Arla terminates contracts with 29 organic milk producers in Sweden
Økologisk NuThe sale of organic milk in Sweden has been sluggish in recent years. According to Arla Sweden, the demand for organic milk in retail has decreased by 60% since 2016. At the same time, sales to foodservice have fallen by just over 20%. This has now led Arla to terminate contracts with 29 organic producers, reports the Swedish agricultural media Husdjur. "Unfortunately, many consumers are not willing to pay for organic dairy products. We are doing this to create a balance between supply and demand and to generate the greatest possible value for all of Arla's members," says Max Wallenberg, press officer at Arla Sweden. In addition to the 29 organic farms whose contracts are being terminated, Arla has also canceled contracts with 23 conventional Arla cow farms. These are suppliers who receive extra payment because they meet stricter requirements for animal welfare and sustainability. The 29 organic farms will receive a one-year notice period. During this time, they will continue to receive payment for their organic milk. Afterward, they can continue to supply milk to Arla as conventional producers. While organic sales in Sweden have been in decline for several years, Arla informs the Swedish media that demand for organic milk in countries like Germany is increasing, and that the trend in the UK has started to turn around.
The sale of organic milk in Sweden has been sluggish in recent years. According to Arla Sweden, the Swedish demand for organic milk in retail has decreased by 60 percent since 2016. At the same time, sales to foodservice have fallen by just over 20 percent.
This has now led Arla to terminate contracts with 29 organic producers, reports the Swedish agricultural media Husdjur.
"Many consumers unfortunately are not willing to pay for organic dairy products. We are doing this to create a balance between supply and demand and to generate the greatest possible value for all of Arla's members," says Max Wallenberg, press officer at Arla Sweden.
In addition to the 29 organic farms whose contracts are being terminated, Arla has also canceled contracts with 23 conventional Arla cow farms. These are suppliers who receive extra payment because they meet stricter requirements for animal welfare and sustainability.
The 29 organic farms will receive a one-year notice period. During this period, they will continue to receive payment for their organic milk. Afterwards, they can continue to supply milk to Arla as conventional producers.
While organic sales in Sweden have been in reverse gear for several years, Arla informs the Swedish media that demand for organic milk in countries like Germany is increasing, and that the development in the UK has begun to turn around.