News

Not enough organic milk

USDA Dairy Market News says organic fluid milk shortages are being reported from Maine to Georgia to Arizona and California.  The problem traces back to 2012 when drought significantly reduced organic feed supplies and pushed feed prices through the roof.  Many organic dairy producers cut back or got out altogether.  In the last year, the price of dairy cows has gotten so high that some remaining organic producers found it more profitable to sell the cows to conventional producers.  Through all of this, a number of organic processors have cut back or dropped organic products as well.

Supermarkets in the Northeast, Southeast and Southwest have posted signs on coolers that organic milk is in short supply.

The situation has prompted organic dairy producer organizations in the Northeast and Northwest to call for higher prices for contracted organic milk.  They say it is needed to spur current producers to increase production as well as to attract new producers.  Of course it takes a year to transition a dairy herd to organic, three years to transition land so any recovery is going to take time.

For the week ending October 25: feed grade organic yellow corn averaged $1064 per bushel, feed grade organic soybeans averaged $24.24, and soybean meal averaged $1132.11 per ton.  The prices are all below two weeks ago but above year-ago levels.

The weighted average advertised price of a half-gallon of organic milk is $3.32 down 15 cents from two weeks ago.  A half-gallon of conventional milk sold for an average $2.30 putting the organic-to-conventional spread at $1.02 down 61 cents from two weeks ago.  A year ago the spread was $2.08.