Newsroom & Financials

Consumer Demand Drives Organic Milk Industry Expansion

Posted 4/11/2017

Despite the current excess supply environment, rising demand points to a bright future for the U.S. organic milk industry, leading a record number of dairies to transition to organic milk production according to a new report from CoBank. Organic milk generates the highest sales of any certified organic commodity, and steady demand growth will lift organic fluid milk market share and further stimulate product innovation.

“The substantial gap between organic and conventional on-farm milk prices, combined with more price stability, is driving the transition,” says Ben Laine, CoBank senior dairy economist. “We are seeing increasing herd sizes for many existing organic dairies looking to take advantage of size efficiencies and price premiums.” Read more...

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