Organic Producers tough it out in uncertain times

Low premiums and high feed costs are forcing some organic milk producers back to conventional production. And according to The Dairy Group's Mike Palacio, several producers have already left or are considering leaving the organic sector.

With high feed prices and a reducing premium in relation to conventional milk prices, organic dairy businesses are in a difficult position. "The price has come down from 35p/litre in the past six months and for a herd producing 2m litres a year, that's an £80,000 hit", says Mr Palacio.

Two and a half years ago, the organic milk premium was about 10p/litre, when organic feed prices were nowhere near as high as they are now in relation to conventional feed costs. Currently organic feed costs between £360 and £425/t and the premium for organic milk is down to between 3p and 7p/litre.

Organic milk supply has in the past suffered from too many converters moving into the sector at a time of high premiums only to find by the time they have completed conversion, so many more have done the same that premiums are quickly eroded.

"We have no new dairy converters at present. Once the conventional milk price went back up to 25p/litre, the interest in organic conversion evaporated, "says Mr Palacio.

There were just 5m litres of milk in conversion in 2008, says the Soil Association's Phil Stocker. He suggests, with so few converters last year there will be opportunities for a limited number of conversions, so those producers may be ready to take advantage of an improvement in demand when the recession ends.

Dairy Cows 'hungry and emaciated' by high milk production, says CIWF

Compassion in World Farming says cows across Europe are suffering as a result of being bred to produce unreasonable amounts of milk.

The claims came after an extensive study on dairy systems by the European Food Safety Authority found that long-term genetic selection for higher milk yields was a major factor affecting cow health and welfare.

The five-part report said cattle should be genetically selected to address resistance to diseases such as lameness, as well as improving their fertility and health.

It also recommended that cattle were given enough space to take into account the increased body form and size of genetically-selected cows.

However CIWF claimed the report showed cows produced in the European Union suffered from hunger, lameness and infertility.

Calling for consumers to buy organic milk, CIWF said dairy cows were being bred to produce more milk than was healthy for them and were increasingly reared in zero-grazing systems, causing "serious welfare problems".

Phil Brooke, CIWF welfare development manager said the industry had been milking cows beyond endurance for too long.

Happy Healthy Cows Rickshaw / Cycle Ride

The Happy Healthy Cows campaign is planning a rickshaw / cycle ride through the streets of Central London on Sunday 26th July to raise awareness and funds for the welfare and wellbeing of cows. 5 rickshaws and 16 cyclists will veer through streets small and big - why don't you join us.

Details:
Gathering at Trafalgar Square for 10.30am / please contact mte@pamho.net for registration

If you cannot join, we would greatly appreciate support for this cause, please dig deep in your pockets and sponsor us at:

http://www.justgiving.com/Sita-Rama/