The Milk Supply Chain in Italy's Umbria Region: Environmental and Economic Sustainability

This article aims to investigate the environmental and economic sustainability of five dairy farms in the Umbria Region (Italy). The study also provides an assessment of aggregate sustainability, which is less investigated with reference to cattle milk both globally and in Italy, through the analysis of the relationship between economic and environmental performance. Primary data were collected through a direct survey carried out in 2014. The environmental assessment was conducted with a Life Cycle Assessment (LCA) "cradle to farm gate" approach, while the economic dimension was evaluated by determining the direct and indirect costs related to the factors involved in the production process. A correlation analysis and a linear regression were performed in order to study the relationship between the carbon footprint (CF) and operating income. The average operating income amounted to 0.03 Euro/L of milk. The CF values of the five companies are contained within a variation range comprised between 0.90 and 1.76 kg CO2 eq/L of milk. The existence of an inverse relationship between the CF of milk and operating income confirms the hypothesis regarding the possibility of implementing strategies aimed at improving performance in both investigated dimensions at the same time, thus increasing the aggregate sustainability.