[Editor’s note: Although the following article provides information on factors impacting the cost of organic fluid milk, this discussion is relevant to all dairy-derived organic ingredients, from proteins to butter to specialty components, used in the formulation of organic products. This article was first published in the March 2010 issue of Amber Waves; see more information at the article’s end.]
Organic milk production has been one of the fastest-growing segments of U.S. organic agriculture. Between 2000-2005, the number of certified organic milk cows increased an average of 25% each year to more than 86,000 in 2005. The number of farms specializing in organic milk production more than tripled between 2002-2007, to more than 1,600. Many of these are small dairy operations that have switched to the organic approach to help improve farm profitability.