US consumers go organic dairy

Posted 13 February, 2006
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American consumer interest in buying organic dairy products is causing more farmers to switch to organic production.

Last year, the state Department of Agriculture received a record 20 applications for organic certification and a similar number is expected this year. Higher prices for organic milk are persuading farmers to make the switch, even though it takes three years to get fields certified and another year to get the cattle certified.

National sales of organic milk in 2005 jumped 27% in value to $499 million and many Washington supermarkets are now offering two or three brands, from leading producers such as Horizon Organic and Organic Valley, while Safeway has its own organic dairy brand. Horizon expects demand to grow by 20% to 25% for the next three to five years.

Jay Gordon, executive director of the Washington State Dairy Federation, estimates producers are receiving 25-30% more for organic milk than the standard variety, which he says more than covers the higher cost of production.

In December, Watts Brothers Farms in Washington plan to start producing milk from a 2,000-strong herd organic farm that will be the largest producer in the state. Meanwhile, in Eastern Washington, Watts Brothers’ president Don Odegard is adding organic milk to his 20,000-acre farm’s vegetable production to create a system in which vegetable fields will be fertilised by organic manure, and the cattle will be fed by-products from the organically grown vegetables.

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