Text of Profitability of Organic Farming Systems Mr. James McDonnell, Teagasc Teagasc National Organic...
Profitability of Organic Farming Systems Mr. James McDonnell, Teagasc Teagasc National Organic Conference 2009
Outline Conventional v Organic Sources of financial information NFS EPM Teagasc Budgets Beef production Rearing systems Non breeding/ other systems Dairy production Tillage production
Conventional v Organic Why? Government 5% target Source of new organic participants Organic farming systems Are they difficult to manage? Do they have lower cost of production? Are they more profitable? How profitable are conventional systems?
Why is Profit important? The business needs profit to Pay the manager/ investor ( i.e. YOU) Reinvest in new business assets so that the business will grow and generate more profit (building up cash is also reinvesting) Pay back lenders the principal that was borrowed to get the business to its current state
Cattle Systems in Ireland Cattle rearing systems Non Breeding / other systems
Organic Dairy Farming Comparison with Conventional Winter Milk E profit monitor results 2008
Winter Milk EPM V Organic EPM (Net Margin / Ha)
Winter Milk EPM v Organic EPM (Net Margin / Cow)
Organic Tillage Suits mixed farms 2 operations on most farms Good margins Crop rotation critical
Organic Tillage DescriptionProduction Levels Yield - tonnes/hectare (t/ac)4.0(1.6)5(2) Output at 350 per tonne14001750 Material Inputs /ha Seed (220kg @ 930/tonne)205 Lime20 Machinery hire /ha total390.5393 Organic Scheme payment up to 55 ha *106 Gross Margin per ha (excl SFP)900.51238