WP4 (leader Olavur Gregersen)

wp4The objective of Work Package 4 is to study the social and economic value for different PLF applications on-farm and in supply chains.

4.1 Select socio-economic measures and the protocol for observing them

This task is about identifying the sociological and economic measures that allow assessing the value creation through PLF technology. A literature research and interviews of chain actors will be performed to identify the critical indicators for the sociological aspects and potential business models. For those users (amongst which are stockpersons) that have social and economic benefits, the measurements that influence the size of the benefit will be distinguished. For other chain actors, internet based questionnaires will be developed to find out the social, economic and environmental benefits of PLF system application.

4.2 Develop calculation models for the socio-economic measures

To determine economic benefits from the introduction of PLF systems, partial budget calculation models will be developed, reflecting the economic effects of improved production efficiency and the additional costs associated with the introduction of PLF systems on farms. Social indicators such as comfort, excitement, sense of accomplishment, security, salvation, social recognition, may need to be translated from a subjective perception (e.g. quality of life) into numerical measures. After selection of the socio-economic measures a procedure will be developed and executed to calculate these measures based on data from the extensive field tests in Work Package 3.

4.3 Estimate value creation potential for the exchange of information along the supply chain

This task is about identifying relevant data elements that provide a high potential for value creation at the different steps of the value chain. This will be done in collaboration with all chain stakeholders (feed manufacturers, stockpersons, slaughter houses, retailers and finally consumers). A survey, created together with stakeholder representatives (FEFAC for feed manufacturers, European Consumer Association, etc.) will be conducted with major European players. Parameters affecting cost-effectiveness, sustainability, fair and ethical trade will be identified and confirmed, and acceptable levels for each characteristic will be determined. Sometimes in farm technology social benefits outweigh economic benefits. Therefore, an adaptive conjoint analysis is suitable to analyse the preferences of actors for social and economic benefits.

4.4 Analyse data collected on site and derive models for value creation

In this task the on-farm and in-chain value creation come together for a holistic analysis of their value creation potential for the different stakeholders. The core of this task is to find out whether the investment in and the use of PLF technology has indeed a positive impact on the production results and real value can be created at farm level. A financial analysis will be carried out reflecting the perspective of the stockperson: it identifies the net money flows to the stockperson and assesses the stockperson’s ability to meet its financial obligations and to finance future investments. After taking into account all the costs and benefits, a comparison of the production scenario with or without PLF technologies can be calculated. The return of the investment will be expressed in net present value figure that will indicate whether the implementation of PLF is worth undertaking.


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