Diversification of economic effects of milk production in selected group of organic and conventional farms in Poland in 2006-2007

Apart from the social and environmental elements of development, an economic aspect of organic production proves to be very important. Strong and weak points of organic milk production can be identified on the basis of a detailed analysis of accounting data at farm and product (milk) level. The main objective of the study was to compare the competitiveness of cow’s milk production in organic and conventional farms in the years 2006-2007. The results obtained do not prove significant intensification of milk production in the surveyed organic farms. In comparison with conventional holdings, milk yield per dairy cow was much lower, as well as the selling price for milk. It should be emphasised, however, that milk production in organic farms was a profitable activity, but with a very high share of subsidies in this income.