Economic analysis of organically managed large scale farms in Eastern Germany

Large scale farms manage the cultivation of almost 70% of the East German farmland and are an important source of employment in rural areas. In spite of their importance in conventional as well as organic farming, they have been the subject of only a few scientific surveys. Since the outcome of the Midterm Review of European agriculture policy - Agenda 2000 – concerns especially large farms in Eastern Germany, an analysis of the competitiveness in light of these changes is of interest for farm managers, advisory services and policy-makers/politicians.

A survey was first carried out among market experts to analyze the organic market situation in Eastern Germany. This showed, for example, that the East German producers are still highly dependent on West German processors and consumers and that future market expansion is more likely to be in quality grains. In the second phase of the project farm managers or owners of 43 organic large scale farms, mostly located in the states of Brandenburg and Mecklenburg-Vorpommern, took part in on-farm interviews. This reflects the high percentage of organic farming in these less fertile northeastern regions. The microeconomic and socioeconomic data is analysed statistically and on the basis of this data typical farm models are defined. The implications of the Midterm Review at the farm level and the factors which lead to success are modelled, enabling the deduction of management strategies.