University of Melbourne - Lauren Hull
The dairy industry is adaptive by nature, but farmers are likely to face
a range of new challenges due to the ever-increasing impact of climate
change
Twenty years from now, dairy farming will look and feel different.
By
2040, farmers will have to deal with warmer temperatures and more
extreme weather events, while more variable rainfall will see seasons
shift and feeding strategies altered.
Summers will extend well beyond the usual summer period and dry spells will last longer.
The forecast change has prompted a team of researchers at the University of Melbourne's
Primary Industries Climate Challenges Centre
and Dairy Australia to apply climate modelling to specific farms to
analyse how key Australian dairy regions might perform in the future.
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A cow being milked at the University of Melbourne's robotic dairy at the Dookie campus. Picture: University of Melbourne |
And beyond the impacts of a changing climate, the
first-of-its-kind study has also asked: how will Australian dairy farmers be producing milk in the future?
The
answer? The major finding across each of the regions and climate
scenarios studied is that there is no one-size-fits-all approach to
dairy farming under future climates.
Using three farms; in
Victoria's Gippsland region, South Australia's Fleurieu Peninsula and
north-west Tasmania, researchers applied climate, biophysical and
economic models to develop projections for each farm system.
Researchers
Dr Brendan Cullen and Dr Margaret Ayre, from the University of
Melbourne, worked alongside scientists from the Tasmanian Institute of
Agriculture, economists, farm consultants and farmers from the three
regions to develop a comprehensive picture of how each farm might
perform.
"Most
significantly, we'll see a shift in the pasture growing season. Growth
rates will be higher in winter and early spring but lower for the rest
of the year. Overall, this means less pasture production and that will
create a real feed challenge. Farmers will need to adapt. They might buy
in more feed, or alter stocking rates and calving times."
The
climate change scenarios for 2040 were based on the climate projections
used in the IPCC 5th Assessment report. The team also used a biophysical
dairy modelling tool co-developed at the University of Melbourne ('
DairyMod') to assess the impacts of the future climates on dairy production systems.
Dr
Cullen says the 2040 timeframe was chosen because it provided
projections that were tangible for farmers involved in the project.
"The
farmers we were working with wanted to know what their system would
look like one generation into the future," Dr Cullen says.
"They
felt that there was too much uncertainty beyond 2040 about how farm
systems would change, particularly through genetic and technological
advances, along with uncertainty about climate change projections."
A video summary of the project's findings. Video: Dairy Australia
Three regional working groups, each made up of five or six farmers
and farm consultants, helped the research team identify a representative
farm in each region on which to base the projections. While every farm
is different, Dr Cullen says this approach enabled them to test a
diverse range of production systems in detail and apply some of the
lessons across the regions.
The working groups were involved in
the project from inception to completion, playing a vital role in both
ensuring the research questions were locally relevant and
'ground-truthing' the results, he explained.
Development options
Dr
Cullen and the team looked at a range of different business development
options to explore how farmers might adapt their farms to manage
challenges such as this. The options broadly represented a trajectory
from 'less intensified' to 'more intensified' dairy production.
One
critical finding was that climate change had a negative effect on the
profitability of each farm regardless of the development option, largely
because higher temperatures and longer dry spells reduced pasture
utilisation.
Across the three case study farms, the research
identified a loss of operating profit of 10-30% due to climate change in
2040 if farmers did not adapt to the warmer and drier climates.
But
each development option offered opportunities and trade-offs, depending
on the region and farmers' attitudes to risk. For example, large
profits could be made in the more intensified systems when milk prices
are high and feed is relatively cheap, but large losses are likely if
milk price is low and feed is expensive. The least intensified options
generally had the lowest average profit, but also had the least
year-to-year variability in profit and were generally less impacted by
climate change.
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Despite climate change impacts, other factors are more critical to dairy
farm profitability, including milk prices. Picture: mojitopt/Flickr |
Importantly though, milk price is expected to affect profitability
more than climate change, with the current milk price crisis serving to
highlight the importance of milk price variability in dairy businesses.
According
to Dr Cullen, if the milk price variation that has been observed over
the last decade were to continue, it will have a greater influence on
farm profit than the direct impacts of climate.
The Australian
dairy industry has been on a long term trend of intensification, but Dr
Cullen says the simpler, less intensified systems tested are realistic
alternatives under future climates.
"For dryland dairy farms, we
found a less-intensified system had similar average levels of
profitability but were less risky compared to more intensive systems,"
Dr Cullen says.
"That might mean a shift to smaller herds, less
grain feeding, more off-farm agistment or lower stocking rate – the
reverse of what we've seen in past decades.
"Dairy farming can
certainly continue to be viable into the future, but the project has
clearly identified that there is a need for the industry and farmers to
continue to adapt to changing climatic conditions in order to remain
profitable."
For
project leader Gillian Hayman, a dairy extension consultant at Dairy
Australia and dairy farmer from southern Gippsland, the project's
findings have confirmed the challenges she sees ahead for the dairy
industry.
"Many of the farmers involved in the research had
observed and managed through variable climatic seasons in the past.
Floods, bush fires, heat waves, extremely wet winters and extended dry
periods have all been a part of the last 15 years for farmers," she
says.
"Dairy farmers already need to be at the top of their game,
adapt to conditions and continually review their game plan from season
to season. Climate change is yet another pressure on farmers along with
milk price variability."
Good management and skill development has
been critical in the past and will continue to be crucial, to ensure
dairy farmers can manage profitable businesses into the future, Ms
Hayman explained.
Dr Ayre led the social science component of the
project, interviewing farmers and farm consultants to gauge the level of
preparedness for climate change.
"We found that dairy farmers
have a good awareness of what climate change will mean for their system,
and that they're generally confident that they can adapt to incremental
changes – for example, by adjusting feeding regimes and calving
patterns,'' Dr Ayre says.
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Dr Brendan Cullen (second from right) and Dr Margaret Ayre (far right)
chat with farmers in Gippsland during a workshop. Picture: Gillian
Hayman |
"One area that we're concerned farmers aren't prepared for is the
more extreme changes from climate averages. Recent heat waves have been a
challenge for many."
Dr Ayre and the team said one of the
strengths of the industry was the opportunity for professional
development through discussion workshops, much like those conducted
through their project.
Farmers reported that learning from peers was key when adopting new management practices.
The
project suggests the dairy industry can support adaptation by farmers
by providing specific professional development in business risk
management including financial risks (seasonal and annual budgeting),
biophysical risks (farm water planning) and social risks (farm workforce
planning). A strong advisory sector is also critical to supporting
adaptation and the dairy industry can support this through playing a
role in coordination and linking private advisors, industry and
government extension services with farmers and their networks.
Positively, the research team found that dairy farmers are already adapting to the changing climate conditions.
Farmers
reported they were increasing the amount of shade and shelter available
for stock during extreme weather events, increasing farm water storage
and carrying larger fodder reserves from year to year.
The
study's predictions on what future climates will mean for pasture
production and farm profitability highlight the critical need for the
industry to foster continued and more widespread adaptation in a warming
and drying climate.
Featured academics: Dr Brendan Cullen | Dr Margaret Ayre
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