An assessment of the economic performance of organic dairy sheep farming in Greece

Sheep farming is an important and well-established activity in Greece, especially in mountainous and semi-mountainous areas. In these areas, organic sheep farming has recently experienced a significant increase, representing a promising alternative to conventional methods for a number of sheep farms. This study analyses the financial performance of sheep breeding and the risk that producers are taking in practising it. Through a stochastic efficiency analysis with respect to a function, we explored the economic viability of conventional and organic sheep farming; key factors determining the economic outcome of these activities were also investigated. Both organic and conventional sheep farming appear to be viable alternatives. The viability of organic farming lies, mainly, in organic payments, while conventional farming generates a lower net return.