A comparison of profitability and economic efficiencies between management-intensive grazing and conventionally managed dairies in Michigan

A retrospective cohort study was designed to determine differences in profi tability, asset efficiency, operating efficiency, and labor efficiency betw een Michigan dairy farms implementing manage ment-intensive grazing (MIG) a nd conventionally managed dairy farms. Financial information and labor use data for the calendar year 1994 were collected with surveys and personal in terviews from 35 MIG dairies and 18 conventionally managed dairies. Because the geographic distribution of MIG and conventionally managed farms in thi s study did not include Michigan's "dairy belt," extrapolation of these res ults to an average Michigan or Midwest dairy should be made with care. With in the areas represented, however, multivariate linear regression indicated that MIG dairies had more economic profit than conventionally managed dair ies. They captured this profit by being more efficient in asset use, operat ing practices, and labor use. These results suggest that MIG could provide a sustainable alternate management tool far portions of Michigan's dairy in dustry.