Hundreds of organic farmers and many conventional farmers, seeking an alternative way of making a living off the land, were told yesterday the expansion of the sector will be slow and difficult.
Mr Liam Connolly told the first Teagasc National Open Day on organic farming at Johnstown Castle, Co Wexford, that he found it difficult to see more than 5 per cent of Irish land being devoted to organic production.
The Teagasc economist said that, while organic production will continue to increase, it will remain a niche market. A recent Government report projected a tripling of food sales by 2006.
He said that in one key area, milk, organic farmers had income levels 10 per cent lower than those in conventional milk production.
"While they received a 29 per cent price premium, milk yields were 40 per cent lower than conventional production. For organic milk producers to have comparable incomes to those in conventional dairying, they would need a price premium of 36 per cent," he said.
Mr Connolly said that in Denmark, which has a large organic production sector, over-production of organic milk had driven down the price to conventional levels and many farmers had reverted back to the conventional system.
It also emerged at the event, where the numbers attending took the organisers by surprise, that milk from Teagasc's own organic 40-cow dairy herd is being sold at conventional prices to Wexford Creameries because of collection problems.
Only one company in the Republic, Glenisk in Tullamore, Co Offaly, processes large volumes of liquid milk and that plant is nearly 100 miles away from Wexford.
However, the news was not all bad at yesterday's open day. It emerged that organic beef producers were making over 60 per cent more than conventional beef producers because their costs were significantly lower and they received a premium and EU payments.
On the other hand, a Teagasc survey on lamb production showed little difference between organic and conventional incomes.
Yields of organic cereals were normally 60 per cent lower than conventional production and 50 per cent less for vegetables.
Because of the low levels of production, however, Irish organic wheat and barley growers were making incomes between 20 and 80 per cent higher than their conventional counterparts and incomes from organic potato production were about 50 per cent higher.
Dr Noel Culleton, leader of the Teagasc organic research programme, said only farmers operating to the highest production standards would survive in organic farming.
"The levels of knowledge needed must be top class and in livestock farming getting maximum fertility from the grass and dealing with animal health and welfare matters are crucial," he said.
"Organic farming is not an easy option. Farmers who run good commercial conventional operations are ideal candidates for successful organic farmers. Poor conventional farmers will make poor organic farmers too."
One farmer who did make the changeover some years ago, Pat Lawlor from the midlands, said the key to increasing interest in the sector lay in proper marketing.
Mr Lawlor, who has 100 cattle and grows 40 acres of cereals, said: "The model for conventional farming has failed because of over-production and if we are not careful it could also destroy the rise of organic farming too."
The Minister of State at the Department of Agriculture with responsibility for organic farming, Mr Noel Treacy, launched a new Teagasc publication, Principles of Successful Organic Farming. He said it would be useful for any farmer considering joining the 1,000 organic producers already farming 1 per cent of Irish land, with a yield worth €15 million.