Soured Economy Spoiling Organic Milk Market

By Wesley Oliver,  Newser Staff
Posted Jun 28, 2009 10:55 AM CDT
Southern-California produced Heritage Organic Milk named "Best Tasting Milk in America" by American Masters of Taste.   (Photo: Business Wire)
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(Newser) – "Got Milk?" isn't the question organic dairy farmers want to hear these days. Consumers couldn’t get enough of organic milk three years ago, but the souring economy and glut of new-to-the-market organic farmers have spoiled sales, which are expected to drop nearly 15% this year. “We’re hemorrhaging with an oversupply of milk,” one manufacturer tells the Boston Globe.

Regular dairy farmers are hurting, too, but their organic brethren—whose cows feed on expensive organic grain—are facing a crushing fall after a dramatic rise. The industry hopes new products—chocolate milk, tubed yogurt—and new ad campaigns that tout organic milk's health benefits will lure back consumers. But those consumers will still have to stomach what can be a $7.50 a gallon price tag, compared to about $2.50 for regular milk.