Worldwide Market Reports added Latest Research Report titled “Organic Milk Market – Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026”.
Organic milk is a type of drinking milk obtained from livestock raised by organic farming methods. Milk must be labeled with organic certification such as EU-Eco-regulation and USA NOP, to be considered organic.
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Growing inclination of consumers towards organic food and beverages is increasing demand for organic milk. Regulations involved in production of organic milk prohibit the use of synthetic hormones, thus making the milk healthier than conventional milk. Organic milk has a longer shelf-life than conventional milk, as it undergoes a process called ultrahigh temperature (UHT) processing.
However, high cost associated with organic dairy farms and strict organic feed regulations imposed for organic dairy cows pose as major restraints for new entrants in the market, in turn inhibiting organic milk market growth. Furthermore, shelf price of organic milk is much higher than conventional milk, which in turn hampers growth of the organic milk market.
The organic milk market is subject to revised regulations on standardization practices involved in production of it. For instance, according to the U.S. Department of Agriculture, 2017, farmers will have to ensure that at least 30% of their cows’ diet comes from pasture grass during the mandatory grazing season.
Several small and medium-sized producers in the U.S. rely on organic dairy co-ops for successful economic survival. In the U.S., organic milk accounted for 18% of milk sales and was worth US$ 2.5 billion in 2016.
Increasing number of companies are focusing on inorganic strategies such as mergers and acquisitions and partnerships to enhance their global footprint. In November 2017, Organic Milk Suppliers Co-operative— world’s second largest 100% organic milk producer—partnered with Wyke Farms—U.K.’s largest independent cheesemaker—to form a new venture called the British Organic Dairy Company. Through this venture, the company is adopting vertical integration to produce a guaranteed supply of high-quality, good-value organic dairy products around the world.
Arla Foods—world’s largest organic milk provider based in Europe—launched its first branded organic milk in the United Arab Emirates (UAE), in September 2018. This is the company’s biggest growth strategy to market its products outside Europe. The company has plans to expand into Saudi Arabia and Kuwait by 2018.
In April 2018, Wattle Health and Niche Dairy announced plans to open a joint venture of large milk spray drying plant, with processing capacity of 200,000 liters of fresh organic milk per day. Wattle Health will be investing US$ 63 million and Niche Dairy US$ 7 million, to build the project at North Geelong.
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