Title: ORGANIC DAIRY FARMING IN NORWAY UNDER THE 100% ORGANICALLY PRODUCED FEED REQUIREMENT
Author(s): Flaten, O. + Lien, G.
Organisation: Norwegian Agricultural Economics Research Institute, NILF.
The EU regulation governing organic production will require 100% organic feed in organic
dairy systems from August 2005 compared with 85% currently in Norway. This study aimed
to assess adjustments in resource use and financial impacts on organic dairy herds using a discrete
stochastic programming model. Farm management effects of the regulatory change varied
between farm types. For the two organic dairy systems examined, both having a milk quota of
100 000 litres but with varying farmland availability, the introduction of the 100% organic feed
regulation resulted in an economic loss of approximately 6-8% of the net income compared
to the current regime. The economic loss was mainly due to the considerable higher price of
organic compared to conventional concentrates.
Keywords: feed regulation, organic farming, milk production, stochastic programming.