Policy Incentives and the Organic Value Chain in Ireland

In this paper administrative datasets are utilised to study farms that have converted to organic beef production in Ireland, to draw lessons for future CAP scheme design. The analysis confirms anecdotal evidence in relation to a leakage of animals from the organic to the non-organic (conventional) beef sector. As a result of this differential response across the value chain, there is sub-optimal production of organic meat relative to the investment in incentives for conversion from non-organic to organic production. This may result in risks to the long term viability of the incentive scheme and more widely, for supports for organic farming.