Can Small-Scale Dairy Farm Profitability Increase with the Use of Solar Energy Technology? An Experimental Study in Central Tunisia

Abstract

The dairy sector in Tunisia is based on small-scale farms, with 81% of the breeders owning less than five cows. On these farms, milk is stored in plastic containers, resulting in post-production losses estimated at 10% in the studied region. Due to high temperatures, the present paper aims to study the implementation of an innovative solar-powered milk cooling system in Central Tunisia and assess its profitability for dairy farmers. The methodology is based on a comparison of three small-scale farm business models: a farm without any milk cooling equipment, a farm using an innovative milk cooling technology, and a farm using an electrical cooling tank. Results showed the significance of milk cooling in reducing milk rejection to 0%, leading to a total production of 6400 L per cow by the fifth year. Additionally, milk sales were found to increase due to the premium of 0.010 TND/L for cooled milk paid. In addition, farms utilizing solar-powered milk cooling technology exhibited superior profitability in terms of financial indicators. This research offers a sustainable energy solution for milk cooling on small farms, specifically addressing the challenges faced by these farms located in isolated areas where access to electricity is limited and the availability of milk cooling equipment is lacking.

Keywords

• business model
• electricity
• milk cooling
• solar energy
• small-scale farms
• Tunisia