An economic comparison of dual-purpose and Holstein-Friesian cow breeds in a seasonal grass-based system under different milk production scenarios

The objective of this study was to compare the economic efficiency of Dutch Holstein Friesian (HF), Montbeliarde (MB), Normande (NM) and Castlelyons Holstein Friesian (CL) cows on a seasonal spring-calving milk production system. Physical performance data were obtained from a 5-year study carried out previously. The CL Holstein Friesians were considered representative of the Irish dairy cattle population. The economic performance of the breeds was derived for three production scenarios: EU milk quota applied at farm level with the consequence that higher milk fat yield necessitates a reduction in cow numbers (SI); EU milk quota applied at industry level, thus leasing of quota is feasible (S2); and no quota (S3). Results show that the production circumstances (quota or non-quota) and evaluation criteria (replacement heifer and beef pricing) influence the economic outcomes and therefore the ranking of breeds. Risk analysis showed that MB were stochastically dominant in all milk production scenarios while the HF performed poorest under S1 and S2. The higher profitability of MB was due to lower replacement costs, higher beef values and higher milk returns. If current economic circumstances prevail in Ireland and the reproductive performance of the Holstein Friesian does not improve, then upgrading to a dual-purpose breed like the Montbeliarde may be an alternative.