A number of organic milk producers have expressed their concern and lack of viability for the sector if farmgate prices are not increased.
The Irish organic dairy sector accounts for less than 1% of the total milk volume produced in the country, with only a smaller number of suppliers.
It is estimated that there are about 70 organic milk supplies, with a further 12 in the transition period.
But the interest in organic farming continues to increase and more farmers are being encouraged to convert.
Although it may be attractive for dry stock and tillage farmers, for now it looks more likely that milk producers will exit the sector and go back to conventional milk.
Organic milk
Organic dairy producers have raised concerns about the price they are being paid for their milk.
Organic dairy farmers are currently being paid between 45c/L and 60c/L for their milk, but like all other sector input cost have also increased.
Organic milk is paid at a flat rate, with no bonus for constituents like with conventional milk.
Organic dairy farms are also more lowly stocked compared to a conventional farm and production is usually slightly lower.
Cost of production
Speaking to Agriland, a number of organic dairy farmers explained how cost increases for energy and feed mean that their cost of production is not being covered.
One such cost is organic dairy ration which there farmers are paying between €850-900/t.
While also having all the similar cost of production that a conventional farmer would have.
Based on current cost of production it is estimated that it costs a conventional farmer 37c to produce a litre of milk.
If the additional cost of an organic farmer are added this increase to 45c/L for a conventional farmer, but organic producers have a 25% reduction in production/ac – which means that their cost are likely to be around 55c/L.
Benefits
The farmers that Agriland have spoken to expressed that they are passionate about organic dairy farming and enjoy it as a sustainable production style.
They believed that organic farming has higher levels of animal welfare and it being a more sustainable style of farming.
These farmers expressed how organic farming and organic milk production has a number of environmental benefits.
Clover has played a major role on most organic livestock farms for many years, while conventional livestock farms have only started using it more recently.
They noted that words environmentally sustainability are used in agriculture and they believed that their production style achieves this.
But they also stated that they cannot continue in organic dairy production if price being paid are not increased to sustainable levels.