2002, Volulme 5, Paper 50
ISSN: 2209-6612
Bio-Dynamic and Conventional Irrigated Dairy Farming in Australia : an Economic Analysis
Els Wynen
Introduction
In 1989 a project was started by the Department of Agriculture in Victoria, Australia, comparing six bio-dynamic (b-d) dairy farmers with a conventionally farming neighbour. The number of farmers was later expanded to ten pairs. The survey was to run for three years and measure a number of soil, plant and animal characteristics. A financial comparison between the bio-dynamic dairy farmers and their conventionally farming neighbours was required as part of the project for the years 1980-90, 1990-91 and 1991-92.
The final number for this survey was seven pairs of farms. Details of the whole study are contained in a report to the funding body, the Dairy Research and Development Corporation, and have never been officially published. In the absence of more recent data, and with current interest in organic agriculture as witnessed by an attempt to establish a CRC for organic agriculture, it seems appropriate to bring work carried out in the past into the public domain so that it can contribute to a more informed debate.
The financial comparison was to be carried out such that the results could be compared with a previous study undertaken by a consultant (ACIL) for the Victorian Dairy Industry Authority (VDIA) for the year 1989-90, and with VDIA estimates for 1990-91 and 1991-92. The purpose of the ACIL study was to calculate the total costs of producing a litre of milk. In Section 2 the cash costs of producing a litre of milk by the bio-dynamic farmers and the conventionally farming neighbours are reviewed.
In addition to the calculation of production costs as estimated in the ACIL study, the data were rearranged so that they could also be compared with the results of dairy industry surveys conducted by the Australian Bureau of Agricultural and Resource Economics (ABARE) (Section 3). This allows for a comparison of the whole farm situation, both in terms of total cash receipts and costs, and in terms of non-cash costs.
A statistical analysis was undertaken to establish statistical differences between the two groups of farmers for some key variables. Where differences are statistically significant a special mention is made.
In this survey only on-farm costs and returns to farmers are examined. Those costs associated with dairy farming which do not affect the returns to farming (such as off-farm environmental costs) are not included.
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