Funding key to organic dairy profitability

Funding key to organic dairy profitability

Organic dairy products are the top grossing category in organic markets, with over $1.6 billion in sales recorded in 2021, according to the USDA 2021 Organic Survey. Organic eggs followed, representing $1.2 billion in sales annually.

Like all small dairies, organic dairies struggle to remain profitable. They are vulnerable to any disruption in cash flow, such as the novel conditions encountered during the pandemic. Millions of gallons of milk were dumped; an estimated 3.7 million gallons a day according to Dairy Farmers of America.

After the pandemic, the USDA eased the financial loss by paying 80% of milk revenues for qualifying farms through the Pandemic Market Volatility Assistance Program (PMVAP). This was too late for some dairies, who did not have the capacity to weather a major financial disruption.

Compounding this, Horizon Organic left dozens of dairies throughout New England without a market.

Membership is required to view the rest of this post.
Click here to learn more and sign up for a free 7-day trial!

Blog

11.20.2024

Biodiesel supply tightens heading into the new year

Biodiesel supply tightens heading into the new year

Producers, blenders and fuel suppliers are reporting a slowdown in trading this week. A Fastmarkets survey of participants showed that overall sentiment has the market slowing ahead of...

11.20.2024

California UCO prices climb; DCO production eases slightly from record high

California UCO prices climb; DCO production eases slightly from record high

US animal fats and oils prices showed mixed trends on Wednesday November 20, with most market activity concentrated in the Gulf and West Coasts.

11.20.2024

US animal proteins steady; avian flu in birds increases in fourth quarter

US animal proteins steady; avian flu in birds increases in fourth quarter

US animal protein prices were steady on Wednesday November 20. Limited trade was reported from market sources due to the proximity of the extended Thanksgiving weekend starting on Thursday...

Latest Tweets