Costs of Organic Milk Production on U.S. Dairy Farms
AbstractThe impact of organic participation on milk production costs is evaluated using data from a nationwide survey of dairy operations. Organic dairies have estimated costs about $5 to $8 per cwt higher than conventional dairies. They also receive an average milk price premium of $6.69 per cwt in 2005. Production costs are estimated to be only $3 to $4 per cwt higher among pasture-based dairies. Results suggest that small conventional dairies may consider converting to the organic approach, but startup organic dairies are not likely unless they can enter at a much larger scale than the industry norm or can utilize pasture as a primary dairy feed source. Copyright 2009 Agricultural and Applied Economics Association
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Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal Review of Agricultural Economics.
Volume (Year): 31 (2009)
Issue (Month): 4 (December)
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- Volpe III, Richard & Park, Timothy & Hennessy, David & Jensen, Helen H., 2013. "Somatic Cell Counts in Dairy Marketing: Quantile Regression for Count Data," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151425, Agricultural and Applied Economics Association.
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- Dong, Fengxia & Hennessy, David & Jensen, Helen H., 2013. "Size, Productivity and Exit Decisions in Dairy Farms," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150339, Agricultural and Applied Economics Association.
- Nehring, Richard F. & Gillespie, Jeffrey M. & Hallahan, Charles B. & Sauer, Johannes, 2012. "Economic Efficiency of U.S. Organic Versus Conventional Dairy Farms: Evidence from 2005 and 2010," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119769, Southern Agricultural Economics Association.
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