Final Dissertation

Chatzis Ioannis
Comparative analysis of organic and conventional arable crops systems in Thessaly, Greece
Executive summary
The present study took place in Thessaly during the summer of 2004 and its
major aim was to compare organic and conventional farms with 3 year rotation
in Thessaly. The samples were 15 organic farmers and 15 neighbouring
conventional farmers. The research was divided in two separate parts. The first
was an attempt to specify economic parameters and more specifically
production costs. The analysis has shown that organic farming is more
profitable for arable crops in three year rotation than corresponding
conventional farming. The statistical analysis has shown that there is not
statistical important difference between total costs for organic and
conventional farming and the production value for these two systems. That
means that for the specific sample and area, there is not important difference
for total costs and total value of production between organic and conventional
farming.
The second part focused on qualitative research and a small evaluation of
farmers’ perceptions towards organic production was attempted. The findings
are very promising and helpful to understand the general increase of organic
production in Greece and the reasons why this organic production has stacked
the last few years. More specifically, new farmers (in comparison to
conventional farming) are adopting organic farming, there is a positive
acceptance for organic production and the main reasons for this adoption is the
subsidy for organic products. Important point is the start of environmental and
food safety matters that makes farmers more suspicious about intensive
agriculture. Finally, organic farmers are facing technical problems and
Imperial College London i

2004
Chatzis Ioannis
problems associated to marketing and distribution of products and they are not
so concerned about “external” help.
Acknowledgements
This year has been a very challenging for me and I have only come this far
through the help and support of my family and friends. First I would like to
thank my friends Iakovos, Yianna, Pantelis and Joseph for their support not only
with their knowledge but especially psychologically, as well.
I would also like to express my thanks and my appreciation to my supervisor
Dr. Alastair Bailey for his patient guidance and encouragement.
Thanks to all my lecturers, the Staff at the Teaching Office and Residence who
were always so pleasant and helpful. I have learnt a lot in my year at Wye,
despite the challenges; I really enjoyed my year here.
I would like to express my appreciation to “Alexopoulos Foundation” and
especially to Mr. Alexopoulos for his financial support. This scholarship is a very
“heavy” heritage and I hope I worth the owner. I would also thank Mr. Bellis
general director of Development Agency of Karditsa for his encouragement. He
is always there to help me. I would also like to express my appreciation to Dr.
Tsiboukas C. Lecturer at Agricultural University of Athens for his directions.
Finally I would like to express my thanks and my love to my parents and my
brother Marios, who supported me psychologically and financially all the years
of studies. At last, I dedicate this dissertation to my future wife Anthie, who
gave me the most precious gift I have ever had. Her love.
Imperial College London ii

2004
Chatzis Ioannis
Contents
Executive summary..............................................................................................i
Acknowledgements..............................................................................................ii
Contents.............................................................................................................iii
Tables.................................................................................................................iv
Figures.................................................................................................................v
Introduction.........................................................................................................1
Theoretical Context.............................................................................................4
Agricultural production systems.......................................................................4
Organic Farming: A general view.....................................................................6
Global trends in organic farming......................................................................8
European Market Structure and Demand for Organic Products.....................10
Greek Organic farming situation.......................................................................12
Agricultural Sector in Greece.........................................................................12
Farmers’ conditions........................................................................................14
Consumers’ attitudes towards organic products in Greece............................20
Domestic conditions for organic production in Thessaly...................................22
Area characteristics........................................................................................22
Organic production data.................................................................................23
Organic production characteristics in Thessaly..............................................24
Hypothesis, aims and objectives.......................................................................29
Methodology......................................................................................................31
Methodological framework.............................................................................31
The questionnaire...........................................................................................33
Analysis and findings.........................................................................................34
Quantitative results........................................................................................34
Qualitative results..........................................................................................36
Recommendations and conclusions..................................................................41
Limitations of the research................................................................................43
References.........................................................................................................44
Appendices........................................................................................................48
Appendix 1: Administrative regions of Greece...............................................48
Appendix 2. Statistical method......................................................................49
Appendix 3. Questionnaire.............................................................................50
Organic farming for the last three years rotation...........................................50
First Part......................................................................................................50
Second Part.................................................................................................57
Conventional farming for the last three years rotation..................................59
First Part......................................................................................................59
Second Part.................................................................................................66
Imperial College London iii

2004
Chatzis Ioannis
Tables
Table 1: Important characteristics of organic vs. conventional farming systems6
Table 2 Development of Organic Farming in Greece per 31.12.1999...............15
Table 3: Growth rates for organic farming in the E. U.......................................17
Table 4: Amount of land under organic production within the E. U...................18
Table 5: Number of farmers per region. 2002...................................................24
Table 6: Organic farming area per region. 2002...............................................26
Table 7: Organic farming in Greece 1993 - 2001..............................................27
Table 8: Organic Plant production in Thessaly 2001.........................................27
Table 9: “Total Revenues – production costs” comparable table for organic –
conventional farming.........................................................................................34
Table 10: Labour cost analysis for organic – conventional farming...................35
Table 11: Statistical control of differences in specific parameters....................35
Table 12: Sex of Farmers...................................................................................36
Table 13: Age of farmers...................................................................................36
Table 14: Main occupation.................................................................................37
Table 15: Start Date of Organic farming ...........................................................37
Table 16: Satisfaction from the farming system................................................37
Table 17: Intention for continuing organic / conventional farming....................37
Table 18: Reasons for starting Organic Farming (main reason)........................39
Table 19: Reasons for starting Organic Farming (second reason).....................39
Table 20: Reasons for starting Organic Farming (third reason).........................39
Table 21: Reasons for not starting Organic Farming (Conventional Farmers)...40
Table 22: Problems associated with Organic / Conventional Farming...............40
Imperial College London iv

2004
Chatzis Ioannis
Figures
Figure 1: Share of the total agricultural area under organic farming in some
OECD countries: early 1990s and mid-/late 1990s..............................................3
Figure 2: Development of land under organic management and of organic
farms in the European Union 1985 to 2002.........................................................9
Imperial College London v

2004
Chatzis Ioannis
Introduction
Modern organic agriculture began in Europe in the 1920s and struggled in its
early years in the face of the all powerful chemical lobby (Tate 1994). Organic
farming took a new lease of life after the 1980s not just in Greece but around
the world. (Lampkin 1990, Epitropakis 2000). The demand for healthier food
products from specific consumers’ groups shot of dangerous toxic ingredients
and chemical residues in addition with the continuously increased sensitization
have created the conditions for the distribution of organic farming
internationally.
The intensive (industrial, conventional) agricultural systems with the large
volumes of inputs has failed to solve the food problem globally and additionally
created more problems, especially for the ecosystems and the environment.
The significant growth in the organic sector, coupled with its potential
contribution to sustainable development, has resulted in considerable interest
from policy makers, including the Organisation for Economic Co-operation and
Development (OECD) and European Union (E. U.) Environmental Ministers.
More specifically, the following factors have played an important role for policy
makers’ growing interest in organic agriculture:
• The important (and sometimes rapid) increase in organic production
globally.
• The growing consumer demand for organic products especially after the
food scares (for example, BSE).
Imperial College London 1

2004
Chatzis Ioannis
• Public concern for sustainability and environmental protection. One
major aspect of this concern is for organic farming and is connected with
the organic farming’s criticisms of existing farming practises which does
not have its main aim in political influence, but rather presents a positive
definition of an improved farming system and appears able to
demonstrate its value in practice while working in the food market
(Michelsen 2001, Lampkin 1994a).
• The important and continuously growing percentage of the traded
organic produce. (Jones 2003).
In Greece, the situation of organic production is following the global stream but
there is yet to reach a noticeable level. As someone can see in Figure 1 the
share of the total agricultural area under organic farming is too low compared
to countries with similar farm land and population (for example, Austria).

2004
Chatzis Ioannis
Figure 1: Share of the total agricultural area under organic farming in some OECD
countries: early 1990s and mid-/late 1990s
Source :( Jones 2003, Welsh 1999)

Data for the last three years for Greece reveal the decrease of the total
certified organic agricultural areas and the number of business related to
organics. The consequences of a situation like this can be disastrous not only
for the farmers themselves, but also for the environment, society and
economy.
Lampkin (1994b) argues that there are two different approaches to researching
organic farming. The first, comparing organic farming against existing
conventional systems is widely adopted by researchers new to organic farming.
The second, reaching and developing organic farming systems in their own
right, is adopted by researchers and scientists that have believed in the
usefulness of organic farming and are interested in developing existing
systems. Both approaches are helpful, but for the Greek context and the

2004
Chatzis Ioannis
present agricultural situation, a comparison between different farming systems
is necessary. Conventional farmers would like to find out the implications of
conversion and policy makers are depended on the comparative data available.
Theoretical Context.
Agricultural production systems.
One of the most common debates in the relevant literature is the comparisons
between conventional and alternative farming systems. A fundamental goal of
alternative agriculture, including organic and low – input farming systems, is to
reduce non – renewable resource use and environmental degradation while
maintaining productivity and profitability (Clark et al. 1999).
Conventional agriculture has developed in a direction contrary to the
requirements of productive and sustainable ecosystems for cohesiveness and
functional diversity. Two are the important characteristic trends in these
systems:
1. The growing use of off-farm production inputs that leads in opening up
closed systems and thus, they lose their cohesiveness.
2. The specialization of modern farming systems. Production is becoming
increasingly confined to only a few lines of activity, with small number of
species, varieties and genetic base (Kirschenmann 1998, Sharma 2001).
The advanced agricultural systems depend upon chemical fertilizers,
pesticides, herbicides and labour saving but energy intensive farm machinery
(Sharma 2001). These systems resulted in undoubtedly increases in production
and labour efficiency but, on the other hand, had some important adverse

2004
Chatzis Ioannis
effects both directly and indirectly dependent on the farm as a system. The
direct effects are: soil erosion, water availability, salinization, fertilisers and
pesticides contamination and genetic erosion. The indirect effects are
connected with socio-economic values, economic and political issues, real costs
∗
of environmental degradation and food security (Sharma 2001).
In addition the genetic modified organisms (GMOs) and the unpredictable
consequences from their use led the majority of the society (policy makers,
agriculturists, farmers and consumers) to “rejoin” the terms long-term
sustainability and agriculture.
The term “sustainable agriculture” is a complex and wide-ranging concept. The
world as an environmental and human aspect is affected by agricultural
practices. The adoption of the idea of sustainable farming systems focuses on
the contribution to long-term welfare by providing food and other goods and
services in a way that is economically viable, environmentally sound and
socially acceptable (Lampkin 1994a, Jones 2003).
It is important in this point to highlight the importance of other farming
systems, except intensive and organic farming, which fall between these
systems. One emerging farming system is known as “integrated farming” and
encompasses elements of both conventional and organic farming systems.
“Integrated farming generally involves the utilisation of locally available
resources, such as feeds, wastes and other outputs from internal subsystems,
and a high level of nutrient recycling to the maximum extent possible, thus

Norway, France and other countries have attempted to make annual environmental balance
sheets and are trying to integrate them into a policy framework.

2004
Chatzis Ioannis
reducing waste, improving overall efficiency in the use of resources”(Jones
2003, Agra CEAS Consulting 2002).
There are many others different farming productive systems. All of them have
their own advantages and disadvantages and their supporters and dissidents.
Some examples are “Biodynamic Farming”, “Biological farming”, “Nature
farming”, “Regenerative agriculture”, “Permaculture”, “Alternate agriculture”,
“Ecological agriculture”, ”Integrated Intensive Farming Systems” and “Low
External Input Supply Agriculture” (Sharma 2001). It is beyond the scopes of
this dissertation to present the details of all these different systems. The main
concern is to focus on the two opposite lines. The intense agriculture and the
organic farming. The first system is the one adopted by the majority of the
farmers globally and the latter is a promising one, according to many
researchers and agriculture related institutions (Lampkin 1990, Sharma 2001,
Wier, Calverley 2002, Willer, Richter 2004).
According to the above, the main concern is not if organic agriculture is the
only sustainable farming system but how this system contributes to the
sustainability and if this is a pragmatic feasible and not theoretical system.
Organic Farming: A general view.

A broad inspection of the main differences between organic and conventional
farming systems can be seen in the table below:
Table 1: Important characteristics of organic vs. conventional farming systems
Organic Farming Conventional Farming
Crop production • Long rotations (6-9) • Short rotations (1-5

years years)

2004
Chatzis Ioannis
• No synthetic • Synthetic pesticides

pesticides used
• No water soluble • NO3 NH4, urea, KCl,
N&P fertilisers superphosphate, main
NPK inputs
Animal Focus on welfare and Focus on maximum

production on farm sustainability: production efficiency:
• Access to outside • Indoor production
• Lower stocking • High stocking densities
density
• ABGPs use
• No growth (pigs/poultry)
promoters
• Standard withdrawal
• Longer withdrawal period
periods
• High proportion of
• On farm feed bought in feed
production
Food processing < 40 additives allowed 300 additives allowed

• Hypochlorite use (as • Hypochlorite use (as
sanitising agent) sanitising agent)
prohibited permitted (<200 ppm)
Source: (Lampkin 1990, Butler et al. 2004)

According to Lampkin (1994a) organic farming can be defined as an approach
to agriculture where the aim is:
“To create integrated, humane, environmentally and
economically sustainable agricultural production systems, which
maximise reliance on farm derived renewable resources and the
management of ecological and biological processes and
interactions, so as to provide acceptable levels of crop, livestock
and human nutrition, protection from pests and diseases, and an
appropriate return to the human and other resources employed.”

2004
Chatzis Ioannis
Of course there are many different and equally important definitions about
organic farming but the main question is not “what is organic farming?” but
“why organic farming?”
The answer is not so easy if someone put it within a real and feasible
framework. The criticism of current agricultural practices include many aspects
like damage of the soil structure, of the environment, it creates potential health
hazards in food, reduces food quality, is an energy intensive system,
encompasses ethically unacceptable animal production systems and that it is
economically costly to society and increasingly so to the farmer (Lampkin
1990). Organic farming has a positive contribution to make in some of these
areas (Lampkin 1990).
Global trends in organic farming.

A small inspection in the plethora of the available data for farming can lead to
the conclusion that organic farming is continuously expanding and more and
more farming areas are treated according to organic standards. More
specifically, Willer, Richter and, Yussefi (2004) in their reports which conducted
in co-operation with SOEL, FIBL and IFOAM, signify the importance of organic
farming around the world. Their main findings were:
• A worldwide distribution and expansion of organic farming and a continuous
grow of the farm land.
• Continuous grow of markets for organic products not only in Europe and
North America (which are the major markets), but also in many other countries.
• Official interest in organic farming is emerging in many countries.

2004
Chatzis Ioannis
For European Union, Figure 2 shows the development of land under organic
management and of organic farms from 1985 to 2002.
Figure 2: Development of land under organic management and of organic farms in the
European Union 1985 to 2002
Source (Willer, Richter, Yussefi 2004)

As someone can see from Figure 2 the continuous increase is a very promising
picture and signifies the importance of the organic production for the European
Union. The trends in other parts of world have the same direction. For example,
in Africa despite the significant problems of certification, credibility and
marketing there is an increase of organic farming. Specifically in 2004 the
organic farmers were 71,352 and the organic farming hectares 320,943. These
numbers represent only the certified ones, but there is a significant number of
uncertified farmers which are implementing the organic farming agricultural
system (most of the times because they do not have the recourses to pass into
the conventional farming) (Parrott, Kalibwani 2004).

2004
Chatzis Ioannis
In Asia interest in organic agriculture continues to grow. The regional diamond
with Japan to the North, Philippines to the East, Indonesia to the South and
Pakistan to the West hosts a spectrum of sector development stages, from
early pioneer status to the third largest market in the world. There are 61,595
farmers and 881,511 hectares of organic farming and the growing receptivity
and acceptance of the organic agriculture concept is reflected in both the
mushrooming of local markets and government involvement, including policy
support, in the region in recent years. The level of sector development in
general reflects the respective countries’ economic situation. Japan and Korea
represent the major markets of the region, whilst China heralds perhaps the
highest growth potential in the near future, attracting the set ting up of organic
processing/marketing joint ventures between local and foreign investors (Wai
2004).
The general growth and development of the organic sector is obvious and cited
in many researchers’ works and in many institutions’ reports (Jones 2003,
Butler et al. 2004, COMMISSION OF THE EUROPEAN COMMUNITIES 2003,
Conacher, Conacher 1991, Directorate-General for Agriculture 2004, Duchateau
2003, Foster et al. 1999, Michelsen et al. 1999). The focus of this study is on
Greece as member of the European Union and especially for arable and
horticultural crops.
European Market Structure and Demand for Organic Products

In Europe, where are located the important exportation destinations for Greek
Organic products, five are the significant product groups that are being traded
in larger volumes than others. These include vegetables, cereals, milk

2004
Chatzis Ioannis
products, potatoes and fruits (Michelsen et al. 1999). The statistical data show
a small percentage of organic products compared with conventional products
but the demand for these is continuously growing. More specifically, the size of
the E. U. market (total sales) for organic products in1998 was about 4.5 billion
US$, which constitutes between 1.5 and 2 per cent of the total food
consumption (Wier, Calverley 2002) and the European market for organic foods
in 2000 was valued at 9.6 million US$ (Butler et al. 2004). Because of cultural,
social, economic and structural differences among the European countries, the
European market cannot be seen as homogeneous. Considerable differences
exist between various countries with respect to market development and
growth (Wier, Calverley 2002).
The demand for organic products basically is driven by factors that have to do
with general health and well-being. The main barriers to purchasing more
organic food are high price, limited range, no guaranteed availability and other
minor barriers like unsupported health claims and no significant improvement
in taste (Butler et al. 2004).
Michelsen et al. (1999) conducted a study in 18 European countries and
concluded that the general characteristics of the markets are influenced by the
fact that organic farming covers only a margin part of the total agriculture
area. “Minimum requirements for the proper functioning of a market are met in
a majority of countries with problems associated to the free setting of prices
and a corresponding flow of goods within countries. Furthermore, problems are
detected concerning market transparency and market efficiency. The problems

2004
Chatzis Ioannis
vary strongly according to the national circumstances and may be seen as a
matter of both maturity and size of the market” (Michelsen et al. 1999).
Greek Organic farming situation.

Agricultural Sector in Greece.
The important structural problems of Greek agricultural sector are:
• the small farming area per farmer (4.5 hectares) in comparison with
European Union (16.5 hectares) and the USA (202 hectares),
• The large amount of mountainous areas (450,000 farms out of 860,000
in Greece are mountainous or on islands). It is very difficult for intensive
farming systems to be implemented there.
According to these, Greece will always have this disadvantage because of
economies of scale and its terrain dualism (plains and mountains) (Pantzios,
Tzouvelekas & Fotopoulos 2000).
Someone could say that there is no future for agriculture in Greece. Despite
the pessimism, there are many opportunities have been created by the new
Common Agricultural Policy (CAP) reform and the changes worldwide in food
safety and quality and environmental protection (European Commission 2004).
In order to understand the problems of agriculture in Greece, one has to bear
in mind several facts on agriculture in Greece in general.
In 1995, there were 774,000 farms in Greece. The total agricultural area was
5,148,000 hectares in 1997. The average farm size is about 6.6 hectares.
Bigger farms are created through leasing. This is the same case for organic
farms. There is a sharp difference between irrigated and rain-fed agriculture,

2004
Chatzis Ioannis
which is more important than differences in soil and climate. Water is the main
determining factor with respect to crops and yields. Rain-fed crops involve a
higher cultivation risk and lower income. Therefore, only a small range of crops
is cultivated on fields that can not be irrigated (cereals, pulses, some fodder
crops, sesame, olives, wine) (Van Der Smissen, N. 2001).
Irrigated crops are cultivated according to the pattern of conventional
agriculture all over the world: with a high application of chemicals. To a great
extent, rain-fed agriculture has been spared the massive advertising
campaigns of the chemical industry. Therefore, traditional practises of
cultivation can still be found. Older people still know about crop rotation, green
manure and traditional crops (pulses, rain-fed fodder crops). Models of
traditional cultivation which could be referred to as organic have, however,
vanished.
Many people believe that it should be easier to convert extensive cultivation to
organic farming than intensive cultivation systems. This is not the case. The
main problem is that farmers consider extensive agriculture to be organic
already. Due to the lack of information and training, there is no understanding
of the demands of organic agriculture. One should bear in mind that only 5.7
percent of Greek farmers have attended an agricultural training programme of
one year or more (Van Der Smissen, N. 2001).
Crop and animal production in Greece are traditionally separate from each
other. Animals, mostly sheep and goats, graze on harvested fields and public
land, including woodland, grassland and barren land. In the winter, grazing is
supplemented by animal feed produced by the same farmer or purchased in

2004
Chatzis Ioannis
the region around the farm. There are, however, big animal farms similar to
those in western and central Europe producing eggs, milk and meat for the
centres of consumption exclusively from purchased animal feed (Van Der
Smissen, N. 2001).
The system of integrated plant and animal production on the same farm as it is
known in northern Europe has no tradition in Greece and other Mediterranean
countries. That is the reason why this system will be difficult to implement
even in organic agriculture. In most cases, a steady cooperation will develop
between farms producing animal feed and others producing animal products
and manure (Van Der Smissen, N. 2001).
Farmers’ conditions.
Organic farming in Greece is a recent situation. Only the last two decades can
someone find this agricultural production system and the important points
could be summarized as follows:
• Important increase of the organic farming areas
• Unequal geographical distribution of these areas
• Restricted range of organic products (Pantzios, Tzouvelekas & Fotopoulos
2000).
Specifically, between 1994 and 1997 the total organic farming area in Greece
shows annual increase rates from 102% (1994-1995), 119% (1995-1996) and
90% (1996-1997). After this “boom” there was a decrease as someone can see
from Table 9 (Pantzios, Tzouvelekas & Fotopoulos 2000)

2004
Chatzis Ioannis
The second important issue is the geographical distribution of the organic
farms. The major part of these is in Peloponnesus (especially because of the
olive trees) in the Ionian Islands and in Crete. The percentage of the certified
farmers in these three areas is 87% of the total number of the certified farmers
in 1996 (Pantzios, Tzouvelekas & Fotopoulos 2000).
Finally, the percentages of the certified organic products in 1997 were: olives
and olive oil 59%, grapevines 11%, citrus 8% and cereals 6%. Very small was
the percentage of the fresh vegetables (about 1%) and important was the
percentage of the cereals (Pantzios, Tzouvelekas & Fotopoulos 2000). All the
above can be found in the following tables.
Table 2 Development of Organic Farming in Greece per 31.12.1999

2004
Chatzis Ioannis
Year 1993 1994 1995 1996 1997 1998 1999

600* 1,188 2,400 5,269 10,422 15,848 21,45
Hectares 1
0.01 0.03 0.07 0.15 0.31 0.47 0.64
% of
cul
tiv
ate
d
are
a
- 98 101 119 98 51 35
Growth
rat
e
in
%
250* 477 700* 1,065 2,263 4,231 5,042
Number
of
org
ani
c
far
ms
0.03 0.06 0.08 0.12 0.25 0.48 0,58
% of all
far
ms
- 91 46 52 112 86 19
Growth
rat
e
in
%
Sources: (Van Der Smissen, N. 2001)

2004
Chatzis Ioannis
Table 3: Growth rates for organic farming in the E. U.
Average annual
Average annual Average annual
growth rate
Country growth rate growth rate
10 years (1988-
1 year (1997-98) 5 years (1993-98)
98)
Austria -16.60 20.60
Belgium 76.50 41.60 29.30
Denmark 54.10 41.00 35.50
Finland 23.30 46.70 62.40
France 32.30 20.30 14.10
Germany 6.90 11.10 27.50
Greece 54.00 93.30 81.10
Ireland 21.70 46.40 42.30
Italy 22.60 57.00 62.70
Luxembourg 25.70 9.60 6.30
Netherlands 13.90 11.80 14.70
Portugal 104.20 61.50 57.30
Spain 77.20 108.40 71.30
Sweden 7.70 30.50 37.40
UK 159.00 65.80 46.60
E. U. 15 22.60 27.60 34.40
Source: (The Scottish Agricultural College 2001)

2004
Chatzis Ioannis
Table 4: Amount of land under organic production within the E. U.
Organic Organi
Organic Organic Organic Organic and in- c land
and in- and in- and in- and in- conversio as % of
Country conversio conversio conversio conversio n land total
n land n land n land n land (ha) agric.
(ha) 1985 (ha) 1990 (ha) 1995 (ha) 2000 Estimate area
2001 2000
Austria 335865 267000 285500 7.74
Belgium 500 1300 3385 20265 22410 1.52
Denmark 4500 11581 40884 165258 173497 6.09
Finland 1000 6726 44695 147423 147943 5.66
France 45000 72000 118393 370000 420000 1.22
Germany 24940 90021 309487 546023 632165 3.15
Greece 150 2401 24800 25000 0.43
Ireland 1000 3800 12634 32355 32000 0.73
Italy 5000 13218 204494 1040377 1230000 6.02
Luxembour
350 600 571 1030 1000 0.81
g
Netherland
2450 7469 12909 27820 32000 1.40
s
Portugal 50 1000 10719 50000 70000 1.26
Spain 2140 3650 24079 380920 485079 1.52
Sweden 1500 28500 83490 171682 193611 4.99
UK 6000 31000 48448 527323 679631 3.15
Total 94430 271015 1252454 3772276 4429836 2.91
Source: (The Scottish Agricultural College 2001)
According to many writers the increase of the organic farmers’ numbers was a
result of the additional subsidies from the European Union (based on the E. U.
2078/92). The unequal geographical distribution is more a coincidence and not
a result of a strategic movement. The first organic farming areas were
presented in Peloponnesus, where there were strong co operations and they
assimilated easier the organic techniques and in Crete where local cores of

2004
Chatzis Ioannis
farmers and scientists cooperated and developed organic farmers’ groups
(Pantzios, Tzouvelekas & Fotopoulos 2000, Fotopoulos, Pantzios 1998, Maniatis
1997).
The development of organic olive trees farming and the small percentage of
the other cultivations is a result of:
• The weather conditions, climate and the terrain of Greece. Except the
long tradition of the specific cultivation, the differences between
conventional and organic farming is not important and for a farmer is not
difficult to understand the specific requirements of organic farming.
• The development of the organic farming “know how” about the olives.
Because of the early adopted cultivation of organic olives and olive oil
there was time for researchers and farmers to develop their practices
and they gain experience.
• The international demand for high quality olive oil in conjunction with the
existence of some commercial houses for organic products (Pantzios,
Tzouvelekas & Fotopoulos 2000, Maniatis 1997).
Organic farming does not seem to spread considerably out of the geographical
regions from which it was originated. The majority of the producers focuses on
a few perennial crops due to lack of information about organic production
techniques of other crops. On the other hand, there are producers who are
unaware of treatments that should be applied during conversion period, since
there is not enough institutional support. In general, there is lack of information
throughout production, post-harvest and marketing processes (Fotopoulos,

2004
Chatzis Ioannis
Chryssochoidis & Pantzios 1999). Furthermore, the small numbers of organic
producer associations, as well as the small size of the majority organic
operations are serious drawbacks for the marketing of the products
(MEDITERRANEAN AGRONOMIC INSTITUTE OF CHANIA 2001).
To sum up, for all the organic cultivations their use is depended on the height
of the European subsidies, the existence of organic techniques but most of all
from the existence of market channels, especially for exportations. This would
help the farmers to gain an important advantage and it could help them to stay
in the business.
Consumers’ attitudes towards organic products in Greece.

Greek consumers seem to become more and more sensitive and demanding at
the same time, when it comes to their nutrition and they seek for safe, natural
and free from agrochemical food products. However, they do not have the
appropriate information background that is they are unaware of the existence
of organic products or their value. The knowledge about these products seems
to be rather higher in the urban and in areas with high degree of tourism.
When consumers are finally informed, then they seem to have the intention to
bye them. The majority of the consumers are not so well informed about the
proper labelling of organic products, cannot easily distinguish them from the
conventional ones and consider organic products hard to be found. As far as
the price is concerned, consumers know that the quality converges with higher
prices and they would be willing to pay a higher price for a product of better
quality (Kavallaris 1998). It should also be noted that Greek consumers tend to
organic products because of healthy reasons and not because of environmental

2004
Chatzis Ioannis
consciousness, as in central and northern Europe (MEDITERRANEAN
AGRONOMIC INSTITUTE OF CHANIA 2001).
Chrysochoidis and Fotopoulos (2000) support the idea that the Greek market
for organic products is seemed bipolarised. A part of the population has a fast
evolution towards the organic products and a second part is in great confusion
about the specific products. The strategy the farmers and the politicians have
to concentrate in three pylons in order to increase the consumption of organic
products:
• Informing and education of the consumers generally. Organic products
are an innovation for the major part of consumers and they are
compared to the high technology products. So, they must be faced as an
innovation. The important point here is to determine the characteristics
of the segments of the population that will be the starters and the
triggers for the rest of the population. In conjunction with this must be
determined the educational modes for these parts of consumers.
• The organic label on the products. The label is a major element and its
importance is undoubtedly for the consumption of the organic products.
So, the reinforcement of the label as a compulsory element of the
organic products must be a priority.
• Finally, increase of the range of the Greek organic products. This time in
Greece, the organic products are presented as different from the
conventional. It is necessary for politicians, farmers and managers to
follow an integrated path for the marketing of these products. There
must be found important products that will “work” for the rest of the

2004
Chatzis Ioannis
organic products, otherwise an important delay in their diffusion and
development will be noticed (Chrysochoidis, Fotopoulos 2000)
Domestic conditions for organic production in Thessaly.

Area characteristics.
Thessaly is divided in four prefectures, Karditsa, Larissa, Trikala and Magnesia.
Is the central east part of Greece’s main land? Its total area is 14036 km² (10%
of the total Greek area).
36% of Thessaly area is plain land, 17.1% is semi mountainous and 44.9% is
mountainous. The campaign is the biggest plain area in Greece and is
surrounded by high mountains (Olympus, Itamos, Kissavos and Pelion) (Region
of Thessaly 2004a).
The population of Thessaly region is 743.075 habitants (census 1998) and
represents 7.1% of the total Greek population. The urban population is 44% the
semi urban 16% with increasing trends and the rural population is 40% and
decreases considerably the last 20 years (Region of Thessaly 2004a).
The southern and central portions of Greece experience traditional
Mediterranean climate with hot, dry summers and mild, wet winters. However,
northern Greece has continental climate and experiences colder winters. The
rainfall also varies from region to region. While areas towards the west of the
Pindus Mountains receive more rain than the east, the average annual rainfall
in Athens in central Greece is 400 mm. Mountains are subject to snowfalls.
It has a distinct summer and winter season, with summer rains augmenting
the fertility of the plains. This has led to Thessaly occasionally being called the

2004
Chatzis Ioannis
breadbasket of Greece. Several tributaries of the Pinios River flow through the
region.
In Thessaly region is produced 14.2% of the total Greek agricultural production
(2nd, behind Central Macedonia). 14% of total Greek agricultural cultivated area
is in Thessaly. It is ranged first among the other Greek Regions in cotton
production (40% of the total production), second in apple, cheese and milk
production (29%, 15% and 14% of the total Greek production respectively) and
third in tomato and wheat production (17%) (Region of Thessaly 2004b).
Cotton production is not a “bless” for Thessaly. The biggest part of the prices
the farmers enjoyed were subsidies from the European Union. Additionally,
there is an upper limit from the Union for cotton production and usually, this
limit was not enough for the Greek cotton production. It is outside the scopes
of this dissertation to inspect the causes of a situation like this, but the results
can help someone to understand why a shift or turn to Organic farming can
provide an alternative to Thessaly farmers. Except a part in Magnesia, where
olive trees are the major cultivation the other parts of Thessaly are full of
arable crops and the main cultivation is cotton. There are farms that are used
for cotton for over ten years! Rotation is an unknown word for many farmers
and, now, the Common Agricultural Policy reform has led many of them to a
dead end. That’s why the major aim of the present dissertation is to examine
the possible way outs of this difficult situation.
Organic production data.

As we have seen, organic production today, despite its small percentages
globally and in Greece more specifically, shows a tremendous increase not only

2004
Chatzis Ioannis
in the number of farmers but also in the total area that is cultivated with
organic products (Tables 2, 3, 9). The sustainability of both agriculture and the
environment is a key policy objective of today's common agricultural policy
(the 'CAP'):
'Sustainable development must encompass food production alongside
conservation of finite resources and protection of the natural environment so
that the needs of people living today can be met without compromising the
ability of future generations to meet their own needs' (European Commission
2004).
Important part of this new framework have the annual crops, because of the
organic production practice, the benefits of the rotation, the necessity of the
mixed farms (plants and animals) and the turn of the consumers in plant
proteins. With this dissertation a small contribution to the problems, the
advantages and disadvantages and the prospect of organic annual crops in
Thessaly is attempted.
Organic production characteristics in Thessaly.

All the data was collected from DIO certification body. The specific organisation
covers the 80% of the total organic certified agricultural area so it is a very
representative picture of the Greek Organic reality. Unfortunately, DIO is the
only certification body that keeps all these data and it was actually the only
credible source.
Table 5: Number of farmers per region. 2002
REGION NUMBER OF FARMERS PERCENTAGE %
Eastern Macedonia and

Thrace 49 1,47%

2004
Chatzis Ioannis
Attica 208 6,22%

Northern Aegean Islands 246 7,36%
Western Greece 612 18,31%
Western Macedonia 22 0,66%
Epirus 43 1,29%
Thessaly 144 4,31%
Ionian Islands 87 2,60%
Central Macedonia 160 4,79%
Crete 484 14,48%
Southern Aegean Islands 76 2,27%
Peloponnesus 969 28,99%
Central Greece 243 7,27%
Total sum 3.343 100,00%
Source: (DIO 2004)

2004
Chatzis Ioannis
Table 6: Organic farming area per region. 2002
Total area
REGION % in total
(hectares)
Eastern Macedonia and

Thrace 226,0 1%
Attica 885,1 6%
Northern Aegean Islands 1.431,2 9%
Western Greece 1.963,5 12%
Western Macedonia 229,1 1%
Epirus 320,9 2%
Thessaly 681,4 4%
Ionian Islands 372,7 2%
Central Macedonia 815,0 5%
Crete 2.072,8 13%
Southern Aegean Islands 165,8 1%
Peloponnesus 4.954,7 31%
Central Greece 1.732,9 11%
Total sum 15.851,1 100%
Source: (DIO 2004)

2004
Chatzis Ioannis
Table 7: Organic farming in Greece 1993 - 2001
Plant % Animal % % %
manufactur Tota
Year productio Increas productio increas increas increas
e l
n e n e e e
199
165 - - - - - 165
3
199
489 196% - - - - 489 196%
4
199
639 31% - - - - 639 31%
5
199 1.10
1.109 74% - - - - 74%
6 9
199 1.68
1.683 52% - - - - 52%
7 3
199 2.38
2.350 40% - - 35 - 42%
8 5
199 2.67
2.611 11% - - 66 89% 12%
9 7
200 3.14
3.036 16% 6 - 100 52% 17%
0 2
200 3.77
3.419 13% 108 1700% 248 148% 20%
1 5
Source: (DIO 2004)
Table 8: Organic Plant production in Thessaly 2001
Total Percentage
Cultivation
(hectares) %
Arable crops 229,8 41,60%
Grapevinesι 34,6 6,26%
Olive trees 164,1 29,71%
Vegetables 39,1 7,08%
Trees 84,8 15,35%
Total sum 552,4 100,00%
Source: (DIO 2004)
When we are talking about arable crops in Greece we mean cereals, corn,
cotton, tomato (for industry) and clover. These are used mainly in rotation in
Greece.

2004
Chatzis Ioannis
As someone can notice from the above tables the most important part of
organic production in Thessaly are the arable crops. But still, the total number
of the organic farmers and organic farming area are very small compared to
the total organic farming area (only 4% in both cases) and very small
compared to the total Greek farming area. Based on the fact that arable crops
are not intensive cultivations and are not so demanded for inflows these levels
of cultivated areas and farmers are unacceptable for Greece and especially for
Thessaly. With the ten years experience in organic farming in Greece many
problems have found their solution. More specifically, especially in the
transition stage the three more important problems are weeds, pests –
diseases and fertilisation. Of course Greece presents many disadvantages like
small farms which are a very high obstacle for an integrated view for organic
production but, again this is not an excuse for the lowest levels of organic
farming in Greece. This has as an implication the low levels of absorption of
European Union’s subsidies.
For arable crops there has been conducted many researches about the yields
and a recent one with experiments with 21 years duration from the FiBL
(Switzerland) gave the below results (Mader et al. 2002):
• The organic cultivated farms had a 20% lower level of yields in
comparison to conventional farms
• The inputs for fertilisers and energy were 34 and 53% lower in organic
farms

2004
Chatzis Ioannis
• In the third cycle of rotation the wheat gave just 10% lower yield
compared to conventional. It is important to notice here that the yields
especially those of organic farms must be examined in a rotation system
and not in every cultivated year
• The soil fertility was higher in organic farms because of the presence of
micro organisms
• The presentation of the micro organisms led to reduction in CO2 exhausts
and as a consequence to reduction in air pollution
• Finally, organic farming is a realistic alternative solution for the problems
of conventional farming.
Having these in mind and in conjunction with the special elements of Greek
agricultural reality this dissertation has the following aims and objectives.
Hypothesis, aims and objectives

The hypothesis of the present study is:
The organic three year rotation farming system for arable crops is more
profitable for farmers in Thessaly, Greece compared to corresponding
conventional farming.
• An economic overview of the two different farming systems in Thessaly.
• A comparison between conventional and organic farming specifically for
arable and horticultural crops in Thessaly.
• Examination of the current situation of Greek organic production
generally and for annual crops more specifically.

2004
Chatzis Ioannis
• Examination of the production costs for each farming system
(conventional products, organic products).
• To provide a possible solution for the problems of the agricultural sector
of Thessaly.
• To inspect the farmers’ perceptions and thoughts for organic production.

2004
Chatzis Ioannis
Methodology.
Methodological framework
Comparative analysis of cost production for organic and conventional farming
systems is based on accounting sheets of outcomes – expenses. These are the
standard “tool” in farming accounting for the analysis of the economic result of
a farm (Pantzios, Tzouvelekas & Fotopoulos 2000). The prices are all in Euros
per Hectare and in today’s prices (2004). All the costs are the means of the
respective cost of the sample.
The tables “revenues – expenses” have the following basic format: the upper
part is the revenues from the three year rotation system for organic and
conventional farming systems. The total value of production is a total sum of
the partial cultivations of the rotation. The “subsidy” is connected with the
subsidy the farmers receive for using organic practices. The lower part includes
all the expenses of the two systems. “Rent” is the amount of money the
farmers give in case of not own the farms. The term “Labour” is divided in
three parts “Family” (for labour that farmers do themselves or members of
their family) “external” for hired labour and “External machinery” for cases
that farmers do not have the appropriate machines to do the work (e.g.
harvesting). “Fertilisers”, “Chemicals”, “Biological control”, “Seeds”, “Fuels”,
“Electricity”, “Insurance” and “irrigation fees” are all expenses that farmers in
Thessaly are usually paying. “Maintenance” is referred to the money the
farmers are paying for the services to fixed capital; “Certification” is the
amount of money a farmer has to pay to one of three Greek certification bodies
in order to get the label. “Interest” is calculated with the help of the following

2004
Chatzis Ioannis
model: [(Sum f costs from 2c to 12) * (interest rate) * 6 months]. Interest rat is
taken from the price of Agricultural bank of Greece has for 2004 (Pantzios,
Tzouvelekas & Fotopoulos 2000), which is 3.75% (for farmers) (Agricultural
Bank of Greece 2004). Finally, for “Depreciation”, the following model was
used:
D= (V/N)*(h/H) where,
D: depreciation
V: replacement value or cost for reconstruction
N: age of the fixed capital (in years)
h: hours used in the specific cultivations
H: hours of total use,
And for the warehouses and barns the space percentage is used and not the
hours (Pantzios, Tzouvelekas & Fotopoulos 2000).
The years of use for fixed capital was taken from Tables the Greek Ministry of
Agriculture has published and give the time length for all the capital items of
farms in Greece (Pantzios, Tzouvelekas & Fotopoulos 2000, Ministry of
Agriculture 1981).
“Profit” is the difference between “total revenues” and “total cost” and is
calculated in Euros per hectare.
The simple presentation of means for costs of different category is not very
useful in order to have an integrated and global picture of the relation between
organic and conventional farming (Marino et al. 1997). The use of simple

2004
Chatzis Ioannis
statistical tools (statistical control of hypotheses) can offer a more comparable
view of the two different farming systems. So, the “t- test” (Appendix 2) is used
in order to examine if there is statistical important difference between “total
value of production”, “total cost for labour” “total cost for fertiliser –
protection” and “total cost” .
The questionnaire
The questionnaire is divided in two parts (Appendix 3). The first part includes
quantitative information and is focused in costs and prices. Because of the
small amount of information for production costs and prices for agriculture and
the lack of credibility these information have, is decided to follow the
questionnaire technique and ask farmers that are in the organic farming (after
three years of cultivation) and conventional farmers.
The second part is more qualitative in order to collect information about the
reasons behind the acceptance or rejection of organic farming in Thessaly, the
level of help these farmers find from the administrative bodies and the general
trend among farmers for the acceptance of this system.
Similar and neighbouring farms are decided to be used at this research. For
every sample of organic farms, a similar and neighbouring (as far as it was
possible) sample of conventional farms was found. As someone can see from
tables 7 and 8 the total number of organic farmers in Thessaly is 144 farmers
and the total organic farming area is 681 hectares. Finally, a sample of 15
farmers for each system was composed (30 in total) from all the prefectures of
Thessaly (Karditsa, Trikala, Larissa and Magnesia).

2004
Chatzis Ioannis
Analysis and findings

Quantitative results
Table 9: “Total Revenues – production costs” comparable table for organic –
conventional farming
Organic farming Conventional farming

Total value of 2123 2591
production
Subsidy (E. U. 2078/92) 299 0
Total revenues 2422 2591
Production costs
1. Rent 880 880
2. Labour 713 532
2.a. Family 215 150
2.b. External 270 80
2.c. External machinery 228 302
3. Fertilisers 96 89
4. Chemicals 0 118
5. Biological control 15 0
6. Seeds 81 94
7. Fuels 191 177
8. Electricity 074 63
9. Certification 50 0
10. Insurance 19 13
11. Irrigation fees 37 54
12. Maintenance 74 68
13. Interest 16 18
14. Depreciation 313 331
Total cost 2559 2437
Profit 137 -154
As someone can see from the above organic farming has more production
costs but it is more profitable for a farmer in Thessaly. That’s why the bigger
part of the conventional farmers has a second job and sometimes, do not
accept agriculture as a permanent job.

2004
Chatzis Ioannis
Table 10: Labour cost analysis for organic – conventional farming
Labour Organic farming Conventional farming

1. Fertiliser – Plant
Protection
1.a. Family 54 14
2. tillage
2.a. Family 26 26
2.b. External 22 22
3. Seeding
3.a. Family 02 03
3.b. External 23 13
4. hoeing - Digging
4.a. Family 07 06
5. Irrigation
5.a. Family 67 87
5.b. External 02 06
6. Harvest
6.a. Family 46 10
7.Other works
7.a. Family 13 06
7.b. External 42 44
Total 713 532
Table 11: Statistical control of differences in specific parameters

Mean Standard Mean Standard
deviation deviation
Value of 2123 864 2591 703
production
Labour costs 713 246 532 203
Fertilizers – 115 50 207 109
plant
protection
Total cost 2559 526 2437 223
Value of production t=1,63 t 0,05 25 =2.060

Labour costs t=2,20 t 0,05 25 =2.060
Fertilisers – plant t 0,05 18 =2.552
protection t=2,97
Total cost t=0,83 t 0,05 17 =2.567

2004
Chatzis Ioannis
As someone can see from the above statistical analysis, we have statistical
important difference for the labour costs and for the costs of fertilisers and
plant – protection. There is not statistical important difference between total
costs for organic and conventional farming and the values of production for
these two systems. That means that for the specific sample and area, there is
not important difference for total costs and total value of production between
organic and conventional farming.
Qualitative results
Table 12: Sex of Farmers

Frequency Percentage % Frequency Percentage
%
Men 11 73% 13 87%
Women 4 27% 2 13%
Total 15 100 15 100
From the qualitative results we can examine the general trend in Thessaly for
Agriculture. From the above table it is obvious that women adopt easier the
organic farming methods and techniques and someone could say that for men
is not so easy to change old habits and traditions. Even this small sample is
indicative and it is women those that dare to take the risks of a new system.
But there is another view of the above results. Maybe men farmers are facing
organic farming as not so important and have women to work on it.
Table 13: Age of farmers

%
27 to 45 5 33% 4 27%
46 to 55 7 47% 6 40%
56 to 82 3 20% 5 33%%
Total 15 100 15 100

2004
Chatzis Ioannis
The comparisons here give a slight better picture for organic farming. New
farmers are easier to adopt new ideas and this is obvious at the above table.
Table 14: Main occupation

%
Farmer 8 53% 5 33%
Other 7 47% 10 67%
Total 15 100 15 100
A 47% of organic farmers have this as their main occupation but only 33% from
conventional farmers has agriculture as their main occupation. This partly
represents the results of table 11 and someone could say that for organic
farmers it is more serious to be involved with agricultural business and it is
more time consuming.
Table 15: Start Date of Organic farming
Frequency Percentage %
1990 1 7%
1995 2 13%
1996 2 13%
1999 3 20%
2000 7 47%
Total 15 100%
This table represents the general increase in organic farming levels in Greece.
Table 16: Satisfaction from the farming system

Frequency Percentage % Frequency Percentage %
Yes 10 67% 7 47%
So and so 3 20% 6 40%
No 2 13% 2 13%
Total 15 100% 15 100%
Table 17: Intention for continuing organic / conventional farming


2004
Chatzis Ioannis
Yes 10 67% 9 60%

No 2 13% 3 20%
Do not know 3 20% 3 20%
Total 15 100% 15 100%
As someone can see from the above tables, generally there is a strong
satisfaction and belief in organic farming (67%) and compared to conventional
farmers which are not so satisfied but they will continue to cultivate according
to conventional system, this is very promising. Conventional farmers maybe do
not have the appropriate information or they are not convinced for the benefits
of organic farming.

2004
Chatzis Ioannis
Table 18: Reasons for starting Organic Farming (main reason)

Frequency Percentage Frequency Percentage
% %
Subsidy 7 47% 9 60%
Environment 4 27% 2 13%
Personal health 2 13% 3 20%
Food quality / 2 13%
consumer’s
safety
Innovation
Other 1 7%
Total 15 100% 15 100%
Table 19: Reasons for starting Organic Farming (second reason)

% %
Subsidy 3 20% 3 20%
consumer’s
safety
Innovation
Other
Total 15 100% 15 100%
Table 20: Reasons for starting Organic Farming (third reason)

% %
Subsidy 5 33% 3 20%
consumer’s
safety
Innovation 3 20%
Other 1 7%
Total 15 100% 15 100%

2004
Chatzis Ioannis
The two last columns show the supposed intention of conventional farmers. As
someone can notice, subsidy is the main reason for an already conventional
farmer to convert and this is the main reason for organic farmers (47%) to
change. The important thing here is that as second reason personal health and
environment are taking important percentages and this is a sign for future
directions.
Table 21: Reasons for not starting Organic Farming (Conventional Farmers)
Frequency Percentage %
Cultivation techniques 4 27%
Supplies 1 7%
Labour
Market channels 2 13%
Subsidy
Production costs
Certification body
Governmental support 5 33%
Other 3 20%
Total 15 100%
The governmental support seems to be the most important reason for farmers
to avoid the conversion and second reason is the cultivation techniques which
indirectly are connected with the authorities. Greek farmers were always much
related to agricultural extensions units of Ministry of agriculture and it s still
very difficult to take important decisions without help and support from the
Greek government.
Table 22: Problems associated with Organic / Conventional Farming
Organic farming Conventional Farming

Cultivation 5 33% 1 7%
techniques
Supplies 2 13%
Labour 1 7%
Market channels 4 27% 4 27%
Subsidy
Production costs 1 7% 4 27%

2004
Chatzis Ioannis
Certification
body
Governmental 2 13% 6 40%
support
Other
Total 15 100% 15 100%
As someone could expect, the main problems for organic farmers are the
cultivation techniques and the market channels. The first is connected with the
lack of education for these systems not only among farmers but, and this is
even more important, among agriculturists. The 13% of the people that have
problems because of the authorities is a very promising sign that finally,
farmers are starting to believe on their own capabilities.
Recommendations and conclusions

Organic farming still has a small percentage in Greek Agriculture despite the
tremendous development the last 10 years (Table 3, 4). Especially for Thessaly,
breadbasket of Greece during the ‘50s and ‘60s and now encircled in a
situation where cotton cultivation becomes a “boomerang” and destroys the
traditional structures. Policy and authorities has started a difficult race to rip
the benefits of the organic cultivation. A recent campaign focused on the
economic and environmental consequences from organic farming began and
the results will be visible soon.
But that is not enough. Organic farming can help farmers from Thessaly to
overcome the present difficulties. The results are every promising and give a
smell of new era for Thessalian farmers. The economic results signify that
organic farming is not a system for idealists and dreamers. It is a profitable
enterprise that with the appropriate moves can be extremely important and

2004
Chatzis Ioannis
helpful for farmers that face agriculture as a business and environment as part
of our world and not an eternal source of resources.
Another point that has to be researched further is the environmental benefits
from the specific faring system. Thessaly is one of the most polluted areas in
Greece (especially the water) because of the fertilisers and the chemicals used
in agriculture. Someone could conduct a research on the benefits of organic
farming towards this direction and in conjunction with the economic outcomes.
Organic agriculture in Greece seems very small-scale in comparison with many
other European countries. However, the progress made in the last years is
impressive. In the early 1990s, nobody took organic farming seriously. Since
the adoption of Council Regulation (EEC) No. 2092/91, things have changed.
Some politicians even praise organic agriculture as the solution for agriculture
in mountainous areas, although at the governmental level the attitude towards
organic agriculture is quite different. There may be the will to support organic
agriculture, but no financial possibilities. In order to fulfil the conditions for
entry into the Economic Currency Union, the Greek government cuts expenses
wherever possible (Van Der Smissen, N. 2001).
The factors which stimulated organic agriculture in other European countries
(national labels, national laws, subsidies for farmers, trade and processing,
consumer and farmer information, state research) are just coming up in
Greece. Many government employees in charge of the 1257/99 programme still
try to dissuade farmers from organic agriculture. Organic farming is often
considered just one of the many other proposals and EEC directives for the
production of high quality food. As it seems, many government officials prefer

2004
Chatzis Ioannis
the IPM approach to organic agriculture as it is easier to implement. Consumers
are less informed and have less money to spend than their counterparts in
Northern Europe (Van Der Smissen, N. 2001).
Organic farmers, processors and tradesmen have to afford not only the
conversion costs but also the costs for informing consumers, building up
marketing channels, training their partners, etc. etc. This is an enormous effort
considering the low level of training of farmers in particular, the small farm size
and the lack of government support (Van Der Smissen, N. 2001).
The development over the last years shows that in spite of bad conditions,
organic agriculture is gaining ground. Especially in the training, marketing and
research sector, the past few years marked a major progress. Through the
general orientation towards environmentally friendly and high quality
production in agriculture in the EEC under Agenda 2000, there will be a steady
progress among farmers, too (Van Der Smissen, N. 2001).
Limitations of the research

The major problem of the present research was the sampling methods
decisions. It was difficult to find enough samples in order to export useful
results that could be applicable. The neighbouring farms were a sampling
method found in bibliography (Pantzios, Tzouvelekas 2000) and in the present
situation was very helpful. Of course, more samples would help the researcher
to have a more global and safe picture of the whole situation.
Another problem was the rotation. It was very difficult to find identical farms to
compare yields, and prices for each cultivation separately and for each year. So
it was decided to face every sample in a three year rotation and as a result it

2004
Chatzis Ioannis
was impossible to have results for yields and different prices of each cultivation
separately.
Finally, the qualitative data is difficult to be generalised because of the
limitation of the sample. It is just an attempt to check some important aspects
the Thessalian farmers have towards the organic farming system. Further
research and analysis is necessary to inspect in depth the specific issues
especially for Thessaly which seems to have a great potential in organic
farming.
References
Agra CEAS Consulting 2002, INTEGRATED CROP MANAGEMENT SYSTEMS in the
E. U., European Commission DG Environment.
Agricultural Bank of Greece 2004, Interest rates [Homepage of Agricultural

Bank of Greece], [Online]. Available: http://www.ate.gr/epitokia.shtml
[2004, 8/15] (in Greek).
Butler, G., Newton, H., Bourlakis, M. & Leifert, C. 2004, "Factors influencing
Supply and Demand for Organic Foods" in Food Supply Chain Management,
eds. M. Bourlakis & P.W.H. Weightman, Blackwell Publishing, UK.
Chrysochoidis, G. & Fotopoulos, C. 2000, "Analysis of consuming markets and

consumer's behaviour" in Biological Agriculture. Cost, Profitability, Market
analysis and Marketing strategies, ed. C. Fotopoulos, 2nd edn, Stamoulis
Publications, Athens (in Greek).
Clark, S., Klonsky, K., Livingston, P. & Temple, S. 1999, "Crop yield and
economic comparisons of organic, low input, and conventional farming
systems in California's Sacramento Valley", American Journal of Alternative
Agriculture, vol. 14, no. 3, pp. 109-121.
COMMISSION OF THE EUROPEAN COMMUNITIES 2003, The Agricultural

Situation in the European Union, 2002 Report (Report in conjunction with
the General Report on the Activities of the European Union - 2002),
BRUSSELS AND LUXEMBOURG.

2004
Chatzis Ioannis
Conacher, J., Conacher, A. 1991, "An Update on Organic Farming and the
Development of the Organic Industry in Australia", Biological Agriculture &
Horticulture, vol. 8, no. 1, pp. 1-16.
DIO 2004, Organic Farming Statistical Data 2002 [Homepage of DIO Control
and certification organisation for organic products], [Online]. Available:
http://www.dionet.gr/stats1/stats2002/ [2004, 8/5] (in Greek).
Directorate-General for Agriculture, E. 2004, 9/6/2004-last update, Agriculture

in the European Union: Statistical and economic information 2000
[Homepage of European Union], [Online]. Available:
http://europa.eu.int/comm/agriculture/agrista/2000/table_en/index.htm
[2004, 6/9].
Duchateau, K. 2003, Organic Farming in Europe: A sustained growth over the

period 1998-2000, Eurostat, European Communities.
Episcopacies, T. 2000, Organic Farming, Vivlioekdotiki, Athens (in Greek).
European Commission 2004, 7/15-last update, CAP reform - a long-term

perspective for sustainable agriculture [Homepage of European Union],
[Online]. Available:
http://europa.eu.int/comm/agriculture/capreform/index_en.htm [2004,
8/27].
Foster, C., Padel, S., Michelsen, J. & Lynggaard, K. 1999, Organic farming
development and agricultural institutions in Europe: a study of six
countries, University of Hohenheim / Department of Farm Management,
Stuttgart-Hohenheim.
Fotopoulos, C., Chryssochoidis, G.M. & Pantzios, C.J. 1999, "Critical Factors
Affecting the Future of the Greek Market of Organic Produce", Medit, vol.
10, no. 2, pp. 30-35.
Fotopoulos, C., Pantzios, C.J. 1998, "An Assessment of Current Conditions and
Perspectives of the Organic Farming Sector in Greece", Agricoltura
Mediterranea, no. 128, pp. 142-152.
Jones, D. 2003, "Organic Agriculture, sustainability and policy", Organic

Agriculture. Sustainability, markets and policies, ed. OECD, CABI, France.
Kavallaris, P. 1998, «The Market of Organic Products. » Organic Farming, pp.

113.
Kirschenmann, F. 1998, ...and is that the Right Question Ecology and Farming,
IFOAM.
Lampkin, N. 1994a, "Organic Farming: Sustainable Agriculture in Practice" in

The economics of organic farming: an international perspective, eds. N.
Lampkin & S. Padel, CAB International,

2004
Chatzis Ioannis
Lampkin, N. 1994b, "Researching Organic Farming systems" in The Economics

of Organic Farming: An International Perspective, eds. N. Lampkin & S.
Padel, CABI, Wallingford, UK.
Lampkin, N. 1990, Organic farming, Farming Press, UK.
Mader, P., Fliessbach, A., Dubois, D., Gunst, L., Fried, U. & NIggli, U. 2002, "Soil
fertility and biodiversity in organic farming", Science, vol. 296, pp. 1694-
1697.
Maniatis, L. 1997, Organic Farming in Greece and its perspectives in Greece

Ministry of Agriculture (in Greek).
Marino, D.F., Santcucci, M., Zanoli, R. & Fiorani, S. 1997, "Labour intensity in
Conventional and Organic Farming", 3rd ENOF Workshop Proceedings The
European Network for Scientific Research Coordination in Organic Farming
(ENOF),
MEDITERRANEAN AGRONOMIC INSTITUTE OF CHANIA 2001, ORGANIC MARKET

IN GREECE, MEDITERRANEAN AGRONOMIC INSTITUTE OF CHANIA
Department of Economic & Management/ Marketing Sciences, Chania,
Greece.
Michelsen, J. 2001, "Recent development and political acceptance of organic

farming in Europe", Sociologia Ruralis, vol. 41, no. 1, pp. 3-+.
Michelsen, J., Hamm, U., Wynen, E. & Roth, E. 1999, The European market for
organic products: growth and development, University of Hohenheim /
Department of Farm Management, Stuttgart-Hohenheim.
Ministry of Agriculture 1981, Subsidiary tables for the economic analysis of

farms' elements, Administration of Agricultural Education and Information,
Ministry of Agriculture (in Greek).
Pantzios, C. & Tzouvelekas, V. 2000, "Organic Farming in Greece" in Biological

Agriculture. Cost, Profitability, Market analysis and Marketing strategies, ed.
C. Fotopoulos, 2nd edn, Stamoulis Publications, Athens (in Greek).
Pantzios, C., Tzouvelekas, V. & Fotopoulos, C. 2000, "Comparative cost analysis

of basic Greek organic products" in Biological Agriculture. Cost, Profitability,
Market analysis and Marketing strategies, ed. C. Fotopoulos, 2nd edn,
Stamoulis Publications, Athens (in Greek).
Parrott, N. & Kalibwani, F. 2004, "Organic Agriculture in the Continents: Africa"

in The World of Organic Agriculture. Statistics and Emerging Trends 2004,
eds. H. Willer & M. Yussefi, 6th, revised edn, IFOAM, Germany.
Region of Thessaly 2004a, Geography of Thessaly region [Homepage of Region

of Thessaly], [Online]. Available:

2004
Chatzis Ioannis
http://www.thessalia.gr/perifereia/index.asp?a_id=1426 [2004, 8/5] (in

Greek).
Region of Thessaly 2004b, Statistical Data [Homepage of Region of Thessaly],

[Online]. Available: http://www.thessalia.gr/perifereia/index.asp?a_id=1507
[2004, 8/5] (in Greek).
Sharma, A. K. 2001, A handbook of organic farming, Agrobios, India.
Tate, W. B. 1994, "The development of Organic Industry and Market: An

International Perspective" in The Economics of Organic Farming: An
International Perspective, eds. N. Lampkin & S. Padel, CABI, Wallingford,
UK.
The Scottish Agricultural College 2001, Statistics on Organic Farming.

Available: http://www.sac.ac.uk/cropsci/External/OrgServ/Statistics.asp
[2004, 8/4] .
United Nations 2004, Administrative Regions of Greece [Homepage of United

Nations, Department of Peacekeeping Operations Cartographic Section],
[Online]. Available: www.un.org/Depts/Cartographic/map/profile/greece.pdf
[2004, 8/5] .
Van Der Smissen, N. 2001, Organic Farming in Greece 2001 [Homepage of

Organic Europe], [Online]. Available: http://www.organic-
europe.net/country_reports/greece/default.asp#top [2004, 6/9/2004] .
Wai, O.K. 2004, "Organic Agriculture in the Continents: Asia" in The World of
Organic Agriculture. Statistics and Emerging Trends 2004, eds. H. Willer &
M. Yussefi, 6th, revised edn, IFOAM, Germany.
Welsh, R. 1999, 5/1999-last update, The Economics of Organic Grain and

Soybean Production in the Midwestern United States [Homepage of Henry
E. Wallace Institute for Alternative Agriculture], [Online]. Available:
http://www.winrock.org/wallacecenter/documents/pspr13.pdf [2004, 6/9] .
Wier, M., Calverley, C. 2002, "Market potential for organic foods in Europe",
British Food Journal, vol. 104, no. 1, pp. 45-62.
Willer, H. & Richter, T. 2004, "Organic Agriculture in the Continents: Europe" in

The world of Organic Agriculture. Statistics and Emerging Trends, eds. H.
Willer & M. Yussefi, 6th revised edn, IFOAM, Germany.
Yussefi, M. 2004, "The world of Organic Agriculture. Statistics and Emerging

Trends. Introduction" in The world of Organic Agriculture. Statistics and
Emerging Trends, eds. H. Willer & M. Yussefi, 6th edn, IFOAM, Germany.

2004
Chatzis Ioannis
Appendices.
Appendix 1: Administrative regions of Greece
Source: (United Nations 2004)

2004
Chatzis Ioannis
Appendix 2. Statistical method
It is used the t test in order to control the difference between two means. Two
samples with means M1 and M2, sizes of samples n1 and n2 respectively and
Standard deviations S1 and S2, the valuation of the means’ difference is
calculated by the model:
t= (M1-M2)/√ [(S1²/n1)+ (S2²/n2)
And it follows t distribution with degrees of freedom (d. f.):
d .f. = {[(S1²/n1)+(S2²/n2)]²/[( S1²/n1)²/(n1-1)]+[(S2²/n2)²/(n2-1)]}-2
The examined hypothesis is H0: M1 = M2 compared to the alternative H1: M1 ≠
M2. The H0 is rejected when t>t 0.05 d.f.

2004
Chatzis Ioannis
Appendix 3. Questionnaire
Organic farming for the last three years rotation.

First Part
Number of questionnaire: _________________________________________

Area: ________________________________________________________
Certification Body:________________________________________________
Date:_____________________________________________________
1. Land
Total (Hectares) Irrigated (hectares)
Privately - owned
Rented
Total
Rotation (three last years);
2. Non irrigated land value:
Irrigated land value:
3. Warehouse
Yes:
No:

2004
Chatzis Ioannis
4. If yes:
Year of construction:_________________________________________
Size:_______________________________________________________
Construction coat:___________________________________________
Materials:____________________________________________________
____________________________________________________________
Use:______________________________________________________
Yes:
No:
Time period of use:
5. Mechanical equipments:
Brand Model Year of Fuel Hp

construc
tion
Tractor
Plough
Sprayer
Fertiliser
distributor
Milling machine
Disk harrow
Wood harrow
Other:
(Specify)

2004
Chatzis Ioannis
Tools:
_____________________________________________________________________________
_____________________________________________________________________________
__________________________
6. Irrigation system:
a) Drilling privately owned:_______________________________
b) River:______________________________________________
Hours of irrigation:_________________________________________
7. If you irrigate from privately owned drilling system:

a) Pump:
(Or other machine) Hp
Electrical
Petrol engine
Diesel engine
b) Depth of drilling:______________________________________
c) Year of construction:___________________________________
d) Construction cost
(< 2 years)________________________
e) Reconstruction cost:
(> 2 χρόνια)______________________

2004
Chatzis Ioannis
8. If you irrigate from river:

a. Pump:
(or other machine) Hp
Electrical
Petrol engine
Diesel engine
b. Year of buying:_______________________________________
c. Buying cost:__________________________________________
9. Fertilisation:
Fertiliser Kg/Hectare Kind of Price Cultivation

fertilisation
10. Plant protection:
Product Kg Kg/hectare Price Cultivation

2004
Chatzis Ioannis
11. Labour:
Practices Family External Hrs/hectare Cultivati

on
Tiling
milling
harrowing
hoeing
Fertilisation
Plant
protection
harvesting
transportation
other
(specify)
12. Value of production (1st year):
Plot kg Cultivation Price
Total level of subsidies:

a. Organic farming :__________________________
b. Other subsidies:_______________________________
13. Value of production (2nd year);

2004
Chatzis Ioannis
Total level of subsidies;

14. Value of production (3rd year);

15. Loans:
Yes:

2004
Chatzis Ioannis
No:
If yes: Year:
Money:
Interest:
Settlement:
(Years)
Use:
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_________
16. Fuels (petrol and diesel) costs:
____________________________________________________________
17. Electricity costs:
____________________________________________________________
18. Insurance costs:
____________________________________________________________

2004
Chatzis Ioannis
19. Irrigation fees costs:
____________________________________________________________
Second Part
20. Is farmer your main occupation?
___________________________________________________
21. What is your age?
___________________________________________________
22. When did you start the Organic farming system cultivation?
____________________________________________________________
23. Are you satisfied with this system? (Yes – no- do not know)
____________________________________________________________
24. If no do you think to stop and start conventional farming

again? (yes - no – other)
____________________________________________________________
25. Why did you decide to accept this farming system; (3 or the
below in order of precedence)
a. Subsidy
b. Environment
c. Personal Health
d. Food quality and safety – consumer’s safety

2004
Chatzis Ioannis
e. Innovation - new idea
f. Other (specify):
____________________________________________________________
26. Are you facing ay problems concerning Organic Farming? (3

from the below in order of precedence)
• Technical issues
• Agricultural supplies
• Labour available
• Market channels
• Subsidy receiving
• Production costs - income
• Certification body
27. Other comments
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________

2004
Chatzis Ioannis
Conventional farming for the last three years rotation.

First Part
Number of questionnaire:_________________________________________
Area:________________________________________________________
Certification Body:________________________________________________
Date:_____________________________________________________
28. Land
Total (Hectares) Irrigated (hectares)
Privately - owned
Rented
Total
Rotation (three last years);
29. Non irrigated land value:
Irrigated land value:
30. Warehouse
Yes:
No:

2004
Chatzis Ioannis
31. If yes:
Year of construction:_________________________________________
Size:_______________________________________________________
Construction coat:___________________________________________
Materials:____________________________________________________
____________________________________________________________
Use:______________________________________________________
Yes:
No:
Time period of use:
32. Mechanical equipments;
Brand Model Year of Fuel Hp

construc
tion
Tractor
Plough
Sprayer
Fertiliser
distributor
Milling machine
Disk harrow
Wood harrow
Other:
(Specify)

2004
Chatzis Ioannis
Tools:
_____________________________________________________________________________
_____________________________________________________________________________
__________________________
33. Irrigation system:

c) Drilling privately owned:_______________________________
d) River:______________________________________________
Hours of irrigation:_________________________________________
34. If you irrigate from privately owned drilling system:

f) Pump:
Electrical
Petrol engine
Diesel engine
g) Depth of drilling:______________________________________
h) Year of construction:___________________________________
i) Construction cost
(< 2 years)________________________
j) Reconstruction cost:
(> 2 years)______________________
35. If you irrigate from river:

2004
Chatzis Ioannis
d. Pump:
Electrical
Petrol engine
Diesel engine
e. Year of buying:_______________________________________
f. Buying cost:__________________________________________
36. Fertilisation;
Fertiliser Kg/Hectare Kind of Price Cultivation

fertilisation
37. Plant protection;
Product Kg Kg/hectare Price Cultivation

2004
Chatzis Ioannis
38. Labour
Practices Family External Hrs/hectare Cultivati

on
Tiling
milling
harrowing
hoeing
Fertilisation
Plant
protection
harvesting
transportation
other
(specify)
39. Value of production (1st year);

c. Organic farming :__________________________
d. Other subsidies:_______________________________
40. Value of production (2nd year);

2004
Chatzis Ioannis

41. Value of production (3rd year);

42. Loans:
Yes:

2004
Chatzis Ioannis
No:
If yes: Year:
Money:
Interest:
Settlement:
(Years)
Use:
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_________
43. Fuels (petrol and diesel) costs:
____________________________________________________________
44. Electricity costs:
____________________________________________________________
45. Insurance costs:
____________________________________________________________

2004
Chatzis Ioannis
46. Irrigation fees costs:
____________________________________________________________
Second Part
47. Is farmer your main occupation?
___________________________________________________
48. What is your age?
___________________________________________________
49. Are you satisfied with conventional farming system? (Yes –

no- do not know)
____________________________________________________________
50. If no do you think to stop and start organic farming system?

(yes - no – other)
____________________________________________________________
51. If you would start organic farming which factors would lead
you to accept this farming system; (3 or the below with in order
of precedence)
g. Subsidy
h. Environment
i. Personal Health
j. Food quality and safety – consumer’s safety
k. Innovation - new idea
l. Other (specify):

2004
Chatzis Ioannis
____________________________________________________________
52. Which is the major obstacle for starting organic farming?
• Market channels
• Conventional support
53. Are you facing any problems concerning Conventional

farming? (3 of the below)
• Market channels
• Conventional support
54. Other comments

2004
Chatzis Ioannis
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________

2004
Chatzis Ioannis

2004

Final Dissertation

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Final Dissertation

Uploaded by

Copyright:

Available Formats

Chatzis Ioannis

in Thessaly. The samples were 15 organic farmers and 15 neighbouring

was an attempt to specify economic parameters and more specifically

profitable for arable crops in three year rotation than corresponding

statistical important difference between total costs for organic and

The second part focused on qualitative research and a small evaluation of

farmers’ perceptions towards organic production was attempted. The findings

conventional farming) are adopting organic farming, there is a positive

agriculture. Finally, organic farmers are facing technical problems and

Imperial College London i

so concerned about “external” help.

with their knowledge but especially psychologically, as well.

I would also like to express my thanks and my appreciation to my supervisor

Dr. Alastair Bailey for his patient guidance and encouragement.

despite the challenges; I really enjoyed my year here.

I would like to express my appreciation to “Alexopoulos Foundation” and

general director of Development Agency of Karditsa for his encouragement. He

Tsiboukas C. Lecturer at Agricultural University of Athens for his directions.

Finally I would like to express my thanks and my love to my parents and my

of studies. At last, I dedicate this dissertation to my future wife Anthie, who

Imperial College London ii

Imperial College London iii

Imperial College London iv

Imperial College London v

products from specific consumers’ groups shot of dangerous toxic ingredients

and chemical residues in addition with the continuously increased sensitization

have created the conditions for the distribution of organic farming

The intensive (industrial, conventional) agricultural systems with the large

contribution to sustainable development, has resulted in considerable interest

Development (OECD) and European Union (E. U.) Environmental Ministers.

makers’ growing interest in organic agriculture:

• The important (and sometimes rapid) increase in organic production

food scares (for example, BSE).

Imperial College London 1

• Public concern for sustainability and environmental protection. One

the organic farming’s criticisms of existing farming practises which does

definition of an improved farming system and appears able to

demonstrate its value in practice while working in the food market

(Michelsen 2001, Lampkin 1994a).

• The important and continuously growing percentage of the traded

organic produce. (Jones 2003).

Imperial College London 2

Source :( Jones 2003, Welsh 1999)

certified organic agricultural areas and the number of business related to

organic farming. The first, comparing organic farming against existing

conventional systems is widely adopted by researchers new to organic farming.

right, is adopted by researchers and scientists that have believed in the

usefulness of organic farming and are interested in developing existing

Imperial College London 3

present agricultural situation, a comparison between different farming systems

is necessary. Conventional farmers would like to find out the implications of

between conventional and alternative farming systems. A fundamental goal of

alternative agriculture, including organic and low – input farming systems, is to

reduce non – renewable resource use and environmental degradation while

maintaining productivity and profitability (Clark et al. 1999).

Conventional agriculture has developed in a direction contrary to the

requirements of productive and sustainable ecosystems for cohesiveness and

functional diversity. Two are the important characteristic trends in these

1. The growing use of off-farm production inputs that leads in opening up

closed systems and thus, they lose their cohesiveness.

2. The specialization of modern farming systems. Production is becoming

increasingly confined to only a few lines of activity, with small number of