Producers of organic milk lose out by 10%
Organic milkers receive a 29% price premium, but lose out because yields are 40% lower.
"For organic milk producers to have comparable incomes to those in conventional dairying, they would need a price premium of 36%," said Liam Connolly, at the Teagasc's organic farming open day at Johnstown Castle, in Wexford.
Mr Connolly warned against the Danish syndrome. An increase in their organic milk production in the past decade led to over-production.
As a result, organic milk producers received no price premium for their milk, and many have reverted to conventional production.
Beef is the most profitable organic system in Ireland. A Teagasc survey showed organic beef incomes in 2000 were almost 60% higher than conventional incomes. This was attributed to significantly lower costs, a 20% price premium, and a REPS top-up payment of 91 per hectare.
The survey showed little difference between organic and conventional producers of lamb.
"Irish, organic wheat and barley growers are making incomes between 20% and 80% higher than their conventional counterparts. Incomes from organic potato production are around 50% higher", said Mr Connolly.
"As a high proportion of organic vegetables are sold locally, outlets can be easily over-supplied, leading to a rapid decline in price premia," he said.
Dr Noel Culleton, leader of the Teagasc organic research programme, said only farmers who operate to the highest production standards will survive in organic farming.
"In livestock farming, getting maximum production from clover, and high skills in dealing with animal health and welfare, are crucial. Organic farming is not an easy option," he said.
"Farmers who run good, commercial, conventional operations are the ideal candidates for successful organic farming," Dr Culleton said.
"Poor conventional farmers will make poor organic farmers," he said.
A recent Government report projected a trebling of organic food sales by 2006.
Liam Connolly said it was difficult to see more than 5% of the land area of Ireland being devoted to organic production for the foreseeable future.
