Agriculture Reference
In-Depth Information
For dairy, yield changes are more similar between countries. Yield changes per cow per year
reported by Lampkin and Padel (1994, p. 203) are about 10% and stocking rate 20% to 30%,
resulting in a reduction of milk yields of 30% to 40% per hectare. Nieberg and Offerman
(2002, p. 143) mention a decrease of up to 20% in European countries per cow per year, and
between 20 and 40 of cows per hectare. In Australia, Wynen (2000) recorded a decrease in
milk litres per hectare of between 30% and 35% on seven pairs of farms. In Canada, Stone-
house
et al
. (2001) found average milk sales per cow on 7 organic farms to be 4% down
compared with 111 conventional dairy farms, and those per hectare were 41% lower. In the
USA, average milk sold per cow was 13% lower on six organic farms compared with 27 conven-
tional enterprises in the same region, while no figures on stocking density were provided
(Butler 2002).
In developing countries, where the choice for organic agriculture is often made in the
context of no-use of pesticides and fertilisers, the United Nations Food and Agriculture Organ-
ization (FAO) mentioned that organic management may even increase yields (FAO 1998, Scial-
abba and Hattam 2002, see
Chapters 4
and
5
). Very few data are available for developing
countries.
The cost of production
Yield is not the only indicator of farm productivity. Inputs used to deliver those yields should
also be considered, and can be in the form of materials, as discussed below, but they may also
be in different forms. For example, one way to manage soil fertility and pest problems on
organic farms is to employ a different rotation from that on conventional farms where syn-
thetic fertilisers and pesticides can perform those tasks. Because of the difference in rotation,
which may also mean a larger diversity of crops, the whole farm needs to be considered when
determining productivity and profitability.
For the farmer, the net profitability of the farm is important (i.e. what is left of the total
receipts when all costs have been paid). For the profitability of the farm, the input costs can
be as important an issue as the quantity produced and the prices received for the
production.
In many agricultural enterprises, organic farmers may use fewer inputs such as fertilisers
and pesticides and sometimes more labour, such as for hand-weeding, than on conventional
farms. This is not necessarily the case, as materials to manage nutrients and pests on organic
farms such as mineral fertilisers, compost and pheromones can also be costly.
Padel and Lampkin (1994, pp. 206-207) reported total variable costs to be typically 50% to
60% lower for organic cereals and grain legumes; 10% to 20% for potatoes and horticultural
crops; and 20% to 25% for dairy cows, mainly due to reduced concentrates. For pigs and
poultry, the extra cost of organic feed often means no reduction in average input prices.
Padel and Lampkin (1994) also summarised the fixed costs. Labour (classified as fixed
costs) is seen to be mainly higher on organic farms, while other costs including power, repairs,
depreciation of machinery, property charges and depreciation and capital costs were reported
as similar in most countries, though higher in Germany and lower in Australia. However, in a
later survey among Australian cereal-livestock farmers, this difference was much less pro-
nounced than in the earlier study, or non-existent (Wynen 2001).
Labour cost is often controversial as it differs greatly between industries. For example, it is
more likely to be similar or higher in intensive industries (e.g. horticulture, where labour can
contribute considerably to replace herbicides) than in extensive industries (e.g. large-scale
cereal growing). However, there can also be variations within industries. For example, labour
costs were found to be similar or lower in studies on dairy farms in Australia (Wynen 2000)
and Canada (Stonehouse
et al.
2001), but higher in the USA (Butler 2002).
