Measures for Antibiotic Reduction and Competitiveness in the Dairy Industry

The use of antibiotics in veterinary medicine is to be further reduced. It is crucial for farms that their competitiveness does not suffer as a result.

Antibiotic resistance is increasing worldwide, therefore the use of antibiotics in human and veterinary medicine must be reduced. Switzerland has already been able to reduce the use of antibiotics in veterinary medicine by 48% since 2014. This trend is to be continued with specific measures in the dairy industry. To ensure that the subsequent implementation is widely successful, it is important that the profitability of the farms is not affected.

Effects on veterinary, insemination and labour costs

Business monitoring based on full cost calculations was used to analyse whether these measures have an impact on the cost structure of dairy farms in Fribourg. Particular attention was paid to veterinary, insemination and labour costs. Although revenues increased during the observation period from 2017 to 2021, this improvement was primarily due to the general market situation. Fortunately, despite the intensification of production and the stipulated measures to reduce the use of antibiotics, veterinary and insemination costs per kg fell slightly, albeit not significantly. While labour costs increased in absolute terms, they remained constant per kg of milk thanks to the higher milk volume per farm and animal.

Competitiveness not impaired

Higher revenues with unchanged costs led to improved profitability and higher labour earnings on the farms, although this is not directly attributable to the stipulated measures. The data show no anomalies in the cost structure. Therefore, competitiveness does not appear to be impaired. Due to the lack of a control group, the study design does not allow any definitive and causal conclusions to be drawn. Future studies may provide more clarity here.