New research in the United States has found that organic dairy producers produce about 13% less milk on average compared to farmers using conventional methods.
Joseph Balagtas, an assistant professor of agricultural economics, has just published two studies, one in the American Journal of Agricultural Economics and the other in the Journal of Agricultural & Food Industrial Organization.
Balgatas has concluded organic production methods are currently less productive than conventional methods, adding a dramatic shift toward organic production would result in higher prices for milk.
But on the positive side, his research found that organic producers could cut as much as 22% of production costs if they grow their own feed, though the same isn't true for conventional producers.
"If you're located in a climate that permits it, you can reduce costs by growing your own organic feed," Balagtas says. "Establishing organic crop production is costly, but this research says that over time you would pay off that investment."Balgatas says the research is critical for dairy producers who might be interested in going organic.Nearly 300 organic farms and 1200 conventional farms in 24 states were used for the research.
Article supplied by Organics Aotearoa New Zealand.
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