General Mills and Organic Valley in venture

General Mills has started a strategic sourcing partnership with the largest organic cooperative in the US, Organic Valley, which will help about 20 dairy farms add around 3,000 acres to organic dairy production over the next three years, the company says. The programme with US-based Organic Valley will drive more acres in the US into the organic certification process and builds upon General Mills’ commitment to double the organic acreage from which it sources ingredients by 2019.

General Mills is third largest maker of natural and organic foods in the country, with nine brands including Cascadian Farm, Muir Glen, Lärabar, Liberté, Mountain High, Food Should Taste Good, Immaculate Baking, Annie’s and EPIC Provisions.

The strategic alignment with Organic Valley will build General Mills’ relationships with the organic farmers that will be supporting its yogurt operating unit in the US, which includes brands like Yoplait, Annie’s, Liberté and Mountain High.

Earlier this year General Mills introduced the Annie’s brand to the US yogurt category with a new line of certified organic whole milk yogurt.  In addition, the company is transitioning its Liberté yogurt brand in the US to USDA certified organic, which will roll out nationwide this summer.

“To ensure we are able to deliver great tasting organic yogurt offerings to our consumers we are committed to supporting a framework in partnership with Organic Valley that will not only ensure a consistent supply chain, but also make it easier for dairy farmers to successfully manage through the transition to organic,” David Clark, president of the General Mills Yogurt Operating Unit says.

While demand for organic food is increasing in the US, supply has not been able to keep up. In the US acreage devoted to organic agriculture is about one percent of total cropland, according to the US Department of Agriculture.

Since 2009, General Mills has increased the organic acreage it supports by 120 percent and is now among the top five organic ingredient purchasers — and the second largest buyer of organic fruits and vegetables — in the North American packaged food sector.

In addition, General Mills will launch the Organic & Regenerative Agriculture Transition Council, which will bring together sustainable agricultural leaders, farmers and industry stakeholders with the mission of advancing organic and regenerative agriculture practices. The first project will focus on dairy.