Innovative Technology and Sustainable Development of Organic - 1.

Table 7. Cost-benefit analysis of three scenarios of organic dairy production in Denmark (in Euro per
year), including estimation of relative impact of milk price and capacity cost decrease i.e. business as
usual (BAU), animal welfare (ANW) and environmental scenario (ENV).
Revenue, € year -1
BAU ANW ENV
Milk 853,217 647,996 465,901
Product quality regulation -30,614 38,686 11,126
Meat 64,772 93,569 65,831
Sum 887,375 780,252 542,859
Costs, € year -1
Contract work 106,253 76,117 90,782
Handling of manure 10,261 11,310 8,532
Concentrates 181,166 115,266 0
Labour, livestock 101,933 162,847 139,281
Straw 3,377 45,222 6,427
Veterinary 43,619 34,718 25,771
Energy 8,713 6,448 4,792
Capacity costs 309,015 246,716 166,153
Financing costs 139,410 136,394 88,807
Sum 903,747 835,038 530,544
Net profit, € per year -16,371 -54,786 12,315
Milk price reduction 10% -41,840 -74,129 -1,593
Capacity costs decrease 10%/cow 7,757 -31,227 28,233
In each scenario, costs for contract work were calculated by adding the costs for field work for the
different areas of crop production (Table 6). Costs to produce grass-clover silage are almost twice as
high as costs related to grazing of grass-clover pasture. This is the reason why costs for contract work
were higher in BAU than in ANW and ENV (Table 7).
Costs related to spreading of manure were slightly lower in ENV compared to BAU and ANW. This
is due to the relatively small herd in ENV (Table 6). Even though the total amount of manure produced
was larger in BAU than in ANW, costs for handling manure were higher in ANW than in BAU. This
was because in ANW relatively more solid manure was produced and the cost for handling solid
manure was higher than for slurry. Costs for purchased concentrates are directly related to the amount
purchased, which was highest in BAU (Table 5). Costs for labour and livestock were lowest in BAU
because of the high level of automation and the out-sourcing of young stock. Costs for purchased straw
were especially high in ANW as a result of use of a deep-litter barn.
Veterinary costs were highest in BAU which was not only caused by the larger herd but also by the
slightly higher number of treatments per cow for farms with AMS versus farms without AMS farms,
i.e. 0.8 versus 0.7 treatments per cow per year respectively (Oudshoorn et al., 2009). Capacity costs
Thesis Frank W. Oudshoorn 97