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.
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