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| Is love affair with organic milk curdling |
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By :
Harry Wallop - (Telegraph - Business Correspondent)
February 26, 2007
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Excerpt...
The middle class's love affair with organic milk might be starting to sour, according to the latest industry data.
After years of paying a premium for supposedly healthier milk, shoppers are no longer buying organic milk in ever increasing numbers.
According to market research company TNS, which closely monitors the market, sales of organic milk grew from 73.8 million litres in 2004 to 158 million last year. Though that represents rapid growth, it has slowed down considerably in recent months. Growth in the last 12 weeks has faltered to zero.
Organic represents only six per cent of all milk bought. Despite being championed by a host of celebrities such as Anthony Worrall Thompson, this percentage shows little sign of rising substantially.
If the trend continues it would be a blow for the industry, which led the way in a food revolution that saw a pint placed in every self-respecting middle class shopping basket – nestled next to the coriander and fair-trade bananas. Last week Tesco raised its prices of organic milk to an all-time high. A four-pint bottle of organic milk is now 146p.
This compares to 111p for a standard four-pint bottle and means consumers are paying a premium of 32 per cent.
Tim Smith, the head of the Britain's largest milk processor, Arla, said: "It's starting to plateau because of the price premium."
However, fans of organic milk claim the dramatic slowdown and rising prices are because of a lack of supply, with it taking at least two years for farmers to undertake the expensive process of converting to organic.
Barry Nichols, the head of dairy company Milk Link, said: "I think the underlying growth is very strong. The problem is lack of supply, and in those conditions prices rise."
The Organic Milk Suppliers Co-operative...said consumers would continue to buy organic, regardless of the price increases.
A spokesman said: "There is a premium, but it works out at just £1 a week. That really is not very much."
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