Organic milk to flood U.S. market, Stonyfield yogurt hits Europe
Batten down the hatches: organic milk is about to flood the U.S. A combination of consumer demand and changing practices — a ruling last year required organic dairy farmers to switch to feeding moo-cows 100 percent organic grain instead of 80 percent organic grain — means a “wall of milk” will hit during the second half of this year, says Gregg Engles, CEO of mega-processor Dean Foods, which owns Horizon Organic. The industry expects a 40 percent increase in organic milk supply, creating a surplus of about 25 million gallons. So, cheap organic milk for all, right? Wrong-o: a longer-term glut would be required to bring prices down. While you wrap your mind around that one, we take you to Europe, where Stonyfield Farms CEO Gary Hirshberg is peddling his primary product to a new audience. Pulled into the new market by majority owner Danone, Stonyfield is introducing versions of its organic yogurt in Britain and France. “It’s more than a product,” says Danone CEO Franck Riboud. “It’s a way of life.”
