Efficiency and the dairy industry

Fundamentals of Management (MGMT3001) taught me that an organization’s top goals are efficiency and effectiveness. In the words of Peter Drucker, “Efficiency is doing things right; effectiveness is doing the right things.”

But does that hold true with all systems? In the words of Walker and Salt, “Being efficient leads to elimination of redundancies—keeping only those things that are directly and immediately beneficial... [and] leads inevitably to unwanted outcomes” (7). In an ecosystem, efficiency ignores ecological services, such as air purification or waste decomposition, and has a short time frame—you are looking only at the visible, profit-making, immediate output.

Walker and Salt identify diversity as key feature of a generally resilient system. Increased efficiency drives down diversity: “The more variations available to respond to a shock [to the system], the greater the ability to absorb the shock” (121). That is to say, if the local Trader Joe’s burns down, that’s cool: Kortes, Cecil’s, and Lunds are within walking distance. But when the single efficient and optimized grocery store closes in Lanesboro, MN, you have to hope in the car and drive to another city for your groceries. Same thing with crops: flag smut decimate your Paha wheat crop? Too bad you didn’t plant any other types of grain.

Here’s where Roger Cady comes in again. During his talk last fall, he stated that the only way to meet future demand of milk is through increased efficiency. Greater productivity in dairy cows would be preferable to greater numbers of dairy cows because the former dilutes your fixed costs. If you only have to feed, house, and medicate a hundred cows but get 20% more milk out of them, that’s a good thing. Right?

Well, maybe from a short-term profit standpoint. But let’s consider other factors. First, animal welfare. I have not thoroughly researched the negative effects on dairy cows, but from what I’ve read, high productivity can lead to udder infections, lameness, and infertility.

Also, fixed costs. Maybe the maintenance costs that Cady wants to reduce are unnaturally high to begin with. It seems like less productive cows would need less feed, fewer antibiotics (to counteract infections like mastitis), and would not have to be replaced as often.

Another way to combat the hazards of efficiency would be to increase diversity: goats lactate, too, you know. And goodness knows we have other options for calcium and protein. Maybe we need focus on increasing the effectiveness of dairy production, rather than the efficiency.

Photo from Courtney Nash.