Explaining the Process for Conversion to Organic Dairy Farming in Sweden: An Alternative Modelling Approach

Abstract: To date, the process of conversion to organic farming has been analysed as a choice between only two alternatives, conventional versus organic farming. However, the conversion process in the EU is a two-tier decision, which brings the possibility of a nested structure between mixed and organic farming. In the context of Sweden, where the conversion investment is flexible, we attempted to identify economic determinants of the organic conversion process. For that purpose, we applied the nested Logit random utility maximisation (NLRUM) model to data from the Swedish farm accounting data network for 2002-2012. The analysis showed that milk prices, milk yield and environmental support payments play a significant role in the organic conversion process. As expected, a decrease in conventional milk prices would induce conventional farms to convert to organic production. The scale of conversion to organic farming was more pronounced among dairy farms located in regions with higher environme.... https://www.tib-op.org/ojs/index.php/gjae/article/view/2080

Location
Deutsche Nationalbibliothek Frankfurt am Main
Extent
Online-Ressource
Language
Englisch

Bibliographic citation
Explaining the Process for Conversion to Organic Dairy Farming in Sweden: An Alternative Modelling Approach ; volume:67 ; number:1 ; year:2018
German journal of agricultural economics ; 67, Heft 1 (2018)

Creator
Basnet, Shyam Kumar
Manevska-Tasevska, Gordana
Surry, Yves

DOI
10.52825/gjae.v67i1.2080
URN
urn:nbn:de:101:1-2409251022398.591223805675
Rights
Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
Last update
15.08.2025, 7:33 AM CEST

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Associated

  • Basnet, Shyam Kumar
  • Manevska-Tasevska, Gordana
  • Surry, Yves

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