Economic feasibility of supplementary feeding on dairy farms in the Waikato region of New Zealand

Importation of supplement on New Zealand dairy farms allows relaxation of the constraints imposed on traditional grazing systems by seasonal pasture production and quality. The primary objective of this paper is to examine the relative profitability of Waikato dairy farms utilising different amounts of imported feed under price variation. An optimisation model of a Waikato dairy farm is used for this purpose. The case study indicates superior profitability associated with the use of a moderate level of imported supplement. A higher amount of imported feed allows lactation to be extended and promotes pasture utilisation through allowing the maintenance of higher stocking rates. However, these benefits decline past some optimal level of supplementation, beyond which pasture utilisation cannot be increased any further. Overall, this work highlights that although production can be increased by importing supplement, it is critical to consider the relative benefits and costs associated with the use of imported feed.