Lack of supply control and uniform standards means troubling times for organic dairy farmers

In a climate of race-to-the-bottom price cutting, oversupply, and declining demand for organic dairy, many marketers, including Organic Valley are forced to take farmer-unfriendly steps like lowering their pay prices for organic milk and asking farmers to reduce production by 10-15 percent.

The heavy competition gives incentives to cut corners, pulling the market out from under the most truly sustainable producers. “Despite the fact that organic production has always been pastured based, the lack of a legal definition has allowed the growth of dairies with restricted land base and lower costs of production to become certified,” notes NODPA Executive Director Ed Mathby. Consumers have shown their willingness to pay for a superior product, but the problem is have the uniform standards and differentiated market so farmers can deliver. Full story: NODPA