DENMARK: Arla unable to offload organic milk as consumer demand remains slow

Denmark's major dairy company, Arla Foods , is swimming in organic milk. Only one third of the milk sold by the farmers to Arla can be sold on as organic, and there has never been such a gap between what supply and demand. "It is a waste of resources. We need to find a solution to get a better balance," said Niels Bøgedal, vice-chairman in the Danish Dairy Association.

January 22, 2001

Denmark’s major dairy company, Arla Foods, is swimming in organic milk. Only one third of the milk sold by the farmers to Arla can be sold on as organic, and there has never been such a gap between what supply and demand.

“It is a waste of resources. We need to find a solution to get a better balance,” said Niels Bøgedal, vice-chairman in the Danish Dairy Association.

Two thirds of the organic milk which is not sold to consumers as organic, is not sold as drinking milk, but is mixed with traditional milk and used to make dairy products like cheese and butter.

“One possibility is that some producers leave organic farming, so that the amount of milk produced falls. […] this is not unrealistic,” said Niels Bøgedal to Danish daily Kristeligt Dagblad.