What does the organic farmer need to be profitable and provide for the next generation?
• As of June 2008, in the northeast and midwest, organic dairy farmers need a base price of $35 per hundred pounds of milk ($1.51 per ½ gallon) to be profitable enough to cover their production costs, provide for their family and present a viable future for the next generation. This is the equivalent of an additional 31 ¢ per ½ gallon over the current pay price to continue to provide high quality organically certified milk from family farms into the future. How can this be paid in tough economic times? • The retail price of organic milk varies by as much as $1.80 depending on where it retails and which brand it is sold under. There are many in-store promotions that can lower the price in order to gain market share. • With that much variation in retail price and an average 20% growth in consumer demand, the future can be profitable for all levels of organic dairy. If the consumer paid an extra 20¢ per ½ gallon, and the processing company and the retailer gave a few percentage points on
