6363: Organic dairy farming in Norway under the 100% organically produced feed requirement

O., Flaten and G., Lien (2005) Organic dairy farming in Norway under the 100% organically produced feed requirement. Paper presented at 16th International Farm Management Congress, Campinas, Brazil, 13-19 August 2005; Published in Proceedings - Contributed papers from the 15th IFMA Congress, August 14-19 Volume 1, page pp. 103-111. International Farm Management Association.

Summary

The EU regulation governing organic production will require 100% organic feed in organic dairy systems from August 2005 compared with 85% currently in Norway. This study aimed to assess adjustments in resource use and financial impacts on organic dairy herds using a discrete stochastic programming model. Farm management effects of the regulatory change varied between farm types. For the two organic dairy systems examined, both having a milk quota of 100 000 litres but with varying farmland availability, the introduction of the 100% organic feed regulation resulted in an economic loss of approximately 6-8% of the net income compared to the current regime. The economic loss was mainly due to the considerable higher price of organic compared to conventional concentrates.

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