This research study investigates the differences between organic and conventional dairy farming, focusing on the European dairy industry and Hungary's role within it. The primary problem pertains to the varying environmental and economic impacts between organic and conventional practices. The objectives of the research study include evaluating the effectiveness of each system in terms of risk management, profitability, and sustainability. The methodology involves a comparative literature review and data analysis to explore risk perception in both farming systems. Findings suggest that while organic farming promotes ecological benefits and commands higher market prices, it incurs higher production costs and labor requirements. Conventional farming, although less environmentally sustainable, provides higher yields and reduced labor demands, making it economically viable for larger operations