Farmers see price for organic milk plunge
copyright the Chronicle November 8, 2017
by Joseph Gresser
The price paid to Vermont organic milk producers dropped by $6 per hundredweight over the past year, according to a report provided to the Vermont Milk Commission by the Northeast Organic Dairy Producers Alliance.
The Cooperative Regions of Organic Producer Pools (CROPP), the dairy cooperative that markets Organic Valley products, has told its Vermont members it will pay $28.80 per hundred pounds of milk this December. At the same time last year the price was $34.80.
According to the producers alliance, the average price paid by CROPP during 2016 was $35.68 per hundredweight. This year it is estimated the average price will fall to $30.59.
By spring the price paid farmers will drop another $2, CROPP has told its farmers.
For conventional farmers, who spend around $20 per hundred pounds to make their milk and are seeing milk prices a little over $17 a hundredweight, even the lower price might seem like a dream come true.
But the producers alliance says New England organic dairies’ break-even price is around $35 a hundredweight.
Members of the organic cooperative have quotas based on a farmer’s purchase of preferred stock in CROPP. Should a farmer produce more milk than it allows, the co-op will pay $20 less per hundredweight for the overage.
Perhaps the hardest hit farmers are those transitioning from conventional to organic production. They have been told they will not have a buyer when they produce organic milk.
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