Economic Assessment of Virtual Fencing Technology in Dairy Systems: A Model Study in Temperate Climates

Résumé fourni par la source

Recent developments in Europe indicate a continuous decline in pasture-based dairy farming, despite its recognized advantages in grassland regions, including reduced food–feed competition, lower feed costs, and enhanced animal welfare. The management of large herds across extensive grazing areas typically requires precise and labor-intensive fencing operations using electrical physical fences (EPFs), which depend on fixed or semi-mobile infrastructure—such as wires, posts, and energizers—to allocate fresh pastures according to animals’ nutritional demands. Virtual fencing (VF) represents an emerging technological alternative that utilizes GPS-enabled collars and software-based geofencing to regulate livestock movement without physical barriers. This approach offers the potential to reduce labor requirements and increase flexibility in pasture management. However, the economic and technical disparities between EPF and VF systems necessitate an assessment of farm-specific conditions under which VF can serve as a feasible substitute. This study investigated the economic and managerial determinants influencing the adoption of VF systems in temperate dairy production. The findings demonstrate that the economic performance of VF is highly dependent on farm size, pasture management strategy, and the extent of necessary operational adaptations. While VF can considerably reduce labor input, its economic viability remains limited by substantial initial investment and adaptation costs unless management practices are specifically optimized. Profitability increases with a higher proportion of grazed herbage in livestock diets. The integration of VF with complementary digital technologies could further enhance its efficiency and practical applicability. Moreover, targeted policy measures–such as those within the Common Agricultural Policy (CAP, 2023–2027)—and investments in research, training, and advisory services may foster wider adoption. Recognizing and compensating the ecosystem services facilitated by VF could further strengthen its economic sustainability. Nevertheless, integration into agri-environmental schemes requires further clarification of legal, ethical, and technical standards to ensure compliance with animal welfare and data governance frameworks.

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