Economic Viability of Adoption of Automated Oestrus Detection Technologies on Dairy Farms: A Review

SIMPLE SUMMARY: The accurate and timely detection of oestrus is a central element of good dairy herd management as it ultimately determines the level of milk production and is core to the economic viability of the farm business. However, the traditional method of oestrus detection, which occurs by observing the dairy cows standing immobile while being mounted, is usually time-consuming, repetitive and requires considerable skill and experience on the part of the farmer to attain a reasonable level of efficiency. Given the limitation of the traditional method of oestrus detection, a number of automated oestrus detection (AOD) technologies have been developed. However, the rate of adoption of these technologies remains low. One reason that has been proposed for farmers’ low adoption of such technologies has been their lack of knowledge around the potential economic returns from investing in AOD technologies. In this paper, we review the empirical literature on the viability of investment in AOD technologies from an economic perspective. The conclusion of this study provides evidence from which farmers can make more informed decisions in relation to investing in AOD technologies. The review and analysis is also of importance for informing policy, as it provides an examination of the incentives and levers that could improve productivity on dairy farms. ABSTRACT: The decision for dairy farmers to invest in automated oestrus detection (AOD) technologies involves the weighing up of the costs and benefits of implementation. In this paper, through a review of the existing literature, we examine the impacts of investment in AOD technologies in relation to the profitability and technical performance of dairy farms. Peer-reviewed articles published between 1970 and 2019 on the investment viability of AOD technologies were collated and analysed. We capture the different measures used in assessing the economic performance of investment in AOD technologies over time which include net present value (NPV), milk production, Benefit-Cost Ratio (BCR), internal rate of return (IRR) and payback period (PBP). The study concludes that investment in AOD technologies is not only worthwhile but also contributes to farm profitability.