Staff Publications

Staff Publications

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    'Staff publications' is the digital repository of Wageningen University & Research

    'Staff publications' contains references to publications authored by Wageningen University staff from 1976 onward.

    Publications authored by the staff of the Research Institutes are available from 1995 onwards.

    Full text documents are added when available. The database is updated daily and currently holds about 240,000 items, of which 72,000 in open access.

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Record number 426453
Title Comparing risk in conventional and organic dairy farming in the Netherlands: An empirical analysis
Author(s) Berentsen, P.B.M.; Kovacs, K.; Asseldonk, M.A.P.M. van
Source Journal of Dairy Science 95 (2012)7. - ISSN 0022-0302 - p. 3803 - 3811.
Department(s) Business Economics
LEI MARKT & K - Risico- en Informatiemanagement
Publication type Refereed Article in a scientific journal
Publication year 2012
Keyword(s) conversion - systems - milk - agriculture - perceptions - management - attitudes
Abstract This study was undertaken to contribute to the understanding of why most dairy farmers do not convert to organic farming. Therefore, the objective of this research was to assess and compare risks for conventional and organic farming in the Netherlands with respect to gross margin and the underlying price and production variables. To investigate the risk factors a farm accountancy database was used containing panel data from both conventional and organic representative Dutch dairy farms (2001–2007). Variables with regard to price and production risk were identified using a gross margin analysis scheme. Price risk variables were milk price and concentrate price. The main production risk variables were milk yield per cow, roughage yield per hectare, and veterinary costs per cow. To assess risk, an error component implicit detrending method was applied and the resulting detrended standard deviations were compared between conventional and organic farms. Results indicate that the risk included in the gross margin per cow is significantly higher in organic farming. This is caused by both higher price and production risks. Price risks are significantly higher in organic farming for both milk price and concentrate price. With regard to production risk, only milk yield per cow poses a significantly higher risk in organic farming.
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