Improving milk productivity is essential for ensuring sustainable food production. However, the increasing difficulty of supervision and management, which is associated with farm size, is one of the major factors causing the inverse relationship between size and productivity. Digital technology, which has grown in popularity in recent years, can effectively substitute for manual labor and significantly improve farmers' monitoring and management capacities, potentially addressing the inverse relationship.
Based on data from a survey of farms in Shandong Province in 2020, this paper employs a two-stage least squares regression model to estimate the impact of herd size on dairy cow productivity and investigate how the adoption of digital technology has altered the impact of herd size on dairy cow productivity.
According to the findings, there is a significant and negative impact of herd size on milk productivity for China's dairy farms. By accurately monitoring and identifying the time of estrus, coupled with timely insemination, digital technology can mitigate the negative impact of herd size on milk productivity per cow.
To increase dairy cow productivity in China, the government should promote both small-scale dairy farming and focus on enhancing management capacities of farm operators, as well as large-scale dairy farms and increase the adoption of digital technologies.