Retail prices of U.S. organic milk up more than 10% in recent weeks as last year's weather in Midwest, Plains states dent production on many grain, dairy farms

Nevin Barich

LOS ANGELES , February 20, 2012 (Industry Intelligence) – Prices of organic milk in the U.S. have risen by more than 10% in recent weeks as last year’s weather in the Midwest and Plains states have dented production on many grain and dairy farms, the Wall Street Journal reported Feb. 18.

Additionally, the price of organic corn has risen 65% in the past year, forcing many organic dairy farmers to feed less of it to cows, which has cut milk output even more.

Although organic farmers command about a third more money for their milk than do conventional farmers, they also face far higher feed costs and the prices they receive for their milk change more slowly than they do for conventional milk. Also, organic milk represents less than 5% of total U.S. milk production, making it far more vulnerable to supply disruptions than conventional milk.

The primary source of this article is The Wall Street Journal, New York, New York, on Feb. 18, 2012.

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