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Farm economy during the read justment years from conventional to certified ecological farming :

SLU/Dept. of Agricultural Biosystems and Technology
Publication Date
  • Ekologiskt Jordbruk
  • Krav
  • Ekonomi
  • Ecology
  • Economics


The purpose of these theses is to show the financial economical situation during the change from conventional dairy production to ecological production. The thesis is accomplished by collecting information from literature and interviews where needed. The target group of these theses is dairy producers who will transform their production from conventional dairy production to certified ecological dairy production. The theses emphasise on the economic situation during the adjustment years. For this I have studied a presently producing dairy farm. I compare the present day conditions and compare them with the requirements needed to meet certified ecological standard. The focus is on cost of forage and the driving distances are studied since this farm is using a contractor. The cow barn used, as example is three years old and has the best conditions to be approved to KRAV without any reconstruction work. Today only hay production is carried out and the hay is not certified according to the standards set by KRAV. To achieve a sufficient weed control program a good rotation of crops are essential. The farm also needs a high level of own produced crop. The requirement for connecting to KRAV is today (2004) that the farm has been run by KRAV’s regulations for two years prior to first delivery of ecological KRAV milk. The connecting to the KRAV organisation gives the farmer an increased income of 50 öre/ delivered litre milk. With this work I have been able to show that the economic situation for the studied farm changes from 1 075 000SEK, before connecting to KRAV, to 511 000 SEK during the two transition years. This is due to lower milk production and decreased number of animals, which in turn is due to adjustment to the rules and regulations of KRAV. My conclusion is that if the farm can survive the economic decrease that is a fact during the transition years the farm will be able to survive.

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