Organic dairy farms in the EU: Productions systems, economics and future development

Organic farming is increasingly considered in the European Common Agricultural Policy. Sound evaluations of the effects of policy measures on organic farms in the EU are needed to face the challenges in future policy design. The effects of various policy scenarios on profitability and development strategies of typical organic dairy farms are analysed for the EU countries––Germany, Denmark, the United Kingdom and Italy. Based on an approach which links simulation modelling and focus groups consisting of farmers and advisors, profitability of typical farms is analysed, the impact of policy scenarios (Agenda 2000 and two alternatives) simulated and farm adaptation strategies forecasted. Size, structure, productivity, profitability and policy environment surrounding typical organic farms differ widely between countries. Dairy farms will benefit from Agenda 2000. In adaptation to Agenda 2000 they are expected to either grow or diversify production. Two extreme alternative scenarios are also analysed in their impacts on organic farms, a supply-policy driven scenario (I) and a demand-induced scenario (II). Scenario I results in higher profitability of organic farms than scenario II in the long term, while Scenario II results are similar to Agenda 2000 effects in the long term. Adaptation strategies to alternative scenarios are similar to the ones forecasted for Agenda 2000. from: Häring, A. M. (2003):Organic dairy farms in the EU: Productions systems, economics and future development. Livestock Production Science 80(1-2):89-97

Organic Farms in the EU: Policy impacts and adaptation strategies of typical arable and dairy farms

Organic farming is increasingly considered in the European Common Agricultural Policy. Sound evaluations of the effects of policy measures on organic farms in the EU are needed to face the challenges in future policy design. The effects of various policy scenarios on profitability and development strategies of typical organic arable and dairy farms are analysed for the EU countries Germany, Denmark, the United Kingdom and Italy. Based on an approach which integrates simulation modelling and focus groups, profitability of model farms is analysed ex-post for year the 1999 and their potential development simulated until 2008 under Agenda 2000 and three alternative policy scenarios. For each policy scenario potential farm adaptation strategies are analysed. Size, structure, productivity, achieved output prices and policy surrounding of typical organic farms differ widely between countries and farm types. Great differences in the contribution of payments to total farm profit and farm family labour remuneration are observed. Dairy model farms are expected to slightly benefit from Agenda 2000, while arable farms are more susceptible to price reductions realised in the Agenda 2000 package. In adaptation to Agenda 2000 organic dairy farms are expected to grow, while arable farms are more likely to diversify production or envisage valued adding strategies. The effects of alternative policy scenarios on profitability of typical farms are similar in all countries. The choice of adaptation strategy of farmers in the different countries, however, vary significantly, mainly due to the current market situation

Economic simulation of organic farms guided by farmers - A participatory approach to agricultural policy research?

The objective of this paper is to introduce, based on own practical experiences, an approach to agricultural policy research that is based on intensive interaction with groups of farmers, and to discuss to which extent participation is realised in this process. This approach consists of panels of farmers, scientists and agricultural advisors. In group meetings development strategies of typical organic farms and the farms reaction to changes in the policy environment are discussed on a regular base. Farmers are consulted on their opinion and define potential farm development strategies in a cooperative manner, whereas the scientist analyses data. The potentials of this cooperative approach of consultation are discussed in the light of research objectives and the benefits and input requirements of participants

An interactive approach to policy impact assessment for organic farms in Europe

Organic farming has increasingly become an integral part of the European Common Agricultural Policy. This book analyses the impact of possible future EU policy options on typical organic dairy and arable farms in the EU. A novel methodological approach is tested in terms of applicability and feasibility of using it for international comparative policy impact analysis for organic farms. This approach links focus groups, consisting of farmers and advisors, with a policy impact assessment simulation model in an interactive manner

Research on Organic Food Production: Status, Requirements and Perspectives

Organic farming has rapidly developed in the EU in the 1990s. Although funding for organic research seems to increase with growing public awareness and political pressure, the current funding volume lags behind. The following aspects are discussed to effectively expand research in organic farming in the future: Why research and innovation specific to organic farming is needed. What are the appropriate research priorities? Is there need for specific “organic” research methodologies? How is research in organic farming best organised? Based on a literature review on the topic, a summarising evaluation of the status-quo of research on organic food production is given. The need for specific organic farming research is justified primarily because problems are different due to the organic farming definition, and because synergy effects may result for conventional farming, as well. Research priorities differ widely between stakeholders and regions and should, therefore, be defined jointly. A need for organic research methodologies has been identified. Core centres of competence assisted by advisory boards consisting of representatives of all stakeholder groups are proposed as an ideal research infrastructure for organic farming

Nicht mehr am Katzentisch

Der ökologische Landbau schob sich in den letzten 20 Jahren weit nach vorn im öffentlichen Bewusstsein. Verunsichert von Lebensmittelskandalen und Tierseuchen, interessieren sich Konsumenten heute mehr für ökologisch erzeugte Nahrungsmittel als in den 80er Jahren des letzten Jahrhunderts. Parallel dazu verdreifachte sich die ökologisch bewirtschaftete Fläche innerhalb der EU zwischen 1993 und 1999. Trotz dieses Wachstums werden nur drei Prozent der landwirtschaftlichen Flächen in Europa ökologisch bewirtschaftet. In diesem Beitrag wird auf folgende Aspekte eingegangen: „Wo sitzen die Öko-Bauern in Europa?“ , Markt für ökologische Lebensmittel, EU-Agrarpolitik und der ökologische Landbau, und „Was ist der Stand der Dinge im Öko-Landbau in anderen europäischen Ländern?

The economic impact of the CAP reform and potential future policy developments on typical organic farms in the EU

Introduction: The increasing emphasis of the CAP on environmental sensitive agricultural systems and surplus reduction has lead to an increased focus on organic farming and its consideration in policy measures. The EU project “Organic farming and the CAP” evaluates CAP and other policy measures with respect to their effect on organic farming in the EU. Therefore, the effects of various policy scenarios on the profitability of organic arable and dairy farms in selected EU countries were investigated. Material and Methods: Case studies of typical organic arable and dairy farms in DE, DK, UK and IT were conducted following the concept of the „International Farm Comparison Network (FAL)“ (Deblitz et al. 1998). In a group discussion process in panels of 4-8 farmers typical farms are defined and potential farm development strategies are discussed. Using the simulation model TIPI-CAL (Hemme et al. 1997) the economic development of these model farms is simulated for future years. Modelling results are corrected and confirmed by these panels in a three-stage feed back process, assuring high data quality. The impact of EU-wide policy scenarios on economic performance of these typical farms is demonstrated. A liberalisation scenario and two positive scenarios (one demand-driven, one policy-driven) are compared with a baseline scenario (Agenda 2000). Panels are confronted with these results and adoption of farm management strategies are discussed for the different policy scenarios. Results and Discussion: Size, structure, productivity, achieved output prices and policy surrounding of typical dairy and arable farms in differ widely among the selected countries. With respect to national differences especially productivity and the contribution of payments to total farm profit seem to be of importance. Farm family labour remuneration is highly variant not only among countries, but also between farm types within a country. Farm development strategies envisaged by organic farmers are related to diversification, value addition, and growth. Organic dairy farms tend to consider growth strategies more than organic arable farms do. However, diversification strategies are also important. Arable farms in turn are much more flexible and, therefore, more likely to diversify production and invest into valued adding strategies such as processing and marketing. The effects of policy scenarios on profitability of typical farms is similar in all countries. However, the choice of adoption strategy of farmers in the different countries vary significantly. This seems to be mainly due to the current national market situation. Conclusions: The present methodology benefits the consideration of non-monetary issues in the simulation process of farm strategy and policy modelling of farms. The effect of agricultural policy measures on organic farms can be demonstrated effectively, providing also a farmer based reasoning of farm development and adoption strategies

Will policy support for organic farming be justified in the future? The environmental impacts of organic farming

Introduction: In the European Union, organic farming has experienced a dynamic development in the 1990s, in part debited to financial support from agricultural policy measures. The most commonly used argument in support of organic farming is its positive environmental effects. However, support of organic farming practices on those grounds is only justified if these actually result in less negative environmental impacts than conventional farming. Stolze et al. (1999) reviewed existing research results up to 1997 on this topic and compiled a qualitative comparative evaluation based on an adapted OECD environmental indicator concept for agriculture (OECD 1997). On a per hectare basis, organic farming showed to be less detrimental with respect to most indicators than conventional farming. This paper will evaluate new evidence on the issue, taking results on a per output basis and the most recent developments in general EU agricultural legislation and organic standards into account. Materials and Methods: The OECD set of environmental indicators for the agricultural sector adapted by Stolze et al. (1999) is used. Based on a literature review of research results compiled between 1997 and 2002 a qualitative assessment is given for the following indicator categories: i) ecosystem, ii) natural resources (soil, ground and surface water, climate and air), iii) farm input and output, iv) animal health and welfare. The effect of recent developments in general agriculture EU legislation and organic standards on the relative benefits of organic farming is evaluated to assess if conventional agriculture is approaching organic agriculture due to tightening general legislation. Additionally, the option of achieving beneficial effects on some indicator categories when combining organic production with a targeted management of non-productive areas is reviewed. Results and Discussion: Organic farming seems to perform better than conventional farming with respect to all considered indicators, but large differences exist between indicators. New evidence permitted the evaluation on a per output basis for some indicators. This changes the final qualitative assessment for some indicators or indicator categories compared to the results of Stolze et al. (2000). Recent developments in EU legislation on agriculture in general do not seem to fundamentally change the relative assessment of the environmental impacts of organic in comparison to conventional agriculture. However, some important developments are not yet reflected in research results, e.g. the EU organic animal husbandry standards (European Commission 1999) which were implemented only in the year 2000. Conclusions: Support to organic farming is justified due to its positive environmental effects. However, the relative benefits must continue to be monitored in the light of current developments in agricultural legislation and organic standards. Cost-benefit analyses of the environmental effects of organic farming support in comparison to other agri-environmental measures and conventional farming are needed

Organic Farming: Policy and Prospects

Food retailers in Europe, including supermarkets, have responded to rapidly rising demand for organic produce. The organic sector has moved from a marginal production fad to a serious subject of policy concern for politicians and public servants involved in European agricultural policy. Drawing on a huge body of scientific research, this book - reviews the organic farming sector today and the policies developed towards it - assesses its contributions to the environment, food quality, farmers' incomes, and rural development - explains the key factors impinging on the organic farming sector in future - makes a detailed range of recommendations for future organic farming policy Contents 1 Organic farming: A grassroots movement taken over by policy? 2 Organic farming in Europe at the dawn of the new millennium 3 Organic farming's contribution to policy objectives 4 A Changing Policy Environment 5 Recommendations for future organic farming policy from: Dabbert, S. und Häring, A. M. und Zanoli, R. (2003): Organic Farming: Policy and Prospects. Zed Book

A policy relevant assessment of the environmental impacts of organic farming

Organic farming has become an important aspect of European agri-environmental policy. Since the implementation of EC Reg. 2078/92, the EU promotes organic farming based explicitly on its positive effects on the environment. The objective of this paper is to contribute to a better understanding of organic farming's effects on the environment in comparison to conventional farming and to discuss the policy relevance of these issues. For this purpose the OECD set of environmental indicators for the agricultural sector has been adapted, taking into consideration only those indicators that are directly affected by the system of organic farming, as are the indicator categories ecosystem, natural resources, farm input and output, and health and welfare. Based on a survey of specialists in 18 European countries (all EU-member states plus NO, CH, and CZ) using a structured questionnaire and an extensive literature review, a conclusive assessment is given for each of the indicator categories. For most of the chosen indicator categories organic farming performs better than conventional farming on a per ha basis. These results are discussed with respect to their policy relevance. An increase in the area of organic farming would clearly improve the environmental performance of agriculture, as long as food production level is not a limiting factor. The question of whether there are other agri-environmental means of achieving a desired level of environmental performance that might be cheaper for society than organic production is discussed. It is concluded that the support of organic farming can be a useful part of the agri-environmental tool box, however, other, more specific instruments are also needed. Organic farming seems especially useful if broad environmental concerns are to be addressed