A new study out of the UK shows that sales of organic milk have slowed considerably. Is this a glimmer of what may happen in the States?
According to market research company TNS, which closely monitors the market, sales of organic milk grew from 73.8 million litres in 2004 to 158 million last year. Though that represents rapid growth, it has slowed down considerably in recent months. Growth in the last 12 weeks has faltered to zero.
Organic represents only six percent of all milk bought. Despite being championed by a host of celebrities such as Anthony Worrall Thompson, this percentage shows little sign of rising substantially.
Tim Smith, the head of the Britain’s largest milk processor, Arla, said: “It’s starting to plateau because of the price premium.”
However, fans of organic milk claim the dramatic slowdown and rising prices are because of a lack of supply, with it taking at least two years for farmers to undertake the expensive process of converting to organic.