It wasn’t that long ago that U.S. dairy farmers couldn’t keep up with the booming demand for organic milk. While everyone from hipsters to housewives is drinking more of the stuff than ever — and paying twice as much as conventional milk — the days of shortages are long gone.
Production has surged so fast in the past two years that some of the surplus is being sold at a lower price without an organic label. A few dairies are just dumping what they can’t sell. The wave of new supplies reflect an expansion of cow herds by farmers seeking the hefty premiums and growing market share for organic products at a time when most Americans are drinking less milk.
Organic milk remains a niche in the $40 billion dairy industry, but it has become a staple in most U.S. supermarkets. Sales have more than doubled in a decade, prompting companies including processor Dean Foods and yogurt maker Danone to add organic products.
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