Arla Foods is increasing payments to farmers looking to focus more on organic production.

The dairy giant said it hopes to get more conventional milk producers to convert to organic production.

"We're raising the organic supplement out of a wish to source more organic milk as there is clearly a need for it," says Arla Foods' vice CEO Povl Krogsgaard.

In a policy departure, Arla said that rather than the organic supplement reflecting higher production costs it has been increased to reflect the company's desire to source more organic milk.

"The organic dairy sector is growing in Denmark and Sweden and in order to keep pace with demand we must attract more organic farmers," a spokesperson for Arla told just-food.

Arla has targeted an annual increase in organic milk production of 55m kg in Denmark, to 375m kg, and 100m kg in Sweden, to 226m kg, before 2011.

Arla Foods is currently the world's largest producer of organic milk products.