The continued double-digit growth in certified organic foods is now a well documented, multi-year trend. One of the best examples of an organic food segment is organic dairy. It deserves closer analysis due to its unique supply, demand and processing characteristics; and because of its sustained and impressive growth.

The focus of this report is on the various classes of dairy that result from processing fluid milk. Seasonal supply and demand fluctuations, perishability of products and rising use of organic dairy ingredients in packaged goods all contribute to an organic dairy component supply chain that is particularly vulnerable to shortages, excess supply that must be sold as conventional or simply discarded, dependence on imports and other difficulties. These and other challenges raise the cost of doing business for organic dairy components and ingredients.

This report analyzes supply and demand components of the market for various classes of organic dairy components such as beverage/fluid milk, yogurt and cream, cheese, milk powders and butter. It also delves into the structure of pricing and contracting practices and include information on dairy processing infrastructure, logistics and economics.

To access this report and other market analyses, contact Mercaris at info@mercaris.com or (312) 423-1875.

Contents

Introduction

Methodology

Overview of the Organic Dairy Market

  • U.S. Organic Milk Production
  • U.S. Organic Dairy Product Imports & Export's
  • Organic Milk Demand
  • U.S. Organic Dairy Product Sales

Market Structure & Segmentation

Other Trends to Watch

Business As Usual: Strategic & Tactical Realities of the Organic Dairy Supply Chain

  • “It’s a Balancing Act:” Matching supply &
  • demand in organic dairy products
  • Processing Challenges
  • Long Fluid Milk, Short Information: Price discovery as a key challenge