Intensive vs. environmentally sustainable: The livestock dilemma

Agricultural intensification is central to the modernization narrative, promoting efficiency and productivity, particularly in the dairy sector. Despite potential efficiency gains, intensive farming faces criticism for its environmental impact, particularly concerning greenhouse gas emissions and nutrient runoff, raising concerns about their long-term environmental sustainability. This study empirically investigates the interplay of farm intensification, environmental sustainability, and economic efficiency in the livestock sector. It uniquely analyses how intensification and environmental performance, the latter measured by the Agri-Environmental Footprint Index, influence the technical efficiency of buffalo dairy farms. To this end, this research employs the Stochastic Frontier Analysis to a sample of 198 buffalo farms within Italy’s Protected Designation of Origin area, using the Farm Accountancy Data Network (FADN) for the period 2010 to 2022. Results highlighted that the adoption of intensive practices in buffalo farming represents a winning solution from the standpoint of technical efficiency, while acting sustainably does not pay off from a technical and economic point of view. These results stimulate reflections on the effectiveness of policies supporting livestock farms, offering insights for both practitioners and policymakers to improve agricultural practices while maintaining economic viability.