Originally Posted by
Rich007
I think most dairy farmers in NZ pondered converting to organics after the recent announcement. However, it take 3 years of 'farming organically' before you are 'certified organic' and recieve the $9/kgms. Fonterra will pay you a little bit extra during the process. Unfortunately, to become organic you typically have to reduce your milk production by about 1/3, some costs will reduce but not enough to make up for the drop in production. (Most farmers will not have the cash reserves to fund this) Then........you finally achieve 'certified organic status', only to find that conventional milk prices have recovered and organic milk supply has increased and we are back to a $1.50/KgMS premium (not worth it)