Organic Herd set to lift milk price to 54p/litre in August

Producers supplying Organic Herd will receive a 3p/litre increase in August, taking its milk price to 54p/litre based on a standard litre.

This is the highest declared milk price for August to date in the UK and represents a 14p/litre premium above the conventional market.

Strong demand for organic milk, cheese, yogurt and butter at retail has helped to drive up prices, with support from both UK and global markets.

See also: Organic milk prices top 50p/litre with supplies tight

Chief executive Martyn Anthony said: “Our latest price increase reflects that domestically and in our major export markets demand for organic dairy is strengthening while supply remains relatively constrained.

“The positive, demand-led picture for organic dairy is very much linked, we believe, to an upturn in consumer confidence as the impact of the cost-of-living crisis, and particularly food price inflation, has started to wane.”

Improved sales in the US of Organic Herd’s branded UK cheeses have also been bolstering prices.

Sara Ogborne, Organic Herd’s director of membership and communication, added: “We continue in our strategy of avoiding unsustainable situational pricing, not wavered by conventional commodities.

“Instead, as a dedicated organic business, our focus remains on reflecting the stable and growing value of British organic milk.”

Organic outlook

The prospects for the organic dairy sector are positive looking forward, according to Mr Anthony.

He said: “Organic Herd’s commitment to delivering a sustainable price and strong premium above that of conventional production will, we believe, enable our members to grow their milk production.

“In addition, we are now recruiting carefully selected new members to help meet increased demand from both domestic and export customers.”