The most recent data from the American Organic Trade Association (OTA) reveals US organic dairy export volumes have consistently fallen since 2017. Since that year, organic fluid milk exports have fallen 76%, down to less than 2,000 MT in 2020. While volumes have plummeted, the value decline is somewhat less pronounced – if still significant. OTA revealed the value of US organic dairy exports has been supported by increased organic whey and organic dry milk product exports. Over 2020, the value of US organic dairy exports reached $4.9m in 2020, down ‘only’ 27% from 2017.

Put simply, the numbers don’t add up for US organic dairy producers.

“Production level of organic cows average between 15-17,000 pounds a year. Cost of purchased feed are usually at least 40% higher than conventional feed. While there are saving on some inputs (herbicide, pesticides, synthetic fertilizer) there are increased costs for others, more hired labor for example. Organic requires at the very least four months of cows being on pasture which adds the cost for rental or land purchase. ​” [says Ed Maltby, Northeast Organic Dairy Producers Alliance Executive Director]

“At this time there is no economic reason for dairies to transition to organic production. Mid-size herds will have difficulty finding a market unless they sell directly to manufacturers. The large dairies have effectively created a surplus that is controlled by their reduced costs of production from economies of scale.”​

This is an excerpt. Read the original post here