Monday, June 25, 2007

Conventional Milk vs. Organic Milk

"People looking for another reason to buy organic milk besides the health and environmental benefits may get one they never anticipated - price.

With costs surging for conventional milk, consumers this summer will find prices for the two types of milk getting closer and closer, as opposed to when once organic milk could cost three or four times as much.

Conventional milk prices are getting pushed up by a variety of factors - Australian drought, disappearing European subsidies, higher feed costs due to corn-based ethanol production and swelling global demand chief among them.

At the same time, organic prices have stabilized and in some cases dropped due to what experts call a one-year glut in production caused by farmers taking advantage of a regulatory grace period regarding feed requirements. Hundreds of new farms are going organic, creating an abundance of milk that has even led to a price war of sorts in some parts."


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