Economic performance of innovative more sustainable livestock farming systems in Europe

Livestock production in Europe is challenged to become more sustainable. Various innovative more sustainable farming systems that go beyond legal requirements exist, but these must be economically viable to be long-term sustained. Scientific evidence about the economic performance of such innovative farming systems in Europe is scarce. This study aimed to assess the economic performance of thirteen groups (called practice hubs) of differently sized livestock farms with a wide range of sustainability innovations that go beyond legal requirements. Economic performance related to profitability, value creation, job numbers, competitiveness, and markup was assessed. We used descriptive statistics, group average testing, mixed-effect linear modelling, and a qualitative comparison with the closest matching animal type in the country from the publicly available Farm Accountancy Data Network (FADN) data. Most practice hubs had better average economic performance than the FADN average, irrespective of their size relative to the FADN farms’ size. Drivers for the economic performance varied substantially between practice hubs. No structural differences in economic performance between practice hubs or animal types were found. This suggests that it might be the sustainability innovation rather than the farm size that matters most for the economic viability of the farm. Our study suggests that a wide range of economically viable sustainability innovations exists at European livestock farms from different sizes. This can aid the development of policies to improve sustainability of the livestock sector.