28 Aug 2007


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Organic milk business worth £145m is fastest growing sector of dairy market

Organic

Green-Retail

Dairy

Source : Yeo Valley Organic
Britain's organic milk business was worth £145m in the year to mid July, and is the fastest growing sector of the dairy market, according to Yeo Valley Organic in a review of the market.

The market value compares strongly to the £121.m figure recorded over the 12 months to July 2006 and shows growth of 20%, triple the 6% performance logged for the total milk market.

According to Yeo Valley's audits, produced by Nielsen, the Somerset based dairy is now the brand leader of the organic sector, with an 8.9% share.

It is followed by Rachel's with a 2.8% share. As in the total market, private label accounts for the biggest share of sales. It moved ahead by just over 15%.

Says Yeo Valley: “Organic milk has become one of the most dynamic markets in the total grocery trade, with sales volume rising by double digits and strong growth reported for both branded and own label products.

"This is against the background of a conventional milk business which had been regarded as a commodity market for many years.

“Though the growth rate of organic was held back by a shortage of supply at the end of 2006 and early 2007, it is still moving ahead strongly and advancing at a rate well ahead of the total milk market.

“Though selling at a premium to conventional milk, due to the fair price being paid to organic dairy farmers for their output, organic milk is now the preferred regular buy for a growing number of shoppers.

"They choose it for a variety of reasons, including taste, animal welfare benefits and nutritional advantages, such as its naturally higher Omega 3 content.”

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