Organic Dairies Still Feeling Impacts of High Prices

Organic Dairies Still Feeling Impacts of High Prices

Organic fluid milk sales increased 0.7 percent year over year for the month of June, mostly buoyed by organic whole milk sales, which increased 7.3 percent year over year.  Organic flavored milk sales are the big loser, declining 42.3 percent year over year.

Organic soybean meal prices have eased for organic dairies following the great post-pandemic squeeze when organic soybean meal hit historic highs. Profit margins are still under considerable pressure with lingering price increases on both fixed and variable costs.  Dairies are among the most margin sensitive enterprises, and organic dairies are even more so.

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