Agriculture Reference
In-Depth Information
However, the economic net return was higher for conventional farming system, but when the
economic subsidies from EU were considered, the integrated net return was higher than under
organic farming system for wheat and soya [31]. As the demand for organic meat is rising, this
should also increase the demand for certified organic feeds, and possibly the premium prices
(as long as the number of certified organic grain growers is not expanding as fast or faster).
Altogether, it is difficult to predict future organic grain prices [29].
Markets
Depending on the quality of the grain, it can be used as animal feed or for human consumption;
grading standards for grains for human consumption are higher than for feed grains [32]. In
mixed organic farms, grains are commonly used as livestock feed on the farm itself. Fodder
grains can also be sold on the regional, national or international market. However, organic
feed grain is generally not transported over great distances. Although it is more difficult to
grow organic corn and cereal grains for human consumption due to the higher quality
standards, they result in higher net profits than feed grains. Organic cereal grains for human
consumption are commonly marketed in different ways than conventional grains, since the
buyers are usually smaller-scale than buyers of conventional grain [33]. Organic grain is often
produced on a contract, and producers may have more grain than a typical small-scale buyer
would need. Thus, organic grain often needs to be stored, and it may be beneficial for an organic
grower to have his/her own storage facilities [33]. Some organic farmers process their grain
into flour and bread or other cereal products, and sell it directly to consumers at home or at
the local market. The greater the share of the production chain is controlled by the farmers
themselves, the more profitable the production of cereals will be.
Harvest and treatment
after harvest
chemical protection
100%
90%
80%
mechanical attendance
during the vegetation
seeds and sowing
70%
60%
50%
40%
preparation of soil
30%
fertilizer
20%
10%
manure
0%
conventional
organic
liming
Figure 1.
Comparison costs of convencional and organic farming (growing wheat) - variable cost and fixed cost of
machines (Moudrý, 2005) - not published data
