FDBusiness.com

Organic Milk Continues to Buck the Trend in the UK

 Breaking News
  • Carlsberg Group Increases Ownership of Super Bock Group in Portugal The Carlsberg Group has acquired 28.5% of the shares in Viacerm which is the controlling shareholder of Super Bock Group, holding 56% of the shares. The other 44% of the shares in Super Bock Group are owned by Carlsberg. Super Bock Group is the market leader in Portugal, holding a market share of 47% with a [...]...
  • UK Restaurant Numbers Fall 2% in a Year The number of restaurants in Britain slipped by 2.0% over the year to September 2018, the new edition of the Market Growth Monitor from CGA and AlixPartners reveals – equivalent to more than 10 closures a week. The exclusive research shows that Britain had a total of 26,892 restaurants at September. The net fall of 539 [...]...
  • ABP’s Olleco on Shortlist For Davos Sustainability Award ABP Food Group’s renewable division, Olleco, has been shortlisted for a prestigious ‘Circular’ sustainability award for its development of a circular economy model with McDonald’s and Arla Foods in the UK. The awards are an initiative of the World Economic Forum and the Forum of Young Global Leaders and winners will be announced at the [...]...
  • Arla Foods Acquires Middle East and Africa Kraft Branded Cheese Business From Mondeléz International European dairy co-operative Arla Foods has reached an agreement with US-based international confectionery, food, and beverage company Mondeléz International to acquire its processed cheese business in the Middle East region, which is currently licensed under the Kraft brand. The acquisition also gives Arla full ownership of a state-of-the-art cheese production site in Bahrain, which provides [...]...
  • UK Grocery Market Growth Cools as Christmas Nears Despite retailers and shoppers getting into the festive spirit, the latest grocery market share figures from Kantar Worldpanel, for the 12 weeks to 2 December 2018, show the sector is now growing at 2.0% – its slowest rate since March 2017. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, comments: “Consumers are benefiting [...]...

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

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements