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Oliver Weber

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Scenario Model to Reduce Both GHG Emissions and Nitrogen Leaching on Dairy Farms

August 2019

The Credence Attributes On-Farm research project modelled several scenarios to reduce greenhouse gas emissions on an average Waikato dairy farm. The model found one path to producing carbon-neutral dairy products that also decreases nitrogen leaching by 42 percent. Farmers can use this research to estimate the profitability increase that may be gained through delivering three modelled credence attributes: organic, carbon-neutral, and 100% pasture-fed. The greatest potential gain is for organic (increase of 42% to 67%) and pasture-fed (increase of 36% to 49%) dairy products. Carbon-neutral products are also more profitable (increase of 11% to 25%). This research also provides an estimate of the environmental benefits of delivering the three credence attributes modelled. Carbon-neutral dairy has the greatest potential to reduce nitrogen leaching (-41% N reduction) and carbon footprint (-11 to -17%), if the farmer is able to use imported maize for 30% of the feed (as it was on the modelled farm).

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Source: Yang, W. and Renwick, A. (2019), Consumer Willingness to Pay Price Premiums for Credence Attributes of Livestock Products – A Meta-Analysis. J Agric Econ.

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