The beginning of an anticipated wave of organic milk supply started to hit the market recently and the supply will continue to grow throughout the summer. While there is some concern that it may lead to an oversupply and a drop in prices, some of the extra milk is already being made into yogurt.
In 2005 some of the regulations for converting to organic were changed and it
caused numerous producers to convert ahead of the changes. Milk from those
farms is now coming onto the organic market.
“It looks like we will have a serious oversupply in the next two months,” said
George Siemon, chief executive at Organic Valley. “We are now telling people,
‘Please stop thinking that there is a bottomless market.’”
Stonyfield Farm is converting some of its smoothies and quarts to organic, or
in some cases back to organic. Some of those products have been made with
non-organic milk during the tight supply of the last couple of years.
Stonyfield says it is buying 48% more organic milk this spring than a year ago.
Newsline: New Organic Milk Hitting Market
May 29, 2007