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Organic dairy makes headway in OntarioThough it only represents 0.5 per cent of milk production, "going organic" is becoming an increasingly attractive option for dairy farmersby MARK JUHASZGoing organic is an option that is increasingly attractive for Ontario's dairy farmers. The motivations for doing so range from the potential for financial savings and concern for animal and human health to environmental sustainability.Ted Zettel, based near Chepstow in Bruce County, is a pioneer of organic dairy farming in Ontario. Zettel recalls that the "opportunity to manage my dairy herd without the costs of fertilizers was an important initial drive" in encouraging him to go organic. Zettel's dairy farm has been organically managed since 1983, with certification coming in 1986. One of the original founders of the Ecological Farmers Association of Ontario (EFAO) and OntarBio Organic Farmers' Cooperative Inc. a group that produces organic dairy and grain products under the name, Organic Meadow, Zettel believes that organic dairying has come a long way in Ontario. For years, he sold his milk into the conventional dairy stream; only in 1995 did consumers have the option of buying strictly organic milk. In Ontario, organic milk represents about 0.5 percent of production and has a farm-gate value of around $6.5 million. Of the 46 or so organic dairy farms in Ontario, three-quarters are aligned with OntarBio, and sell their milk exclusively through it. Harmony Organics a western Ontario based dairy producer, processor and distributor has emerged as a small dairy competitor to OntarBio. The effective organization of organic farmers has consistently brought a premium price for their milk of 15 to 20 percent above conventional milk. Moreover, information and research has improved considerably in the organic sector since its beginnings. A study recently completed by Dr. Paola Rozzi, an organic dairy specialist with OntarBio, on a genetic trait index will enable organic dairy farmers to work with better statistics on dairy bull selection characteristics and reliability. She included surveys of just under half of all Ontario's organic dairy farmers in late 2003. Some general statistics indicate that organic cows generally produce about 20 percent less milk on average, but have a higher fat count and a lower replacement rate than conventional dairy cattle. Growing consumer demand for organic foods in general is helping to drive the trend to organic milk production. Mario Mongeon, a lead livestock and dairy specialist with the Ontario Ministry of Agriculture and Food in Eastern Ontario, says that "there is definitely a market, but a limited one." Using research conducted in the early to mid-1990s, Dr. Peter Stonehouse and his colleagues at the University of Guelph have published a comparative study of conventional and organic dairy production methods. Their study placed emphasis on "bottom line" numbers. Though the number of organic farms surveyed was low (seven organic farms compared to 111 conventional farms over a three-year period), some important findings emerged. Organic dairy's emphasis on farm self-sufficiency brings with it greater land use requirements. The average farm size for organics was considerably larger than for conventional f arming -- 168 hectares for organic compared to 97 hectares for conventional. Production expenses, including dairy herd replacements, purchased feeds, plant nutrients, chemicals and veterinary services, were considerably higher on conventional farms. However, revenues on conventional farms were higher because output was larger per cow ($4,455 per year for conventional to $3,829 for organic) and per hectare ($2,083 per year for conventional versus $1,428 for organic). The major distinction was in the reduced expenses for organic dairy farmers. When it came to net farm income, organic farms faired better -- $42,000 per year for organic compared to $36,000 for conventional. As well, the return equity was, 7.37 per cent for organic compared to 4.23 per cent for conventional. It is also important to note that this study was conducted before organic dairy farmers could sell their milk separately from conventional, so the additional revenues from premium prices should be considered in the organic profitability equation. "General results with organic dairy show that there are lower costs of production, less grain and concentrates used, more forage and more hay for the cattle," notes Dr. Rozzi. "The result is reduced output with organic production, but also reduced (operating) and health care costs."
In 2005, Alfred campus of the University of Guelph will open its centre for research on organic dairy. This will contribute to greater knowledge about the comparative costs and benefits of going organic.BF Mark Juhasz is an agricultural consultant with Harvest Agra-Food Consultants in Toronto.
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