Sunday, May 13, 2007

Drink Your Organic Milk

"After years of being in short supply, organic milk is expected to flood the U.S. market as a regulation change and higher margins push more dairy farmers to produce it.

The dairy industry is expecting organic milk supply to surge by at least 40 percent this year from a previous annual growth rate of 20 percent, creating an excess of 25 million gallons, according to some estimates.

Meanwhile, consumer demand for organic milk will continue to grow at 25 percent annually, leading some industry experts to predict that a retail promotion war is imminent.

U.S. dairy processors and distributors like Dean Foods, Stonyfield Farm and Organic Valley, a dairy farmers' cooperative that sells to retail grocery chain Whole Foods Market and others, are welcoming the news because it provides an opportunity to expand the market and offer more organic milk-based products.

"The oversupply situation is going to result in a pretty competitive marketplace," said Molly Keveney, a spokeswoman for Dean, which owns the best-selling Horizon Organic brand of milk. "Until last year we were in a supply constraint situation. We weren't innovating at all."


Read the article

Let's just hope it isn't all sham organic milk from Horizon. Personally, I don't drink much milk (I prefer yogurts and cheese) but it is nice to finally see a surplus of something organic.