Organic milk is no longer considered a premium product
The increase in the producer price reduced the gap between organic farming and the rest of the market.
You can buy organic, organically grown milk 40% cheaper than before, which causes problems for many. According to Richard Hollingdale, commercial director of the organic cooperative Omsco, the difference between the prices of organic and agricultural products has decreased, but he is confident that when the conventional market price starts to decrease, this difference will reappear. According to the specialist, this phenomenon can be seen all over Europe, including in Germany, France and Scandinavia. In the last 12 months, the price of conventional milk products has been higher than the price of organic milk per liter, but it is still far below the costs necessary to cover the costs of feeding and production.
The demand for organic milk and dairy products is increasing
Organic dairy accounts for around 2-3% of total UK milk production. According to AHDB data, milk from the organic sector shipped an average of 1.077 million liters per day in the week ended July 23, compared to the conventional sector which shipped 32.55 million liters per day in the same week. The 14.2% decrease in organic deliveries implies a decrease in production, either due to a decrease in yield or a decrease in the number of cows. Daily shipments were down just 1% year-over-year in the conventional market. According to Mr Hollingdale, the organic market has grown steadily over the past five years – organic farming has declined slightly in the past year, but not as much as the conventional food market. In the case of organic dairy products, the sales of butter and cheese continue to grow in the background. The largest retail buyers of organic milk are committed to the sector and willing to pay more for its products. Currently, the largest market for organic milk and milk products is America, where demand is constantly growing.
Production costs favor organic producers
High feed prices affect the production costs of organic producers, especially for imported feed. However, a higher proportion of forage in the fattening feed helps limit the increase in production costs, as does reducing fertilizer and spraying costs. Maintaining the level profile of organic milk and winter milk production to meet demand is key. The main difference is the feed cost of organic material compared to conventional.
Related news
In 2023, the animals were fed mainly with fermented and fibrous bulk feed
In Hungary, 7,598,000 tons (100 percent coverage) of fodder were…
Read more >The animal farm development program continues
With a total budget of HUF 200 billion, two new…
Read more >We are further deepening our agricultural relations with Azerbaijan
He also discussed educational, scientific and animal husbandry issues with…
Read more >Related news
A Hungarian specialist became Danone’s Eastern and Central European sales manager
From this July, Enikő Bolyós organizes and manages the company’s…
Read more >Recent research: almost half of Hungarians do not use sun protection cream, and moreover, they do not avoid the sun in the midday hours either
According to a recent, representative research, only 8 percent of…
Read more >The GVH fined Booking almost HUF 400 million with a record fine
Booking did not fully fulfill its obligations requiring the termination…
Read more >