Hard Times for Organic Dairies

May 31, 2009 07:00 PM

By Jim Dickrell, editor Dairy Today

Even the New York Times is recognizing the hard times in dairy these days. Specifically, it published a lengthy story last week on the struggles of organic dairy farms in New England and the Midwest. (Follow this link to read the article.)

While organic milk had enjoyed double-digit growth over the past several years, USDA now reports sales are dropping as recession-plagued consumers switch back to conventional milk. Sales of organic whole milk fell 2.5% in February while sales of reduced-fat plummeted 15%.



HP Hood, Horizon Organic and Organic Valley are all slashing their contracts with farmers, saying there is a glut of organic milk available. Some organic producers are now considering going back to the conventional market, or shutting down completely.

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