Not so long ago, the concept of a virtual fence sounded more like science fiction to most dairy farmers. Now, however, the system has been in practical use for several years – at least abroad. Six companies are active in this market worldwide.
‘Do you hear the beeps now and then? They’re coming from that cow. You can see she finds it interesting to test the boundary of the pasture fence. She knows exactly how many beeps she can hear before she gets a shock from the virtual fence. Some animals are more risk-taking than others: some cows always keep a safe distance from the fence, whilst others enjoy testing the limits,” says Andreas Pelle with a laugh. He works on Johan Bjørneby’s farm in Ås, Norway, which keeps 55 cattle and young stock on 210 hectares. Norway is a vast country, yet only 3% of its land is suitable for agriculture. Perhaps this is why the first company to market virtual fences under the brand name ‘Nofence’ was founded here in 2011. In recent years, a second Norwegian supplier has emerged: Monil, a company that focuses more on dairy cows than Nofence.
Several suppliers of virtual fencing systems
These two Norwegian companies, as well as ‘Vence’ in the USA, ‘Halter’ and ‘e-Shepherd/Gallagher’ in New Zealand, and the Dutch start-up ‘Collie’, currently offer virtual fencing systems. Pelle, who has now been working with the Monil System for three years, recalls: “Until last year, the system still had a few teething problems. Moisture in the collars led to failures, and some collars couldn’t withstand knocks in the feed box in the barn. But Monil has sorted them out, and now the system runs without any problems.” At home, Pelle runs a dairy farm with a hundred cows together with his parents. “To save on labour, we’re now investing in virtual fences too. We have several plots totalling around 30 hectares, of which only 20% are suitable for grazing. The virtual fence helps us use such a large pasture efficiently and practically.”
How a virtual fence works
Using an app on his phone, the farmer moves the virtual fence forward. The cows usually react immediately, whereupon he also moves the rear virtual fence forward, just as with traditional strip grazing. In less than a minute, the animals have access to fresh grass.
- With the Monil system, the sensor is placed on the cow’s neck. The collars fit snugly and are not much wider than those worn by cows in milking robots.
- With Nofence, collars hang beneath the cow’s neck as heavy blocks weighing up to 5 kg. They look robust, but are also bulky, which can cause problems in the barn.
According to Oda Westby of Nofence, the company focuses mainly on young stock, dry cows, sheep and goats that are kept outdoors for a certain period of time. Monil is currently available in Norway, the USA and the UK, and will also be available in Sweden from next year. There, the system remains banned until 1 January 2026 on animal welfare grounds. The reason is the small electric shocks sent to the animals if they ignore the audio signals. For the same reason, Germany, Denmark and Switzerland have also not yet approved these systems.
How much do virtual fencing systems cost?
Prices vary considerably between different providers. Monil charges €250 per collar, including a five-year warranty, plus €50 per animal per year for the system and supporting software.
With Nofence, the cost is €339 per collar, also with a five-year warranty. The subscription fees there are €4.50 per month or €6.50 for farms with fewer than fifty animals from the second year onwards.
Vence and Halter use a different pricing model: they require an initial investment of around €8,500 for a base unit to ensure a reliable GPS connection. This is particularly important, for example, in vast areas surrounded by mountain ranges. The subscription costs are then around €50 per animal per year, which includes the collars. However, these companies are not yet active on the European market.
Practical use of virtual fences in Europe
Things are different with New Zealand-based supplier Gallagher and its e-Shepherd system. The first three dairy farms in the Netherlands have recently been fitted with the system, and it is already in use in Spain and Portugal. Users pay €290 per collar and €3 to €4 per month for the software subscription.
“If the farmer removes the collars in winter and doesn’t use the software, we don’t charge any fees during that time,” explains Sarah Adams from Gallagher. “What also sets us apart from other companies is that heifers weighing over 200 kg can also wear a collar with a sensor. These animals are still growing, but as the sensors hang below the neck, it doesn’t bother them. Every three months, you loosen the collar a little.”
The cows adapt to the system easily
Last spring, scientists from Wageningen University conducted a five-week trial using the Nofence system. At the Dairy Campus Leeuwarden, 64 cows were divided into four groups for the trial. The researchers concluded that there were no significant differences in feed intake, body weight or milk yield compared to conventional fencing. The cows learnt the system quickly; within a few days, almost all of them had got the hang of it. Worldwide studies have shown that only 5–10% of animals need more time or are initially more fearful. However, there is as yet no long-term data available.
In practice, training usually begins by setting up a physical electric fence alongside the virtual one. The virtual fence is then gradually moved further away from the physical fence, enabling the cows to learn to recognise and respond to it.
Several commercial providers are currently working on self-learning systems in which the virtual fence is automatically adjusted based on the cows’ activity. Furthermore, the developers are in discussions with manufacturers of milking robots to integrate their systems into the robots’ software, so that the cows no longer have to wear two collars.
Measuring grass growth via satellite
Through a partnership with the company Barenbrug, Gallagher is working on measuring grass growth via satellite and linking this information to the collars. The idea is that the virtual fence can then be automatically adjusted based on grass growth and the desired dry matter intake. However, the system is still under development. The company e-Shepherd offers a tool for health and heat detection, which costs around €30 in additional subscription fees.
The Dutch start-up Collie has not yet reached this stage. Having been in operation since last year, it is currently focusing entirely on the European market. “There, we – together with Halter – are the only ones to combine virtual fencing and herd management in a single sensor. By virtual herd management, we mean guiding the animals to a specific location, such as the milking parlour or the robot, via vibrations in the collar. You can think of it as a built-in gathering function,” explains Daniel Reisman, one of the company’s founders. He sold his system to fifteen dairy farmers in 2025. The start-up costs are €5,000, regardless of herd size. Farmers can choose between a four-year contract, where the collars cost €220 each with a warranty, or an eight-year contract, for €400 each with a warranty. The subscription fees are €40 per animal per year. Leasing is available for €110 per animal per year. In total, this quickly adds up to an investment of several tens of thousands of euros, plus the annual costs. Nevertheless, Reisman is not surprised by the strong interest.
Cows are quick to learn where the boundaries of the pasture are
Dirk and Isabella Gravesteyn’s 50-head organic dairy herd in Pijnacker was fitted with Collie collars at the end of June this year. “We trained the animals for five days and after that everything went smoothly,” says Dirk Gravesteyn. “We graze our cows for a few months a year, 24 hours a day. That’s why I’ve really been waiting for a system like this. I’m already satisfied because it really saves a lot of time that would otherwise be spent setting up and moving fences. On top of that, the herd management feature is ideal for us in terms of making our work easier.
In the summer, we milk in a mobile milking parlour, and before that I had to fetch several cows every day.” The dairy farmer purchased the system with an eight-year contract and warranty and calculates the costs at just under €100 per cow per year. “Given the way we run our farm, this investment really suits us. I had already made the decision before it turned out that we would also receive a 40% subsidy for it.”
