Summary
This study quantifies the variable profit and efficiency impacts of organic certification in dairy farming across Europe, using farm-level FADN data from 25 countries while accounting for heterogeneity through a class splitting model. This paper identifies four distinct classes with dairy farm enterprises operating under similar production conditions, in order to assess gross margin and efficiency differences among certified and non-certified farms. The results suggest that organic certification increases gross margins for dairy farm enterprises in Europe, while slightly increasing technical efficiency in two out of four classes.