08/24/07 Organic milk sales continue to grow

There's big growth in the organic food industry; it just experienced 17 percent sales growth. But organic milk retail sales are up 25 percent. USDA economist Carolyn Demetri says there has been so much organic milk demand there have been shortages. DEMETRI "There are gaps in the retail shelves from time to time. I think that partly explains why the price premium is so high for organic milk." Consumers will pay twice the price for organic over standard milk and it's partly because of supply. There are indications that more dairies will be going organic later this year and that could expand the milk customer base and open the door to other organic products like ice cream. Demetri says the average organic milk buyer is white, well educated with a high income. For dairy farmers, Demetri she has this advice. DEMETRI "You can probably expand into other demographic groups and increase your sales without a doubt. There's a lot of untapped market potential here." It all started in 1994 with the Horizon Organic dairy farm in Paul, the nation's first certified organic dairy. Since that opening 80 independent farms have converted to organic to supply Horizon with hay and feed grain. Nearly 30 thousand acres of Idaho farmland have been converted to organic production. Today's Idaho Ag News Bill Scott