More organic required for Arla Foods

Arla Foods, which is the world’s largest producers of organic milk, need to produce 250 million kilograms more organic milk for its core and growth markets in the next two years, the company says. This milk will mainly come from Central Europe (Germany, Netherlands, Belgium and Luxembourg) as well as Denmark and Sweden.

The milk producers that already are delivering to Arla are being encouraged to show their interest in producing organic milk for the increased need. Arla will also go and search for new farmers for the organisation elsewhere.

Based on the market analysis for organic raw milk in Central Europe, Arla decided to raise the organic supplement for its co-operative members in CCE by two euro cents as of 27 April 2015. Currently, producers get a surcharge of up to €0.13 per kilogram above the conventional milk price.

Arla’s deputy managing director Povl Krogsgaard is aware that a change in production of organic milk is not a short term decision, but relies on interested farmers that supply still conventional milk. “In concrete terms, it takes two years to switch from conventional milk production in organic production. For us, it means that we have to conduct a procurement process for new milk now,” he says.

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