Interest continues to grow in organic dairying by consumers, producers and processors. Organic dairying has its production challenges but good profits can be earned for producers who manage the organic system well. The proof is in the numbers.
Iowa State University Extension teamed up with CROPP Cooperative/Organic Valley to analyze the 2014 profits of 7 dairy farms in North Carolina, Virginia and West Virginia. The results were broken down into three sections, each shown in a three column format depicting dollar values, per cow values, and per cwt. equivalent values for applicable income and expense items. The three sections include 1) Average of all seven farms 2) “Higher Profit” group consisting of the four more profitable farms, and 3) “Lower Profit” group consisting of the three lower profit farms. Profitability was determined based on 1) return on assets 2) return to unpaid labor hour, and 3) net return per cwt. equivalent of milk produced. Each farm used the Dairy TRANS Financial Analysis program to analyze profitability.