Economic assessment of plantain (Plantago lanceolata) uptake in the New Zealand dairy sector

Graeme J. Doole, Alvaro J. Romera, Jennifer E. Leslie, David F. Chapman, Pinxterhuis, Ina (J.B.). and Peter D. Kemp

Agricultural Systems, 2021, vol. 187, issue C

Abstract: Pasture-based dairy production is associated with nitrogen-leaching losses to water. The New Zealand (NZ) Government has recently focused on regulating these losses through a broad-ranging policy package. Nitrogen (N) limits under this proposed legislation are stringent, dictating that around 40% of dairy farms must reduce their leaching, on average, by 42%. This study employed comprehensive economic models to account for the farm-, sector-, and national-level impacts of different levels of adoption of narrow-leaved plantain (Plantago lanceolata). This alternative forage species holds substantial promise for reducing the risk of N leaching from dairy farms. Model output indicated that total NZ dairy profit was higher each year by 1, 1.6, 2.5, and 4.3% under the policy package if 10, 20, 30, and 45% of pasture intake by dairy cows consisted of plantain, respectively. Further, national economic output increased by $277 m, $396 m, $526 m, and $979 m, under the policy package if 10, 20, 30, and 45% of pasture intake consisted of plantain, respectively. These represent increases in national economic output of 0.08, 0.11, 0.15, and 0.28%. Modelled outcomes emphasise the potential value of plantain, given the scarcity of low-cost mitigation options compatible with NZ dairy systems. Further, they indicate the significant return accruing to investment in further plantain research to aid successful implementation on farm.

Keywords: Plantain; Dairy; Economic model; Nitrogen leaching; Policy (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:agisys:v:187:y:2021:i:c:s0308521x20308738

DOI: 10.1016/j.agsy.2020.103012

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