Economic Effects of Organic Production in Finland

Summary in the original language of the document

Money is usually one of the strongest reasons influencing decision making when choosing between organic and conventional production or usage, both in case of producers and decision makers of municipalities. The results of the survey directed to organic producers in Finland implied that the contribution to profitability of organic farming would be the most effective way to get more farmers to make the decision to convert from conventional to organic production. Naturally there are also many other reasons that affect the decision to make the conversion, for example environmental and health issues. According to the survey targeted to municipalities’ decision makers, municipalities would use more organic products if they had more financial resources in use.
The model calculations showed that the economic impacts of organic production in Finland are already meaningful and the impacts will increase while the share of organic production rises. However, the increase in organic production would lead to minor negative economic effects as the share of conventional production would simultaneously decrease. Nevertheless, it would be useful, for example, to increase the efficiency of organic production so that the conversion from conventional to organic production would be more beneficial to the society from the economic point of view.