Search Site   
News Stories at a Glance
Deere 4440 cab tractor racked up $18,000 at farm retirement auction
Indiana legislature passes bills for ag land purchases, broadband grants
Make spring planting safety plans early to avoid injuries
Michigan soybean grower visits Dubai to showcase U.S. products
Scientists are interested in eclipse effects on crops and livestock
U.S. retail meat demand for pork and beef both decreased in 2023
Iowa one of the few states to see farms increase in 2022 Ag Census
Trade, E15, GREET, tax credits the talk at Commodity Classic
Ohioan travels to Malta as part of US Grains Council trade mission
FFA members learn about Australian culture, agriculture during trip
Timing of Dicamba ruling may cause issues for 2024 planting
   
Archive
Search Archive  
   
USDA: Certified organic dairies up 25 percent

By DOUG SCHMITZ
Iowa Correspondent

WASHINGTON, D.C. — According to a five-year study released last month by the USDA’s Economic Research Service, the increase in certified organic milk production has been one of the fastest growing segments of organic agriculture in the United States.

In fact, between 2000 and 2005, the number of certified organic milk cows on U.S. farms increased by an annual average of 25 percent, from 38,000 to more than 86,000, the USDA said.
But the report said proposed changes in the USDA’s National Organic Program (NOP), which develops, implements, and administers national production, handling, and labeling standards for organic agricultural products, “seek to clarify and stiffen pasture requirements for organic certification and may determine how the organic production sector continues to evolve.”

The report, titled Characteristics, Costs and Issues for Organic Dairy Farming, indicated that economic forces may be pushing organic dairies to become more like conventional dairies in size, location and types of technologies used.

“Most organic milk operations are small, with 45 percent milking fewer than 50 cows, and 87 percent fewer than 100,” the report stated. “But the largest organic dairies (over 200 cows) account for more than a third of organic milk production and are far more likely to generate returns above their capital and labor costs, suggesting that organic milk production will migrate toward larger operations.”
As of 2005, 87,082 dairy cows were certified organic, up from 38,000 in 2000, said Madeline Schultz, content specialist for the Ag Marketing Resource Center at Iowa State University.

“At that point, organic dairy cows accounted for about 1 percent of the dairy cows found nationwide,” she said.

“The top five states with organically-certified dairy cows were Wisconsin, California, Oregon, Texas and Pennsylvania; the number of certified organic dairy cows increased by 30 percent from 2002 to 2005.”

The USDA defines certified organic as “agricultural products that have been grown and processed according to specific standards of various state and private certification organizations.”

USDA-accredited certifying agents must certify farm and processing operations that grow and process organic foods. A certified operation must also have a written Organic Farm Plan made available to the public upon request.

Schultz said in 1992, nearly 2,300 dairy cows were already certified organic, with organic milk first appearing in supermarkets in 1993.
“At that point, New York, Wisconsin and Minnesota were the top three producers,” she said. “The number of certified organic dairy cows proceeded to increase 469 percent between 1992 and 1997, and 421 percent between 1997 and 2002.”

The report also said farms producing organic milk most often have small dairy operations; 45 percent of organic dairies milk fewer than 50 cows, and 87 percent milk fewer than 100 cows, the report said.

By contrast, large organic dairies with 200 cows or more are a small portion of the organic dairy population, but account for more than a third of organic milk production.

Moreover, more than 80 percent of U.S. organic dairies are located in the Northeast and Upper Midwest, but these operations are small and less productive than those in the West, the report said.

Richard Kersbergen, University of Maine Cooperative Extension professor, said organic dairy sales reached $2.14 billion in 2005 and represented 15 percent of total organic retail food sales.
But according to the Organic Trade Assoc. (OTA), sales of organic milk in 2007 were only over $1.3 billion, but only accounted for 2.7 percent of the nation’s total milk sales, up from 1.7 percent the previous year.

“The cost of production for organic dairies is greater than the cost for standard dairies,” Schultz said. “Organic feed costs more than standard feed, and organic production uses more labor and capital.
“On the other hand, organic milk brings premium prices, so profits are higher for organic dairies,” she added. “Herd size matters to organic costs. Estimated total costs drop sharply as herd sizes increase.”

The report agreed with Schultz, indicating that organic milk can cost considerably more than standard milk, with the national price premium for organic milk averaging $18.00 more per 100 pounds.
“However, consumer demand continues to grow at an annual rate approaching 20 percent. Organic milk is now available in nearly all retail food stores,” the report said.

By 2005, several large organic dairy farms owned herds of several thousand cows, Schultz said.

“Like most other large dairies, these large organic dairies purchased most of their feed and provided little or no pasture to their cows, thus not meeting current organic standards,” she said.
In response, Schultz said critics of the industry lobbied for tighter organic pasture standards, calling for cows to graze at least 120 days on pasture with at least 30 percent of the cow’s nutritional needs coming from fresh grass.

“In 2007, the USDA responded by decertifying one large organic dairy farm that had not met the pasture requirements,” Schultz said. “Expanded organic pasture requirements will likely benefit small organic dairy farms, but may also lead to increased organic production costs and prices.”

12/16/2009