Optimizing farm profitability with precision livestock farming: An Agribusiness perspective on cost-effectiveness and ROI

¹ Faculty of Economics and Business, Universitas Pendidikan Nasional, Indonesia
² Departement of Business Administration, Asia University, Taiwan

^* Corresponding author: This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract

This study aims to evaluate the economic viability of Precision Livestock Farming (PLF) technologies by analyzing their cost-effectiveness and return on investment (ROI) in sustainable livestock operations. It addresses the growing need for data-driven solutions that enhance productivity, animal welfare, and environmental sustainability. A mixed-methods approach was adopted, combining quantitative financial modeling with qualitative interviews. The financial analysis assessed costs and benefits of PLF implementation, while interviews with 20 stakeholders—including farmers, veterinarians, economists, and technology providers—provided insights into perceived advantages and barriers. The study found that PLF technologies yield a positive ROI, averaging 25% within the first 2-3 years, primarily due to reduced feed and labor costs. Automated systems improved animal health and productivity, while real-time monitoring enabled proactive interventions. However, high initial investment and limited technical knowledge among smallholders remain key adoption barriers. This research contributes to the strategic understanding of PLF's role in transforming livestock farming. It offers actionable insights for stakeholders and policymakers to support technology adoption through financial incentives and training programs. The alignment of economic and sustainability goals underscores PLF's potential as a cornerstone of future agricultural innovation.