University of Vaasa - Vaasan yliopisto

organic cotton farms typically achieve incomes 10-20% higher than conventional
ones.
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However, the initial costs of organic farming are higher than conventional methods;
in the first two-three years the yield typically falls by 10-20%, or even by as much as
50% (Pawar 2007). This acts as one of the principal stumbling blocks in the growth
of organic cotton cultivation (Agrocel 2007) (Table 6). As a result, a number of
organisations that promote organic methods have emerged to provide support in the
initial stages of conversion from normal to organic methods. These include Agrocel
and Maikaal bioRe in India, which provide technical support to the farmers as well as
buying their crops at a premium of 8 to 20 % over and above normal organic cotton
prices (Agrocel 2007; Eyhorn et. al. 2007).
The figures in Table 6 identify the breakeven point for a farmer converting to organic
methods. The data are a compilation of various sources from our primary research.
The fall in yields is assumed to be around 20%, based on the pooled findings of
various studies. The recovery period for yield is assumed to be 3 years. From this
table, it can be seen that positive returns from a conversion to organic methods are
likely to be achieved after six years.
Once farmers have gone through this transition phase there are grounds for assuming
that they will sustain at least these levels of yields and income (Blaise 2006; Eyhorn,
et. al. 2007).