While organic milk is enjoying more and more popularity, it is becoming clear that the supply of it in the UK is not growing in accordance with demand. Dairy accounts for over one-third of all organic food purchases, and is set to grow in 2010/2011 by 9%. However, this growth comes at a time when supply is actually bound to fall.

A significant number of organic milk producers have switched back to producing conventional milk because of concerns about the economic viability of organic milk production. However, their exit may precipitate a rise in organic dairy prices over the next year that may win former organic producers back when faced with more profitability.

While similar statistics have not yet been released for North America, we can assume that our organic producers face the same cost pressures.

What can we do to help? Not let a cost increase of $1.00 per bag deter us from purchasing organic milk. Organic dairy does cost significantly more to produce due to the methods used to pasteurize the milk and the fact that the cattle involved are not given HGH or antibiotics. Many of the advances in farming over the past fifty years have been made to reduce the cost of dairy, and going back to organic methods will increase costs to the producers. If we can’t handle that increased costs as customers, we put organic dairy in a perilous position.

Tags: organic dairy, organic milk, organic milk prices, organic milk supply

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