A Comparative Analysis of the Energy Return on Investment of Organic and Conventional Icelandic Dairy Farms

Abstract

This study compares the energy return on investment (EROI) of organic and conventional farms in Iceland. It examines which farming method returns the highest amount of edible energy to society relative to the input required. Twenty farms were studied: two organic and 18 conventional. Real data were gathered directly from five farms (including both of the organic farms in the study). Further data from 15 conventional dairy farms of different sizes were collected from a database maintained by the Icelandic Farmers Association. One of the organic farms studied (Org1) was found to have an EROI of 2.68, whereas two conventional farms used as controls for comparison (Con1-a and Con1-b) had EROIs of 0.60 and 0.69, respectively. The second organic farm (Org2) had an EROI of 0.55, versus the control farm ratio of 0.27. On average, large (<170 hectares) conventional dairy farms had an EROI of 0.65, while medium (<70 hectares) and small (<40 hectares) conventional farms had average EROIs of 0.56 and 0.50, respectively. This limited analysis suggests that organic dairy farms may provide better EROIs than conventional farms, but that their dairy yields per hectare are lower.