In Cream of the Crop, we looked at financial data from organic and conventional dairy farms in Vermont and Minnesota, two states with prominent
organic dairy sectors.
With stricter pasture rules raising costs in
the organic dairy sector, higher producer prices for organic milk are likely needed to attract more dairy farmers into this sector.
Although the larger size groups in
the organic dairy sector had higher economic returns, a trend toward concentration of production was not as evident.
Even if California production declines, continuing development of organic dairy production in the traditional milk - shed states, lower feed grain prices, and diversity in the business models used for organic dairy production could support expansion of the U.S.
organic dairy sector.
Even prior to USDA enforcement of stricter pasture rules in 2011, ERS analysis of
the organic dairy sector in 2005 and 2010 found that none of the size groups covered total economic costs in either year.
U.S. food retailers and milk processors have informed customers that they can't meet demands for organic milk a number of times since
the organic dairy sector gained traction with consumers over a dozen years ago.
The organic dairy sector posted an almost 11 percent jump in sales in 2014 to $ 5.46 billion — the biggest percentage increase for that category in six years, the OTA reported in its annual market survey in April.
Organic Valley, while a leader in
the organic dairy sector, has been criticized for its ultra-pasteurized milk products, which the company claims provide customers with a longer shelf life.
Greater interest from big players would see competition hotting up in
the organic dairy sector.
Not exact matches
Some
organic dairy producers exited the
sector in 2009 when processors cut back on
organic dairy contracts during the downturn in the U.S. economy.
Eekeren, Nick van and Govaerts, Wim (2012) Success of a participatory research and extension programme in the Dutch
organic dairy goat
sector.
Infant formula group Wattle Health is likely to be off the ASX for a month as it attempts to raise up to $ 75 million to help fund a push into
organic dairy production in a highly volatile
sector.
The role of big food industries in boosting
organic agriculture is further illustrated by the New Zealand
dairy sector.
After fruits and vegetables,
dairy products are the largest category of the growing, $ 29 billion
organic food
sector, according to the
Organic Trade Association's 2013
Organic Industry Survey.