Milk-Production in Barns with Compost Bedding and Free Stall: A Profitability Analysis

The objective was to analyse, comparatively, the profitability of compost barn and free stall milk-production systems. Data collected from four farms from January to December 2016 were analysed. The cost of milk production was estimated according to the operating cost methodology. Additionally, gross and net margins were estimated as indicators of profitability. The results showed that the average gross and net margins were not influenced by the type of facility; they were positive in both of the production systems. Among the components of the effective operating cost, the proportion of the “medications” item was lower in the compost barn, while the cost of bedding for the cows was lower in the free stall farms. Depreciation and total operating cost were similar in the two systems. Milk sales made up a higher percentage of the revenue in the free stall farms, while the expectations of revenues from wastes were similar in the two production systems. Given that there were no significant economic differences between the types of facilities, it is concluded that ease in management, productivity, reproductive performance, animal health, environmental issues, and availability of water and bedding material should be the motivators for choosing one system over the other.