|THE DANISH DILEMMA; DESPITE
UNCERTAINTIES, DANISH DAIRIES INCREASE ORGANIC OUTPUT
Dairy Today by Candace Krebs firstname.lastname@example.org
Five years ago Bjarne Krog, who owns a 175-acre farm west of Copenhagen, Denmark, made, according to this story, a production shift increasingly common all over Europe by going organic.
The story says that so far, margins are "a bit less" than what he earned during 16 years as a conventional farmer despite receiving premiums of 20% on his milk and 10% to 20% on his HolsteinDanish Red slaughter cattle.
The story adds that farming without fertilizer has decreased his grain yields by 30% to 35%, while his cows are producing 10% less milk.
Organically grown feed, which is scarce, costs more than double conventional prices. Housing, grazing and labor requirements also create demands.
Regardless, organic milk now accounts for 22% of Danish production and is expected to reach the one-third mark within four years. With limited opportunity to expand due to environmental regulations, many Danish dairy farmers, the story says, see it as a way to enhance prices instead.
But the countryıs large dairy co-op, MD Foods, which, the story says, handles an overwhelming share of Danish milk production, says it is now receiving more organic milk than it can market effectively. The co-opıs 20% organic price premiums arenıt guaranteed beyond the current year.