@article{Shadbolt:123166,
      recid = {123166},
      author = {Shadbolt, Nicola M. and Kelly, Terry and Holmes, Colin},
      title = {Organic dairy farming: cost of production and  profitability},
      journal = {AFBM Journal},
      address = {2005},
      number = {1672-2016-136599},
      pages = {10},
      year = {2005},
      abstract = {Organic milk production in the European Union (EU) costs  more than conventional production and therefore requires a  price premium (15-25%) and an increase in direct payments  to ensure the same level of profitability. In European  comparisons, milk yields per cow are lower (9-30%) and  stocking rates are also 20-40% lower due to lower yields in  forage production. The International Farm Comparison  Network (IFCN 2003), comparison between organic and  non-organic farms in the EU calculated 22-37% higher costs  of production. Similarly the cost increase measured in  California ranged from 13-23% for organic versus  conventional milk production. However comparisons between  low producing and low cost systems as described by  MafPolicy (2002), and for the Argentinean farms compared by  IFCN (2003), suggested a minimal increase of 3% in  costs.
This paper compares the cost of production and  profitability of organic and conventional dairy farming  over the first three years of a Massey University system  comparison trial. The difference between these pastoral  farming systems was predicted to be less than that noted in  the more intensive EU and US dairy farming systems as  minimal changes are required to achieve organic  certification. Recognising that the organic farm has only  just achieved certification and has not yet reached its  steady-state, the results highlight the vulnerability of  both pastoral systems to climatic variability and identify  the additional risks of organic dairy systems.},
      url = {http://ageconsearch.umn.edu/record/123166},
      doi = {https://doi.org/10.22004/ag.econ.123166},
}