Dairy Groups Look To Organic In Commodities Panic
US - While conventional dairy processors continue to fret over increasing prices for milk powder and other ingredients, a leading US organic group believes that current conditions in the commodities market will continue to boost industry profitability.
9 October 2007
1 minute read
Dano Strong, vice president for marketing at Naturally Iowa, told DairyReporter.com that as prices for conventional milk products continue to rise, the cost disparity between organic dairy goods will be much less of an issue for consumers.
With dairy goods in particular priced to demand, he added that increased production of organic milk in the US has helped to stabilise prices. The industry could therefore have a significant role in ensuring that the dairy supply could keep up with demand, according to Strong.
This was backed by market research group Organic Monitor, which suggested that a growing number of US dairy farmers were taking up organic production, ahead of a change in the rules regarding acceptable practices.
Under the Harvey ruling, from June this year, producers in the industry have had to use 100 per cent organic feeds in their herds.
Organic Monitor said that the resulting "flood" of organic milk entering the market was helping to ease previous shortcomings in the global supply of organic milk and dairy products.
