FDBusiness.com

Organic Milk Continues to Buck the Trend in the UK

 Breaking News
  • Younger British Consumers Turn Over a New Leaf on Tea New research from Mintel reveals that as many as 37% of British consumers aged 25-34 have drunk 5-6 different types of tea at home or in the workplace over the past month*, compared to just 3% of those aged 55+. Furthermore, Brits aged 25-34 are the most likely to drink every variety of tea tracked by [...]...
  • Irish Consumer Confidence Hits New High Consumer confidence in Ireland has hit its highest level since the recession and is now the fourth most confident country in Europe, according to the latest Nielsen Global Survey of Consumer Confidence and Spending Intentions. The Republic of Ireland’s Consumer Confidence Index score – which measures attitudes each quarter on topics including personal finances and job prospects [...]...
  • Fifth Acquisition For Frutarom in 2017 Frutarom Industries, one of the world’s 10 largest companies in the field of flavours and natural specialty fine ingredients, continues its momentum of acquisitions and the implementation of its rapid and profitable growth strategy by agreeing to purchase of 100% of the shares of the UK company Flavours and Essences (UK) Ltd (F&E) for approximately [...]...
  • Market-leading Food Contact Conference, Plastics & Paper in Contact with Food – 4-7 December, Berlin Over 200 experts from across the food contact industry will come together in Berlin, Germany from 4–7 December 2017 to attend Smithers Pira’s Plastics & Paper in Contact with Foodstuffs (P&P) –http://www.food-contact.com/plastics-paper. With the European Commission having recently published EU regulation 752/2017 amending EU Regulation 10/2011 on plastic materials and articles intended for food contact, all [...]...
  • Croxsons’ Stunning Black Bottle For 6 O’Clock Gin’s Limited Edition Debut Leading glass packaging company Croxsons has supplied Bristol based distiller, 6 O’Clock Gin, with a stunning black bottle for their first limited edition gin product – the Brunel Edition. Since Bramley & Gage’s partnership with Croxsons for the re-launch of their 6 O’Clock gin, the Brunel Edition is the first limited edition gin for 6 O’Clock [...]...
  • Carlsberg Group Remains on Course Carlsberg Group has announced organic and reported net revenue growth of 2% to DKr31.77 billion (€4.27 billion) for the first half of 2017 although group beer volumes fell organically by 3%, chiefly due to a decline in Russia. Operating profit was up 15% organically, with all three regions – Western Europe, Eastern Europe and Asia [...]...

Organic Milk Continues to Buck the Trend in the UK

Organic Milk Continues to Buck the Trend in the UK
June 01
12:37 2017

UK organic milk volumes increased by 4.4% in 2016, in contrast to the standard milk category which fell by 1.9% during the same period. The increase is being attributed to an organic milk recovery, in spite of reducing conventional prices and increasing organic shelf premiums.

According to the 2017 organic milk market report, produced by the Organic Milk Suppliers Cooperative, (OMSCo), over the last year one in four households now purchase organic milk, which is an increase of 15%.

“Last year the organic milk category attracted one million new households – more than any other milk sector in the UK,” says OMSCo managing director, Richard Hampton. “This is despite it being a private label dominated category, and therefore subject to less advertising and innovation than other growth milk segments such as dairy alternatives and filtered milk, and increasing shelf premiums as conventional prices fell.”

Richard Hampton.

He continues: “However, UK organic dairy growth is still behind other key international markets, growing at a rate of just 2.2%. This is compared to the USA market which is growing 10% year-on-year and European markets, such as Germany and France, which are also witnessing significant growth.”

Globally, organic dairy is in a period of strong growth and is one of the largest sectors within the organic food and drink market, worth $9.5 billion in a market valued at $82 billion.

“For this reason, exports have become an increasingly important market for UK organic dairy products,” explains Richard Hampton. “Over the last 10 years exports have grown from zero to 20% of UK organic milk sales. They play an important role in balancing UK market fluctuations, and therefore delivering a stable return to UK organic dairy farmers.”

“Export expansion has been constrained in the last couple of years by a lack of supply due to the UK market recovery and last year’s poor growing season. However, new organic milk supplies – the vast majority of whom are joining OMSCo – will emerge during 2017 and 2018 to support the growth of these markets, and together with like for like expansion we are seeing from existing producers, we expect the UK to be able to cover growing UK demand and export opportunities without there being requirement for further milk at this stage.”

Richard Hampton adds that he attributes global growth drivers to consumer demand for products with health and wellbeing benefits as well as a solid provenance story. “Organic dairy offers consumers a host of benefits including increased levels of omega-3, and we remain confident that UK and global demand for high quality, sustainable and healthy organic dairy will remain strong.”

“However, there are threats, notably the emergence of ‘single issue’ products (Free Range; Ethical) the benefits of which are covered by the organic standard but may not be understood by consumers, whilst on the export front Brexit poses a significant threat to export-led food sectors, including organic dairy, as well as any potential downturn.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2017drinktec
  • September 13, 2017FI Asia
  • September 19, 2017PROCESS EXPO 2017
  • September 22, 2017Global Summit on Food & Beverages
AEC v1.0.4

The Magazine

F&D Business Preferred Suppliers

Advertisements