June 30, 2009


US organic milk halo on a fade


US organic milk, which was previously hot in demand, is now suffering from plunging sales as the world dairy market writhes in depression.


It was only three years ago when organic milk in the US was in heavy demand with health conscious consumers demanding it and the supermarkets unable to get enough of the product.


But now, farmers are unable to get rid of their organic milk.


The volume of organic milk sold across the US is projected to drop nearly 15 percent this year compared with 2008, according to industry estimates.


Some reports indicate that the draw of organic milk collapsed with the financial crisis and falling prices of conventional milk. In some regions, organic milk is US$7.50 per gallon compared with US$2.50 per gallon for non-organic milk.


The sharp increase of organic farmers is also blamed for the downfall of the sector. Vermont, which supplies much of the organic milk for the Boston market, saw the number of organic dairy farmers grow to 201 from 114 in the past three years. Some farmers have incurred huge debts to covert their farms to organic, but they could barely pay their bills now.