Characteristics, Costs, and Issues for Organic Dairy Farming
AbstractOrganic milk production has been one of the fastest growing segments of organic agriculture in the United States in recent years. Despite the growing number of organic dairy operations, the characteristics of organic dairy operations and the relative costs of organic and conventional milk production have been difficult to analyze. This study, using 2005 ARMS data for U.S. dairy operations, which include a targeted sample of organic milk producers, examines the structure, costs, and challenges of organic milk production. The analysis addresses economies of size, regional differences, and pasture use in organic milk production and compares organic and conventional milk production costs. The findings suggest that economic forces have made organic operations more like conventional operations and that the future structure of the industry may depend on the interpretation and implementation of new organic pasture rules.
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Bibliographic InfoPaper provided by United States Department of Agriculture, Economic Research Service in its series Economic Research Report with number 55952.
Date of creation: Nov 2009
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dairy; organic; milk production; costs of production; pasture; Agricultural Resource Management Survey (ARMS); Agricultural and Food Policy; Crop Production/Industries; Demand and Price Analysis; Production Economics;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-01-16 (Agricultural Economics)
- NEP-ALL-2010-01-16 (All new papers)
- NEP-EFF-2010-01-16 (Efficiency & Productivity)
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