Organic Herd, a British farmer-owned co-operative has announced a further 3ppl increase in its member milk price effective from August 1, 2024.

This takes the co-operative’s price to 54ppl on a standard litre basis, which represents a 14ppl premium above current conventional milk prices and the highest published milk price so far announced for August by a processor or co-op in the UK.

Martyn Anthony, chief executive of Organic Herd said: “Our latest price increase reflects that domestically and in our major export markets demand for organic dairy is strengthening while supply remains relatively constrained.

“The positive demand led picture for organic dairy is very much linked, we believe, to an upturn in consumer confidence as the impact of the cost of living crisis, and particularly food price inflation, has started to wane. This means that consumers are now not only focused on value when it comes to the weekly shop but also increasingly they are looking for values in terms of how their food is produced, something that organic is well placed to respond to.”

Commenting further, Sara Ogborne, the co-operative’s director of membership and communication said: “Consumers and customers alike are starting to understand ‘How we farm matters’, and the work our farmers undertake in producing without the need for antibiotics (PWAB) is a core part of that, for which both UK and international demand is growing.”

Domestically, Organic Herd is benefitting from an upturn in overall sales of organic dairy products, with organic milk, cheese, yoghurt and butter all in volume growth in the first half of 2024 according to latest Nielsen data1. In particular, sales of organic cheese and butter appear to be re-bounding in the UK with both products outstripping the growth of their conventional dairy counterparts.

Meanwhile, in the USA Organic Herd’s branded cheddar ranges; Kingdom Organic and British Organic Dairy Co. (BODC) brands are witnessing good sales growth. The latter being boosted by increased distribution having secured a listing earlier in the year to supply an additional 400 Sprouts Farmers Market stores across the States.