Profitability of organic farming systems Teagasc盈利能力的有机农业系统爱尔兰农业与食品发展部.pptVIP

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Profitability of organic farming systems Teagasc盈利能力的有机农业系统爱尔兰农业与食品发展部.ppt

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Profitability of organic farming systems Teagasc盈利能力的有机农业系统爱尔兰农业与食品发展部

Profitability of Organic Farming Systems Mr. James McDonnell, Teagasc Teagasc National Organic Conference 2009 Outline Conventional v Organic Sources of financial information NFS EPM Teagasc Budgets Beef production Rearing systems Non breeding/ other systems Dairy production Tillage production Conventional v OrganicWhy? Government 5% target Source of new organic participants Organic farming systems Are they difficult to manage? Do they have lower cost of production? Are they more profitable? How profitable are conventional systems? Why is Profit important? The business needs profit to… Pay the manager/ investor ( i.e. YOU) Reinvest in new business assets so that the business will grow and generate more profit (building up cash is also reinvesting) Pay back lenders the principal that was borrowed to get the business to its current state Cattle Systems in Ireland Cattle rearing systems Non Breeding / other systems Beef Systems Organic EPM Results v NFS 2007 Organic Dairy Farming Comparison with Conventional Winter Milk E profit monitor results 2008 Winter Milk EPM V Organic EPM(Net Margin / Ha) Winter Milk EPM v Organic EPM(Net Margin / Cow) Organic Tillage Suits mixed farms 2 operations on most farms Good margins Crop rotation critical Organic Tillage Conventional Tillage - 2008 Preliminary results Gross margin over materials (seed, spray, fertiliser etc) Winter Barley G.M/Ha €686 Winter Wheat G.M/Ha €710 Machinery costs average €300 - 400 Take Home Messages Beef Huge variations in performance Organics more profitable Milk attractive up to 1.7L.U. per ha Tillage Excellent margins * €420 / ha difference €501 / ha difference €100 / ha difference 517 324-553 325 Total Premia* -84 71-131 150 Net Profit excl. Premia 139 162-415 200 Fixed Costs 55 233-479 350 Gross Margin 101 112-582 465 Variable Costs 156 346-1061 1000 Gross Output Value Financial €/ha 0.5 0.77-1.36 1.3 – 1.4 Stocking Rate LU/ha 34.6 19.7 - 84 Farm Size ha Physical NFS 2007 Range Ta