Organic milk supply in the UK

The high demand for organic milk has led to a shortage in supply, which means that more farmers are needed to meet the demand growth. Supply will stay tight due to the two year conversion time, but can be met for the long term. OMSCo urges the need for conversion levels to be carefully managed to ensure that the market does not return to a cycle of over and under-supply when milk becomes available from the year 2008. The national market predictions show an additional 60 million litres is required in 2008 and 2009, according to the OMSCo. Data delivered from the certification bodies shows 56 litres of this requirement has now been secured. The cooperative urges farmers who are still considering converting and able to supply from autumn 2008, to start the process immediately. Conversions for additional 60 million litres required in 2009/2010 will start next year.

OMSCo’s Chief Operating Officer commented that at the first Organic Milk Summit at the Dairy Event in September that it had been possible to bring together representatives from retailers, processors, manufacturers and farmers. Up to date information on market conditions was essential to ensure a controlled approach to recruiting new organic dairy farmers. Recent increases in farm gate prices meant that the current economics of organic production was sound. He continued that as a result the national conversion requirement had almost been achieved for this year, without the need for conversion payments or other artificial incentives. But excessive conversions had to be guarded to guarantee the industry’s ability to meet demand growth in further years.

OMSCo is the UK’s leading and longest established organic dairy cooperative, focused on production and supply of organic milk, supplying the majority of organic milk produced in the country. The co-operative is dedicated to building a sustainable long term organic milk market in the country to the benefit of the entire supply chain.

Farming UK