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Opportunities for organic dairy rising for UK farmers as market grows

The global organic dairy market is anticipated to grow by more than 50 per cent, reaching US$28 billion (£21.3bn) by 2023, with new uses for organic dairy ingredients being cited as a key growth driver.

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According to the 2019 global organic dairy market report released this week by Omsco, alongside its international partners Organic Valley and Eko Holland, the sector, currently worth US$18bn (£13.7bn), is growing rapidly and creating new opportunities in the UK and globally.

 

Richard Hampton, managing director, Organic Milk Suppliers Co-operative, said: “Worldwide consumption, distribution and market reach of organic dairy is increasing, and now represents 20 per cent of all organic food and drink sales globally.

 

“The organic dairy market in the UK specifically has also grown 3.1 per cent year-on-year, and we have seen a 10 per cent increase in the number of households which purchased organic milk since 2017.”


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Primary driver

 

However, although the global liquid milk market was performing well, equating to 24 per cent of all organic dairy sales, Mr Hampton said the primary driver of future growth was expected to be new markets and emerging product categories, such as cheese and specialist organic dairy ingredients.

 

But with Brexit terms unknown, it was not clear what the UK growth potential in these areas could be.

 

“The UK is already a net exporter of organic dairy products, and a no-deal Brexit would deliver what amounts to an export ban for organic products to the EU, as UK organic standards will no longer be recognised,” he added.

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