Eco Landuse Systems 
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Wynen, E. (1994), 'Bio-dynamic and conventional dairy farming in Victoria: a financial comparison'.
Originally published as Appendix 6 in: D. Small, J. McDonald and B. Wales, Alternative farming practices applicable to the dairy industry, Victorian Department of Agriculture (Kyabram) and the Dairy Research and Development Corporation (Melbourne).
Published in Agribusiness Perspectives (Paper 50), February 2002. (Download full version from Agribusiness Perspectives, Paper 50)
Summary
In 1989 a project was started by the Department of Agriculture in Victoria, Australia, comparing six bio-dynamic (b-d) dairy farmers with a conventionally farming neighbour for the years 1980-90, 1990-91 and 1991-92 .
For the economic comparison seven pairs of farms were studied. Results were as follows:
- the total effective dairy area on b-d farms was similar or lower than on conventional farms;
- production of milk per cow and per hectare were lower on b-d farms:
- on b-d farms litres per cow varied between 70 and 80 per cent of those on conventional farms. The average percentage of friesian cattle (a higher yielding breed) was 75 per cent on b-d farms, and 90 per cent on the conventional farms;
- litres per hectare were between 30 and 35 per cent lower on b-d than on conventional farms;
- cash receipt on b-d farms was approximately 60 per cent of those on conventional farms; main differences which can be attributed to management practices were in higher feed costs (mainly fertiliser, agistment and grains) and herd costs (mainly animal health) on conventional farms;
- cash operating surplus (cash receipt minus cash cost) on b-d farms was approximately 45 per cent of that of conventional farms;
- on b-d farms total weeks worked was between 7 and 15 per cent less than on conventional farms;
- returns to resources (cash operating surplus minus depreciation, family labour, interest and rent) on b-d farms was lower:
- per total farm: on b-d farms, this was between 0 and 26 per cent of returns on conventional farms;
- per effective dairy hectare operated: on b-d farms, this was between 14 and 28 per cent of returns on conventional farms in 1989-90 and 1991-92, and negative in 1990-91;
- per capital invested: on b-d farms, this was between 17 to 30 per cent of conventional farms in 1989-90 and 1991-92, and negative in 1990-91.
In conclusion, under prevailing input and output prices, private net returns to the b-d farmers surveyed were lower than to the conventional farms. A premium of less than U$0.10 is needed for the b-d farms to have a similar income to that of their conventionally farming neighbours. At present, some b-d farmers receive U§0.04 over and above the conventional price, most receive no premium.