Thursday, June 09, 2005

Organic Milk Demand Outstripping Supply

From Cheese Market News via, news that current organic dairy farmers simply can't keep up with the growing demand for organic milk:
Consumer demand for organic dairy products has eclipsed industry expectations growth predictions that once seemed overly optimistic are lower than actual growth. Yet, despite the market potential, organic companies are failing to cash in on the demand. There simply is not enough organic milk to keep the shelves fully stocked.

Steve Pechacek, president and general manager of Organic Family LLC, which does business as Organic Choice, says he is short approximately 384,000 pounds of milk this week.

"We're doing the best we can, but it's hard," says Pechacek. "This week I had orders for eight additional loads that I don't have." Headquartered in Prescott, Wis., Organic Family works with 12 milk processing plants and primarily ships its milk to the East Coast. Pechacek says he easily could sell an additional 720,000 pounds of organic milk per week.
While I'm sure this situation is stressful for these farmers, I can't think of a better way for this industry to draw more producers and investors. At the same time, I hope we continue to see growth in small farms as opposed to more big organic agriculture corporations.

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