April 16, 2019

Organic Processors Unsheltered from Financial Turmoil

 |  By: Anna-Lisa Laca

Organic milk, once thought to be the golden goose of the dairy industry,  is not exempt from the current milk price fundamentals. Organic Valley Cooperative, the largest organic milk processor in the country, posted its second year of losses in a row.


According to company officials, a surplus of dairy products are to blame for two consecutive years of negative profits totaling $12.6 million. Despite a 1% increase in milk sales last year, the company’s total expenses caused them to fall short, according to interim CEO Bob Kirchoff.


Dairy producers received an average of $29.74 per cwt in 2018. 


In 2018, the cooperative had more than 2,000 farmer-members who farm about a half-million organic acres in 35 states and Canada.