Inside Milk
Organic dairy mainly sees growth in Asia
In the Netherlands, 4% of dairy farms are organic. The number increases slightly every year due to increasing demand. This demand is not growing quickly, mainly because consumers do not want to pay the extra price for organic dairy. Dutch providers mainly see growth abroad.
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The Netherlands has an important competitive advantage in this global organic dairy market. For example, FrieslandCampina is trying to expand the organic milk flow. The cooperative dairy group has introduced infant nutrition under the Friso Prestige Organic brand in Hong Kong. Furthermore, it mainly focuses on fresh milk, cheese and organic ingredients.
More space for organic
From October 1, 2021, FrieslandCampina will have more space to process organic milk, a spokesperson said. This allows market demand to be met. Members who are still on the waiting list can also supply organic milk. FrieslandCampina currently has approximately 150 organic milk suppliers.
The EU has set a target in the "Farm to Fork (F2F)" plan to make at least 2030% of all available agricultural land organic by 25. The Farm to Fork plan is part of the Green Deal and must ensure a sustainable food chain in the European Union. Many goals in the Farm to Fork plan ensure a significant impact in the dairy sector. The plan to make the dairy sector 25% organic is one of the largest.
Although the demand for organic dairy products is increasing, there is not enough growth to meet the EU targets. According to the annual report of certification organization Skal, the number of companies grew from 2015 to 2020 between 1.625 and 2.115. Skal notes that growth is leveling off in these years.
Greatest biological pacemakers
The growing demand for organic dairy products is mainly occurring in Asia. Analysts expect a 16,3% increase in organic dairy consumption in China. Baby food and baby milk powder in particular are the main driving force. This is exactly the market that FrieslandCampina wants to respond to.
The political organic ambitions may therefore be great, but judging by the example in Asia, the market and consumers are the biggest drivers for an organic advance.