy sector
2024
Pablo Chilibroste | Guillermo Battegazzore | Santiago Fariña
The objective of this study was to analyze the development dynamic of the Uruguayan dairy farms in the last decade integrating country, experimental and commercial databases. A large commercial dairy farm database was segmented into four groups according to productivity and growth rate (PGR) during the fiscal years 2015/2016 to 2021/2022. Productivity growth rate was calculated as: PGR = (P2122/P1516)1/6-1, where: P2122 = productivity fiscal year 2021/22, and P1516 = productivity fiscal year 2015/2016. The PGR groups were defined as: negative (NPGR; PGR < 0% per year), low (LPGR; 0 ≤ PGR < 3%), medium (MPGR; 3 ≤ PGR ≤ 6%) and high productivity growth rate (HPGR; PGR ≥ 6%). A mixed model was used to evaluate productivity slope heterogeneity with fiscal year as a continuous variable, PGR group as categorical and their interaction. Farms that were able to increase productivity (M and H PGR) had higher mean productivity, pasture DMI and margin over feed cost vs. the less dynamic systems (N and L PGR). Larger changes in productivity (+64 and +27% for H and M PGR, respectively) were likely primarily due to changes in stocking rate (+20 to 30%) and in individual cow milk production (+10 to 20%). Production systems that increased productivity relied on increasing stocking rate and individual milk production based on more home-grown forage consumption. However, higher PGR was linked to lower initial values of productivity, which suggests decreasing returns as the dairy farms reached higher milk yields and forage DMI.
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