Survey quantifies cost of organic milk production in California
This study measures the cost of organic milk production, and in particular, the differences in cost of production between organic and conventional milk in California. Results show that the total cost of production on a per cow and a per hundredweight basis is about 10% hig...
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| Format: | Article |
| Language: | English |
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University of California Agriculture and Natural Resources
2002-09-01
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| Series: | California Agriculture |
| Online Access: | http://calag.ucanr.edu/archive/?article=ca.v056n05p157 |
| Summary: | This study measures the cost of organic milk production, and in particular, the differences
in cost of production between organic and conventional milk in California. Results
show that the total cost of production on a per cow and a per hundredweight basis
is about 10% higher for organic producers than for conventional producers in the surveyed
regions, and about 20% higher when compared on a statewide basis. The higher costs
appear to be due to reduced milk production, higher feed costs, higher average labor
costs, significantly higher herd replacement costs and significant transition costs.
The higher costs associated with organic milk production are exacerbated to some extent
by lower milk yields, and at the same time, are mitigated by the substitution of lower
cost pasture for higher priced roughage and concentrate feeds. The higher prices paid
for organic milk may more than offset these higher costs compared to their regional,
same-sized neighbors. |
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| ISSN: | 0008-0845 2160-8091 |