Denmark organic milk demand is fading fast
The Danish organic milk market has been flooded and premiums halved in the past 18 months; now plans are afoot to export 50% of produce.
Denmark organic milk demand is fading fast
ONLY 60% of organic milk produced in Denmark is sold into the organic market and the premium paid for organic milk has halved over the last 18 months.
Speaking at Agromek, Danish Agricultural Advisory Service adviser, Ejnar Shultz, said that although demand for organic milk had risen rapidly over the last seven years, Denmark was now in a situation of oversupply.
"The price paid for organic milk peaked 18 months ago at 7.5p more than the conventional price; now it is only 3.5p more. Last year, only 60% of organically produced milk was supplied to the organic market with the remainder being sold at the conventional price."
Organic milk currently accounts for 21% of the Danish liquid milk market and marketing experts predict this will peak at 25-30%, according to Mr Shultz.
"There will be an advertising campaign in the next few weeks to try to improve domestic consumption of organic milk. However, to reverse the downward pressure on price, about 50% of it will need to be exported to Germany and the UK."