DEMAND for organic milk is on the up with volume sales rising 4.4% last year, in contrast to that of standard milk which fell by 1.9% during the same period.
The figures from the 2017 organic milk report, also show that one in four households now purchase organic milk, which is an increase of 15% on the year. 
Notably, this increased demand comes on the back of reducing conventional prices while organic milk rises in value, according to the Organic Milk Suppliers Cooperative, (OMSCo).
“Last year, the organic milk category attracted 1m new households – more than any other milk sector in the UK,” said OMSCo managing director, Richard Hampton.
“This is despite it being a private label dominated category and, therefore, subject to less advertising and innovation than other growth milk segments such as dairy alternatives and filtered milk, and increasing shelf premiums as conventional prices fell.
“However, UK organic dairy growth is still behind other key international markets, growing at a rate of just 2.2%. This compares to the USA market, which is growing 10% year-on-year and European markets, such as Germany and France, which are also witnessing significant growth,” said Mr Hampton.
Globally, organic dairy is in a period of strong growth and is one of the largest sectors within the organic food and drink market, worth $9.5bn in a market valued at $82bn.
Exports have become an increasingly important market for UK organic dairy products too with sales having grown from zero to 20% over the past 10 years. However, this has been constrained over the last couple of years due to a lack of supply and last year’s poor growing season.
New organic milk supplies – the vast majority of whom are joining OMSCo – are expected to emerge during 2017 and 2018 to support the growth of these markets, and together with like for like expansion from existing producers, it is expected that the UK will be able to cover the growing demand and export opportunities without requirement for further milk at this stage.
According to Mr Hampton demand has been led from the health and wellbeing benefits of organic milk as well as a solid provenance story.
“Organic dairy offers consumers a host of benefits including increased levels of omega-3, and we remain confident that UK and global demand for high quality, sustainable and healthy organic dairy will remain strong.”
“However, there are threats, notably the emergence of ‘single issue’ products the benefits of which are covered by the organic standard but may not be understood by consumers. On the export front, Brexit poses a significant threat to export led food sectors, including organic dairy, as well as any potential downturn.”