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Organic Milk Becomes Casualty of the Credit Crunch

04 August 2008

UK - It is no longer attractive for traditional dairy farmers in the UK to switch to organic production.

Richard Hampton, sales and marketing director of Omsco, Britain's largest organic milk dairy cooperative told The Independent newspaper that the prices organic producers are receiving do not cover the cost of production.

And he added that there will have to be an increase in the prices producers receive to make things viable.

Cahal Milmo in the Independent said that the organic market is being "credit crunched".

Rises in feed prices for organic producers have gone up by up to 80 per cent to £400 a tonne.

And the organic market has lost up to five million litres of milk that could have come from farms that were converting to organic, but have now reverted to non-organic methods.

The organic farmers say they need at least another 4p a litre to return to profitability.

TheCattleSite News Desk



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