Analysis of effectiveness of milking robots implementation with the examples of selected European countries
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1 Annals of Warsaw University of Life Sciences SGGW Agriculture No 56 (Agricultural and Forest Engineering) 2010: (Ann. Warsaw Univ. Life Sci. SGGW, Agricult. 56, 2010) Analysis of effectiveness of milking robots implementation with the examples of selected European countries MAREK GAWORSKI, MARCIN GOCŁOWSKI Department of Production Management and Engineering, Warsaw University of Life Sciences SGGW Abstract: Analysis of effectiveness of milking robots implementation with the examples of selected European countries. This work aims at analysis of indices characterizing utilization of an onestand milking robot as well as at comparison of repayment periods of AMS in several European countries. It was analyzed on the basis of sold milk profits obtained from milking robots, as a result of changes in the milk yield of cows and milk prices in and It was found that in the repayment period of one-stand milking robot was shortened when compared to earlier period mentioned; it is a significant circumstance inspiring implementation of modern cow milking technique. Key words: AMS, milk price, effectiveness, cow, profits, yield of milk. INTRODUCTION Automatic milking systems (AMS) are among typical examples of technological progress that create dynamic processes of agricultural transformation and the food management policy [Gaworski 2003]. The scientific and technological progress that enhance reconstruction (modernization) of agriculture can be, however, subjected to actuation and also to retardation in the farms and their infrastructure due to food market situation [Wójcicki 2001]. Therefore, achievement of dynamic increase in agricultural production, determining by ability to generate the specific technological solutions calls for consideration of economic circumstance for agricultural production under given regional conditions [Hayami and Ruttan 1985]. Every introduced progress, not only in agriculture, should be economically or socially justified [Michałek and Kowalski 1993]. In the face of wide problems of milk production system development and the large set of factors shaping the effectiveness of milk production and its initial processing as well as the problems in technological progress implementation in milk farms, this work aimed at analysis of economic aspects of fitting out the farms with one-stand milking robots. The scope of work covered a set of factors connected to economy and biological progress that were used in comparison of repayment periods for the onestand milking robot, based on the profits of sold milk obtained with the use of a robot in selected European countries. METHODIC ASPECTS OF ANALYSIS Methodology of undertaken analysis included in the first stage listing and elaboration of data connected to milk prices and milk yield of cows in the selected
2 68 M. Gaworski, M. Gocłowski European countries over the considered periods and The data were taken from Milk Product, Eurostat, FAO and IERiGŻ-PIB. Basing on the annual average milk price and milk yield in considered countries there was calculated the profit generated from the sold milk per one cow in particular years. In the next stage this profit value was averaged for the considered periods and The profit calculated for particular countries was used in calculations of the repayment period for the one-stand milking robot, with consideration to its average price and the number of cows in the herd that could be served (milked) by the analyzed robot version. At the beginning of current decade the price of one-stand robot on the world market varied from 140 to 180 th. EURO [Sangiorgi 2002]. On Great Britain market this cost amounted to about th. GBF [Cooper and Parsons 1999], in Denmark to 1250 th. DKK, while in USA to about 160 th. USD. Installation of two milking stands or more called for higher investment costs (e.g. in the United States an additional robot stand costs additionally about 60 th. USD). In detailed analysis there was assumed the cost of fitting out the farm with a one-stand milking robot as 160 th. EURO (for the period ) and as 145 th. EURO for the period ). Under bigger and bigger availability of AMS on the market, and growing competition between their producers, the prices are gradually decreased resulting in the lower investment costs to be incurred for the implementation of modern milking equipment generation in the farm. The one-stand milking robot is sometimes able to serve the cow herd of even 70 animals. However, the most favourable operational conditions of the robot involve cows; therefore, the herd of 55 cows to be served by automatic milking system were assumed in the analysis. RESULTS OF ANALYSIS The detailed analysis of milk purchase prices and the milk yield of cows with calculated value of milk produced annually by one cow in the analyzed countries is presented in Table 1 ( ) and Table 2 ( ). Results of calculated average period of working out profits from purchase of milk produced by the cow herd served by one-stand milking robot were illustrated graphically for (Fig. 1) and (Fig. 2). DISCUSSION The results of analysis involving mentioned European countries in showed a substantial variability between the length of repayment period needed to finance the purchase of fully automatic milking equipment in the milk farms. As it is evident from Figure 1, the shortest and the longest period of repayment is characteristic for Sweden and Poland, respectively. The triple difference in the respective values can be found. Considering the period one can find the longest repayment period still for Poland (of all considered countries), however, it is positive that
3 TABLE 1. Milk purchase prices, milk yield of cows and calculated value of milk produced annually by one cow in the analyzed countries in Country Milk purchase price [EURO/100 kg] Milk yield of cows [kg/cow year] Value of milk per year [EURO/cow year] Years Austria Belgium * Denmark Finland France Greece Spain Holland Ireland Luxemburg * Germany Poland Portugal Sweden Great Britain Italy Source: FAO [ *) Eurostat (2002), Milk Products (No 150/2003) and authors own calculations.
4 TABLE 2. Milk purchase prices, milk yield of cows and calculated value of milk produced annually by one cow in the analyzed countries in Country Milk purchase price [EURO/100 kg] Milk yield of cows [kg/cow year] Value of milk per year [EURO/cow year] Years Austria Belgium Denmark Finland France Greece Spain Holland Ireland Luxemburg Germany Poland Portugal Sweden Great Britain Italy Source: Eurostat, FAO, Milk Products, GUS, IERiGŻ and authors own calculations.
5 Analysis of effectiveness of milking robots implementation Austria Belgia Dania Finlandia Francja Grecja Hiszpania Holandia Irlandia Luksemburg Niemcy 1,94 ± 0,26 1,85 ± 0,15 1,25 ± 0,06 1,31 ± 0,07 1,70 ± 0,08 2,61 ± 0,10 2,04 ± 0,19 1,35 ± 0,07 2,42 ± 0,13 1,62 ± 0,11 1,57 ± 0,12 Polska 3,84 ± 0,84 Portugalia Szwecja W.Brytania W ochy 1,68 ± 0,17 1,17 ± 0,06 1,78 ± 0,03 1,53 ± 0,04 0,00 1,00 2,00 3,00 4,00 5,00 Milking robot repayment period [years] FIGURE 1. Comparison of repayment period for milking robot in Source: authors own calculations. it decreased by about 30% in relation to period. The shortest time of robot repayment was found for Finland (Fig. 2) and it was two times shorter than in Poland. Therefore, the results of carried out calculations underline the importance of regional and economic conditions (with consideration to raw milk prices purchased by individuals or dairies) as well as biological progress that is important also (various milk yield of cows) in determination of circumstances enhancing or limiting the technological progress implementation as the milking robots. The shorten repayment period in Poland in when compared to is influenced also by other factors: lower investment costs for onestand milking robot, increased milk price in purchasing centres in relation to previous years, and an increase in average milk yield of cows in the country. Differences in production limitations are underlined by analysis of standard deviation index for the value (in EURO) of milk obtained annually from a single cow over considered period. The higher standard deviation values mean the lower stability of the farm income from milk selling that ensure financing of milking robot purchase.
6 72 M. Gaworski, M. Gocłowski Austria Belgia Dania Finlandia Francja Grecja Hiszpania Holandia Irlandia Luksemburg Niemcy Polska Portugalia Szwecja Wlk. Brytania W ochy 1,37±0,19 1,47±0,12 1,00±0,10 0,90±0,16 1,32±0,10 1,40±0,16 1,21±0,20 1,12±0,10 1,77±0,23 1,23±0,18 1,30±0,14 2,14±0,25 1,27±0,19 1,03±0,09 1,30±0,11 1,31±0,11 0,00 1,00 2,00 3,00 4,00 5,00 Milking robot repayment period [years] FIGURE 2. Comparison of repayment period for milking robot in Source: authors own calculations. SUMMARY The analysis of economic and biological conditions for milk production in selected regions of Europe points out at importance of milk price in purchasing and milk yield of cows in the shaping of perspectives for milking robot implementation. The hitherto detailed analyses were dominated by comparisons of milk production costs connected with application of automatic milking systems against traditional technological solutions, including the milking parlours or pipeline milking plants. However, the proved differences in repayment periods for one-stand milking robot based on the incomes from milk selling calls for consideration to regional conditions of milk production. The repayment period for one-stand milking robot in decreased when compared to the previous investigated period; this is a significant circumstance inspiring implementation of the modern milking technology. The future vision of a high-quality milk production in European countries is implementation and application of automatic milking systems, commonly called as milking robots. In spite of high installation costs, the European and Polish farmers more and more often decide on the automatic milking system for their farms.
7 Analysis of effectiveness of milking robots implementation REFERENCES COOPER K., PARSONS D.J. 1999: An economic analysis of automatic milking using a simulation model. J. Agric. Engn Res. 73, p GAWORSKI M. 2003: Problemy wdrażania postępu technicznego w rolnictwie na przykładzie robotów udojowych. Postępy Nauk Rolniczych, 3, p GOCŁOWSKI M. 2010: Analiza doskonalenia technologii produkcji truskawek na przykładzie wybranego gospodarstwa. Praca magisterska (maszynopis), Wydział Rolnictwa i Biologii, SGGW, Warszawa. HAYAMI Y., RUTTAN V.W. 1985: Agricultural development, an international perspective. The Johns Hopkins University Press, Baltimore London. MICHAŁEK R., KOWALSKI J. 1993: Metodyczne aspekty określania postępu naukowo-technicznego w rolnictwie; cz. I: Definicje i formy postępu w rolnictwie. Roczn. Nauk Rol., t. 79-C-4, p SANGIORGI F. 2002: Robotic milking in Italy: Technical and economical considerations. The First North American Conference on Robotic Milking, March 20-22, 2002, Toronto, Canada, 2002, pp. VI66 VI69. WÓJCICKI Z. 2001: Metody badań postępu naukowo-technicznego w rolnictwie. Inżynieria Rolnicza, 9(29), p Streszczenie: Analiza zróżnicowania efektywności wdrażania robotów udojowych na przykładzie wybranych krajów europejskich. W pracy przedstawiono analizę wskaźników charakteryzujących użytkowanie jednostanowiskowego robota udojowego oraz porównanie długości okresu spłaty AMS w kilkunastu krajach europejskich. Długość okresu spłaty AMS analizowano na podstawie przychodów pochodzących ze sprzedaży mleka pozyskiwanego robotem udojowym, stanowiących wynik zmian wydajności mlecznej krów i ceny mleka w latach i Stwierdzono, że w latach skróceniu uległ czas spłaty jednostanowiskowego robota udojowego w porównaniu z wyróżnionym przełomem wieków, co stanowi istotną przesłankę inspirującą wdrażanie nowoczesnej techniki w doju krów. MS. received August 2010 Authors address: Marek Gaworski Katedra Organizacji i Inżynierii Produkcji Szkoła Główna Gospodarstwa Wiejskiego u. Nowoursynowska Warszawa marek_gaworski@sggw.pl
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