Organic milk: What are the costs?

Drawing on Canadian and Danish data, this text deals with the question of costs and income for dairy producers interested in making the transition toward organic farming practices. These data allow for the comparison of yields, expenses and income of organic farmers with those of conventional farmers. However, before analysing the results, some qualifications are in order. (1) Inasmuch as the environmental costs of these practices have not been taken into account, full comparisons cannot be made. (2) Research in organic production has not reached the level of development as has that of its conventional counterpart. (3) Transition costs must also be considered when comparing the situations. (4) While costs may have an impact on interest in organic milk production, income can be equally important. (5) Comparisons paint a static picture of the situation as potential variation in input costs cannot be taken into account. It can be concluded from the analysis that, while not a universal panacea, organic milk production appears to be a serious option in terms of agricultural practices. It has so far allowed a still limited number of farm operations over a relatively short period of time to obtain results that are just as satisfactory as those from conventional farming. A healthy initial financial situation and good management skills on the part of farmers as well as government support and the market's willingness to pay are certainly factors which will facilitate the transition. When the medium and long-term environmental gains are also counted in, it is likely that farmers, the authorities and the population will find this option all the more appealing.