Productivity gains, evolution of productive performances, and profitability of organic ruminant farms: farm size and feed self-sufficiency matter

We analyzed the productive and economic performances of a constant sample of 58 organic ruminant farms between 2014 and 2018, in a mountain grassland area (French Massif Central). Over this 5-year period, these farms expanded without increasing their labor productivity or animal density per hectare...

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Bibliographic Details
Published in:Organic agriculture 2023-06, Vol.13 (2), p.205-220
Main Authors: Veysset, Patrick, Kouakou, Edith, Minviel, Jean-Joseph
Format: Article
Language:English
Subjects:
Agricultural economics
Agricultural production
Agriculture
Biomedical and Life Sciences
Drought
Economic analysis
Economics
Environment
Farm income
Farmers
Farms
Grasslands
Labor economics
Labor productivity
Life Sciences
Massifs
Organic farming
Plant Sciences
Productivity
Profitability
Self sufficiency
Sustainable Development
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Summary:We analyzed the productive and economic performances of a constant sample of 58 organic ruminant farms between 2014 and 2018, in a mountain grassland area (French Massif Central). Over this 5-year period, these farms expanded without increasing their labor productivity or animal density per hectare of forage area. While animal productivity has been maintained, we observed a decrease in feed self-sufficiency, and thus, an increase in feed purchases. Over the period, the volume of inputs used has increased more rapidly than agricultural production, resulting in a decline in the productivity surplus (PS) at a rate of −2.6%/year. As the prices of products and inputs were relatively stable, this decrease in PS was financed at 41% by an increase in public aid (drought aid, agri-environmental climate measures) and at 49% by a decrease in profitability for the farmer (the farm income per farmer fell by 40%). A binary choice estimation model, i.e., which variables determine the positive or negative sign of the PS, showed that farm size was a negative determinant of the PS, as was system specialization, while feed self-sufficiency was a positive determinant. More statistically robust references on price indices of organic farming (OF) products and inputs, as well as long-term follow-ups of OF farms, are needed to validate these original results, which were based on a small sample size and a short period of time.
ISSN:1879-4238
1879-4246
DOI:10.1007/s13165-023-00422-9