Shutterstock

News Research

Rapid switch to biological financial risk

7 May 2021 - Linda van Eekeres - 1 reaction

The organic dairy sector can play a pioneering role in an integrated approach to nitrogen emissions, say researchers at Wageningen University. They also warn: "A rapid, large-scale switch to organic dairy farming, without proportionate growth in sales, poses too great a financial risk of a falling milk price."

At the moment, 3% of all Dutch dairy farms have the organic quality mark. In 2019 there were almost 40.000 dairy cows, 2,5% of the total. The European Commission has set the goal of increasing the organic area to a quarter of the European agricultural area by 2030.

"Use the potential of extensive nature-oriented dairy farming - such as organic dairy farming - to contribute to a reduction of ammonia emissions in the Netherlands. Partly by switching from conventional to organic farming and partly by using organic farming as a buffer zone around vulnerable nature areas," says the so-called 'Quick scan nitrogen problem and organic livestock farming'. The researchers also recommend that the government promote research into and development of organic agriculture. Pasture grazing should also be encouraged, as this plays an important role in limiting ammonia emissions.

However, they also believe that attention must also be paid to the sales and market price for organic dairy and to compensation for the higher costs associated with nature-oriented management in buffer zones. "Growth is only possible in collaboration with buyers and the dairy industry, with the aim of achieving a milk price that is in proportion to the cost price."

Awareness can positively influence market demand
According to Biohuis - which sees the report as a boost - production is in balance with the current market. The organic sector is therefore not arguing for conversion subsidies. "In order to give more companies the opportunity to switch, greater market demand is necessary. First of all, the importance of our current organic companies must be recognized by the government. This will make it clear to consumers and the trade that the organic dairy farming has a major positive effect on the nitrogen problem. This consumer awareness, in which the government can play a major role together with market parties, will positively influence market demand," said Natuurweide chairman Sybrand Bouma in a statement.

Greenhouse gas emissions of organic milk higher
The WUR report also shows that organic production does not necessarily mean fewer emissions. For example, the ammonia emission per animal location in organic pig and poultry farming is higher than in conventional farming. Although organic dairy farms emit less ammonia per hectare, the greenhouse gas emissions per kilo of milk are higher than in conventional dairy farms. According to the report, solutions must be sought in conjunction with other sustainability aspects. This includes biodiversity, greenhouse gas emissions, soil surpluses, chemical residues, soil quality and dealing with climate change.

Reducing emissions goes hand in hand with lower milk production
Extensification of dairy farming can contribute to achieving national reduction targets by reducing the total amount of greenhouse gases, according to the report. "This goes hand in hand with a lower total milk production in the Netherlands."

Do you have a tip, suggestion or comment regarding this article? Let us know

Linda van Eekeres

Linda van Eekeres is co-writing editor-in-chief. She mainly focuses on macro-economic developments and the influence of politics on the agricultural sector.
Comments
1 reaction
Subscriber
Jan 7 May 2021
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/ artikel/10892147/snelle-switch-to-biological-financial-risk]Rapid switch to biological-financial risk[/url]
Apparently the level of WUR has dropped alarmingly.
Of course, if milk is not produced in the Netherlands but across the border, it makes no difference to total greenhouse gas emissions.
So final conclusion: organic is less sustainable and a dead end.
You can no longer respond.

What are the current quotations?

View and compare prices and rates yourself

Analysis Milk

Organic milk prices stabilize, but the floor is still fragile.

News Dutch Milk price calculator

Eko-Holland lowers milk price for March

News milk

Dairy malaise still ignores the organic sector

Call our customer service +0320(269)528

or mail to support@boerenbusiness.nl

do you want to follow us?

Receive our free Newsletter

Current market information in your inbox every day

Sign up