Conventional dairy farming saves organic milk

The point is that the organic milk price has not been able to keep up with the increase in the prevailing milk price. This is apparent from, among other things, a comparison of price developments in the Boerenbusiness common en organic milk price comparisons.

Where last year the milk price difference was still 10 to 12 cents per kilo, the current price difference has decreased to about 5 to 6 cents per kilo. This is not the case for all dairy farmers, but it is the case for the largest number. Moreover, this smaller price difference is now available with very different price ratios. 

This concerns the situation in the Netherlands. The number of organic dairy farmers there has not increased seriously in recent years, despite all kinds of incentives.

French organic dairy farming overstimulated
In France it is a different story. Due to all kinds of incentives, the number of organic dairy farmers has grown rapidly in recent years, to about 10% of the total number of dairy farmers (but not to 10% of the milk pool). The growth was so strong that the milk price came under serious pressure. That was already the case last year, before the normal milk price all over the world rose sharply. Organic dairy farmers got into serious trouble as a result. Especially the members of the Biolait cooperative, which only represents organic dairy farmers. For processors with both conventional and organic dairy farmers, the pain for the organic dairy farmers could be alleviated somewhat at the expense of the conventional milk flow.

A lot of milk depreciated
In the meantime, this did not detract from the fact that a large part of the organic milk in France had to be written down to conventional ones and the organic product did not yield the cost price. This situation more or less lasted until April, May 2022. Organic dairy farmers did not receive more than about 40 cents for a liter of milk.

Sold more expensive than usual
A large part of this milk was still 'depreciated', but has meanwhile been sold at a higher price on the spot market and in the conventional circuit. Buyers in Northern Europe in particular have readily paid 50 cents or more for French milk in recent months.

Meanwhile, the organic milk price in France is noticeably increasing, more towards 50 cents. However, it is still not thanks to an increasing demand for organic product. Maybe this will happen someday, but for now it will remain the conventional dairy market that keeps the organic market 'clean'. The shortages in the mainstream market are still such that this happens effortlessly. With current prices for cream and powders, a bargain price of 60 cents per kilo of milk can still be paid, or just a few cents less for French milk with lower fat and protein levels.

Consumers hardly notice anything
In the Netherlands and the Scandinavian countries, considerably higher prices are paid for organic raw milk than in France, but the added value of organic milk has still not been restored at the processing level in industry from a price-technical point of view. The industry knows how to deal with it, the consumer hardly notices it. It is especially unfortunate for the organic dairy farmers.