temi
11-07-2008, 05:31 AM
Despite the onslaught of recession and decrease in consumer spending, organic milk is bucking the trend. Recent sales figures showed an increase of 4% when compared to the same period in 20071 and the Organic Milk Cooperative (OMSCo), which supplies the majority of the UKâ??s organic milk, is confident the sector will continue to weather the challenging economic climate. OMSCo believes that these sales figures prove that, despite having less money in their pockets, consumers are sticking to firmly held principles when it comes to buying the basics in their shopping trolley. They are prepared to pay a few pence more for the well publicised nutritional, environmental, and animal welfare benefits associated with organic milk. Richard Hampton, OMSCoâ??s Sales and Marketing Director comments: â??In the dairy sector we are very fortunate. The science behind the benefits of organic dairy is much more advanced than in many other organic sectors - with proven nutritional differences - this is part of the reason why the organic products already have such a large share of supermarket dairy sales. Secondly, we know from research that it is simply not as expensive as people think to â??go organicâ?? for some weekly staples. In the case of milk, for example, it is well under £1 extra per week for the average family2. I think that consumers are realising that cutting organic dairy products from their shopping basket will not relieve much of the pressure on household budgets.â?? Richard goes on to say: â??Over recent months reports surrounding organic sales have on the whole been full of doom and gloom. The reality is some organic sectors, including dairy, are doing much better than others, and we are delighted to report some â??good newsâ?? in the face of all this adversity. We should not be complacent but we are confident sales will remain resilient.â?? OMSCo is calling for the industry to turn its focus onto supply of organic milk rather than demand. Poor profitability on organic dairy farms means that some farmers are turning their backs on the industry. Hampton explains: â??Cost increases have not been kind to organic dairy farmers. Indeed, independent analysis shows their costs have risen faster than the increases experienced by their non-organic peers. As a result, some organic dairy producers are finding they would be better off producing non-organic milk. This is a concern considering the marketâ??s long term growth potentialâ??
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