The Organic Research Centre has recently published a report revealing that not only are organic farm incomes increasing, but that organic dairy farming is also significantly outperforming conventional dairy farming in England and Wales.
The detailed financial report, which focuses on organic farming in England and Wales for 2014/15, highlights that despite a lower average yield of 228 litres per cow (the conventional average is 7485 litres) organic dairy farms attained a net margin of £376 per cow (6 pence per litre) compared with just £298/cow (4 pence per litre) in conventional farms.
This is largely attributed to lower input costs (forage, machinery etc), an organic milk price increase to 38 pence per litre, and consumer support for production methods that are seen as kinder and better to the environment. Organic farms are also “successfully competing for new export business in countries like China and USA” according to the Organic Research Centre.
Professor Nic Lampkin from the Organic Research Centre in Newbury and one of the co-authors of the report commented on their overall findings, “There has been a considerable recovery in the organic market since the start of the recession. In the last couple of years the organic movement has witnessed growth in many areas and this is evidenced in an increasing demand for organic products from consumers as well as a rise in the range of organic products which are now more widely available.”
Organic Farm Incomes in England and Wales 2014/15 was produced with support from the Welsh government and more details can be viewed on the Organic Research Centre website.