Is it worth considering the organic option if you are a diary farmer? And if so, how does the day to day practice of farming differ from conventional farming?
First, the organic option for diary. The the formation of a new company for the organic dairy sector, called the Irish Organic Milk Producers (IOMP), will certainly help. From launching a new product range, to pooling resources and lobbying, the benefits of the company will be numerous.
IOMP has a current pool of 4 million litres of quota, rising to 6 million soon.
The freeing up of quota has increased the opportunities for the sector.
An issue however remains the stocking rates and housing differences between conventional and organic dairying: conventional farmers who have invested in high stocking numbers and specialised housing have already made serious commitments.
That said, according to Teagasc figures, the organic dairy sector is profitable. Whilst output is 8% higher on conventional diary farms, family farm income is 7% higher on organic dairy farms due to total costs being 16% lower.
These figures are explained by the fact that, while gross output, gross margins and overhead costs are all similar, direct costs are 708E per hectare on organic dairy farms, whilst the conventional equivalent is 923E per hectare.
Direct payments are also 12% higher on organic farms, which are also on average 1/3 larger. This compensates for the lower stocking rate organic farms must carry.
According to Teagasc statistics on winter milk, organic diary farms scored almost as well as the top 10% in the conventional diary sector.
Teagasc's James McDonnell: �There is an opportunity for conventional spring milk producers to switch to organic production and gain 10,000 gallons of quota to grow their business. �
He also points out that there is profitability potential due to the fact that conventional �milk prices are falling on the world market at present�.
John Liston farms 80 hectares near Croom in Limerick. He stocks both dairy cows and beef animals, and has a hectare of forestry. He converted to organic in December 06, and has sold milk to Glenisk since then.
John's 60 cows calve in July August. He carries the calves to yearling, with the males sold as year olds and the heifers sold to be put into calf. Some are also fattened for Jennings meats in Mayo. He has a 60,000 gallon quota.
Feed price and availability is an issue. At present, a local organic farmer, Harry O Grady, supplies oats. The establishment of the new IOMP is a great help, according to John, as organic dairy farmers can now pool resources, source inputs and increase efficiency.
He gives an example: �you can divide an artic load of feed between 2 or 3 farmers, so there's no half loads�.
�For me, converting was easy because I'd a small quota relative to the farm size� he tells me.
One of the biggest changes between organic and conventional is �that you don't have early grass. That's where you need extra silage. You have as much late on, but its tight in March April.� To this end, he planted red clover, �for quality of silage and yield� he tells me. With clover, John gets �three crops off one meadow, about 20 round bales per acre�.
Medically, John sometimes uses homeopathy for dosing calves. He also finds that putting calves under cows he has problems with can help.
In yield terms, the weather is always an issue. Simply put, the longer the animal stays on grass, the cheaper it is for John.
Compared to other sectors, diary can involve significant changes when converting to organic. All told however, it is certainly worth considering.
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