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Golden era for the organic ‘pinta’ as profits rise

A new financial report published this month shows organic farm profits increasing, with organic dairy farming outperforming conventional dairy farming in England and Wales.

This detailed financial report on organic farming in England and Wales for 2014/15, undertaken by the Organic Research Centre for the Welsh Government, highlights that the organic dairy industry is now generating higher profits than conventional farms despite producing lower yields. The sector is also successfully competing for new export business in countries like China and USA.

The analysis of 2014/15 data showed that organic farms achieved higher or similar profitability to comparable conventional farms, and on organic LFA (less favoured area) cattle & sheep farms profitability was statistically higher than conventional farms. At the enterprise level, organic dairying net margins were above the conventional level, whilst for beef and sheep enterprises, organic margins were ahead of the conventional sector. Cropping enterprises also showed a positive position for most organic activities, and therefore it can be concluded that with the addition of support payments, organic farms are performing at a similar or better level than comparable conventional farms.

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