Organic milk prices top 50p/litre with supplies tight

Organic dairy producers will receive more than 50p/litre this summer due to tighter milk supplies and improved demand at retail, as processors bid to secure volumes.

There has been more stability in organic milk markets than the big peaks and troughs seen in conventional prices in recent years, but some organic producers have moved away due to the higher production costs.

Arla increased its organic milk to 50.87p/litre for June (manufacturing), while Muller lifted its organic price by a further penny to 51.5p/litre for July (liquid).

See also: Yew Tree Dairy acquired by industry rival Muller

Meanwhile, from 1 July Organic Herd will increase its milk price by 1p/litre to 51p/litre for a standard litre.

Sara Ogborne, Organic Herd’s director of membership and communication said: “The July increase is in line with our commitment to returning to our members small, incremental but, crucially we believe, also sustainable improvements in their milk price.”

Ms Ogborne told Farmers Weekly that Organic Herd were also looking to recruit more farmers.

She said demand was rapidly increasing and it was a positive time for organic dairy. Having come through a couple of years when the UK organic milk pool shrank, it was looking to grow significantly again.

Retail industry data showed a 4% increase in organic milk sales during the spring, after a period of contraction last year.


Organic milk production dropped by 14% overall for the 2022-23 milk year, and this year it remains low. In early June, average daily milk deliveries were 11.5% down on the same period in 2023.

By comparison, conventional milk production fell by 1.4% in May on a year earlier, while daily milk deliveries have continued to trend at about 1% below last year’s levels.

In 2023 there were 51,400 dairy cows farmed organically in the UK, according to Defra, a fall of 6,000 head on the previous year.

This accounts for just 1.6% of dairy cows in the UK. Meanwhile, the EU has a 25% organic target by 2030.