WASHINGTON, DC – Smaller organic dairy operations may be netting more money at the end of the day than their larger conventional counterparts. According to the Economic Research Service (ERS), production costs for organic dairies are roughly twice as high as conventional dairies; including operation, feed, energy, capital, and labor expenses. Costs also decrease as producers increase cows. For a dairy with up to 50 cows, it costs $15 more per head for organic operations and $13 more per head for operations with more than 100 head. The kicker comes on the sales side as organic producers sell milk at almost twice the price that conventional dairies reap, thus making small organic dairies usually more profitable in the long-run.
(SOURCE: Economic Research Service)